                  29.1.2016

                  EN

                  Official Journal of the European Union

                  C 36/240

            P7_TA(2013)0084
      Direct payments to farmers under support schemes within the framework of the CAP (Decision on the opening of interinstitutional negotiations)
      European Parliament decision of 13 March 2013 on the opening of, and on the mandate for, interinstitutional negotiations on the proposal for a regulation of the European Parliament and of the Council establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy (COM(2011)0625/3 — C7-0336/2011 — COM(2012)0552 — C7-0311/2012 — 2011/0280(COD) — 2013/2528(RSP))
      (2016/C 036/39)

         The European Parliament,

                  —

                  having regard to the proposal of the Committee on Agriculture and Rural Development,

                  —

                  having regard to Rules 70(2) and 70a of its Rules of Procedure,

            whereas the financial envelope specified in the legislative proposal is only an indication to the legislative authority and cannot be fixed until agreement is reached on the proposal for a regulation laying down the multiannual financial framework for the years 2014-2020;
      decides to open interinstitutional negotiations on the basis of the following mandate:

         MANDATE

         Amendment 1

         Proposal for a regulation

         Recital 1

                     Text proposed by the Commission

                     Amendment

                              (1)

                              The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on ‘The CAP towards 2020: Meeting the food, natural resources and territorial challenges of the future’ sets out potential challenges, objectives and orientations for the Common Agricultural Policy (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 73/2009 of 19 January 2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) No 247/2006, (EC) No 378/2007 and repealing Regulation (EC) No 1782/2003. In view of the scope of the reform, it is appropriate to repeal Regulation (EC) No 73/2009 and to replace it with a new text. The reform should also
                                    , as far as possible,
                                  streamline and simplify provisions.

                              (1)

                              The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on ‘The CAP towards 2020: Meeting the food, natural resources and territorial challenges of the future’ sets out potential challenges, objectives and orientations for the Common Agricultural Policy (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 73/2009 of 19 January 2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) No 247/2006, and (EC) No 378/2007 and repealing Regulation (EC) No 1782/2003. In view of the scope of the reform, it is appropriate to repeal Regulation (EC) No 73/2009 and to replace it with a new text. The reform should also streamline and simplify provisions.

         Amendment 2

         Proposal for a regulation

         Recital 1 a (new)

                     Text proposed by the Commission

                     Amendment

                                    (1a)

                                    It is necessary to have a strong CAP, backed by a sufficient budget with a real-terms increase over the period from 2007 to 2013, in order to enable the European Union, at all times, to produce the necessary quantity and variety of high-quality foodstuffs and to help promote employment, conserve and produce environmental goods, combat climate change, and manage territory. The CAP should, furthermore, be based on provisions readily understandable to farmers, other stakeholders, and citizens in general, to ensure transparency of implementation, allow oversight, and reduce costs to operators and administrators.

         Amendment 3

         Proposal for a regulation

         Recital 1 b (new)

                     Text proposed by the Commission

                     Amendment

                                    (1b)

                                 One of the core objectives and key requirements of the CAP reform is the reduction of the administrative burden. This aim should be taken firmly into account when shaping the relevant provisions for the direct support scheme. The number of support schemes should not exceed the extent necessary and farmers and Member States should be able to fulfil respective requirements and obligations without excessive bureaucracy. Practice-oriented levels of tolerance, reasonable de minimis limits and an appropriate balance between trust and control should be used to reduce the future administrative burden of Member States and the beneficiaries.

         Amendment 4

         Proposal for a regulation

         Recital 8

                     Text proposed by the Commission

                     Amendment

                              (8)

                              In order to take into account new legislation on support schemes that may be adopted after the entry into force of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission for the purpose of amending the list of support schemes
                                    covered by
                                  this Regulation.

                              (8)

                              In order to take into account new legislation on support schemes that may be adopted after the entry into force of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission for the purpose of amending the list of support schemes
                                    set out in Annex I to
                                  this Regulation.

         Amendment 5

         Proposal for a regulation

         Recital 9

                     Text proposed by the Commission

                     Amendment

                              (9)

                              In order to take into account specific new elements and to guarantee the protection of the rights of beneficiaries, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission
                                    for the purpose of laying down further definitions regarding the access to support under this Regulation,
                                  establishing the
                                    framework within
                                  which Member States shall define the minimum activities to be carried out on areas naturally kept in a state suitable for grazing or cultivation as well as the criteria to be met by farmers in order to be deemed to have respected the obligation of maintaining the agricultural area in the state suitable for production
                                    and the criteria to determine the predominance of grasses and other herbaceous forage as regards permanent grassland
                                 .

                              (9)

                              In order to take into account specific new elements and to guarantee the protection of the rights of beneficiaries, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission
                                    in respect of
                                  establishing the
                                    criteria with
                                  which Member States shall define the minimum activities to be carried out on areas naturally kept in a state suitable for grazing or cultivation as well as the
                                    framework within which Member States are to define
                                  criteria to be met by farmers in order to be deemed to have respected the obligation of maintaining the agricultural area in the state suitable for production.

         Amendment 6

         Proposal for a regulation

         Recital 10

                     Text proposed by the Commission

                     Amendment

                                    (10)

                                    In order to guarantee the protection of the rights of beneficiaries the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission for the purpose of adopting of rules on the basis for calculation of reductions to be applied by Member States to farmers pursuant to the application of the financial discipline.

                        deleted

         Amendment 7

         Proposal for a regulation

         Recital 13

                     Text proposed by the Commission

                     Amendment

                              (13)

                              Experience from the application of the various support schemes for farmers has shown that support was in a number of cases granted to
                                    beneficiaries
                                  whose business purpose was not or only marginally targeted at an agricultural activity, such as airports,
                                    railway companies,
                                  real estate companies
                                    and
                                  companies managing sport grounds.
                                    To ensure the better targeting of support, Member States should refrain from granting direct payments to such natural and legal persons
                                 . Smaller part-time farmers contribute directly to the vitality of rural areas, for that reason they should not be prevented from being granted direct payments.

                              (13)

                              Experience from the application of the various support schemes for farmers has shown that support was in a number of cases granted to
                                    natural and legal persons
                                  whose business purpose was not or only marginally targeted at an agricultural activity
                                    . To ensure the better targeting of support and to reflect national situations as closely as possible
                                 ,
                                    it is important that responsibility for the definition of an ‘active farmer’ be given to the Member States. They should thus refrain from granting direct payments to entities
                                  such as
                                    transport companies,
                                  airports, real estate companies, companies managing sport grounds
                                    , campsite operators and mining companies; unless such entities can prove that they meet the criteria for definition as active farmers
                                 . Smaller part-time farmers contribute directly to the vitality of rural areas, for that reason they should not be prevented from being granted direct payments.

         Amendment 8

         Proposal for a regulation

         Recital 15

                     Text proposed by the Commission

                     Amendment

                              (15)

                              The distribution of direct income support among farmers is characterised by the allocation of disproportionate amounts of payments to a rather small number of large beneficiaries. Due to economies of size, larger beneficiaries do not require the same level of unitary support for the objective of income support to be efficiently achieved. Moreover, the potential to adapt makes it easier for larger beneficiaries to operate with lower levels of unitary support. It is therefore fair to introduce a system for large beneficiaries where the support level is gradually reduced and ultimately capped to improve the distribution of payments between farmers. Such system should however take into account
                                    salaried
                                  labour
                                    intensity
                                  to avoid disproportionate effects on large farms with high employment numbers. Those maximum levels should not apply to payments granted to agricultural practices beneficial for the climate and the environment since the beneficial objectives they pursue could be diminished as a result. In order to make capping effective, Member States should establish some criteria in order to avoid abusive operations by farmers seeking to evade its effects. The proceeds of the reduction and capping of payments to large beneficiaries should remain in the Member States where they were generated and should be used for financing projects with a significant contribution to innovation under Regulation (EU) No […] of the European Parliament and of the Council of….on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) [RDR].

                              (15)

                              The distribution of direct income support among farmers is characterised by the allocation of disproportionate amounts of payments to a rather small number of large beneficiaries. Due to economies of size, larger beneficiaries do not require the same level of unitary support for the objective of income support to be efficiently achieved. Moreover, the potential to adapt makes it easier for larger beneficiaries to operate with lower levels of unitary support. It is therefore fair to introduce a system for large beneficiaries where the support level is gradually reduced and ultimately capped to improve the distribution of payments between farmers. Such
                                    a
                                  system should however take into account labour
                                    employed, including salaries and contractor costs,
                                  to avoid disproportionate effects on large farms with high employment numbers. Those maximum levels should not apply to payments granted to agricultural practices beneficial for the climate and the environment since the beneficial objectives they pursue could be diminished as a result. In order to make capping effective, Member States should establish some criteria in order to avoid abusive operations by farmers seeking to evade its effects. The proceeds of the reduction and capping of payments to large beneficiaries should remain in the Member States where they were generated and should be used for financing projects with a significant contribution to innovation
                                    and rural development
                                  under Regulation (EU) No […] of the European Parliament and of the Council of….on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) [RDR]
                                    . It will then be possible for Member States to allocate the sums generated by the capping to larger beneficiaries, who were subject to the capping exercise, for purposes of investment in innovation
                                 .

         Amendment 9

         Proposal for a regulation

         Recital 20

                     Text proposed by the Commission

                     Amendment

                              (20)

                              In order to ensure a better distribution of support amongst agricultural land in the Union, including in those Member States which applied the single area payment scheme established under Regulation (EC) No 73/2009, a new basic payment scheme should replace the single payment scheme established under Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers, and continued under Regulation (EC) No 73/2009, which combined previously existing support mechanisms into a single scheme of decoupled direct payments.
                                    Such a move
                                  should
                                    entail the expiry of payment entitlements obtained under those Regulations and the allocation of new ones
                                 ,
                                    although still based on the number of eligible hectares at the disposal of farmers in the first year of implementation of the scheme
                                 .

                              (20)

                              In order to ensure a better distribution of support amongst agricultural land in the Union, including in those Member States which applied the single area payment scheme established under Regulation (EC) No 73/2009, a new basic payment scheme should replace the single payment scheme established under Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers, and continued under Regulation (EC) No 73/2009, which combined previously existing support mechanisms into a single scheme of decoupled direct payments.
                                    Member States
                                  should
                                    modify their existing support systems in order to align them with this Regulation
                                 ,
                                    without necessarily abolishing their current direct payments models
                                 .

         Amendment 139

         Proposal for a regulation

         Recital 21

                     Text proposed by the Commission

                     Amendment

                              (21)

                                    Due
                                  to the
                                    successive integration of various sectors into the single payment scheme and the ensuing period of adjustment granted to farmers, it has become increasingly difficult to justify the presence of significant individual differences in the
                                  level of
                                    support
                                  per hectare
                                    resulting from use of historical references. Therefore direct income support should be more equitably distributed between
                                  Member States
                                    , by reducing the link to historical references and having regard to the overall context of the Union budget. To ensure a more equal distribution
                                  of direct
                                    support, while taking account
                                  of the
                                    differences that still exist in wage levels and input costs, the levels of direct support per hectare should be progressively adjusted.
                                  Member States
                                    with direct payments below
                                  the level
                                    of 90 % of the average should close one third
                                  of the
                                    gap between their current level and this level. This convergence
                                  should be
                                    financed proportionally by all Member States with direct payments above the Union average. In addition, all payment entitlements activated in 2019 in a
                                  Member State
                                    or in a region should have a uniform unit value following a convergence towards this value that should take place during the transition period in linear steps. However, in order to avoid disruptive financial consequences for farmers,
                                  Member States
                                    having used the single
                                  payment
                                    scheme, and in particular the historical model, should be allowed to partially take historical factors into account when calculating the value of payment entitlements in the first year of application of the new scheme. The debate on the next Multiannual Financial Framework for the period starting in 2021
                                  should
                                    also focus on the objective of complete convergence through the equal distribution of
                                  direct
                                    support across the European
                                  Union
                                    during that period
                                 .

                              (21)

                                    In addition
                                  to the
                                    convergence of support payments at national and regional levels, the national envelopes for direct payments should also be adjusted so that in Member States with a current
                                  level of
                                    direct payments
                                  per hectare
                                    below 70 % of the Union average, that shortfall is reduced by 30 %. In
                                  Member States
                                    with a level
                                  of direct
                                    payments between 70 % and 80 %
                                  of the
                                    average, the shortfall should be reduced by 25 %, and in those
                                  Member States
                                    where
                                  the level
                                    is more than 80 %
                                  of the
                                    average it
                                  should be
                                    reduced by 10 %. Following application of these mechanisms, the level received should not, in any
                                  Member State
                                    , be less than 55 % of the Union average in 2014 and 75 % of the Union average in 2019. In the case of
                                  Member States
                                    with
                                  payment
                                    levels above the Union average, the convergence effort should not pull those levels below the average. The convergence
                                  should
                                    be financed proportionally by all Member States with
                                  direct
                                    payments above the
                                  Union
                                    average
                                 .

         Amendment 11

         Proposal for a regulation

         Recital 21 a (new)

                     Text proposed by the Commission

                     Amendment

                                    (21a)

                                    In addition to the convergence of support payments at national and regional levels, the national envelopes for direct payments should also be adjusted so that in Member States with a current level of direct payments per hectare that is below 70 % of the Union average, that shortfall is reduced by 30 %. In Member States with a level of direct payments between 70 % and 80 % of the average, the shortfall should be reduced by 25 %, and in those Member States where the level is more than 80 % of the average it should be reduced by 10 %. After those adjustments have been made, the level received should not, in any Member State, be less than 65 % of the Union average. In the case of Member States with payment levels above the Union average, the convergence effort should not result in those levels falling below the average. The convergence should be financed proportionally by all Member States with direct payments above the Union average.

         Amendment 12

         Proposal for a regulation

         Recital 22

                     Text proposed by the Commission

                     Amendment

                              (22)

                              The experience gained with the application of the single payment scheme shows that some of its main elements should be kept, including the determination of national ceilings to ensure that the total level of support does not exceed current budgetary constraints. Member States should also continue to operate a national reserve that should be used to facilitate the participation of young
                                    new
                                  farmers in the scheme or may be used to take account of specific needs in certain regions. Rules on the transfer and use of payment entitlements should be kept but, where possible, simplified.

