Single Payment Scheme Regulations, 2008

L.N. 151 of 2008

AGRICULTURAL AND FISHERIES INDUSTRIES

(FINANCIAL ASSISTANCE) ACT

(CAP. 146)

Single Payment Scheme Regulations, 2008

IN exercise of the powers conferred by article 7 of the Agricultural

and Fishing Industries (Financial Assistance) Act, the Minister for

Resources and Rural Affairs, with the concurrence of the Prime Minister,

has made the following regulations>

(1) The title of these regulations is the Single Payment Title,

commencement and

Scheme Regulations, 2008.

scope.

(2) These regulations shall be deemed to have come into

force on the 1 st January, 2007.

(3) The scope of these regulations is to apply the fully

decoupled system as from 1 January, 2007.

In these regulations, words and phrases shall have the following Interpretation.

meanings>

“agricultural activity” means the production, rearing or

growing of agricultural products including harvesting, milking,

breeding animals and keeping animals for farming purposes, or

maintaining the land in good agricultural and environmental

condition<

“agricultural parcel” means a continuous area of land on which

a single crop is raised by a single farmer<

“animal keeper” means any natural or legal person responsible

for animals whether on a permanent or on a temporary basis,

including at the time of transportation or at a market<

“animal passport” means the animal passport referred to in

Articles 3(c) and 6 of Regulation (EC) No 1760#2000<

“arable land” means land cultivated for crop production and

land under set-aside, or maintained in good agricultural and

environmental condition in accordance with Article 5 of Regulation

(EC) No 1781#2003 irrespective of whether or not that land is under

greenhouses or under fixed or mobile cover<

“authorised person” means any person, whether or not an

officer of the Paying Agency, who is authorised by the Paying

Agency, either generally or specifically, to act in matters arising

under these regulations<

“beneficiary” means the farmer registered and coded in a

unique manner of identification and who applies for aid using the

IACS<

“computerised database for bovine animals” means the

computerised database referred to in Articles 3(b) and 5 of

Regulation (EC) No 1760#2000<

“crop group”, in relation to the use of areas, means a set of

distinct parcels in the application that have the same relevant

cultivation for the purposes of the calculation of the financial

assistance under the relevant aid scheme<

“dairy producer” means a farmer registered with the competent

authority for milk, who has been allocated a reference quantity of

milk and has an active dairy herd book<

“ear tag” means the ear tag to identify animals individually

referred to in Articles 3(a) and 4 of Regulation (EC) No 1760#2000<

“eligible hectare” means any agricultural area of the holding

taken up by arable land and permanent pasture except areas under

permanent crops, forests or used for non agricultural activities<

“farmer” means a natural or legal person, or a group of natural

or legal persons, who exercise an agricultural activity<

“fully decoupled” means when financial aid to farmers and

breeders is no longer linked to either production or quotas.

“Geographical Information System (GIS)” means the

computerised geographical information system techniques referred

to in Article 20 of Regulation (EC) No 1782#2003<

“holding” means all the production units situated in Malta

managed by the same farm<

“Integrated Administration and Control System” or “IACS”

means the control system covering the single application, in

particular as regards administrative checks, on-the-spot checks and,

if appropriate, verification by aerial or satellite remote sensing<

“Land Parcel Identification System” or “LPIS” means a

Geographical Information System (GIS) which identifies reference

parcels, assigning to each of them a unique identification code,

referred to as the reference parcel number<

“land use” means the use of area in terms of the type of crop

or ground cover or the absence of a crop<

“lease” means lease or similar types of temporary transactions<

“LFA” means the Less Favoured Area<

“livestock’ means any living member of the animal kingdom,

to which any aid scheme applies<

“livestock breeder” means any farmer who has an active herd

book or flock register which contains at least one entry up to the

15 th May of the application year<

“the Minister” means the Minister responsible for the

agricultural activities<

“premium period” means the period to which a single

application refers irrespective of the moment of its submission<

“reference parcel” means a geographically delimited area

retaining a unique identification as registered in the Land Parcel

Identification System (LPIS) and available in the IACS database,

which refers to an area of land on which more than one crop may

be raised by more than one farmer<

“Register” means the register kept by the keepers of animals

in accordance with Article 4 of Council Directive 92#102#EEC(7),

Article 5 of Council Regulation (EC) No 21#2004, or Articles 3(d)

and 7 of Regulation (EC) No 1760#2000 respectively<

“sale” means the sale or any other definitive transfer of

ownership of land or payment entitlements< the definition shall

not include the sale of land where land is transferred to public

authorities and, or for use in the public interest and the transfer is

carried out for non-agricultural purposes<

“Single Application” means the application for direct

payments in respect of the Single Payment Scheme and other area

related aid schemes. The Single Application includes the Single

Payment Scheme, the Rural Development land-based measures,

Aid for Tomatoes for Processing and Additional Aid for Potatoes

and Vines<

“SPS” means the Single Payment Scheme<

“transfer or sale or lease of payment entitlement with land’

shall mean the sale or lease of payment entitlements with,

respectively, the sale or lease of a corresponding number of hectares

of eligible land within the meaning of Regulation 1782#2003 held

by the transferor<

“used entitlements” means an entitlement which has been

activated for payment and for the year 2007 only, about which the

ten-month rule has been met.

