HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"EN
31.7.2012 Official
Journal
of
the
European
Union L
204/11
REGULATION (EU) No 671/2012 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 11 July 2012
amending Council Regulation (EC) No 73/2009 as regards the application of direct payments to
farmers in respect of the year 2013
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
Due to the special characteristics of the support in the
EUROPEAN UNION,
outermost regions under the common agricultural policy,
this adjustment mechanism should not be applied to
farmers in those regions.
Having regard to the Treaty on the Functioning of the European

Union, and in particular the first paragraph of Article 42 and
Article 43(2) thereof,
(3)
For the smooth functioning of the direct payments to be
made by the Member States in respect of applications
Having regard to the proposal from the European Commission,
made in calendar year 2013, it is necessary to extend
the net ceilings set for calendar year 2012 to 2013 and
to adjust them, where necessary, in particular as regards
After transmission of the draft legislative act to the national
the increases resulting from the phasing-in of direct
parliaments,
payments in the new Member States.
Having regard to the opinion of the European Economic and
Social Committee ( 1 ),
(4)
In parallel with compulsory modulation, Council Regu
lation (EC) No 378/2007 of 27 March 2007 laying down
rules for voluntary modulation of direct payments
Having regard to the opinion of the Committee of the
provided for in Regulation (EC) No 1782/2003 estab
Regions ( 2 ),
lishing common rules for direct support schemes under
the common agricultural policy and establishing certain
Acting in accordance with the ordinary legislative procedure ( 3 ),
support schemes for farmers ( 5 ) made it possible for
Member States to apply a reduction (‘voluntary modu
lation’) to all amounts of direct payments to be granted
Whereas:
in their territory in respect of a given calendar year until
calendar year 2012. In order to maintain the amount of
(1)
New support schemes for farmers within the framework
direct payments to be made in respect of applications
of the common agricultural policy are to apply from
made in calendar year 2013 on a level similar to that
1 January 2014 and are to replace the current
of 2012, Member States which made use of voluntary
schemes. Council Regulation (EC) No 73/2009 of
modulation in respect of calendar year 2012 should
19 January 2009 establishing common rules for direct
continue to have the possibility to reduce direct
support schemes for farmers under the common agri
payments in respect of calendar year 2013 and to use
cultural policy and establishing certain support schemes
the funds generated thereby to finance rural development
for farmers (
programmes. Therefore, it is appropriate to provide for

4 ) should continue to form the basis on
which to grant income support for farmers in calendar
the possibility to further reduce the amount of direct
year 2013.
payments by applying a system of voluntary adjustment
of direct payments in respect of calendar year 2013.
Such reduction should be in addition to the compulsory
(2) Regulation
(EC)
No
73/2009
established
a
system
of
adjustment of direct payment foreseen in respect of
compulsory, progressive reduction of direct payments
calendar year 2013.
(‘modulation’) including an exemption of direct
payments of up to EUR 5 000 which is to apply until
calendar year 2012. As a consequence, the total net
(5) Where
a
Member
State
has
applied
regionally
differ
amounts of direct payments (‘net ceilings’) which may
entiated voluntary modulation rates in respect of
be granted in a Member State, after the application of
calendar year 2012, it should also have that possibility
modulation, have been fixed until calendar year 2012. In
in respect of calendar year 2013. In order to safeguard
order to maintain the amount of direct payments in
the level of direct support to farmers, the combined
calendar year 2013 on a level similar to that of 2012,
application of the compulsory and voluntary adjustment
with due account being taken of phasing-in in the new
of direct payments in calendar year 2013 should not lead
Member States, within the meaning of Regulation (EC)
to a reduction of direct payment in excess of the
No 73/2009, it is appropriate to establish an adjustment
reductions applied in 2012, through both compulsory
mechanism for calendar year 2013 with an effect
and voluntary modulation. Therefore, the maximum
equivalent to that of modulation and the net ceilings.
rate of adjustment of direct payments to be applied in
respect of calendar year 2013 in each region should not
( 1 ) OJ C 191, 29.6.2012, p. 116.
exceed the reductions resulting from both compulsory
( 2 ) Opinion of 4 May 2012 (not yet published in the Official Journal).
and voluntary modulation, as applied in respect of
( 3 ) Position of the European Parliament of 4 July 2012 (not yet
calendar year 2012.
published in the Official Journal) and decision of the Council of
10 July 2012.
( 4 ) OJ L 30, 31.1.2009, p. 16.
( 5 ) OJ L 95, 5.4.2007, p. 1.