                              (22)

                              The experience gained with the application of the single payment scheme shows that some of its main elements should be kept, including the determination of national ceilings to ensure that the total level of support does not exceed current budgetary constraints. Member States should also continue to operate
                                    , at least in the first year of the new basic payment scheme,
                                  a national reserve
                                    which can be administered regionally
                                  that should be used to facilitate the participation of young farmers
                                    and new farmers
                                  in the scheme or may be used to take account of specific needs in certain regions. Rules on the transfer and use of payment entitlements should be kept but, where possible, simplified.

         Amendment 13

         Proposal for a regulation

         Recital 22 a (new)

                     Text proposed by the Commission

                     Amendment

                                    (22a)

                                    Member States should be allowed to fix a reduction coefficient, which could be fixed at a zero value in order to have the opportunity to reduce the eligible areas with lower yield potential or for specific productions.

         Amendment 14

         Proposal for a regulation

         Recital 23

                     Text proposed by the Commission

                     Amendment

                              (23)

                              In order to guarantee the protection of the rights of beneficiaries and in order to clarify the specific situations that may arise in the application of the basic payment scheme, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission for the purpose of adopting rules on eligibility and the access in respect of the basic payment scheme of farmers in case of inheritance and anticipated inheritance, inheritance under a lease, change of legal status or denomination and in the case of merger or scission of the holding; adopting rules on the calculation of the value and number or on the increase in the value of payment entitlements in relation to the allocation of payment entitlements, including rules on the possibility of a provisional value and number or of a provisional increase of payment entitlements allocated on the basis of the application from the farmer, on the conditions for establishing the provisional and definitive value and number of the payment entitlements and on the cases where a sale or lease contract could affect the allocation of payment entitlements; adopting rules on the establishment and calculation of the value and number of payment entitlements received from the national reserve; adopting rules on the modification of the unit value of payment entitlements in the case of fractions of payment entitlements and criteria for the allocation of payment entitlements pursuant to the use of the national reserve and to farmers who did not apply for support in 2011.

                              (23)

                              In order to guarantee the protection of the rights of beneficiaries and in order to clarify the specific situations that may arise in the application of the basic payment scheme, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission for the purpose of adopting rules on eligibility and the access in respect of the basic payment scheme of farmers in case of inheritance and anticipated inheritance, inheritance under a lease, change of legal status or denomination and in the case of merger or scission of the holding; adopting rules on the calculation of the value and number or on the increase in the value of payment entitlements in relation to the allocation of payment entitlements, including rules on the possibility of a provisional value and number or of a provisional increase of payment entitlements allocated on the basis of the application from the farmer, on the conditions for establishing the provisional and definitive value and number of the payment entitlements and on the cases where a sale or lease contract could affect the allocation of payment entitlements; adopting rules on the establishment and calculation of the value and number of payment entitlements received from the national reserve; adopting rules on the modification of the unit value of payment entitlements in the case of fractions of payment entitlements and criteria for the allocation of payment entitlements pursuant to the use of the national reserve and to farmers who did not apply for support in
                                    the period from 2009 to
                                  2011.

         Amendment 15

         Proposal for a regulation

         Recital 24 a (new)

                     Text proposed by the Commission

                     Amendment

                                    (24a)

                                    Member States should be allowed to decide to use a part of their national ceilings to grant a complementary annual payment in respect of the first hectares to farmers in order to better take into consideration the diversity of farms with regard to their economic size, to their choice of production and to employment.

         Amendment 16

         Proposal for a regulation

         Recital 26

                     Text proposed by the Commission

                     Amendment

                              (26)

                              One of the objectives of the new CAP is the enhancement of environmental performance
                                    through a mandatory ‘greening’ component of direct payments which will support agricultural practices beneficial for the climate and the environment applicable throughout the Union
                                 . For that purpose, Member States should use part of their national ceilings for direct payments to grant an annual payment
                                    , on top of the basic payment,
                                  for compulsory practices to be followed by farmers addressing, as a priority, both climate and environment policy goals. Those practises should take the form of simple, generalised, non-contractual and annual actions that go beyond cross-compliance and are linked to agriculture such as crop diversification, maintenance of permanent grassland and ecological focus areas.
                                    The compulsory nature of those practises should also concern farmers whose holdings are fully or partly situated in ‘Natura 2000’ areas covered by Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora and by Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds, as long as these practises are compatible with the objectives of those Directives.
                                  Farmers who fulfil the conditions laid down in Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labelling of organic products and repealing Regulation (EEC) No 2092/91 should benefit from the ‘greening’ component without fulfilling any further obligation
                                    , given the recognised environmental benefits of the organic farming systems
                                 .
                                    Non-respect of the ‘greening’ component should lead to penalties on the basis of Article 65 of Regulation (EU) No […] [HZR].

                              (26)

                              One of the objectives of the new CAP is the enhancement of environmental performance. For that purpose, Member States should use part of their national ceilings for direct payments to grant an annual payment for compulsory practices to be followed by farmers addressing, as a priority, both climate and environment policy goals. Those practices should take the form of simple, generalised, non-contractual and annual actions that go beyond cross-compliance and are linked to agriculture such as crop diversification, maintenance of permanent grassland
                                    and permanent pasture
                                  and ecological focus areas. Farmers who fulfil the conditions laid down in Council Regulation (EC) No 834/2007 of 28 June 2007 on organic production and labelling of organic products and repealing Regulation (EEC) No 2092/91,
                                    beneficiaries of agri-environment-climatic payments established pursuant to Article 29 of Regulation (EU) No […] [RDR] and farmers whose holdings are situated in ‘Natura 2000’ areas
                                  should benefit from the ‘greening’ component without fulfilling any further obligation.
                                    On certain conditions, farmers whose holding is certified under national environmental certification schemes should also be able to benefit from the ‘greening’ component. Farmers should be exempted from the obligation of crop diversification and from the obligations linked to ecological focus areas, where at least 75 % of their farm is covered by permanent grassland or permanent pasture or crops under water. This exemption should only apply where the arable land of the remaining eligible agricultural land does not exceed 50 hectares.

         Amendment 17

         Proposal for a regulation

         Recital 28

                     Text proposed by the Commission

                     Amendment

                              (28)

                              In order to ensure that the land under permanent grassland is maintained as such by
                                    the farmers
                                 , the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission for the purpose of the adoption of rules concerning the application of the measure.

                              (28)

                              In order to ensure that the land under permanent grassland
                                    and permanent pasture
                                  is maintained as such by
                                    Member States
                                 , the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission for the purpose of the adoption of rules concerning the application of the measure.

         Amendment 18

         Proposal for a regulation

         Recital 29

                     Text proposed by the Commission

                     Amendment

                              (29)

                              In order to ensure the implementation of the ecological focus area measure in an efficient and coherent way, while taking into account Member States' specificities, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission
                                    for the purpose
                                  of the further definition of the types of ecological focus areas mentioned under that measure
                                    and
                                  the addition and definition of other types of ecological focus areas that can be taken into account for the respect of the percentage referred to in that measure.

                              (29)

                              In order to ensure the implementation of the ecological focus area measure in an efficient and coherent way, while taking into account Member States' specificities, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission
                                    in respect
                                  of the further definition of the types of ecological focus areas mentioned under that measure, the addition and definition of other types of ecological focus areas that can be taken into account for the respect of the percentage referred to in that measure
                                    and to lay down an Union-wide framework of weighting coefficients for calculating the hectares represented by various types of ecological focus areas.

         Amendment 104

         Proposal for a regulation

         Recital 29 a (new)

                     Text proposed by the Commission

                     Amendment

                                    (29a)

                                    In order to improve the environment, combat climate change and improve agronomic conditions, the Commission should, without delay, submit a strategic plan for the supply of vegetable proteins, which will also enable the Union to reduce its very heavy dependence on external sources of supply. The plan should provide for more oil-protein crops and legumes to be grown under the common agricultural policy and should encourage agronomic research into suitable and productive varieties.

         Amendment 19

         Proposal for a regulation

         Recital 33

                     Text proposed by the Commission

                     Amendment

                              (33)

                              Member States should be allowed to use part of their national ceilings for direct payments for coupled support in certain sectors in clearly defined cases. The resources that may be used for any coupled support should be limited to an appropriate level, while allowing such support to be granted in Member States or in their specific regions facing particular situations where specific types of farming or specific agricultural sectors are particularly important for economic, environmental and/or social reasons. Member States should be allowed to use up to
                                    5 %
                                  of their national ceilings for this support
                                    , or 10 % in case their level of coupled support in at least one of the years of the period 2010-2013 exceeded 5 %. However, in duly justified cases where certain sensitive needs in a region are demonstrated, and upon approval by the Commission, Member States should be allowed to use more than 10 % of their national ceiling
                                 . Coupled support should only be granted to the extent necessary to create an incentive to maintain current levels of production in those regions. This support should also be available to farmers holding, on 31 December 2013, special payment entitlements allocated under Regulation (EC) No 1782/2003 and Regulation (EC) No 73/2009 and who do not have eligible hectares for the activation of payment entitlements. As regards the approval of voluntary coupled support exceeding 10 % of the annual national ceiling fixed per Member State, the Commission
                                    should further be empowered to adopt implementing acts without applying Regulation (EU) No 182/2011
                                 .

                              (33)

                              Member States should be allowed to use part of their national ceilings for direct payments for coupled support in certain sectors in clearly defined cases. The resources that may be used for any coupled support should be limited to an appropriate level, while allowing such support to be granted in Member States or in their specific regions facing particular situations where specific types of farming or specific agricultural sectors are particularly important for economic, environmental and/or social reasons. Member States should be allowed to use up to
                                    15 %
                                  of their national ceilings for this support.
                                    This percentage may be increased by three percentage points for those Member States which decide to use at least 3 % of their national ceiling in order to support the production of protein crops.
                                  Coupled support should only be granted to the extent necessary to create an incentive to maintain current levels of production in those regions,
                                    except where the purpose of the support is environmental
                                 . This support should also be available to farmers holding, on 31 December 2013, special payment entitlements allocated under Regulation (EC) No 1782/2003 and Regulation (EC) No 73/2009 and who do not have eligible hectares for the activation of payment entitlements. As regards the approval of voluntary coupled support, the
                                    power to adopt delegated acts should be assigned to the
                                  Commission
                                    in accordance with Article 290 TFEU
                                 .

         Amendment 20

         Proposal for a regulation

         Recital 38

                     Text proposed by the Commission

                     Amendment

                              (38)

                              A simple and specific scheme for small farmers
                                    should be put in place
                                  in order to reduce the administrative costs linked to the management and control of direct support. For that purpose, a lump-sum payment replacing all direct payments
                                    should be established
                                 .
                                    Rules
                                  seeking simplification of formalities
                                    should
                                  be introduced by reducing, amongst others, the obligations imposed on small farmers such as those related to the application for support, to agricultural practices beneficial for the climate and the environment, to cross-compliance and to controls as laid down in Regulation (EU) No […] [HZR] without endangering the achievement of the overall objectives of the reform, it being understood that Union legislation as referred to in Annex II to Regulation (EU) No […] [HZR] applies to small farmers. The objective of that scheme should be to support the existing agricultural structure of small farms in the Union without countering the development towards more competitive structures. For that reason, access to the scheme should be limited to existing holdings.

                              (38)

                                    Member States should be allowed to put in place
                                  a simple and specific scheme for small farmers in order to reduce the administrative costs linked to the management and control of direct support. For that purpose,
                                    Member States should be allowed to establish
                                  a lump-sum payment
                                    or a fix annual payment per beneficiary
                                  replacing all direct payments.
                                    Farmers with annual payments of not more than EUR 1 500 should be automatically included in that scheme. It should be possible for rules
                                  seeking simplification of formalities
                                    to
                                  be introduced by reducing, amongst others, the obligations imposed on small farmers such as those related to the application for support, to agricultural practices beneficial for the climate and the environment, to cross-compliance and to controls as laid down in Regulation (EU) No […] [HZR] without endangering the achievement of the overall objectives of the reform, it being understood that Union legislation as referred to in Annex II to Regulation (EU) No […] [HZR] applies to small farmers. The objective of that scheme should be to support the existing agricultural structure of small farms in the Union without countering the development towards more competitive structures. For that reason, access to the scheme should be limited to existing holdings.

         Amendment 21

         Proposal for a regulation

         Recital 40

                     Text proposed by the Commission

                     Amendment

                              (40)

                              In the interest of simplification and to take into account the specific situation of the outermost regions, direct payments in those regions should be managed within the support programmes established by Regulation (EC) No 247/2006. As a consequence, provisions in this Regulation relating to the basic payment scheme and related payments and to coupled support should not apply to those regions.

                              (40)

                              In the interest of simplification and to take into account the specific situation of the outermost regions, direct payments in those regions should be managed within the support programmes established by Regulation (EC) No 247/2006. As a consequence, provisions in this Regulation relating to the basic payment scheme and related payments and to coupled support should not apply to those regions.
                                    However, an assessment should be made of the impact that any changes to this Regulation could have on those regions.

         Amendment 22

         Proposal for a regulation

         Recital 40 a (new)

                     Text proposed by the Commission

                     Amendment

                                    (40a)

                                    In certain isolated areas, the diversity of the farming sector coupled with the presence of inefficient production systems justifies the use of specific agricultural policy instruments, with which the Union has sufficient experience, in order to make the sector more marked-oriented, to reduce the impact on the environment through the abandonment of farming activity and to preserve rural communities in accordance with the sustainability objective. Specific arrangements for those island territories of the Union which have similar features to territories in which such agricultural policy instruments have proven a success should be studied in depth.

         Amendment 23

         Proposal for a regulation

         Recital 43

                     Text proposed by the Commission

                     Amendment

                              (43)

                              With a view to strengthening their rural development policy, Member States should be given the possibility to transfer funds from their direct payments ceiling to their support assigned for rural development. At the same time, Member States where the level of direct support remains lower than 90 % of the Union average level of support should be given the possibility to transfer funds from their support assigned for rural development to their direct payments ceiling. Such choices should be made, within certain limits,
                                    once
                                  and
                                    for the whole period of application of this Regulation.

                              (43)

                              With a view to strengthening their rural development policy, Member States should be given the possibility to transfer funds from their direct payments ceiling to their support assigned for rural development.
                                    All Member States should be able to supplement the transfer by a sum proportional to the unspent monies for ‘greening’, so as to provide additional support for agro-environmental climate measures.
                                  At the same time, Member States where the level of direct support remains lower than 90 % of the Union average level of support should be given the possibility to transfer funds from their support assigned for rural development to their direct payments ceiling. Such choices should be made, within certain limits, and
                                    should be reviewed either by 1 August 2015 or by 1 August 2017.

