Explanatory Memorandum to COM(2007)484 - Amendment of Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)

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1. CONTEXT OF THE PROPOSAL

- Grounds for and objectives of the proposal

In 2003 the Council reached a political agreement on the CAP reform, paving the way for an in-depth reshuffling of the way the EU is granting income support to its farmers and introducing mandatory cross-compliance obligations.

- General context

In the report to the Council on the implementation of cross-compliance, the Commission has identified some possible specific improvements in terms of efficiency and/or simplification.

- Existing provisions in the area of the proposal

Council Regulation (EC) No 1782/2003.

- Consistency with the other policies and objectives of the Union

Not applicable.

2. CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT

- Consultation of interested parties

Parties already consulted and urgency.

- Collection and use of expertise

There was no need for external expertise.

- Impact assessment

Not applicable.

1.

LEGAL ELEMENTS OF THE PROPOSAL



- Summary of the proposed action

The aim of this proposal is to apply from the year 2008 the following specific improvements:

- the conclusion of the Commission report to the Council regarding the phasing-in of the statutory management requirements covered by the cross-compliance obligations in the new Member States that have opted for the single area payment scheme;

- the simplification of the rules for eligibility under both the single payment scheme and the single area payment scheme regarding the time period during which the farmers shall have the land at their disposal; the clarification of the farmer's responsibility vis-à-vis cross compliance in case of transfer of land during the calendar year;

- the introduction of a legal basis for the implementation under cross compliance of a de minimis rule for applying reductions and of exemptions from reductions for minor infringements.

Additionally, it is proposed that for all the new Member States opting to differentiate the per unit value of entitlements allocated to hectares of grassland or permanent pasture and of any other eligible hectares in the framework of the single payment scheme, the date referred to for identifying the parcels is established on 30 June 2006 instead of 30 June 2003.

This proposal includes also a modification to the special provisions governing the complementary national direct payments in Cyprus, as a result of the extension of the period for the implementation of the single area payment scheme that was adopted by the Council on 19 December 2006.

- Legal basis

Article 37 i of the Treaty establishing the European Community.

- Proportionality principle

The proposal complies with the proportionality principle for the following reason: the abolition of the 10-months rule, the minor non-compliance and the de minimis rule in Regulation (EC) No 1782/2003 will simplify the administrative burden.

- Choice of instruments

Proposed instrument: regulation.Other means would not be adequate for the following reason: a regulation must be amended by a regulation.

2.

BUDGETARY IMPLICATION



THE ADDITIONAL COST FOR THE COMMUNITY BUDGET WOULD BE THE CONSEQUENCES OF NOT APPLYING REDUCTIONS UNDER CROSS COMPLIANCE IN CASE OF APPLICATION OF THE de minimis rule and the exemptions for minor infringements.

5. ADDITIONAL INFORMATION

- Simplification

The proposal provides for simplification of administrative procedures for public authorities (EU or national).

Simplification of the eligibility rules under the single payment scheme and the single area payment scheme regarding the time period during which the farmers shall have the land at their disposal.

The proposal is included in the Commission's Work and Legislative Programme under the reference 2007/AGRI/040.