---

L 204/12
EN
Official Journal of the European Union
31.7.2012
(6)
Where a Member State made use of the option provided
programming already include the amounts corresponding
for in Article 4(2) of Regulation (EC) No 378/2007 by
to the financial transfers provided for in Articles 134 and
deciding not to apply the maximum rate for the
135 of Regulation (EC) No 73/2009. Therefore, such
contribution from the European Agricultural Fund for
financial transfers should be abolished.
Rural Development (EAFRD) to the net amounts
resulting from the application of voluntary modulation
in the programming period 2007 to 2013, the same
option should be made available to that Member State
(10) In
order
to
facilitate
the
more
efficient
use
of
the
funds,
in respect of the funds raised through the voluntary
Regulation (EC) No 73/2009 provided for the possibility
adjustment of direct payments, in order to ensure
for Member States to grant support above their national
continuity in the financing of public expenditure of the
ceilings up to an amount the level of which ensures that
rural development measures in 2014. For reasons of
it remains within the margins of the under-execution of
consistency, the prefinancing arrangements for the rural
the national ceiling. That Regulation provided for those
development programmes should not apply to such
amounts either to be used for the funding of specific
funds.
support or to be transferred to the EAFRD under
Article 136 of Regulation (EC) No 73/2009. As the
possibility to grant support above the national ceilings
will be abolished when the new direct support system
(7)
According to the phasing-in mechanism provided for in
becomes applicable, the financial transfer to the EAFRD
the Act of Accession of 2005, the level of direct
provided for in Article 136 of Regulation (EC) No
payments in Bulgaria and Romania continues to be
73/2009 should be maintained only until 31 December
below the level of direct payments applicable in the
2013.
other Member States in 2013 after application of the
adjustment of payments to farmers in the transitional
period. Therefore, the adjustment mechanism should
not apply to farmers in Bulgaria and Romania.
(11) The
possibility
to
make
the
amounts
resulting
from
the
application of voluntary adjustment available as an
additional Union support under rural development
programming and financing under EAFRD for financial
year 2014 and the prolongation of the financial transfers
(8) The
new
Member
States
were
allowed
to
grant
comple
provided for in Article 136 of Regulation (EC) No
mentary national direct payments as a consequence of
73/2009 should not affect the future adjustment of the
the phasing-in of direct payments in those Member
level of direct payments with a view to a more equal
States. Such possibility will no longer be available in
distribution of direct support among Member States
2013, when the schedule for the gradual introduction
which is foreseen to be part of the new direct support
of direct payments in the new Member States will be
system.
complete. In the new Member States applying the
single area payment scheme, the complementary
national direct payments have played an important role
in supporting the income of farmers in specific sectors.
(12) In
the context of respecting budget discipline,
it is
As regards Cyprus, the same can be said of State aids. For
necessary to define, for the financial year 2014, the
that reason, and in order to avoid a sudden and
ceiling for the expenditure financed by the EAGF, by
substantial decrease of support in 2013 in those
taking into account the maximum amounts set in the
sectors benefiting, until 2012, from complementary
Regulation laying down the multiannual financial
national direct payments and, in the case of Cyprus,
framework adopted by the Council pursuant to
from State aids, it is appropriate to provide, in those
Article 312(2) of the Treaty and the amounts resulting
Member States, for the possibility to grant, subject to
from the voluntary adjustment, along with the amounts
authorisation by the Commission, transitional national
resulting from the application of Article 136 of Regu
aids to farmers in 2013. In order to ensure the
lation (EC) No 73/2009 for that financial year.
continuity of the level of support to farmers in 2013,
only those sectors that benefited, in 2012, from comple
mentary national direct payments and, in the case of
Cyprus, from State aids should be eligible for the transi
(13) In order to ensure the correct application of the
tional national aid, and if that transitional aid is granted,
adjustments of direct payments to be made by the
it should be granted under the same conditions as the
Member States in respect of applications made in 2013
ones applied to those payments in 2012.
and financial discipline for calendar year 2013, the
power to adopt acts in accordance with Article 290 of
the Treaty should be delegated to the Commission in
respect of the relevant rules concerning the basis of
(9) The
financial
transfers
to
the
EAFRD
provided
for
in
calculation for reductions to be applied to the farmers
Articles 134 and 135 of Regulation (EC) No 73/2009
by the Member States. It is of particular importance that
relate to the 2007-13 multiannual financial framework.
the Commission carry out appropriate consultations
The direct payments to be made by the Member States in
during its preparatory work, including at expert level.
respect of applications made in calendar year 2013 will
The Commission, when preparing and drawing up
have effects in financial year 2014, thereby falling under
delegated acts, should ensure a simultaneous, timely
the next multiannual financial framework. Under that
and appropriate transmission of relevant documents to
framework, the amounts available for rural development
the European Parliament and to the Council.