         Amendment 24

         Proposal for a regulation

         Article 1 — paragraph 1 — point b — point iii а (new)

                     Text proposed by the Commission

                     Amendment

                                    (iiia)

                                    a new Union-funded scheme of payments for bee colonies in the apiculture sector;

         Amendment 25

         Proposal for a regulation

         Article 2

                     Text proposed by the Commission

                     Amendment

                  The Commission shall be empowered to adopt delegated acts in accordance with Article 55
                        for the purpose of
                      amending the list of support schemes set out in Annex I.

                        In order to ensure legal certainty,
                      the Commission shall be empowered to adopt delegated acts in accordance with Article 55 amending the list of support schemes set out in Annex I
                        to the extent necessary to take into account changes introduced by new legislative acts on support schemes adopted after the entry into force of this Regulation.

         Amendment 26

         Proposal for a regulation

         Article 4 — paragraph 1 — point c — indent 1

                     Text proposed by the Commission

                     Amendment

                              —

                              rearing or growing of agricultural products including harvesting, milking, breeding animals and keeping animals for farming purposes,

                              —

                                    agricultural production that includes
                                  rearing or growing of agricultural products including harvesting, milking, breeding animals and keeping animals for farming purposes,

         Amendment 27

         Proposal for a regulation

         Article 4 — paragraph 1 — point c — indent 2

                     Text proposed by the Commission

                     Amendment

                              —

                              maintaining the agricultural area in a state which makes it suitable for grazing or cultivation
                                    without any particular preparatory action going beyond traditional agricultural methods and machineries, or

                              —

                              maintaining the agricultural area in a state which makes it suitable for grazing or cultivation
                                    , subject, in the case of agricultural areas naturally kept in such a state, to the establishment of a minimum activity by Member States;

         Amendment 28

         Proposal for a regulation

         Article 4 — paragraph 1 — point c — indent 3

                     Text proposed by the Commission

                     Amendment

                              —

                              carrying out a minimum activity to be established by Member States on agricultural areas naturally kept in a state suitable for grazing or cultivation;

                              —

                              carrying out a minimum activity
                                    , based where appropriate on a minimum stocking density,
                                  to be established by Member States, on agricultural areas naturally kept in a state suitable for grazing or cultivation;

         Amendment 29

         Proposal for a regulation

         Article 4 — paragraph 1 — point e

                     Text proposed by the Commission

                     Amendment

                              (e)

                              ‘agricultural area’ means any area taken up by arable land, permanent grassland or permanent crops;

                              (e)

                              ‘agricultural area’ means any area taken up by arable land, permanent grassland
                                    and permanent pasture
                                  or permanent crops;

         Amendment 30

         Proposal for a regulation

         Article 4 — paragraph 1 — point g

                     Text proposed by the Commission

                     Amendment

                              (g)

                              ‘permanent crops’ means non-rotational crops other than permanent grassland that occupy the land for five years or longer and yield repeated harvests, including nurseries, and short rotation coppice;

                              (g)

                              ‘permanent crops’ means non-rotational crops other than permanent grassland
                                    and permanent pasture
                                  that occupy the land for five years or longer and yield repeated harvests, including nurseries,
                                    traditional orchards
                                  and short rotation coppice;

         Amendment 31

         Proposal for a regulation

         Article 4 — paragraph 1 — point h

                     Text proposed by the Commission

                     Amendment

                              (h)

                              ‘permanent grassland’ means land used to grow
                                    grasses or other
                                  herbaceous forage naturally (self-seeded) or through cultivation (sown) and that
                                    has not been
                                  included in the crop rotation of the holding for
                                    five
                                  years or longer; it may include other
                                    species suitable for grazing provided that the grasses and other herbaceous forage remain predominant;

                              (h)

                              ‘permanent grassland
                                    and permanent pasture
                                 ’ means land used to grow
                                    for
                                  forage
                                    herbaceous plants, shrubs and/or trees or any other species suitable for grazing,
                                  naturally (self-seeded) or through cultivation (sown), and that
                                    is not
                                  included in the crop rotation of the holding
                                    and not ploughed
                                  for
                                    seven
                                  years or longer; it may include other
                                    features of importance for the characterisation of the land as permanent pasture;

         Amendment 32

         Proposal for a regulation

         Article 4 — paragraph 1 — point i

                     Text proposed by the Commission

                     Amendment

                                    (i)

                                    ‘grasses or other herbaceous forage’ means all herbaceous plants traditionally found in natural pastures or normally included in mixtures of seeds for pastures or meadows in the Member State (whether or not used for grazing animals);

                        deleted

         Amendment 33

         Proposal for a regulation

         Article 4 — paragraph 1 — point j a (new)

                     Text proposed by the Commission

                     Amendment

                                    (ja)

                                    ‘traditional orchards’ means land on which fruit trees grow that is of environmental and cultural importance;

         Amendment 34

         Proposal for a regulation

         Article 4 — paragraph 2 — point a

                     Text proposed by the Commission

                     Amendment

                                    (a)

                                    laying down further definitions regarding the access to support under this Regulation;

                        deleted

         Amendment 35

         Proposal for a regulation

         Article 4 — paragraph 2 — point b

                     Text proposed by the Commission

                     Amendment

                              (b)

                              establishing the
                                    framework within
                                  which Member States
                                    shall
                                  define the minimum activities to be carried out on areas naturally kept in a state suitable for grazing or cultivation;

                              (b)

                              establishing the
                                    criteria with
                                  which Member States
                                    are to
                                  define the minimum activities to be carried out on areas naturally kept in a state suitable for grazing or cultivation;

         Amendment 36

         Proposal for a regulation

         Article 4 — paragraph 2 — point c

                     Text proposed by the Commission

                     Amendment

                              (c)

                              establishing the criteria to be met by farmers in order to be deemed to have respected the obligation of maintaining the agricultural area in a state suitable for grazing or cultivation as referred to in point (c) of paragraph 1;

                              (c)

                              establishing
                                    the framework within which Member States are to define
                                  the criteria to be met by farmers in order to be deemed to have respected the obligation of maintaining the agricultural area in a state suitable for grazing or cultivation as referred to in point (c) of paragraph 1;

         Amendment 37

         Proposal for a regulation

         Article 4 — paragraph 2 — point d

                     Text proposed by the Commission

                     Amendment

                                    (d)

                                    establishing the criteria to determine the predominance of grasses and other herbaceous forage for the purpose of point (h) of paragraph 1.

                        deleted

         Amendment 38

         Proposal for a regulation

         Article 7 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  2.   For each Member State and each year, the estimated product of capping as referred to in Article 11, which is reflected by the difference between the national ceilings set out in Annex II, to which is added the amount available in accordance with Article 44, and the net ceilings set out in Annex III, is made available as Union support for measures under rural development programming financed under the EAFRD as specified in Regulation (EU) No […] [RDR].

                  2.   For each Member State and each year, the estimated product of capping as referred to in Article 11, which is reflected by the difference between the national ceilings set out in Annex II, to which is added the amount available in accordance with Article 44, and the net ceilings set out in Annex III, is made available as Union support for measures
                        to be chosen by the Member State
                      under rural development programming financed under the EAFRD as specified in Regulation (EU) No […] [RDR].

         Amendment 197

         Proposal for a regulation

         Article 8 — paragraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   The adjustment rate determined in accordance with Article 25 of Regulation (EU) No […] [HZR] shall
                        only
                      apply to direct payments
                        in excess of EUR 5 000
                      to be granted to farmers in the corresponding calendar year.

                  1.   The adjustment rate determined in accordance with Article 25 of Regulation (EU) No […] [HZR] shall apply to
                        all
                      direct payments to be granted to farmers in the corresponding calendar year.

         Amendment 39

         Proposal for a regulation

         Article 8 — paragraph 3

                     Text proposed by the Commission

                     Amendment

                        3.

                        The Commission shall be empowered to adopt delegated acts in accordance with Article 55 concerning rules on the basis for calculation of reductions to be applied by Member States to farmers pursuant to paragraphs 1 and 2 of this Article.

                        deleted

         Amendment 40

         Proposal for a regulation

         Article 9

                     Text proposed by the Commission

                     Amendment

                     Article 9

                     Article 9

                  Active farmer

                  Active farmer

                  1.
                        No direct payments shall be granted to natural or legal persons, or to groups of natural or legal persons, where one of the following applies:

                  1.
                        Member States shall draw up a legal framework and definitions, based on objective and non-discriminatory criteria to ensure, where appropriate, that direct payments are only granted to farmers whose agricultural areas are mainly areas naturally kept in a state suitable for grazing or cultivation on condition that they carry out on those areas the minimum activity established by Member States in accordance with Article 4(1)(c).

                                    (a)

                                    the annual amount of direct payments is less than 5 % of the total receipts they obtained from non-agricultural activities in the most recent fiscal year; or

                                    (b)

                                    their agricultural areas are mainly areas naturally kept in a state suitable for grazing or cultivation and they do not carry out on those areas the minimum activity established by Member States in accordance with Article 4(1)(c).

                        Entities such as transport companies, airports, real estate companies, companies managing sport grounds, campsite operators and mining companies or other non-agricultural enterprises, to be defined accordingly by Member States on the basis of objective and non-discriminatory criteria, shall not, a priori, be regarded as active farmers nor shall they be the beneficiaries of any direct payments. Member States may decide that those entities can claim to be eligible if they can provide verifiable evidence that their agricultural activities form a significant part of their overall economic activities or that their principal business or company objects consist of exercising an agricultural activity.

                        After having duly notified the Commission, Member States may decide to add to and to withdraw from their list of eligible entities other entities than those listed in the second subparagraph, providing objective and non-discriminatory grounds of justification motivating their decision.

                  2.
                        Paragraph 1 shall not apply
                      to farmers who received less than EUR 5 000 of direct payments for the previous year.

                  2.
                        Member States may decide not to apply this Article
                      to farmers who received less than EUR 5 000 of direct payments for the previous year.

                  3.   The Commission shall be empowered to adopt delegated acts in accordance with Article 55 for the purposes of laying down:

                  3.   The Commission shall be empowered to adopt delegated acts in accordance with Article 55 for the purposes of laying down
                        criteria to establish when a farmer's agricultural area is to be considered as mainly areas naturally kept in a state suitable for grazing or cultivation.

                                    (a)

                                    criteria to establish the amount of direct payments relevant for the purpose of paragraphs 1 and 2, in particular in the first year of allocation of payment entitlements where the value of the payment entitlements is not yet definitively established as well as for new farmers;

                                    (b)

                                    exceptions from the rule that the receipts during the most recent fiscal year are to be taken into account where those figures are not available; and

                                    (c)

                                    criteria to establish when a farmer's agricultural area is to be considered as mainly areas naturally kept in a state suitable for grazing or cultivation.

         Amendment 41

         Proposal for a regulation

         Article 11 — paragraph 1 — indent 3 a (new)

                     Text proposed by the Commission

                     Amendment

                              —

                                    the amount obtained after applying those reductions shall be capped at EUR 300 000.

         Amendment 42

         Proposal for a regulation

         Article 11 — paragraph 1 — indent 4

                     Text proposed by the Commission

                     Amendment

                              —

                                    by 100 % for the tranche of more than EUR 300 000.

                        deleted

         Amendment 43

         Proposal for a regulation

         Article 11 — paragraph 1 a (new)

                     Text proposed by the Commission

                     Amendment

                        1a.

                        Paragraph 1 shall not apply in respect of cooperatives or other legal entities which group together a number of beneficiaries of direct payments and which receive and channel the payments before distributing them in full to their members who, as individuals, are subject to paragraph 1.

         Amendments 44 and 105

         Proposal for a regulation

         Article 11 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  2.   The amount referred to in paragraph 1 shall be calculated by subtracting the salaries effectively paid and declared by the farmer in the previous year, including taxes and social contributions related to employment, from the total amount of direct payments initially due to the farmer without taking into account the payments to be granted pursuant to Chapter 2 of Title III of this Regulation.

                  2.   The amount referred to in paragraph 1 shall be calculated by subtracting the salaries effectively paid and declared by the farmer in the previous year, including taxes and social contributions related to employment,
                        as well as costs incurred as a result of the use of contractors for specific farming operations,
                      from the total amount of direct payments initially due to the farmer without taking into account the payments to be granted pursuant to Chapter 2 of Title III of this Regulation.

         Amendment 45

         Proposal for a regulation

         Article 11 — paragraph 3 a (new)

                     Text proposed by the Commission

                     Amendment

                        3 a.

                        Any funds from progressive reduction or capping shall remain in the region or Member State where they were obtained and shall be used for measures under the second pillar.

         Amendment 46

         Proposal for a regulation

         Article 14

                     Text proposed by the Commission

                     Amendment

                     Article 14

                     Article 14

                  Flexibility between pillars

                  Flexibility between pillars

                  1.   Before 1 August 2013, Member States may decide to make available as additional support for measures under rural development programming financed under the EAFRD as specified under Regulation (EU) No […] [RDR], up to
                        10 %
                      of their annual national ceilings for calendar years 2014 to 2019 as set out in Annex II to this Regulation. As a result, the corresponding amount shall no longer be available for granting direct payments.

                  1.   Before 1 August 2013, Member States may decide to make available as additional support for measures under rural development programming financed under the EAFRD as specified under Regulation (EU) No […] [RDR], up to
                        15 %
                      of their annual national ceilings for calendar years 2014 to 2019 as set out in Annex II to this Regulation. As a result, the corresponding amount shall no longer be available for granting direct payments.

                        The decision referred to in the first subparagraph shall be notified to the Commission by the date referred to in that subparagraph.

                        The percentage notified in accordance with the second subparagraph shall be the same for the years referred to in the first subparagraph.

                        1a.

                        Member States may add unallocated funds from the application of Article 33 to the transfers in favour of rural development measures referred to in the first paragraph in the form of Union support to agri-environment-climate measures under rural development programming financed under the EAFRD as specified in Regulation (EU) No […] [RDR]

                  2.   Before 1 August 2013, Bulgaria, Estonia, Finland, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia, Spain, Sweden and the United-Kingdom may decide to make available as direct payments under this Regulation up to
                        5 %
                      of the amount allocated to support for measures under rural development programming financed under the EAFRD in the period 2015-2020 as specified under Regulation (EU) No […] [RDR]. As a result, the corresponding amount shall no longer be available for support measures under rural development programming.

                  2.   Before 1 August 2013, Bulgaria, Estonia, Finland, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia, Spain, Sweden and the United-Kingdom may decide to make available as direct payments under this Regulation up to
                        10 %
                      of the amount allocated to support for measures under rural development programming financed under the EAFRD in the period 2015-2020 as specified under Regulation (EU) No […] [RDR]. As a result, the corresponding amount shall no longer be available for support measures under rural development programming.