The Single Payment Scheme shall replace the Arable Aid

Scheme, aid related to Olive Trees and the production of Olive Oil,

Livestock Premia Schemes and Dairy Premium.

The SPS shall not include payments related to rural

development, vine restructuring, and any other payments that did not

fall under direct payments prior to 2007.

(1) The dates of receipt of applications and the conditions

under which applications are assessed shall be published from time to

time in the Gazette.

(2) The farmer shall have submitted an application for the

Single Payment Scheme in 2007 in order to receive an allocation of

entitlements and shall possess>

(a)

eligible land registered on the LPIS< or

(b) an active herd book or flock register.

(1) The Single Payment Scheme consists of three types of

entitlement, namely>

(a)

normal entitlements<

(b) authorized entitlements< and

(c)

special entitlements.

(2) Normal entitlements shall be allocated to farmers who

declare their parcels as arable land or olives in 2007. Such entitlements

may be utilised only on eligible hectares of land.

(3) Authorised entitlements shall be derived from areas on

which crops listed under Article 1(2) of Reg. 2200#1996 and Reg.

2201#1996 are grown.

(4) Special entitlements shall apply to all livestock and dairy

producers whether or not they have any hectares of eligible land on

which normal entitlements will be allocated. These entitlements shall

be utilised by producers who have an active herd book or flock record.

Breeders who received bovine payments during the period Entitlement for

livestock breeders.

2004-2006 were allocated entitlements based on the number of eligible

animals on which Special Beef Premium and#or Slaughter Premium

and a sheep premium was authorised in the most recent application

period.

Breeders who submitted a Single Application for the first time Single Application

submissions.

in 2007 but were active in the bovine sector sometime during the period

2004 - 2006, received entitlements based on the number of potentially

eligible animals on the holding on 31 December, 2006. Such animals

should have remained on the holding for a minimum period of two

continuous months in 2006#2007, and were either already slaughtered

in 2007 when they were at least nine months of age, or were still on the

holding in November 2007 when the provisional entitlements were

allocated, and were intended for slaughter.

(1) Sheep farmers who received ovine payments during the Applications in the

ovine sector.

period 2004 - 2006 were allocated entitlements based on the number of

eligible animals on which Sheep Premium was paid in the most recent

application period.

(2) Farmers who submitted a Single Application for the first

time in 2007, but were active in the ovine sector sometime during the

2004 - 2006, received entitlements based on the number of potentially

eligible animals on the holding on 31 December 2006, that is female

animals over 12 months old or which have lambed at least once. There

must have been a minimum of 10 such eligible animals.

(3) Dairy producers shall receive entitlements based on the

individual reference quantity of milk available on the holding on the 31

March, 2007. The available budget is derived from the payment of Dairy

Premium and the Additional Dairy Premium.

The value of entitlements deriving from the dairy shall be

calculated by taking as a base the individual milk reference at the

farmer’s disposal on the 31 st March 2007.

The unit value of each entitlement cannot be greater than

5,000 euros.

The allocation of entitlements shall consist of a two stage

process>

(a) the notification to each farmer who applied in 2007 of

the outcome of the application and includes the giving of details

of any provisional entitlements for which eligibility has been

established< and

(b) if no response to the provisions of paragraph (a) is

received within the stipulated period, it shall be assumed that such

allocations were in agreement with the calculation.

(1)

If no response is received, a definitive entitlement shall

be allocated.

(2) If a response is received, the Board of Disputes shall

treat the claim accordingly. The decision of the Board of Disputes shall

be final and the definitive entitlement shall be allocated in accordance

with the decision of the Board of Disputes.

(1) A case of force majeure or exceptional circumstances

with relevant evidence to the Board of Disputes, shall be notified by the

farmer concerned in writing to the Board within 15 days from the

notification of the provisional entitlement.