---

EN
31.7.2012 Official
Journal
of
the
European
Union L
204/13
(14) Under
Regulation
(EC)
No
73/2009,
Member
States
had
calendar year 2013, in order to comply with the
the possibility to decide to use, from the following year,
ceilings set out in Annex IV to this Regulation.’;
a certain percentage of their national ceiling for specific
support for their farmers as well as to review a previous
decision by deciding to modify, or put an end to, such
(b) in paragraph 2, point (d) is deleted;
support. It is appropriate to provide for an additional
review of those decisions with effect for calendar year
2013.
(2) the following Articles are inserted:
(15) In
order
to
ensure
uniform
conditions
for
the
implemen
‘Article 10a
tation of this Regulation, implementing powers should be
Adjustment of direct payments in 2013
conferred on the Commission as regards the presentation
of the amounts resulting from the voluntary adjustment.
1. Any
amount
of
direct
payments
to
be
granted
in
Those powers should be exercised in accordance with
calendar year 2013 to a farmer in excess of EUR 5 000
Regulation (EU) No 182/2011 of the European
shall be reduced by 10 %.
Parliament and of the Council of 16 February 2011
laying down the rules and general principles concerning
mechanisms for control by the Member States of the
2. The
reduction
provided
for
in
paragraph
1
shall
be
Commission’s exercise of implementing powers (
increased by four percentage points for amounts exceeding

1 ).
EUR 300 000.
(16) In
respect
of
fixing
the
amounts
resulting
from
voluntary
adjustment, setting the net balance available for EAGF
3. Paragraphs
1
and
2
shall
not
apply
to
direct
expenditure in respect of financial year 2014 and auth
payments granted to farmers in Bulgaria and in Romania
orising the granting of transitional national aids, the
and in the French overseas departments, in the Azores and
Commission should be empowered to adopt imple
Madeira, in the Canary Islands and in the Aegean Islands.
menting acts without applying Regulation (EU) No
182/2011.
4. By
way
of
derogation
from
paragraph
1,
the
reduction referred to in that paragraph shall be set at
(17) Regulation (EC) No 73/2009 should therefore be
0 % for new Member States other than Bulgaria and
amended accordingly,
Romania.
HAVE ADOPTED THIS REGULATION:
Article 10b
Voluntary adjustment of direct payments in 2013
Article 1
1. Any
Member
State
having
applied
Article
1
of
Regu
Regulation (EC) No 73/2009 is hereby amended as follows:
lation (EC) No 378/2007 in respect of calendar year 2012
may apply a reduction (hereinafter referred to as ‘voluntary
adjustment’) to all amounts of direct payments to be
(1) Article 8 is amended as follows:
granted in its territory in respect of calendar year 2013.
Voluntary adjustment shall be applied in addition to the
(a) paragraph 1 is replaced by the following:
adjustment of direct payments provided for in Article 10a
of this Regulation.
‘1. Without
prejudice
to
Article
11
of
this
Regu
lation, the total net amounts of direct payments
Voluntary adjustment may be regionally differentiated,
which may be granted in a Member State in respect
provided that the Member State has made use of the
of any calendar year before 2013 after application of
option provided for in Article 3(1)(b) of Regulation (EC)
Articles 7 and 10 of this Regulation and Article 1 of
No 378/2007.
Regulation (EC) No 378/2007 or in calendar year
2013 after application of Articles 10a and 10b of
2. The
maximum
rate
of
reduction
resulting
from
the
this Regulation, and with the exception of direct
combined application of Article 10a and paragraph 1 of
payments granted under Regulations (EC) No
this Article shall not exceed the percentage rate of
247/2006 and (EC) No 1405/2006, shall not be
reduction resulting from the combined application of
higher than the ceilings set out in Annex IV to this
Article 7 of this Regulation and Article 1(1) of Regulation
Regulation. Where necessary, Member States shall
(EC) No 378/2007 as applied to the amounts to be
make a linear reduction in the amounts of direct
granted to farmers in respect of calendar year 2012 in
payments which are subject to the reduction
the regions concerned.
provided for in Articles 7 and 10 of this Regulation
and Article 1 of Regulation (EC) No 378/2007 in
respect of any calendar year before 2013 or in
3. The
amounts
resulting
from
the
application
of
Articles 10a and 10b of this Regulation in respect of
voluntary adjustment shall not exceed the net amounts
fixed by the Commission for calendar year 2012
( 1 ) OJ L 55, 28.2.2011, p. 13.
pursuant to Article 4(1) of Regulation (EC) No 378/2007.