                  The decision referred to in the first subparagraph shall be notified to the Commission by the date referred to in that subparagraph.

                  The decision referred to in the first subparagraph shall be notified to the Commission by the date referred to in that subparagraph.

                        The percentage notified in accordance with the second subparagraph shall be the same for the years referred to in the first subparagraph of paragraph 1.

                        2a.

                        In the case of regional implementation, different percentage rates may be applied to each region.

                        2b.

                        Member States may decide, either by 1 August 2015 or by 1 August 2017, to review their decisions referred to in this Article with effect from the subsequent year.

         Amendment 47

         Proposal for a regulation

         Article 15 — paragraph -1 (new)

                     Text proposed by the Commission

                     Amendment

                        -1.

                        In order to evaluate the new CAP, the Commission shall carry out a review of the implementation of the reforms and their impact on the environment and agricultural production by the end of 2017.

         Amendment 48

         Proposal for a regulation

         Article 15

                     Text proposed by the Commission

                     Amendment

                  Support schemes listed in Annex I shall apply without prejudice to a possible review at any time in the light of economic developments and the budgetary situation.

                  Support schemes listed in Annex I shall apply without prejudice to a possible review at any time
                        by a legislative act,
                      in the light of economic developments and the budgetary situation.

         Amendment 49

         Proposal for a regulation

         Article 18

                     Text proposed by the Commission

                     Amendment

                     Article 18

                     Article 18

                  Payment entitlements

                  Payment entitlements

                  1.   Support under the basic payment scheme shall be available to farmers if they obtain payment entitlements under this Regulation through allocation pursuant to Article 17b(4), first allocation pursuant to Article 21, from the national reserve pursuant to Article 23 or by transfer pursuant to Article 27.

                  1.   Support under the basic payment scheme shall be available to farmers if they obtain payment entitlements under this Regulation through allocation pursuant to Article 17b(4), first allocation pursuant to Article 21, from the national reserve pursuant to Article 23 or by transfer pursuant to Article 27.

                  2.
                        Payment entitlements obtained under the single payment scheme in accordance with Regulation (EC) No 1782/2003 and with Regulation (EC) No 73/2009 shall expire on 31 December 2013.

                  2.
                        By way of derogation from paragraph 1,

                                    (a)

                                    Member States that, on 31 December 2013, are operating the single payment scheme on the basis of the regional model laid down in Article 59 of Regulation (EC) No 1782/2003 may decide, by 1 August 2013, to maintain the payment entitlements allocated in accordance with Regulation (EC) No 1782/2003 and/or with Regulation (EC) No 73/2009,

                                    (b)

                                    Member States that, on 31 December 2013, are operating the single area payment scheme may, by 1 August 2013, decide to keep their existing scheme as a transitional system until 31 December 2020.

         Amendment 50

         Proposal for a regulation

         Article 19

                     Text proposed by the Commission

                     Amendment

                     Article 19

                     Article 19

                  Basic payment scheme ceiling

                  Basic payment scheme ceiling

                  1.   The Commission shall
                        , by means of
                      implementing acts
                        , set
                      the annual national ceiling for the basic payment scheme by deducting from the annual national ceiling established in Annex II the annual amounts to be set in accordance with Articles 33, 35, 37 and 39. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 56(2).

                  1.   The Commission shall
                        adopt
                      implementing acts
                        setting for each Member State
                     , the annual national ceiling for the basic payment scheme by deducting from the annual national ceiling established in Annex II the annual amounts to be set in accordance with Articles 33, 35, 37 and 39. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 56(2).

                  2.   For each Member State and each year, the total value of all allocated payment entitlements and the national reserve shall equal the respective national ceiling adopted by the Commission pursuant to paragraph 1.

                  2.   For each Member State and each year, the total value of all allocated payment entitlements and the national reserve shall equal the respective national ceiling adopted by the Commission pursuant to paragraph 1.

                  3.   In case of modification of the ceiling adopted by the Commission pursuant to paragraph 1 as compared to the previous year, a Member State shall linearly reduce or increase the value of all payment entitlements in order to ensure compliance with paragraph 2.

                  3.   In case of modification of the ceiling adopted by the Commission pursuant to paragraph 1 as compared to the previous year, a Member State shall linearly reduce or increase the value of all payment entitlements in order to ensure compliance with paragraph 2.

                  The first subparagraph shall not apply where such a modification is due to the application of Article 17b(2).

                  The first subparagraph shall not apply where such a modification is due to the application of Article 17b(2).

         Amendment 51

         Proposal for a regulation

         Article 20

                     Text proposed by the Commission

                     Amendment

                     Article 20

                     Article 20

                  Regional allocation of the national ceilings

                  Regional allocation of the national ceilings

                  1.   Member States may decide, before 1 August 2013, to apply the basic payment scheme at regional level. In that case they shall define the regions in accordance with objective and non-discriminatory criteria such as their agronomic and economic characteristics and their regional agricultural potential, or their institutional or administrative structure.

                  1.   Member States may decide, before 1 August 2013, to apply the basic payment scheme at regional level. In that case they shall define the regions in accordance with objective and non-discriminatory criteria such as their agronomic,
                        environmental
                      and
                        socio-
                     economic characteristics and their regional agricultural potential, or their institutional or administrative structure.

                  2.   Member States shall divide the national ceiling referred to in Article 19(1) between the regions in accordance with objective and non-discriminatory criteria.

                  2.   Member States shall divide the national ceiling referred to in Article 19(1) between the regions in accordance with objective and non-discriminatory criteria.

                  3.   Member States may decide that the regional ceilings shall be subject to annual progressive modifications in accordance with pre-established annual steps and objective and non-discriminatory criteria such as the agricultural potential or environmental criteria.

                  3.   Member States may decide that the regional ceilings shall be subject to annual progressive modifications in accordance with pre-established annual steps and objective and non-discriminatory criteria such as the agricultural potential or environmental criteria.

                  4.   To the extent necessary to respect the applicable regional ceilings determined in accordance with paragraph 2 or 3, Member States shall make a linear reduction or increase in the value of the payment entitlements in each of their regions.

                  4.   To the extent necessary to respect the applicable regional ceilings determined in accordance with paragraph 2 or 3, Member States shall make a linear reduction or increase in the value of the payment entitlements in each of their regions.

                  5.   The Member States shall notify the Commission by 1 August 2013 of the decision referred to in paragraph 1, together with the measures taken for the application of paragraphs 2 and 3.

                  5.   The Member States shall notify the Commission by 1 August 2013 of the decision referred to in paragraph 1, together with the measures taken for the application of paragraphs 2 and 3.

         Amendments 52 and 161

         Proposal for a regulation

         Article 21

                     Text proposed by the Commission

                     Amendment

                     Article 21

                     Article 21

                  First allocation of payment entitlements

                  First allocation of payment entitlements

                  1.   Subject to paragraph 2, payment entitlements shall be allocated to farmers if they apply for allocation of payment entitlements under the basic payment scheme by 15 May 2014 except in case of force majeure and exceptional circumstances.

                  1.   Subject to paragraph 2
                        of this Article, and without prejudice to Article 18(2),
                      payment entitlements shall be allocated to farmers if they apply for allocation of payment entitlements under the basic payment scheme by 15 May 2014 except in case of force majeure and exceptional circumstances.

                  2.   Farmers who,
                        in 2011
                      or in the case of Croatia in 2013, activated at least one payment entitlement under the single payment scheme or claimed support under the single area payment scheme, both in accordance with Regulation (EC) No 73/2009, shall receive payment entitlements the first year of application of the basic payment scheme provided they are entitled to be granted direct payments in accordance with Article 9.

                  2.   Farmers who:

                              —

                                    in any of one of the three years 2009, 2010 or 2011, to be chosen by Member States,
                                  or in the case of Croatia in 2013, activated at least one payment entitlement under the single payment scheme or claimed support under the single area payment scheme, both in accordance with Regulation (EC) No 73/2009,
                                    or

                              —

                                    in 2012 received payment entitlements under Article 41 and 63 of Regulation (EC) No 73/2009 or

                              —

                                    submitted evidence of active farm production and who, in 2011, reared or grew agricultural products including harvesting, milking, breeding animals or kept animals for farming purposes,
                                  shall receive payment entitlements the first year of application of the basic payment scheme provided they are entitled to be granted direct payments in accordance with Article 9.

                  By way of derogation from the first subparagraph, farmers shall receive payment entitlements the first year of application of the basic payment scheme, provided they are entitled to be granted direct payments in accordance with Article 9 and that in 2011:

                  By way of derogation from the first subparagraph, farmers shall receive payment entitlements the first year of application of the basic payment scheme, provided they are entitled to be granted direct payments in accordance with Article 9 and that in 2011:

                              (a)

                              under the single payment scheme, they did not activate any entitlement but produced exclusively fruits, vegetables and/or cultivate exclusively vineyard;

                              (a)

                              under the single payment scheme, they did not activate any entitlement but produced exclusively fruits, vegetables,
                                    seed and ware potatoes, ornamental crops
                                  and/or cultivated exclusively vineyard;

                              (b)

                              under the single area payment scheme, they did not claim any support and had only agricultural land that was not in good agricultural conditions on 30 June 2003 as provided for in Article 124(1) of Regulation (EC) No 73/2009,

                              (b)

                              under the single area payment scheme, they did not claim any support and had only agricultural land that was not in good agricultural conditions on 30 June 2003 as provided for in Article 124(1) of Regulation (EC) No 73/2009,

                  Except in the case of force majeure or exceptional circumstances, the number of payment entitlements allocated per farmer shall be equal to the number of eligible hectares, within the meaning of Article 25(2), the farmer declares in accordance with Article 26(1) for 2014.

                  Except in the case of force majeure or exceptional circumstances, the number of payment entitlements allocated per farmer shall be equal to the number of eligible hectares, within the meaning of Article 25(2), the farmer declares in accordance with Article 26(1) for 2014.

                        By way of derogation from the previous subparagraph, where the total number of hectares declared in a Member State in accordance with Article 26(1) for 2014 entails an increase of more than 45 % of the total number of eligible hectares declared in 2009 in accordance with Article 35 of Regulation (EC) No 73/2009, Member States may limit the number of payment entitlements to be allocated in 2014 to 145 % of the total number of hectares declared in 2009 in accordance with Article 35 of Regulation (EC) No 73/2009.

                        When using this option, Member States shall allocate a reduced number of payment entitlements to farmers that shall be calculated by applying a proportional reduction to the additional number of eligible hectares declared by each farmer in 2014 compared to the number of eligible hectares in accordance with Article 34(2) of Regulation (EC) No 73/2009 he indicated in his aid application in 2011 in accordance with Article 19 of Regulation (EC) No 73/2009.

                  3.   In case of sale or lease of their holding or part of it,
                        natural or legal persons
                      complying with paragraph 2 may, by contract signed before 15 May 2014, transfer the right to receive payment entitlements as referred to in paragraph 1 to
                        only one farmer
                      provided that the latter
                        complies
                      with the conditions laid down in Article 9.

                  3.   In case of sale,
                        merger, scission
                      or lease of their holding or part of it,
                        farmers
                      complying with paragraph 2 may, by contract signed before 15 May 2014, transfer the right to receive payment entitlements as referred to in paragraph 1 to
                        the farmers receiving the holding or part of it
                      provided that the latter
                        comply
                      with the conditions laid down in Article 9.

                  4.   The Commission shall, by means of implementing acts, adopt rules on applications for allocation of payment entitlements submitted in the year of allocation of payment entitlements where those payment entitlements may not be definitively established yet and where that allocation is affected by specific circumstances. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 56(2).

                  4.   The Commission shall, by means of implementing acts, adopt rules on applications for allocation of payment entitlements submitted in the year of allocation of payment entitlements where those payment entitlements may not be definitively established yet and where that allocation is affected by specific circumstances. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 56(2).

         Amendment 53

         Proposal for a regulation

         Article 22

                     Text proposed by the Commission

                     Amendment

                     Article 22

                     Article 22

                  Value of payment entitlements and convergence

                  Value of payment entitlements and convergence

                  1.   For each relevant year, the unit value of payment entitlements shall be calculated by dividing the national or regional ceiling established under Articles 19 or 20, after application of the linear reduction provided for in Article 23(1), by the number of payment entitlements allocated at national or regional level according to Article 21(2) for 2014.

                  1.   For each relevant year, the unit value of payment entitlements shall be calculated by dividing the national or regional ceiling established under Articles 19 or 20, after application of the linear reduction provided for in Article 23(1), by the number of payment entitlements allocated at national or regional level according to Article 21(2) for 2014.

                  2.   Member States which applied the single payment scheme as provided for in Regulation (EC) No 73/2009, may limit the calculation of the unit value of payment entitlements provided for in paragraph 1 to an amount corresponding to no less than
                        40 %
                      of the national or regional ceiling established under Articles 19 or 20, after application of the linear reduction provided for in Article 23(1).

                  2.   Member States which applied the single payment scheme as provided for in Regulation (EC) No 73/2009, may limit the calculation of the unit value of payment entitlements provided for in paragraph 1 to an amount corresponding to no less than
                        10 %
                      of the national or regional ceiling established under Articles 19 or 20, after application of the linear reduction provided for in Article 23(1).

                  3.   Member States making use of the possibility provided for in paragraph 2 shall use the part of the ceiling which remains after the application of that paragraph to increase the value of payment entitlements in cases where the total value of payment entitlements held by a farmers under the basic payment scheme calculated according to paragraph 2 is lower than the total value of payment entitlements, including special entitlements, he held on 31 December 2013 under the single payment scheme in accordance with Regulation (EC) No 73/2009. To this end, the national or regional unit value of each of the payment entitlement of the farmer concerned shall be increased by a share of the difference between the total value of the payment entitlements under the basic payment scheme calculated according to paragraph 2 and the total value of payment entitlements, including special entitlements, which the farmer held on 31 December 2013 under the single payment scheme in accordance with Regulation (EC) No 73/2009.

                  3.   Member States making use of the possibility provided for in paragraph 2 shall use the part of the ceiling which remains after the application of that paragraph to increase the value of payment entitlements in cases where the total value of payment entitlements held by a farmers under the basic payment scheme calculated according to paragraph 2 is lower than the total value of payment entitlements, including special entitlements, he held on 31 December 2013 under the single payment scheme in accordance with Regulation (EC) No 73/2009. To this end, the national or regional unit value of each of the payment entitlement of the farmer concerned shall be increased by a share of the difference between the total value of the payment entitlements under the basic payment scheme calculated according to paragraph 2 and the total value of payment entitlements, including special entitlements, which the farmer held on 31 December 2013 under the single payment scheme in accordance with Regulation (EC) No 73/2009.

