Tag Archives: Simplification of legislation

Single Farm Payment

Single Farm Payment

Outline of the Community (European Union) legislation about Single Farm Payment

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > General framework

Single Farm Payment

Document or Iniciative

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 [See amending act(s)].

Summary

Since the reform of the Common Agricultural Policy (CAP) which took place in June 2003, production-related support has been gradually abolished and included in the Single Payment Scheme (SPS), the system of direct payments which European farmers benefit from. This Regulation continues this reform.

Direct payments are support granted to farmers directly under the framework of one of the support schemes listed in Annex I to the Regulation. Some of this support is still directly linked to production; however the majority of direct support is decoupled and granted under the auspices of an income support scheme called the “Single Payment Scheme” (SPS). Under the SPS, support granted to farmers is not linked to production.

The objective of this Regulation is to gradually integrate support coupled with production into the single payment scheme.

DIRECT PAYMENTS

Cross-compliance

Direct support is subject to the principle of ‘cross-compliance’, according to which farmers must comply with a certain number of requirements in order to receive payments. These requirements relate to three areas:

  • public health, animal and plant health;
  • the environment;
  • animal welfare.

If the farmer does not comply with these requirements, they are penalised with a reduction in or cancellation of the direct payments.

Modulation

Modulation is a system of compulsory progressive reduction of direct payments. Direct payments of over EUR 5 000 have therefore been reduced year on year in accordance with a particular percentage of up to 10 % by 2012.

The corresponding amounts are transferred to the European Agricultural Fund for Rural Development (EAFRD) to enhance rural development programmes, in particular for measures concerning climate change, renewable energies, water management and biodiversity. The modulation system does not apply to either the outermost regions, the Aegean Islands or to Member States subject to “phasing in”.

Farm advisory system

Farmers may take part in the farm advisory system set up by Member States to advise farmers with regard to compliance with regulatory requirements on management matters and good farming and environmental conditions.

Integrated administration and control system (IACS)

Each Member State must set up an integrated administration and control system which enables the efficiency and monitoring of the support granted to farmers by the EU to be improved. Through this electronic system, the Member State is able to deal with aid applications and be assured through administrative checks and on-site checks that payments are made properly, in order to prevent and, if necessary, manage irregularities and recover undue amounts.

Payment

Full payments are to be made to beneficiaries in one or two instalments per year between 1 December and 30 June of the following calendar year. The Commission may authorise advances. Farmers who have artificially created the conditions required for obtaining payments will not receive them.

SINGLE PAYMENT SCHEME

The single payment scheme allocates aid to farmers irrespective of their production. The principal aim of this system of support is to ensure greater income stability for farmers. The latter henceforth receive the same amount of support regardless of their rate of production. This enables them to align their production with market demands. The aim of the Single Payment Scheme is also to improve the competitiveness and sustainability of agriculture.

National ceilings

Budget ceilings for the Single Payment Scheme for each Member State are published each year in a Commission Regulation.

National reserve

Member States set up a national reserve to grant rights to payments to new farmers and to those deemed to be in special circumstances, and to establish rights for farmers in areas subject to restructuring and/or development programmes.

Payment entitlements

In order to benefit from the Single Payment Scheme, farmers must first have payment entitlements, which they must declare together with the eligible hectares. The payment entitlements may be transferred from one farmer to another under certain conditions.

Historic implementation

In the “historic model”, entitlements are calculated based on the amount of direct payments each farmer has received during a reference period (generally the years 2000, 2001 and 2002. Other calculation options are possible in specific cases or when other integrations are concerned). Each direct payment is calculated by dividing the reference amount by the number of hectares which are entitled to the support received.

Regional implementation

Member States may opt to allocate payments at regional level. In that case, regional ceilings are to be established and divided among the farmers in the region. The value of their entitlements is obtained by dividing the financial envelope by the number of hectares declared in the first year of application of the scheme.

Partial implementation

Member States have had the option of partially implementing the single payment system. In this case, Member States keep part of the coupled aid and pay it to farmers in the form of a supplementary payment and according to production. These options will disappear in 2012, except for sheep/goats and suckler cows, two productions which may prove to be crucial in order to avoid agricultural land being abandoned in certain regions.

CONTEXT

This Regulation forms part of the “health check” component of the Common Agricultural Policy after the 2003 reform. Since then the CAP has been resolutely aimed at simplification by making most payments directly to farmers under the Single Payment Scheme. Using the experience acquired since the introduction of the SPS, the Commission is extending the simplification of the CAP into the area of cross-compliance and that of existing coupled aid.

References

Act Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 73/2009

1.2.2009

OJ L 30, 31.1.2009

Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 1250/2009

22.12.2009

OJ L 338, 19.12.2009

Exemption of certain air transport agreements from EU competition rules

Exemption of certain air transport agreements from EU competition rules

Outline of the Community (European Union) legislation about Exemption of certain air transport agreements from EU competition rules

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Competition > Rules applicable to specific sectors > Competition in transport

Exemption of certain air transport agreements from EU competition rules

Document or Iniciative

Council Regulation (EC) No 487/2009 of 25 May 2009 on the application of Article 81(3) of the Treaty to certain categories of agreements and concerted practices in the air transport sector.

Summary

In accordance with Article 101(3) of the Treaty on the Functioning of the European Union (TFEU) (ex-Article 81(3) of the Treaty Establishing the European Community (TEC)), the Commission may adopt a regulation declaring that certain agreements, decisions and concerted practices are exempt from the prohibition in Article 101(1) TFEU (ex-Article 81(1) TEC).

The Commission may, in particular, adopt such a block exemption regulation in relation to agreements, decisions or concerted practices which concern any of the following:

  • joint planning and coordination of airline schedules;
  • consultations on tariffs for the carriage of passengers and baggage and of freight on scheduled air services;
  • joint operations on new less busy scheduled air services;
  • slot allocation at airports and airport scheduling;
  • common purchase, development and operation of computer reservation systems relating to timetabling, reservations and ticketing by air transport undertakings.

Where circumstances have changed concerning any of the factors which prompted its adoption, it may be repealed or amended. In this case there shall be a transitional period for amendment of the agreements and concerted practices to which the earlier regulation applied before repeal or amendment.

Any such block exemption regulation is adopted for a specified period and will apply retroactively to agreements, decisions and concerted practices which were in existence on the date that the regulation entered into force.

Before adopting such a block exemption regulation, the Commission must publish a draft of the proposed regulation and invite all persons and organisations concerned to submit their comments within a reasonable deadline. The Commission must consult the Advisory Committee on Restrictive Practices and Dominant Positions in accordance with Regulation (EC) No 1/2003, once before publishing a draft regulation, and again after the public consultation before adopting the regulation.

This regulation repeals Regulation (EEC) No 3976/87.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 487/2009

1.7.2009

OJ L 148 of 11.6.2009