---

L 204/14
EN
Official Journal of the European Union
31.7.2012
4. The
amounts
resulting
from
the
application
of
available for EAGF expenditure in respect of financial year
voluntary adjustment shall be available, in the Member
2014 on the basis of the data referred to in paragraph 1.’;
State where they were generated, as Union support
under rural development programming and financing by
the EAFRD.
(3) in Article 11(1), the following subparagraph is added:
5. By
8
October
2012
Member
States
shall
decide
on,
‘However, in financial year 2014, the adjustment referred
and communicate to the Commission, the following:
to in the first subparagraph shall be determined taking into
account the forecasts for the financing of direct payments
(a) the rate of voluntary adjustment for the whole territory
and market related expenditure of the CAP laid down in
and, where applicable, for each region;
the Regulation adopted by the Council pursuant to
Article 312(2) of the Treaty on the Functioning of the
(b) the total amount to be reduced under voluntary
European Union, increased by the amounts referred to in
adjustment for the whole territory and, where appli
Article 10b of this Regulation and the amounts resulting
cable, for each region.
from the application of Article 136 thereof for financial
year 2014, before the adjustment of direct payments
provided for in Article 10a of this Regulation, but
Article 10c
without taking into account the margin of EUR
Amounts resulting from voluntary adjustment and
300 000 000.’;
from application of Article 136
1. Based
on
the
amounts
communicated
by
the
(4) in Article 11, paragraph 2 is replaced by the following:
Member States pursuant to Article 10b(5), the
Commission shall adopt implementing acts, without
applying the procedure referred to in Article 141(2) or
‘2. The
European
Parliament
and
the
Council,
acting
in
141b(2), fixing the amounts resulting from voluntary
accordance with the ordinary legislative procedure on a
adjustment.
proposal from the Commission presented no later than
31 March of the calendar year in respect of which the
adjustments referred to in paragraph 1 apply, shall
2. The
amounts
fixed
pursuant
to
paragraph
1,
as
well
determine these adjustments no later than 30 June of
as the amounts resulting from the application of
the same calendar year.’;
Article 136 for financial year 2014, shall be added to
the annual breakdown by Member State of the EAFRD
contribution to the rural development programmes.
(5) the following Article is inserted:
3. Member
States
may
decide
to
exceed
the
maximum
‘Article 11a
EAFRD contribution rate as regards the amounts added to
the annual breakdown by Member State referred to in
Delegation of powers
paragraph 2.
In order to ensure an optimal application of the
adjustments of direct payments in 2013 and financial
The amounts added to the annual breakdown by Member
discipline for calendar year 2013, the Commission shall
State referred to in paragraph 2 shall not be subject to the
be empowered to adopt delegated acts, in accordance with
payment of the single prefinancing amount for the rural
Article 141a, laying down rules concerning the basis of
development programmes.
calculation for reductions to be applied to farmers by
Member States due to the adjustments of payments in
4. The
Commission
shall
adopt
implementing
acts
2013 provided for in Article 10a and financial discipline
laying down rules for the presentation of the amounts
provided for in Article 11.’;
referred to in paragraph 2 in the financing plans of the
rural development programmes. Those implementing acts
shall be adopted in accordance with the examination
(6) in Article 68(8), the introductory phrase is replaced by the
procedure referred to in Article 141b(2).
following:
Article 10d
‘8. By
1
September
2012,
the
Member
States
that
took
the decision referred to in Article 69(1) may review it and
EAGF net ceiling
decide, with effect from 2013, to:’;
1. The
ceiling
for
EAGF
expenditure
in
respect
of
financial year 2014 shall be calculated as the maximum
amounts set for it by the Regulation adopted by the
(7) Article 69(1) is replaced by the following:
Council pursuant to Article 312(2) of the Treaty on the
Functioning of the European Union minus the amounts
‘1. Member
States
may
decide,
by
1
August
2009,
referred to in Article 10c(2) of this Regulation.
1 August 2010, 1 August 2011 or by 1 September
2012, to use, from the year following such decision, up
2. The
Commission
shall
adopt
implementing
acts,
to 10 % of their national ceiling referred to in Article 40,
without applying the procedure referred to in
or, in the case of Malta, the amount of EUR 2 000 000 for
Article 141(2) or 141b(2), setting the net balance
the specific support provided for in Article 68(1).’;