                  For the calculation of the increase, a Member State may also take into account the support granted in calendar year 2013 pursuant to Articles 52, 53(1), and 68(1)(b), of Regulation (EC) No 73/2009 provided that the Member State has decided not to apply the voluntary coupled support pursuant to Title IV of this Regulation to the relevant sectors.

                  For the calculation of the increase, a Member State may also take into account the support granted in calendar year 2013 pursuant to Articles 52, 53(1), and 68(1)(b), of Regulation (EC) No 73/2009 provided that the Member State has decided not to apply the voluntary coupled support pursuant to Title IV of this Regulation to the relevant sectors.

                  For the purpose of the first subparagraph, a farmer is considered to hold payment entitlements on 31 December 2013 where payment entitlements were allocated or definitively transferred to him by that date.

                  For the purpose of the first subparagraph, a farmer is considered to hold payment entitlements on 31 December 2013 where payment entitlements were allocated or definitively transferred to him by that date.

                  4.   For the purposes of paragraph 3, a Member State may, on the basis of objective criteria, provide that, in cases of sale or grant or expiry of all or part of a lease of agricultural areas after the date fixed pursuant to Article 35 of Regulation (EC) No 73/2009 and before the date fixed pursuant to Article 26 of this Regulation, the increase, or part of the increase, in the value of payment entitlements that would be allocated to the farmer concerned shall revert to the national reserve where the increase would lead to a windfall profit for the farmer concerned.

                  4.   For the purposes of paragraph 3, a Member State may, on the basis of objective criteria, provide that, in cases of sale or grant or expiry of all or part of a lease of agricultural areas after the date fixed pursuant to Article 35 of Regulation (EC) No 73/2009 and before the date fixed pursuant to Article 26 of this Regulation, the increase, or part of the increase, in the value of payment entitlements that would be allocated to the farmer concerned shall revert to the national reserve where the increase would lead to a windfall profit for the farmer concerned.

                  Those objective criteria shall be established in such a way as to ensure equal treatment between farmers and to avoid market and competition distortions and shall include, at least, the following:

                  Those objective criteria shall be established in such a way as to ensure equal treatment between farmers and to avoid market and competition distortions and shall include, at least, the following:

                              (a)

                              a minimum duration for the lease;

                              (a)

                              a minimum duration for the lease;

                              (b)

                              the proportion of the payment received which shall revert to the national reserve.

                              (b)

                              the proportion of the payment received which shall revert to the national reserve.

                  5.   As of claim year 2019 at the latest, all payment entitlements in a Member State or, in case of application of Article 20, in a region
                        , shall have a uniform unit value.

                  5.   As of claim year 2019 at the latest, all payment entitlements in a Member State or, in case of application of Article 20, in a region:

                                    (a)

                                    shall have a uniform unit value;

                                    (b)

                                    may deviate from the average unit value by up to 20 %.

                        When applying paragraphs 2, 3 and this paragraph, Member States may take measures to ensure that, where payment entitlements at farm level are reduced, the level of those entitlements activated in 2019 is not more than 30 % below that of 2014.

                  6.   When applying paragraphs 2 and 3, Member States, acting in compliance with the general principles of Union law, shall move towards approximating the value of the payment entitlements at national or regional level. To this end, Member States shall fix the steps to be taken by 1 August 2013. Those steps shall include annual progressive modifications of the payment entitlements in accordance with objective and non-discriminatory criteria.

                  6.   When applying paragraphs 2 and 3, Member States, acting in compliance with the general principles of Union law, shall move towards approximating the value of the payment entitlements at national or regional level. To this end, Member States shall fix the steps to be taken by 1 August 2013. Those steps shall include annual progressive modifications of the payment entitlements in accordance with objective and non-discriminatory criteria.

                  The steps referred to in the first subparagraph shall be notified to the Commission by the date referred to in that subparagraph.

                  The steps referred to in the first subparagraph shall be notified to the Commission by the date referred to in that subparagraph.

         Amendment 54

         Proposal for a regulation

         Article 22 a (new)

                     Text proposed by the Commission

                     Amendment

                        Article 22a

                        Internal convergence

                        1.

                        By way of derogation from Article 22, Member States may approximate the value of the payment entitlements at national or regional level so that the unit value of entitlements moves part of, but not all, the way to uniform national or regional values as of claim year 2021. Member States may use the formula for external convergence between Member States when exercising this option. This convergence shall be financed by the reduction of 2013 entitlement values above a threshold identified by Member States or above the national average
                     .

                        2.

                        Member States exercising the derogation referred to in paragraph 1 may decide that the payment for agricultural practises beneficial for the climate and the environment referred to in Chapter 2 of Title III, which shall represent 30 % of the national envelope in accordance with Article 33(1), is payable to farmers as a percentage relative to their basic payment.

                        3.

                        When exercising the derogation referred to in paragraph 1, Member States, shall, by 1 August 2013, fix the steps to be taken, acting in compliance with the general principles of Union law. Those steps shall include progressive modifications of the payment entitlements in accordance with objective and non-discriminatory criteria.

                        The steps referred to in the first subparagraph shall be notified to the Commission by 1 August 2013.

         Amendment 55

         Proposal for a regulation

         Article 23

                     Text proposed by the Commission

                     Amendment

                     Article 23

                     Article 23

                  Establishment and use of the national reserve

                  Establishment and use of the national reserve

                  1.   Each Member State shall establish a national reserve. For that purpose, in the first year of application of the basic payment scheme, Member States shall proceed to a linear percentage reduction of the basic payment scheme ceiling at national level in order to constitute the national reserve. This reduction shall not be higher than 3 % except, if required, to cover the allocation needs laid down in paragraph 4
                        for the year 2014
                     .

                  1.   Each Member State shall establish a national reserve. For that purpose, in the first year of application of the basic payment scheme, Member States shall proceed to a linear percentage reduction of the basic payment scheme ceiling at national level in order to constitute the national reserve.
                        For the year 2014,
                      this reduction shall not be higher than 3 % except, if required, to cover the allocation needs laid down in paragraph 4
                        . For subsequent years, Member States may every year set the ceiling of reduction on the basis of the allocation needs.

                  2.   Member States may administer the national reserve at regional level.

                  2.   Member States may administer the national reserve at regional level.

                  3.   Member States shall establish payment entitlements from the national reserve in accordance with objective criteria and in such a way as to ensure equal treatment between farmers and to avoid market and competition distortions.

                  3.   Member States shall establish payment entitlements from the national reserve in accordance with objective criteria and in such a way as to ensure equal treatment between farmers and to avoid market and competition distortions.

                  4.   Member States shall use the national reserve to allocate payment entitlements, as a matter of priority, to young farmers who commence their agricultural activity.

                  4.   Member States shall use the national reserve to allocate payment entitlements, as a matter of priority, to young farmers
                        and new farmers
                      who commence their agricultural activity.

                  For the purposes of the first subparagraph, ‘young farmers who commence their agricultural activity’ means farmers fulfilling the conditions laid down in Article 36(2) that did not have any agricultural activity in their own name and at their own risk or did not have the control of a legal person exercising an agricultural activity in the 5 years preceding the start of the new agricultural activity. In case of a legal person, the natural person(s) who has the control of the legal person must not have had any agricultural activity in his own name and at his own risk or must not have had the control of a legal person exercising an agricultural activity in the 5 years preceding the start of the agricultural activity by the legal person.

                  For the purposes of the first subparagraph, ‘young farmers who commence their agricultural activity’ means farmers fulfilling the conditions laid down in Article 36(2) that did not have any agricultural activity in their own name and at their own risk or did not have the control of a legal person exercising an agricultural activity in the 5 years preceding the start of the new agricultural activity. In case of a legal person, the natural person(s) who has the control of the legal person must not have had any agricultural activity in his own name and at his own risk or must not have had the control of a legal person exercising an agricultural activity in the 5 years preceding the start of the agricultural activity by the legal person.

                        For the purposes of the first subparagraph, ‘new farmers who commence their agricultural activity’ means natural persons who have never been attributed entitlements. Member States may determine additional objective and non-discriminatory criteria that new farmers shall fulfil as regards, in particular, appropriate skills, experience and/or training requirements.

                  5.   Member States may use the national reserve to:

                  5.   Member States may use the national reserve to:

                              (a)

                              allocate payment entitlements to farmers in areas subject to restructuring and/or development programmes relating to a form of public intervention in order to prevent land from being abandoned and/or to compensate farmers for specific disadvantages in those areas;

                              (a)

                              allocate payment entitlements to farmers in areas subject to restructuring and/or development programmes relating to a form of public intervention in order to prevent land from being abandoned and/or to compensate farmers for specific disadvantages in those areas;

                                    (aa)

                                    allocate payment entitlements to farmers whose holding is situated in a Member State which has decided to exercise the option laid down in Article 18(2) and who did not obtain a payment entitlement in accordance with Regulation (EC) No 1782/2003 or Regulation (EC) No 73/2009 or both of them, when they declare eligible agricultural areas for the year 2014;

                                    (ab)

                                    allocate payment entitlements to farmers who began their agricultural activity after 2011 and who operate in specific agricultural sectors to be defined by Member States on the basis of objective and non-discriminatory criteria;

                                    (ac)

                                    increase the value of payment entitlements under the basic payment scheme up to the national or regional average unit value of payment entitlements to farmers who as a result of the transition to the basic payment scheme are placed in a special situation by virtue of the low value of their historical payment entitlements held under the single payment scheme in accordance with Regulation (EC) No 73/2009 or increase the value of payment entitlements to farmers who held special entitlements on 31 December 2013;

                                    (ad)

                                    grant farmers, on an annual basis, compensation — which may be increased by an additional payment for small farmers — for the removal of the EUR 5 000 allowance provided for in Article 7(1) of Regulation (EC) No 73/2009.

                              (b)

                              linearly increase the value of payment entitlements under the basic payment scheme at national or regional level if the national reserve exceeds 3 % in any given year, provided that sufficient amounts remain available for allocations under paragraph 4, under point (a) of this paragraph and under paragraph 7.

                              (b)

                              linearly increase the value of payment entitlements under the basic payment scheme at national or regional level if the national reserve exceeds 3 % in any given year, provided that sufficient amounts remain available for allocations under paragraph 4, under point (a) of this paragraph and under paragraph 7.
                                    However, when increasing the value of payment entitlements under this point. Member States may decide to apply an alternative method to the linear method.

                  6.   When applying paragraphs 4 and 5(a), Member States shall establish the value of payment entitlements allocated to farmers on the basis of the national or regional average value of payment entitlements in the year of allocation.

                  6.   When applying paragraphs 4 and 5(a), Member States shall establish the value of payment entitlements allocated to farmers on the basis of the national or regional average value of payment entitlements in the year of allocation.

                  7.   Where a farmer is entitled to receive payment entitlements or increase the value of the existing ones by virtue of a definitive court’s ruling or by virtue of a definitive administrative act of the competent authority of a Member State, the farmer shall receive the number and value of payment entitlements established in that ruling or act at a date to be fixed by the Member State. However, this date shall not be later than the latest date for lodging an application under the basic payment scheme following the date of the court’s ruling or the administrative act, taking into account the application of Articles 25 and 26.

                  7.   Where a farmer is entitled to receive payment entitlements or increase the value of the existing ones by virtue of a definitive court’s ruling or by virtue of a definitive administrative act of the competent authority of a Member State, the farmer shall receive the number and value of payment entitlements established in that ruling or act at a date to be fixed by the Member State. However, this date shall not be later than the latest date for lodging an application under the basic payment scheme following the date of the court’s ruling or the administrative act, taking into account the application of Articles 25 and 26.

         Amendment 56

         Proposal for a regulation

         Article 25 — paragraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   Support under the basic payment scheme shall be granted to farmers upon activation, by means of declaration in accordance with Article 26(1), of a payment entitlement per eligible hectare in the Member State where it has been allocated. Activated payment entitlements shall give a right to the annual payment of the amounts fixed therein, without prejudice to the application of financial discipline, progressive reduction and capping, linear reductions in accordance with Article 7, 37(2) and 51(1), and any reductions and exclusions imposed pursuant to Regulation (EU) No […] [HZR].

                  1.   Support under the basic payment scheme shall be granted to farmers upon activation, by means of declaration in accordance with Article 26(1), of a payment entitlement per eligible hectare in the Member State where it has been allocated. Activated payment entitlements shall give a right to the annual payment of the amounts fixed therein, without prejudice to the application of financial discipline, progressive reduction and capping, linear reductions in accordance with Article 7, 37(2) and 51(1), and any reductions and exclusions imposed pursuant to Regulation (EU) No […] [HZR].
                        By way of derogation from the first sentence, Member States that apply the single area payment scheme in 2013 may continue to apply the model for the implementation of the basic payment scheme.

         Amendment 57

         Proposal for a regulation

         Article 25 — paragraph 2 — subparagraph 3 a (new)

                     Text proposed by the Commission

                     Amendment

                        For the purposes of point (a) of the first subparagraph, Member States may apply, according to objective and non-discriminatory criteria, a reduction coefficient for areas with lower yield potential or specific productions when determining the size of the eligible agricultural area.

         Amendment 58

         Proposal for a regulation

         Article 27 — paragraph 2 a (new)

                     Text proposed by the Commission

                     Amendment

                        2 a.

                        Where payment entitlements are sold without land, Member States may, acting in compliance with the general principles of Union law, decide that part of the payment entitlements sold revert to the national reserve or that their unit value is reduced in favour of the national reserve.

         Amendment 59

         Proposal for a regulation

         Article 28 — paragraph 1 — point e

                     Text proposed by the Commission

                     Amendment

                              (e)

                              criteria to be applied by Member States to allocate payment entitlements to farmers who did not activate any entitlement in 2011 or did not claim support under the single area payment scheme in 2011 as provided for in Article 21(2) and to allocate payment entitlements in case of application of the contract clause referred to in Article 21(3);

                              (e)

                              criteria to be applied by Member States to allocate payment entitlements to farmers who did not activate any entitlement in
                                    any one of the years 2009, 2010 or
                                  2011 or did not claim support under the single area payment scheme in
                                    any of one the years 2009, 2010 or
                                  2011 as provided for in Article 21(2) and to allocate payment entitlements in case of application of the contract clause referred to in Article 21(3)
                                    , with the exception of new farmers and young farmers
                                 ;

         Amendment 60

         Proposal for a regulation

         Article 28 — point g

                     Text proposed by the Commission

                     Amendment

                              (g)

                              rules on the declaration and activation of payment entitlements;

                              (g)

                              rules on
                                    the content of
                                  the declaration and
                                    on the requirements for the
                                  activation of payment entitlements;

         Amendment 61

         Proposal for a regulation

         Chapter 1 a (new)

                     Text proposed by the Commission

                     Amendment

                        Article 28a

                        General rules

                        1.