(2) Force majeure or exceptional circumstances shall be

recognised by the Board of Disputes in the following cases>

(a)

the death of the farmer<

(b) long-term professional incapacity of the farmer<

(c) a severe natural disaster gravely affecting the holding’s

agricultural land<

(d) the accidental destruction of livestock buildings on the

holding< and

(e) an epizootic event affecting part or all of the farmer’s

livestock.

(1) Milk quota allocated on the 31 st March 2007 to dairy Calculation of dairy

entitlement.

producers is equal to 46980.633 tonnes, the Dairy Premium in

accordance with Art. 95 of Regulation 1782#2003 is 24.49 euros#tonnes

and the total additional Dairy Premium referred to in Art. 96 of the

same regulation is 0.536 million euros.

(2) The total amount required is determined by multiplying

the tonnage allocated by the level of the premium and adding the

additional premium, as follows>

46980.633 tonnes x 24.49 euros + 0.536 million euros =

1,686,555.70 euros.

(1) Determination of the budget insofar as livestock Calculation of the

livestock

producers are concerned is made on the basis of the premiums which entitlement.

producers have received in their latest application during the reference

period 2004 to 2006.

(2) The total amount required is determined on the basis of

the value of the aid received in the last application of each farmer.

(1) Land based entitlements are calculated according to the Calculation of land

based entitlements.

difference between the national ceiling and the amounts calculated in

regulation 14 of these regulations and an amount equivalent to 1% of

the ceiling (41,700 euros) to cover the eventuality that some producers

will be able to increase the value of their entitlements as a result of

successful appeals, the total required thus being 1,542,231.90 euros, as

follows>

4.17 million euros – (1,686,555.70 + 899,512.40 + 41,700) =

1,542,231.90 euros.

(1) Unutilised entitlements shall revert to the National Implementation of

the national reserve.

Reserve on the day following the last day for modifying the application

under the Single Payment Scheme in the calendar year when either the

three year period for original entitlements, or the one year period for

special entitlements issued from the national reserve, expires.

(2) Farmers may give up voluntarily payment entitlements

to the national reserve with the exception of set-aside payment

entitlements.

(3) Available amounts in the national reserve shall be

utilised according to decisions taken with regard to Art. 71d of

Regulation (EC) no. 1782#2003.

Entitlements can be traded by using any one of the following

methods>

(a) the transfer of entitlements with land, either by sale or

donation<

(b) the transfer of entitlements without land, either by sale

or donation<

(c)

the lease of entitlements with land> or

(d) by inheritance.

Where the size of a parcel which is transferred with an

entitlement in accordance with Article 46(2) of Regulation 1782#2003

amounts to a fraction of a hectare, the farmer may transfer the part of

the entitlement concerned with the land at a value calculated to the

extent of the same fraction. The remaining part of the entitlement shall

remain at the disposal of the farmer at a value calculated accordingly.

(1) In order to transfer entitlements without land, a farmer

entitlements without

should have used at least 80% of the allocated entitlements for the 2007

scheme year (less any entitlements transferred in one calendar year).

This does not apply if the farmer was prevented from activating the

entitlements by force majeure or exceptional circumstances.

(2) If a farmer has not used 80% of the entitlements and the

farmer has not been effected by force majeure or exceptional

circumstances, he can still apply to transfer entitlements without land.

This can only be done if he voluntarily surrenders all entitlements not

used by him in 2007 to the national reserve.

(3) If a farmer transfers a fraction of an entitlement without

land, the value of the two fractions shall be calculated proportionally.

(1) If a farmer leases entitlements, these shall be Lease

entitlements with

accompanied by the lease of at least an equal number of hectares eligible land.

for the SPS. The lease of land and entitlements shall be for the same

period of time and have the same start and end dates.

(2) At the end of the lease agreement, the entitlements shall

automatically revert to the farmer who owns them, being the lessor. If

the lease ends early or is further extended, the lessor shall inform the

Paying Agency at least 10 days before this occurrence.

Land and, or entitlements can be transferred by inheritance Inheritance.

at any time during the year, after the designated heir has filed an

application at the SPU. In such case the designated heir will continue

the undertaking of the previous farmer. Any relevant documentary

evidence should be provided.

(1) These regulations only allow donations inter vivos, Transfer by

whereby the donor irrevocably and gratuitously transfers a thing to the donation.

donee who accepts it.

(2) A donation in which the donor reserves to himself the

power to revoke or alter the donation itself, is void.

(3) If the donation is made in remuneration for services for

which the donee had a right of action, the provisions of sub-regulations

(1) and (2) hereof shall not apply, except when the value of the thing

given exceeds, by at least one-half, the value of such services, and in

regard only to such excess.

(4) A donation may only include the present property of

the donor.

(5) If the donation includes future property, it shall be null

with regard to such property.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press

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