---

EN
31.7.2012 Official
Journal
of
the
European
Union L
204/15
(8) Article 131(1) is replaced by the following:
6. The
new
Member
States
may
decide,
on
the
basis
of
objective criteria and within the limits authorised by the
‘1. The
new
Member
States
applying
the
single
area
Commission pursuant to paragraph 5, on the amounts of
payment scheme may decide, by 1 August 2009,
transitional national aid to be granted.’;
1 August 2010, 1 August 2011 or by 1 September
2012, to use, from the year following that decision, up
(10) Articles 134 and 135 are deleted;
to 10 % of their national ceilings referred to in Article 40
to grant support to farmers as set out in Article 68(1) and
(11) Article 136 is deleted;
in accordance with Chapter 5 of Title III, as applicable to
them.’;
(12) Article 139 is replaced by the following:
(9) the following Article is inserted:
‘Article 139
‘Article 133a
State aid
Transitional national aid
By way of derogation from Article 180 of Regulation (EC)
No 1234/2007 and Article 3 of Council Regulation (EC)
1. With
the
exception
of
Bulgaria
and
Romania,
the
No 1184/2006 of 24 July 2006 applying certain rules of
new Member States applying the single area payment
competition to the production of, and trade in, agricultural
scheme shall have the possibility to grant transitional
products (*), Articles 107, 108 and 109 of the Treaty on
national aid in 2013.
the Functioning of the European Union shall not apply to
payments made under Articles 41, 57, 64, 68, 69, 70 and
Except in the case of Cyprus, the granting of such aid shall
71, Article 82(2), Article 86, Articles 98(4) and 111(5),
be subject to authorisation by the Commission, to be
Article 120, Article 129(3) and Articles 131, 132, 133
granted in accordance with paragraph 5.
and 133a of this Regulation by Member States in
conformity with this Regulation.
2. The
transitional
national
aid
may
be
granted
to
___________
farmers in sectors in respect of which complementary
(*) OJ L 214, 4.8.2006, p. 7.’;
national direct payments and, in the case of Cyprus,
State aids have been authorised in 2012 pursuant to
Articles 132 and 133.
(13) the following Articles are inserted:
3. The
conditions
for
granting
the
aid
shall
be
identical
‘Article 141a
to those authorised for the granting of payments pursuant
to Articles 132 and 133 in respect of 2012.
Exercise of the delegation
4. The
total
amount
of
aid
that
may
be
granted
to
1. The
power
to
adopt
delegated
acts
is
conferred
on
farmers in any of the sectors referred to in paragraph 2
the Commission subject to the conditions laid down in
shall be limited by a specific financial envelope per sector,
this Article.
which shall be equal to the difference between:
2. The power to adopt delegated acts referred to in
Article 11a shall be conferred on the Commission for a
(a) the total direct support which may be granted to
farmers in the relevant sector in 2012, including all
period from 1 September 2012 until 31 December 2013.
payments received pursuant to Article 132; and
3. The
delegation
of
power
referred
to
in
Article
11a
may be revoked at any time by the European Parliament
(b) the total amount of direct support that would be
or by the Council. A decision to revoke shall put an end to
available for the same sector under the single area
the delegation of the power specified in that decision. It
payment scheme in 2013.
shall take effect the day following the publication of the
decision in the Official Journal of the European Union or at a
For Cyprus, the sector specific financial envelopes are set
later date specified therein. It shall not affect the validity of
out in Annex XVIIa.
any delegated acts already in force.
5. On
the
basis
of
a
notification
submitted,
the
4. As
soon
as
it
adopts
a
delegated
act,
the
Commission
Commission shall adopt implementing acts, without
shall notify it simultaneously to the European Parliament
applying the procedure referred to in Article 141(2) or
and to the Council.
141b(2), authorising the transitional national aid and:
5. A
delegated
act
adopted
pursuant
to
Article
11a
shall
(a) setting the financial envelope per sector;
enter into force only if no objection has been expressed
either by the European Parliament or the Council within a
(b) setting the maximum rate of transitional national aid
period of two months of notification of that act to the
where appropriate;
European Parliament and the Council or if, before the
expiry of that period, the European Parliament and the
(c) setting the conditions for the granting thereof; and
Council have both informed the Commission that they
will not object. That period shall be extended by two
(d) defining the applicable exchange rate to be used for
months at the initiative of the European Parliament or
the payments.
of the Council.