                        Member States may decide to grant a complementary annual payment to farmers who are entitled to a payment under the basic payment scheme referred to in Chapter 1.

                        2.

                        Member States shall determine the number of first hectares eligible for this provision, which shall correspond to the number of entitlements activated by the farmer in accordance with Article 26(1), up to a limit of 50 hectares.

                        3.

                        In order to finance this provision, Member States shall use an amount up to a maximum of 30 % of their annual national ceiling set out in Annex II.

                        4.

                        Member States shall calculate each year the amount of complementary payment for the first hectares by dividing the amount referred to in paragraph 3 by the total number of hectares benefiting from this payment.

                        5.

                        Member States shall ensure that no payment is made to farmers who, after the publication of the Commission proposal for this Regulation, are shown to have artificially created the conditions in order to benefit from the payment referred to in this Article.

                        6.

                        Member States shall notify the Commission, by 1 August 2013, of their decisions referred to in paragraphs 1, 2 and 3.

         Amendment 63

         Proposal for a regulation

         Article 30

                     Text proposed by the Commission

                     Amendment

                     Article 30

                     Article 30

                  Crop diversification

                  Crop diversification

                  1.   Where the arable land of the farmer covers more than
                        3
                      hectares
                        and is not entirely used for grass production (sown or natural), entirely left fallow or entirely cultivated with crops under water for a significant part of the year,
                      cultivation on the arable land shall consist of at least three different crops.
                        None of those three crops shall cover less than 5 %
                      of the arable land and the
                        main one shall not exceed 70 %
                      of the arable land.

                  1.
                        Where the arable land of the farmer covers between 10 and 30 hectares, cultivation on the arable land shall consist of at least two different crops. None of those crops shall cover more than 80 % of the arable land.

                  Where the arable land of the farmer covers more than
                        30
                      hectares, cultivation on the arable land shall consist of at least three different crops
                        except for holdings situated north of the 62nd parallel. The main crop shall not cover more than 75 %
                      of the arable land and
                        together
                      the
                        two main crops shall not cover more than 95 %
                      of the arable land.

                  2.   The Commission shall be empowered to adopt delegated acts in accordance with Article 55 laying down the definition of ‘crop’ and the rules concerning the application of the precise calculation of shares of different crops.

                  2.   The Commission shall be empowered to adopt delegated acts in accordance with Article 55 laying down the definition of ‘crop’ and the rules concerning the application of the precise calculation of shares of different crops.

         Amendment 64

         Proposal for a regulation

         Article 31

                     Text proposed by the Commission

                     Amendment

                     Article 31

                     Article 31

                  Permanent grassland

                  Permanent grassland
                        and permanent pasture

                  1.
                        Farmers
                      shall
                        maintain as
                      permanent grassland the areas of
                        their
                      holdings declared as such in the application made pursuant to Article 74(1) of Regulation (EU) No XXX (HZ) for claim year 2014, hereinafter referred to as ‘reference areas under permanent grassland’.

                  1.
                        Member States
                      shall
                        ensure that the ratio of the land under
                      permanent grassland
                        and permanent pasture to the total agricultural area is maintained. Member States may apply this obligation at national, regional or sub regional level.

                        For the purpose of the first subparagraph, land under permanent grassland and permanent pasture shall be considered to correspond to
                      the areas of
                        the
                      holdings declared as such in the application made pursuant to Article 74(1) of Regulation (EU) No XXX (HZ) for claim year 2014, and shall hereinafter referred to as ‘reference areas under permanent grassland
                        and permanent pasture
                     ’.

                  The reference areas under permanent grassland shall be increased in cases where the farmer has an obligation to reconvert areas into permanent grassland in 2014 and/or in 2015 as referred to in Article 93 of Regulation (EU) No […] HZR.

                  The reference areas under permanent grassland
                        and permanent pasture
                      shall be increased in cases where the farmer has an obligation to reconvert areas into permanent grassland in 2014 and/or in 2015 as referred to in Article 93 of Regulation (EU) No […] HZR.

                  2.
                        Farmers shall be allowed to convert
                      a maximum of 5 % of
                        their
                      reference areas under permanent grassland.
                        That limit shall not apply in the case of force majeure or exceptional circumstances.

                  2.
                        Conversion of
                      a maximum of 5 % of
                        the
                      reference areas under permanent grassland
                        and permanent pasture shall be allowed, with the exception of carbon rich soils, wetlands and semi natural grassland and pastures. Under exceptional circumstances, this percentage may be increased to 7 %.

                  3.   The Commission shall be empowered to adopt delegated acts in accordance with Article 55 laying down rules concerning the increase of reference areas under permanent grassland as laid down in the
                        second
                      subparagraph of paragraph 1, the renewal of permanent grassland, the reconversion of agricultural area into permanent grassland in case the authorised decrease referred to in paragraph 2 is exceeded, as well as the modification of the reference areas under permanent grassland in case of transfer of land.

                  3.   The Commission shall be empowered to adopt delegated acts in accordance with Article 55 laying down rules concerning the increase of reference areas under permanent grassland
                        and permanent pasture
                      as laid down in the
                        third
                      subparagraph of paragraph 1, the renewal of permanent grassland
                        and permanent pasture
                     , the reconversion of agricultural area into permanent grassland
                        and permanent pasture
                      in
                        the
                      case
                        that
                      the authorised decrease referred to in paragraph 2 is exceeded, as well as
                        concerning the exceptional circumstances referred to in paragraph 2 and
                      the modification of the reference areas under permanent grassland
                        and permanent pasture,
                      in
                        the
                      case of
                        the
                      transfer of land.

         Amendment 65

         Proposal for a regulation

         Article 32

                     Text proposed by the Commission

                     Amendment

                     Article 32

                     Article 32

                  Ecological focus area

                  Ecological focus area

                  1.   Farmers shall ensure that at least
                        7 %
                      of their eligible hectares as defined in Article 25(2), excluding areas under permanent grassland, is ecological focus area such as land left fallow, terraces, landscape features, buffer strips and afforested areas as referred to in article 25(2)(b)(ii).

                  1.
                        Where the arable land covers more than 10 hectares,
                      farmers shall ensure,
                        during the first year of implementation of the present regulation,
                      that at least
                        3 %
                      of their eligible hectares as defined in Article 25(2), excluding areas under permanent grassland
                        and permanent pasture and permanent crops
                     , is ecological focus area such as land left fallow, terraces, landscape features
                        including hedgerows, ditches, stonewalls, in field trees and ponds, land planted with nitrogen-fixing crops
                     , buffer strips and afforested areas as referred to in article 25(2)(b)(ii).
                        Farmers may apply this measure to their entire holding.

                        Farmers may use an ecological focus area for production without utilisation of pesticide or fertiliser application.

                        From 1 January 2016, the percentage indicated in the first subparagraph shall be raised to 5 %.

                        1a.

                        Before 31 March 2017, the Commission shall present an evaluation report of the measures under paragraph 1 to the European Parliament and the Council; accompanied by the necessary legislative proposals, in order to increase, if appropriate, up to 7 % the percentage mentioned in paragraph 1 for the year 2018 and after taking into account the impact on the environment and agricultural production.

                        1b.

                        By way of derogation from paragraph 1, from 1 January 2016, Member States may decide to implement up to three percentage points of the ecological focus areas at a regional level in order to obtain adjacent ecological areas.

                        1c.

                        Farmers may lease back from the local authority an agricultural area of high nature value which has entered public ownership as a result of land consolidation or similar procedures and may designate it as ecological focus area provided that it meets the criteria set out in paragraph 1.

                        1d.

                        Ecological focus areas may be weighted on the basis of their ecological significance. The Commission shall approve the set of weighting coefficients submitted by Member Sates taking into account equivalent environmental and climatic performance criteria.

                  2.   The Commission shall be empowered to adopt delegated acts in accordance with Article 55 to further define the types of ecological focus areas referred to in paragraph 1 of this Article
                        and
                      to add and define other types of ecological focus areas that can be taken into account
                        for the respect of
                      the percentage referred to in
                        that
                      paragraph.

                  2.   The Commission shall be empowered to adopt delegated acts in accordance with Article 55 to further define the types of ecological focus areas referred to in paragraph 1 of this Article
                        , to lay down an Union-wide framework of weighting coefficients for the purpose of calculating the hectares represented by the various types of ecological focus area referred to in paragraph 1d of this Article and
                      to add and define other types of ecological focus areas that may be taken into account
                        when assessing
                      the percentage referred to in paragraph
                        1 of this Article and defining the regional level referred to in paragraph 1b of this Article.

         Amendment 66

         Proposal for a regulation

         Article 34 — paragraph 4

                     Text proposed by the Commission

                     Amendment

                  4.   The payment per hectare referred to in paragraph 1 shall be calculated by dividing the amount resulting from the application of Article 35 by the number of eligible hectares declared according to Article 26(1)
                        which are situated in the areas
                      to which Member States decided to grant a payment in accordance with paragraph 2 of this Article.

                  4.   The payment per hectare referred to in paragraph 1 shall be calculated by dividing the amount resulting from the application of Article 35 by the number of eligible hectares declared according to Article 26(1) to which Member States decided to grant a payment in accordance with paragraph 2 of this Article.

         Amendment 67

         Proposal for a regulation

         Article 34 — paragraph 4 — subparagraph 1 a (new)

                     Text proposed by the Commission

                     Amendment

                        Member States may vary the payment per hectare on the basis of objective and non-discriminatory criteria.

         Amendment 68

         Proposal for a regulation

         Article 34 — paragraph 4 — subparagraph 1 b (new)

                     Text proposed by the Commission

                     Amendment

                        If they apply the first subparagraph, Member States may set the maximum number of hectares per holding which are to be taken into account for the payment.

         Amendment 69

         Proposal for a regulation

         Article 35 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  2.   According to the percentage of the national ceiling to be used by Member States pursuant to paragraph 1, the Commission shall
                        , by means of implementing
                      acts, fix the corresponding ceiling for that payment on a yearly basis.
                        Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 56(2).

                  2.   According to the percentage of the national ceiling to be used by Member States pursuant to paragraph 1, the Commission shall
                        be empowered to adopt delegated
                      acts
                        , in accordance with Article 55, to
                      fix the corresponding ceiling for that payment on a yearly basis.

         Amendment 70

         Proposal for a regulation

         Article 36

                     Text proposed by the Commission

                     Amendment

                     Article 36

                     Article 36

                  General rules

                  General rules

                  1.   Member States shall grant an annual payment to young farmers who are entitled to a payment under the basic payment scheme referred to in Chapter 1.

                  1.   Member States shall grant an annual payment,
                        subject to the conditions laid down in this Chapter,
                      to young farmers who are entitled to a payment under the basic payment scheme referred to in Chapter 1.

                  2.   For the purposes of this Chapter, ‘young farmers’, shall mean:

                  2.   For the purposes of this Chapter, ‘young farmers’, shall mean:

                              (a)

                              natural persons who are setting up for the first time an agricultural holding as head of the holding, or who have already set up such a holding during the five years preceding the first submission of an application to the basic payment scheme as referred in Article 73(1) of Regulation (EU) No […] [HZR], and

                              (a)

                              natural persons who are setting up for the first time an agricultural holding as head of the holding, or who have already set up such a holding during the five years preceding the first submission of an application to the basic payment scheme as referred in Article 73(1) of Regulation (EU) No […] [HZR], and

                              (b)

                              who are less than 40 years of age at the moment of submitting the application referred to in point (a).

                              (b)

                              who are less than 40 years of age at the moment of submitting the application referred to in point (a).

                                    (ba)

                                    Member States may determine additional objective and non-discriminatory criteria that young farmers are to fulfil as regards, in particular, appropriate skills, experience and/or training requirements.

                  3.   Without prejudice to the application of financial discipline, progressive reduction and capping, linear reductions as referred in Article 7, and any reductions and exclusions imposed pursuant to Article 65 of Regulation (EU) No […] [HZR], the payment referred to in paragraph 1 of this Article shall be granted annually upon activation of payment entitlements by the farmer.

                  3.   Without prejudice to the application of financial discipline, progressive reduction and capping, linear reductions as referred in Article 7, and any reductions and exclusions imposed pursuant to Article 65 of Regulation (EU) No […] [HZR], the payment referred to in paragraph 1 of this Article shall be granted annually upon activation of payment entitlements by the farmer.

                  4.   The payment referred to in paragraph 1 shall be granted per farmer for a period of maximum five years. That period shall be reduced by the number of years elapsed between the setting up and the first submission of the application referred to in point (a) of paragraph 2.

                  4.   The payment referred to in paragraph 1 shall be granted per farmer for a period of maximum five years. That period shall be reduced by the number of years elapsed between the setting up and the first submission of the application referred to in point (a) of paragraph 2.

                  5.   Member States shall calculate each year the amount of the payment referred to in paragraph 1 by multiplying a figure corresponding to 25 % of the average value of the payment entitlements
                        held by the farmer
                      by the number of entitlements he has activated in accordance with Article 26(1).

                  5.   Member States shall calculate each year the amount of the payment referred to in paragraph 1 by multiplying a figure corresponding to 25 % of the average value of the payment entitlements
                        in the Member State or region concerned
                      by the number of entitlements the farmer he has activated in accordance with Article 26(1).

                  When applying the first subparagraph, Member States shall
                        respect the following maximum limits in the number of activated payment entitlements that are to be taken into account:

                  When applying the first subparagraph, Member States shall
                        fix a limit which may be up to a maximum of 100 hectares.

                                    (a)

                                    in Member States where the average size of agricultural holdings as set out in Annex VI is lower than, or equal to, 25 hectares, a maximum of 25;

                                    (b)

                                    in Member States where the average size of agricultural holdings as set out in Annex VI is higher than 25 hectares, a maximum that shall be no less that 25 and no greater than that average size.

                  6.   The Commission shall be empowered to adopt delegated acts in accordance with Article 55 concerning the conditions under which a legal person may be considered eligible for receiving the payment referred to in paragraph 1, in particular the application of the age-limit set out in paragraph 2(b) to one ore more natural persons participating in the legal person.

                  6.   The Commission shall be empowered to adopt delegated acts in accordance with Article 55 concerning the conditions under which a legal person may be considered eligible for receiving the payment referred to in paragraph 1, in particular the application of the age-limit set out in paragraph 2(b) to one ore more natural persons participating in the legal person.

         Amendment 71

         Proposal for a regulation

         Article 37

                     Text proposed by the Commission

                     Amendment

                     Article 37

                     Article 37

                  Financial provisions

                  Financial provisions

                  1.   In order to finance the payment referred to in Article 36, Member States shall use
                        a percentage
                      of the annual national ceiling set out in Annex II
                        which shall not be higher than 2 %. They shall notify the Commission, by 1 August 2013, of the estimated percentage necessary to finance that payment
                     .

                  1.   In order to finance the payment referred to in Article 36, Member States shall use
                        2 %
                      of the annual national ceiling set out in Annex II.

                        Where the estimated percentage necessary to finance the payment referred to in Article 36 is lower than 2 %, Member States may allocate the remainder of the respective amounts in order to linearly increase the value of payment entitlements of the national reserve, giving priority to young farmers and new farmers in accordance with Article 23(4).

                        By way of derogation from the first subparagraph, Member States may decide to increase the percentage mentioned in that subparagraph in order to give priority to chosen beneficiaries at national level, based on objective and non-discriminatory criteria. Such decision shall be notified to the Commission before 1 August 2013.

                  Member States may, by 1 August 2016, review their estimated percentage with effect from 1 January 2017. They shall notify the Commission of the reviewed percentage by 1 August 2016.

                  Member States may, by 1 August 2016, review their estimated percentage
                        necessary to finance the payment referred to in Article 36
                      with effect from 1 January 2017. They shall notify the Commission of the reviewed percentage by 1 August 2016.

                  2.   Without prejudice to the maximum of 2 % set under paragraph 1, where the total amount of the payment applied for in a Member State in a particular year exceeds the ceiling set pursuant to paragraph 4, and where that ceiling is lower than 2 % of the annual national ceiling set out in Annex II, Member States shall apply a linear reduction to all payments to be granted to all farmers in accordance with Article 25.

                  2.   Without prejudice to the maximum of 2 % set under paragraph 1, where the total amount of the payment applied for in a Member State in a particular year exceeds the ceiling set pursuant to paragraph 4, and where that ceiling is lower than 2 % of the annual national ceiling set out in Annex II, Member States shall apply a linear reduction to all payments to be granted to all farmers in accordance with Article 25.

                  3.   Where the total amount of the payment applied for in a Member State in a particular year exceeds the ceiling set pursuant to paragraph 4, and where that ceiling amounts to 2 % of the annual national ceiling set out in Annex II, Member States shall apply a linear reduction to the amounts to be paid in accordance with Article 36 in order to comply with that ceiling.

                  3.   Where the total amount of the payment applied for in a Member State in a particular year exceeds the ceiling set pursuant to paragraph 4, and where that ceiling amounts to 2 % of the annual national ceiling set out in Annex II, Member States shall apply a linear reduction to the amounts to be paid in accordance with Article 36 in order to comply with that ceiling.

                  4.   On the basis of the estimated percentage notified by Member States pursuant to paragraph 1, the Commission shall, by means of implementing acts, set the corresponding ceiling for the payment referred to in Article 36 on a yearly basis. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 56(2).

                  4.   On the basis of the estimated percentage notified by Member States pursuant to paragraph 1, the Commission shall, by means of implementing acts, set the corresponding ceiling for the payment referred to in Article 36 on a yearly basis. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 56(2).

         Amendment 72

         Proposal for a regulation

         Article 38 — paragraph 1 — subparagraph 2

                     Text proposed by the Commission

                     Amendment

                  Coupled support may be granted to the
                        following
                      sectors and productions
                        : cereals, oilseeds, protein crops, grain legumes, flax, hemp, rice, nuts, starch potato, milk and milk products, seeds, sheepmeat and goatmeat, beef and veal, olive oil, silk worms, dried fodder, hops, sugar beet, cane and chicory, fruit and vegetables and short rotation coppice
                     .

                  Coupled support may be granted to the sectors and productions
                        referred to in Annex I to the Treaty, with the exception of fisheries products
                     .

         Amendment 73

         Proposal for a regulation

         Article 38 — paragraph 1 — subparagraph 2 a (new)

                     Text proposed by the Commission

                     Amendment

                        Appropriations earmarked for coupled payments shall be allocated as a matter of priority to productions in respect of which coupled payments were made during the period 2010-2013 under Articles 68, 101 and 111 of Regulation (EC) No 73/2009.

         Amendment 74

         Proposal for a regulation

         Article 38 — paragraph 3 a (new)

                     Text proposed by the Commission

                     Amendment

                        3a.

                        Members States may grant coupled support to farmers with special entitlements in 2010 in accordance with Articles 60 and 65 of Regulation (EC) No 73/2009 independently of the basic payment referred to in Title III, Chapter 1 of this Regulation.

         Amendment 75

         Proposal for a regulation

         Article 38 — paragraph 3 b (new)

                     Text proposed by the Commission

                     Amendment

                        3b.

                        Member States may grant coupled support to livestock farmers who do not own the majority of the land they farm.

         Amendment 76

         Proposal for a regulation

         Article 38 — paragraph 3 c (new)

                     Text proposed by the Commission

                     Amendment

                        3c.

                        The Commission shall be empowered to adopt delegated acts in accordance with Article 55 laying down the transitional measures to be applied to these farmers.

         Amendment 77

         Proposal for a regulation

         Article 38 — paragraph 4 — subparagraph 1 a (new)

                     Text proposed by the Commission

                     Amendment

                        By way of derogation from the first subparagraph, the limit for the grant of coupled support may be extended beyond that required to maintain existing production levels, provided that the purpose of the coupled support is environmental. The Member State concerned shall set such a limit in accordance with specified environmental objectives or challenges. The limit thus set shall be notified to the Commission in accordance with Article 40 and shall be approved in accordance with Article 41.

         Amendment 78

         Proposal for a regulation

         Article 39 — paragraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   In order to finance the voluntary coupled support, Member States may decide, by 1 August of the year preceding the first year of implementation of such support, to use up to
                        5
                      % of their annual national ceiling set out in Annex II.

                  1.   In order to finance the voluntary coupled support, Member States may decide, by 1 August of the year preceding the first year of implementation of such support, to use up to
                        15
                      % of their annual national ceiling set out in Annex II.

         Amendment 79

         Proposal for a regulation

         Article 39 — paragraph 1 a (new)

                     Text proposed by the Commission

                     Amendment

                        1a.

                        The percentage of the national ceiling referred to in paragraph 1 may be increased by three percentage points for those Member States which decide to use at least 3 % of their national ceiling as defined in Annex II in order to support the production of protein crops under this Chapter.

         Amendment 80

         Proposal for a regulation

         Article 39 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                        2.

                        By way of derogation from paragraph 1, Member States may decide to use up to 10 % of the annual national ceiling set out in Annex II provided that:

                        deleted

                                    (a)

                                    they applied, until 31 December 2013, the single area payment scheme as laid down in Title V of Regulation (EC) No 73/2009, or financed measures under Article 111 of that Regulation, or are concerned by the derogation provided for in Article 69(5), or, in the case of Malta, in Article 69(1) of that Regulation; and/or

                                    (b)

                                    they allocated, during at least one year in the period 2010-2013, more than 5 % of their amount available for granting the direct payments provided for in Titles III, IV and V of Regulation (EC) No 73/2009, with the exception of Section 6 of Chapter 1 of Title IV, for financing the measures laid down in Section 2 of Chapter 2 of Title III of Regulation (EC) No 73/2009, the support provided for in points (i) to (iv) of paragraph 1(a) and paragraphs 1(b) and (e) of Article 68 of that Regulation, or the measures under Chapter 1, with the exception of Section 6, of Title IV of that Regulation.

         Amendment 82

         Proposal for a regulation

         Article 39 — paragraph 4 — introductory part

                     Text proposed by the Commission

                     Amendment

                  4.   Member States may, by 1 August 2016, review their decision pursuant to paragraphs 1,
                        2 and 3
                      and decide, with effect from 2017:

                  4.   Member States may, by 1 August 2016, review their decision pursuant to paragraph
                        s
                      1
                        and 1a
                     , and decide, with effect from 2017:

         Amendment 83

         Proposal for a regulation

         Article 39 — paragraph 4 — point a

                     Text proposed by the Commission

                     Amendment

                              (a)

                              to increase the percentage fixed pursuant to paragraphs 1
                                    and 2
                                 , within the limits laid down therein where applicable, and, where appropriate, modify the conditions for granting the support;

                              (a)

                              to increase the percentage fixed pursuant to paragraphs 1
                                    and 1a
                                 , within the limits laid down therein where applicable, and, where appropriate, modify the conditions for granting the support;

         Amendment 84

         Proposal for a regulation

         Article 39 — paragraph 5

                     Text proposed by the Commission

                     Amendment

                  5.   On the basis of the decision taken by each Member State pursuant to paragraphs 1
                        to
                      4 on the proportion of the national ceiling to be used, the Commission shall
                        , by means of implementing acts,
                      fix the corresponding ceiling for the support on a yearly basis.
                        Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 56(2).

                  5.   On the basis of the decision taken by each Member State pursuant to paragraphs 1
                        , 1a and
                      4 on the proportion of the national ceiling to be used, the Commission shall
                        be empowered to adopt delegated acts, in accordance with Article 55, to
                      fix the corresponding ceiling for the support on a yearly basis.

         Amendment 85

         Proposal for a regulation

         Article 39 a (new)

                     Text proposed by the Commission

                     Amendment

                        Article 39a

                        Optional additional national support

                        1.

                        Member States which decide to introduce voluntary coupled support in the suckler cow sector in accordance with Article 38 may grant an additional national premium to farmers to top up the coupled support they receive for the same calendar year.

                        2.

                        Member States shall notify farmers of the conditions governing the award of this additional national support at the same time as and using the same arrangements as for the notification of the coupled support.

         Amendment 86

         Proposal for a regulation

         Article 41 — paragraph 1 — introductory part

                     Text proposed by the Commission

                     Amendment

                  1.   The Commission shall
                        , by means of an implementing act,
                      approve the decision referred to
                        in Article 39(3), or, where appropriate,
                      in Article 39(4)(a), where one of the following needs in the region or sector concerned is demonstrated:

                  1.   The Commission shall
                        be empowered to adopt delegated acts, in accordance with Article 55, to
                      approve the decision referred to in Article 39(4)(a), where one of the following needs in the region or sector concerned is demonstrated:

         Amendment 87

         Proposal for a regulation

         Article 47

                     Text proposed by the Commission

                     Amendment

                     Article 47

                     Article 47

                  General rules

                  General rules

                  1.   Farmers holding payment entitlements allocated in 2014 pursuant to Article 21 and fulfilling the minimum requirements provided for in Article 10(1)
                        may opt for participation
                      in
                        a
                      simplified scheme under the conditions laid down in this Title,
                        hereinafter referred to as
                     ‘small farmers scheme’.

                  1.
                        Member States may set up a simplified small farmers scheme in accordance with the conditions laid down in this Title. If a Member State applies such a scheme,
                      farmers holding payment entitlements allocated in 2014 pursuant to Article 21 and fulfilling the minimum requirements provided for in Article 10(1)
                        shall participate
                      in
                        the
                      simplified scheme under the conditions laid down in this Title, (‘small farmers scheme’).

                        Farmers entitled pursuant to Titles III and IV to payments of less than EUR 1 500 shall automatically be included in such small farmers scheme.

                  2.   Payments under the small farmers scheme shall replace the payments to be granted pursuant to Titles III and IV.

                  2.   Payments under the small farmers scheme shall replace the payments to be granted pursuant to Titles III and IV.

                  3.   Farmers participating in the small farmers scheme shall be exempted from the agricultural practises provided for in Chapter 2 of Title III.

                  3.   Farmers participating in the small farmers scheme shall be exempted from the agricultural practises provided for in Chapter 2 of Title III.

                  4.   Member States shall ensure that no payment is made to farmers for whom it is established that, as from the date of publication of the Commission proposal for this Regulation, they divide their holding with the sole purpose of benefiting from the small farmers scheme. This shall also apply to farmers whose holdings result from that division.

                  4.   Member States shall ensure that no payment is made to farmers for whom it is established that, as from the date of publication of the Commission proposal for this Regulation, they divide their holding with the sole purpose of benefiting from the small farmers scheme. This shall also apply to farmers whose holdings result from that division.

         Amendment 88

         Proposal for a regulation

         Article 48

                     Text proposed by the Commission

                     Amendment

                     Article 48

                     Article 48

                  Participation

                  Participation

                  Farmers
                        wishing to participate in the small farmers scheme shall submit an application
                      by 15 October 2014.

                        The list of
                      farmers
                        referred to in Article 47(1) shall be notified to the Commission by national authorities
                      by 15 October 2014.

                  Farmers
                        not having applied for participation in the small farmers scheme by 15 October 2014 or deciding
                      to withdraw from it after that date or selected for support under Article 20(1)(c) of Regulation (EU) No […] [RDR] shall no longer have the right to participate in that scheme.

                  Farmers
                        referred to in Article 47(1) who decide
                      to withdraw from
                        the small farmers scheme
                      after that date or selected for support under Article 20(1)(c) of Regulation (EU) No […] [RDR] shall no longer have the right to participate in that scheme.

         Amendment 89

         Proposal for a regulation

         Article 49

                     Text proposed by the Commission

                     Amendment

                     Article 49

                     Article 49

                  Amount of the payment

                  Amount of the payment

                  1.   Member States shall set the amount of the annual payment for the small farmers scheme at one of the following levels, subject to paragraphs 2 and 3:

                  1.   Member States shall set the amount of the annual payment for the small farmers scheme at one of the following levels, subject to paragraphs 2 and 3:

                              (a)

                              an amount not exceeding
                                    15 %
                                  of the national average payment per beneficiary;

                              (a)

                              an amount not exceeding
                                    25 %
                                  of the national average payment per beneficiary;

                              (b)

                              an amount corresponding to the national average payment per hectare multiplied by a figure corresponding to the number of hectares with a maximum of
                                    three
                                 .

                              (b)

                              an amount corresponding to the national average payment per hectare multiplied by a figure corresponding to the number of hectares with a maximum of
                                    five
                                 .