---

L 204/16
EN
Official Journal of the European Union
31.7.2012
Article 141b
(15) the following Annex is inserted:
Committee procedure
‘ANNEX XVIIa
1. The
Commission
shall
be
assisted
by
the
Rural
Development Committee established by Council Regu
TRANSITIONAL NATIONAL AID IN CYPRUS
lation (EC) No 1698/2005. That committee is a
committee within the meaning of Regulation (EU) No
(EUR)
182/2011 of the European Parliament and of the
Sector 2013
Council of 16 February 2011 laying down the rules and
general principles concerning mechanisms for control by
Cereals (durum wheat excluded) 141
439
the Member States of the Commission’s exercise of imple
menting powers (*).
Durum wheat 905
191
2. Where
reference
is
made
to
this
paragraph,
Article
5
Milk and dairy 3
419
585
of Regulation (EU) No 182/2011 shall apply.
Beef 4
608
945
___________
Sheep and goats 10
572
527
(*) OJ L 55, 28.2.2011, p. 13.’;
Pig sector 170
788
(14) in Annex IV, the following column is added:
Poultry and eggs 71
399
Wine 269
250
‘2013
Olive oil 3
949
554
569
903
Table grapes 66
181
964,3
Dried grapes 129
404
5 329,6
Processed tomatoes 7
341
101,2
Bananas 4
285
696
1 255,5
Tobacco 1
027
775
2 344,5
5 055,2
Deciduous fruit including stone
173 390
fruit
7 853,1
Total 29
798
462’
4 128,3
53,5
Article 2
146,4
This Regulation shall enter into force on the seventh day
379,8
following that of its publication in the Official Journal of the
European Union.
34,7
1 313,1
It shall apply from 1 January 2013.
5,5
By way of derogation from the second paragraph:
830,6
(a) the following provisions shall apply from the date of entry
into force of this Regulation:
715,7
3 043,4
(i) Article 10b(5), Article 10c(1) and (4) and Article 10d(2)
of Regulation (EC) No 73/2009, as inserted by point (2)
566,6
of Article 1 of this Regulation;
144,3
(ii) Article 133a(5) and (6) of Regulation (EC) No 73/2009,
385,6
as inserted by point (9) of Article 1 of this Regulation;
539,2
(iii) points (5), (6), (7), (8) and (13) of Article 1 of this
Regulation;
708,5
3 650’
(b) points (1)(b) and (11) of Article 1 of this Regulation shall
apply from 1 January 2014.

---

EN
31.7.2012 Official
Journal
of
the
European
Union L
204/17
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 11 July 2012.
For the European Parliament
For the Council
The President
The President
M. SCHULZ
A. D. MAVROYIANNIS

---

Document Outline

• �

---