                        By way of derogation from subparagraph 1, Member States may decide that the annual payment is to be equal to the amount that the farmer would be entitled to under Article 18, Article 29, Article 34, Article 36 and Article 38 in the year of entering into the scheme, but not higher than EUR 1 500.

                  The national average referred to in point (a) of the first subparagraph shall be established by the Member States on the basis of the national ceiling set in Annex II for calendar year 2019 and the number of farmers having obtained payment entitlements pursuant to Article 21(1).

                  The national average referred to in point (a) of the first subparagraph shall be established by the Member States on the basis of the national ceiling set in Annex II for calendar year 2019 and the number of farmers having obtained payment entitlements pursuant to Article 21(1).

                  The national average referred to in point (b) of the first subparagraph shall be established by the Member States on the basis of the national ceiling set in Annex II for calendar year 2019 and the number of eligible hectares declared in accordance with Article 26 in 2014.

                  The national average referred to in point (b) of the first subparagraph shall be established by the Member States on the basis of the national ceiling set in Annex II for calendar year 2019 and the number of eligible hectares declared in accordance with Article 26 in 2014.

                  2.   The amount referred to in paragraph 1 shall not be lower than EUR 500 and not be higher than EUR
                        1 000
                     . Without prejudice to Article 51(1), where the application of paragraph 1 results in an amount lower than EUR 500 or higher than EUR
                        1 000
                     , the amount shall be rounded up or down, respectively, to the minimum or maximum amount.

                  2.   The amount referred to in paragraph 1 shall not be lower than EUR 500 and not be higher than EUR
                        1 500
                     . Without prejudice to Article 51(1), where the application of paragraph 1 results in an amount lower than EUR 500 or higher than EUR
                        1 500
                     , the amount shall be rounded up or down, respectively, to the minimum or maximum amount.

                  3.   By way of derogation from paragraph 2, in Croatia, Cyprus and Malta the amount referred to in paragraph 1 may be set at a value lower than EUR 500, but not less than EUR 200.

                  3.   By way of derogation from paragraph 2, in Croatia, Cyprus and Malta the amount referred to in paragraph 1 may be set at a value lower than EUR 500, but not less than EUR 200.

         Amendment 90

         Proposal for a regulation

         Article 51

                     Text proposed by the Commission

                     Amendment

                     Article 51

                     Article 51

                  Financial provisions

                  Financial provisions

                  1.   In order to finance the payment referred to in this Title, Member States shall deduct the amounts corresponding to the amounts to which the small farmers would be entitled as a basic payment referred to in Chapter 1 of Title III, as a payment for agricultural practises beneficial for the climate and the environment referred to in Chapter 2 of Title III and, where applicable, as a payment for areas with natural constraints referred to in Chapter 3 of Title III, as a payment for young farmers referred to in Chapter 4 of Title III and as coupled support referred to in Title IV from the total amounts available for the respective payments.

                  1.   In order to finance the payment referred to in this Title, Member States shall deduct the amounts corresponding to the amounts to which the small farmers would be entitled as a basic payment referred to in Chapter 1 of Title III, as a payment for agricultural practises beneficial for the climate and the environment referred to in Chapter 2 of Title III and, where applicable, as a payment for areas with natural constraints referred to in Chapter 3 of Title III, as a payment for young farmers referred to in Chapter 4 of Title III and as coupled support referred to in Title IV from the total amounts available for the respective payments.

                  The difference between the sum of all payments due under the small farmers scheme and the total amount financed in accordance with the first sub-paragraph shall be financed by applying a linear reduction to all payments to be granted in accordance with Article 25.

                  The difference between the sum of all payments due under the small farmers scheme and the total amount financed in accordance with the first sub-paragraph shall be financed by applying a linear reduction to all payments to be granted in accordance with Article 25.

                        Member States that exercise the option laid down in Article 20(1) may apply different reduction rates at regional level.

                  The elements on the basis of which the amounts referred to in the first subparagraph are established shall remain the same for the entire duration of the participation of the farmer in the scheme.

                  The elements on the basis of which the amounts referred to in the first subparagraph are established shall remain the same for the entire duration of the participation of the farmer in the scheme.

                  2.   If the total amount of payments due under the small farmers scheme exceeds
                        10 %
                      of the annual national ceiling set out in Annex II, Member States shall apply a linear reduction to the amounts to be paid in accordance with this Title in order to respect that percentage.

                  2.   If the total amount of payments due under the small farmers scheme exceeds
                        15 %
                      of the annual national ceiling set out in Annex II, Member States shall apply a linear reduction to the amounts to be paid in accordance with this Title in order to respect that percentage.

         Amendment 91

         Proposal for a regulation

         Article 53 — paragraph 2 — point d a (new)

                     Text proposed by the Commission

                     Amendment

                                    (da)

                                    arrangements for the management of the information to be notified, as well as rules on content, form, timing, frequency and deadlines of the notifications;

         Amendment 92

         Proposal for a regulation

         Article 53 — paragraph 3 — subparagraph 1 — point b

                     Text proposed by the Commission

                     Amendment

                                    (b)

                                    arrangements for the management of the information to be notified, as well as rules on content, form, timing, frequency and deadlines of the notifications;

                        deleted

         Amendment 93

         Proposal for a regulation

         Article 54 — paragraph 1

                     Text proposed by the Commission

                     Amendment

                  1.   The Commission shall
                        , by means of implementing acts,
                      adopt the
                        measures
                      which are both necessary and justifiable in an emergency, in order to resolve specific problems. Such
                        measures
                      may derogate from provisions of this Regulation, but only to the extent that, and for such a period, as is strictly necessary.
                        Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 56(2).

                  1.   The Commission shall
                        be empowered to
                      adopt
                        delegated acts, in accordance with Article 55,
                      which are both necessary and justifiable in an emergency, in order to resolve specific problems. Such
                        delegated acts
                      may derogate from certain parts of this Regulation, but only to the extent that, and for such a period, as is strictly necessary.

         Amendment 94

         Proposal for a regulation

         Article 54 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  2.
                        On duly justified imperative grounds of urgency relating
                      to the measures referred to in paragraph 1,
                        the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 56(3)
                     .

                  2.
                        Where, in relation
                      to the measures referred to in paragraph 1,
                        imperative grounds of urgency so require, the procedure provided for in Article 55a shall apply to delegated acts adopted pursuant to this Article.

         Amendment 95

         Proposal for a regulation

         Article 55 — paragraph 2

                     Text proposed by the Commission

                     Amendment

                  2.   The
                        delegation of
                      power
                        referred to in this Regulation
                      shall be conferred on the Commission for
                        an indeterminate period of time
                      from the entry into force of this Regulation.

                  2.   The power
                        to adopt delegated acts referred to in Articles […]
                      shall be conferred on the Commission for
                        a period of five years
                      from the entry into force of this Regulation.
                        The Commission shall draw up a report in respect of the delegated power no later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three month before the end of each period.

         Amendment 96

         Proposal for a regulation

         Article 55 a (new)

                     Text proposed by the Commission

                     Amendment

                        Article 55a

                        Urgency procedure

                        1.

                        Delegated acts adopted under this Article shall enter into force without delay and shall apply as long as no objection is expressed in accordance with paragraph 2. The notification of a delegated act to the European Parliament and to the Council shall state the reasons for the use of the urgency procedure.

                        2.

                        Either the European Parliament or the Council may object to a delegated act in accordance with the procedure referred to in Article 55(5). In such a case, the Commission shall repeal the act without delay following the notification of the decision to object by the European Parliament or by the Council.

         Amendment 97

         Proposal for a regulation

         Article 58 a (new)

                     Text proposed by the Commission

                     Amendment

                        Article 58a

                        Reporting

                        By 1 March 2017, the Commission shall present a report to the European Parliament and to the Council on the implementation of this Regulation, accompanied, if necessary, by appropriate legislative proposals.

         Amendment 98

         Proposal for a regulation

         Annex II

         Text proposed by the Commission

                        (In thousands EUR)

                     Calendar year

                     2014

                     2015

                     2016

                     2017

                     2018

                     2019 and subsequent years

                     Belgium

                        553 521

                        544 065

                        534 632

                        525 205

                        525 205

                        525 205

                     Bulgaria

                        655 661

                        737 164

                        810 525

                        812 106

                        812 106

                        812 106

                     Czech Republic

                        892 698

                        891 875

                        891 059

                        890 229

                        890 229

                        890 229

                     Denmark

                        942 931

                        931 719

                        920 534

                        909 353

                        909 353

                        909 353

                     Germany

                        5 275 876

                        5 236 176

                        5 196 585

                        5 156 970

                        5 156 970

                        5 156 970

                     Estonia

                        108 781

                        117 453

                        126 110

                        134 749

                        134 749

                        134 749

                     Ireland

                        1 240 652

                        1 239 027

                        1 237 413

                        1 235 779

                        1 235 779

                        1 235 779

                     Greece

                        2 099 920

                        2 071 481

                        2 043 111

                        2 014 751

                        2 014 751

                        2 014 751

                     Spain

                        4 934 910

                        4 950 726

                        4 966 546

                        4 988 380

                        4 988 380

                        4 988 380

                     France

                        7 732 611

                        7 694 854

                        7 657 219

                        7 619 511

                        7 619 511

                        7 619 511

                     Croatia

                        111 900

                        130 550

                        149 200

                        186 500

                        223 800

                        261 100

                     Italy

                        4 023 865

                        3 963 007

                        3 902 289

                        3 841 609

                        3 841 609

                        3 841 609

                     Cyprus

                        52 273

                        51 611

                        50 950

                        50 290

                        50 290

                        50 290

                     Latvia

                        163 261

                        181 594

                        199 895

                        218 159

                        218 159

                        218 159

                     Lithuania

                        396 499

                        417 127

                        437 720

                        458 267

                        458 267

                        458 267

                     Luxemburg

                        34 313

                        34 250

                        34 187

                        34 123

                        34 123

                        34 123

                     Hungary

                        1 298 104

                        1 296 907

                        1 295 721

                        1 294 513

                        1 294 513

                        1 294 513

                     Malta

                        5 316

                        5 183

                        5 050

                        4 917

                        4 917

                        4 917

                     Netherlands

                        806 975

                        792 131

                        777 320

                        762 521

                        762 521

                        762 521

                     Austria

                        707 503

                        706 850

                        706 204

                        705 546

                        705 546

                        705 546

                     Poland

                        3 038 969

                        3 066 519

                        3 094 039

                        3 121 451

                        3 121 451

                        3 121 451

                     Portugal

                        573 046

                        585 655

                        598 245

                        610 800

                        610 800

                        610 800

                     Romania

                        1 472 005

                        1 692 450

                        1 895 075

                        1 939 357

                        1 939 357

                        1 939 357

                     Slovenia

                        141 585

                        140 420

                        139 258

                        138 096

                        138 096

                        138 096

                     Slovakia

                        386 744

                        391 862

                        396 973

                        402 067

                        402 067

                        402 067

                     Finland

                        533 932

                        534 315

                        534 700

                        535 075

                        535 075

                        535 075

                     Sweden

                        710 853

                        711 798

                        712 747

                        713 681

                        713 681

                        713 681

                     United-Kingdom

                        3 624 384

                        3 637 210

                        3 650 038

                        3 662 774

                        3 662 774

                        3 662 774

         Amendment

                  2014

                  2015

                  2016

                  2017

                  2018

                  2019 and subsequent years

                  Belgium

                        554 701

                        548 646

                        542 261

                        535 640

                        535 640

                        535 640

                  Bulgaria

                        657 571

                        735 055

                        805 495

                        814 887

                        814 887

                        814 887

                  Czech Republic

                        891 307

                        892 742

                        893 686

                        894 054

                        894 054

                        894 054

                  Denmark

                        940 086

                        929 824

                        919 002

                        907 781

                        907 781

                        907 781

                  Germany

                        5 237 224

                        5 180 053

                        5 119 764

                        5 057 253

                        5 057 253

                        5 057 253

                  Estonia

                        113 168

                        125 179

                        137 189

                        149 199

                        149 199

                        149 199

                  Ireland

                        1 236 214

                        1 235 165

                        1 233 425

                        1 230 939

                        1 230 939

                        1 230 939

                  Greece

                        2 098 834

                        2 075 923

                        2 051 762

                        2 026 710

                        2 026 710

                        2 026 710

                  Spain

                        4 939 152

                        4 957 834

                        4 973 833

                        4 986 451

                        4 986 451

                        4 986 451

                  France

                        7 655 794

                        7 572 222

                        7 484 090

                        7 392 712

                        7 392 712

                        7 392 712

                  Croatia

                        111 900

                        130 550

                        149 200

                        186 500

                        223 800

                        261 100

                  Italy

                        4 024 567

                        3 980 634

                        3 934 305

                        3 886 268

                        3 886 268

                        3 886 268

                  Cyprus

                        52 155

                        51 585

                        50 985

                        50 362

                        50 362

                        50 362

                  Latvia

                        176 500

                        206 565

                        236 630

                        266 695

                        266 695

                        266 695

                  Lithuania

                        402 952

                        426 070

                        449 189

                        472 307

                        472 307

                        472 307

                  Luxemburg

                        33 943

                        33 652

                        33 341

                        33 015

                        33 015

                        33 015

                  Hungary

                        1 295 776

                        1 297 535

                        1 298 579

                        1 298 791

                        1 298 791

                        1 298 791

                  Malta

                        5 365

                        5 306

                        5 244

                        5 180

                        5 180

                        5 180

                  Netherlands

                        809 722

                        800 883

                        791 561

                        781 897

                        781 897

                        781 897

                  Austria

                        706 071

                        706 852

                        707 242

                        707 183

                        707 183

                        707 183

                  Poland

                        3 079 652

                        3 115 887

                        3 152 121

                        3 188 356

                        3 188 356

                        3 188 356

                  Portugal

                        582 466

                        598 550

                        614 635

                        630 719

                        630 719

                        630 719

                  Romania

                        1 485 801

                        1 707 131

                        1 928 460

                        2 002 237

                        2 002 237

                        2 002 237

                  Slovenia

                        140 646

                        139 110

                        137 491

                        135 812

                        135 812

                        135 812

                  Slovakia

                        391 608

                        397 576

                        403 543

                        409 511

                        409 511

                        409 511

                  Finland

                        533 451

                        535 518

                        537 295

                        538 706

                        538 706

                        538 706

                  Sweden

                        709 922

                        712 820

                        715 333

                        717 357

                        717 357

                        717 357

                  United-Kingdom

                        3 652 541

                        3 655 113

                        3 657 684

                        3 660 255

                        3 660 255

                        3 660 255