SINGLE PAYMENT SCHEME REGULATIONS

SUBSIDIARY LEGISLATION 146.07

SINGLE PAYMENT SCHEME REGULATIONS

1st January, 2007

LEGAL NOTICE 151 of 2008, as amended by Legal Notice 510 of 2010.

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

Scheme Regulations.

(2) 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 meanings

"active herd book" or "flock register" means a register of live

bovines or ovines of a particular holding registered with the

Veterinary Services Department;

"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 declared by

one farmer, which does not cover more than one single crop group;

"animal keeper" means any natural or legal person responsible

for rearing 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;

"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 land" means any agricultural area of the holding taken

up by arable land, permanent pasture and areas under permanent

crops, except 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 17 of Regulation (EC) No. 73/2009;

"holding" means all the production units situated in Malta

managed by the same farm;

"Integrated Administration and Control System" or "IACS" shall

have the same meaning as that assigned to it in the Paying Agency

Regulations;

"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 breeder" means a farmer who breeds bovines or ovines

and has an active herd book or flock register;

"the Minister" means the Minister responsible for the agricultural

activities;

"National Reserve" means a fund set up in terms of Article 41 of

Regulation (EC) No. 73 of 2009;

"Paying Agency" means the body established in terms of the

Paying Agency Regulations;

"payment claim" means an application for direct payment in

respect of entitlements submitted in terms of regulation 26;

"payment entitlement" means a right for payment related to the

Single Payment Scheme in terms of these regulations;

"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,

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

and 7 of Regulation (EC) No 1760/2000 respectively;

"s a l e" m ea n s t h e sa l e o r a n y o t h e r d e f i n i t i v e t r an s f e r o f

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 an application for direct payments in

respect of the Single Payment Scheme;

"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 (EC) No. 73/2009 held by

the transferor;

"used entitlements" means an entitlement which has been

activated for payment.

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, and shall also

include fruit and vegetable reform in terms of EC Regulation No.

1182/2007 and wine reform in terms of EC Regulation No. 479/

2008. The SPS shall not include payments related to rural

development and any other payments that did not fall under direct

payments prior to 2007 and also national schemes.

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

under which payment claims are assessed shall be published from

time to time in the Gazette.

(2) A farmer shall submit a payment claim for the Single

Payment Scheme, on a form provided by the Paying Agency, in

terms of Regulation (EC) 73/2009 in a year of allocation.

(3) In order for a farmer to be eligible for an allocation of

entitlements he shall possess

(a) at least 0.1 ha of eligible land registered on the LPIS;

or

(b) an active herd book or flock register.

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

entitlement, namely

(a) normal entitlements;

(b) authorized entitlements;

(c) special entitlements;

(d) normal tomato entitlements; and

(e) normal wine entitlements.

(2) Normal entitlements shall be allocated to farmers who

declared their parcels as arable land or olives in 2007. New

entitlements allocated from the National Reserve shall be

recognised as normal entitlements.

(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) Normal tomato entitlements shall apply to farmers who

expressed interest to receive tomato entitlements during the

applications campaign of 2008 and who produced tomatoes for

processing during the years 2006 and 2007.

(5) Normal wine entitlements shall apply to farmers who

e x p r e ss ed i n t e r e st t o r e ce i v e w i n e e n t i t l em e n t s d u r i n g t h e

applications campaign of 2009 and who cultivated vines for the

production of wine during the year 2008.

(6) 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.

(7) Authorised entitlements, special entitlements, normal

tomato entitlements, and normal wine entitlements shall not be re-

allocated from the National Reserve after their first year of

allocation.

(Deleted by Legal Notice 510 of 2010).

(Deleted by Legal Notice 510 of 2010).

(Deleted by Legal Notice 510 of 2010).

(Deleted by Legal Notice 510 of 2010).

(Deleted by Legal Notice 510 of 2010).

11.

(Revokat bl-Avvi\ Legali 510 tal-2010).

Entitlements shall be allocated in terms of the following

procedure

(a) any farmer who applies for aid in that year of

allocation shall receive a notification by the Paying

Agency indicating the entitlements which he has been

allocated;

(b) a farmer who receives a notification in terms of

paragraph (a) shall be required to reply, within fifteen

working days from the date of such notification, by

making a declaration in writing stating his approval or

disapproval of the area assigned to him;

(c) if a reply is received in terms of paragraph (b) stating

approval by the farmer, a definitive entitlement shall

be allocated;

(d) if no reply is received in terms of paragraph (b) within

the stipulated period, such application for entitlements

shall be cancelled;

(e) if a reply is received in terms of paragraph (b) stating

the disapproval by the farmer of the area assigned to

him, such dispute shall be referred to arbitration in

terms of regulation 13 of the Paying Agency

Regulations.

(Deleted by Legal Notice 510 of 2010).

13.

(Revokat bl-Avvi\ Legali 510 tal-2010).

(1) A case of force majeure or exceptional circumstances

with relevant evidence to the Paying Agency, shall be notified by

the farmer concerned in writing to the Paying Agency within

fifteen days from the notification of the provisional entitlement.

(2) Force majeure or exceptional circumstances shall be

recognised by the Paying Agency 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.

(Deleted by Legal Notice 510 of 2010).

(Deleted by Legal Notice 510 of 2010).

(Deleted by Legal Notice 510 of 2010).

17.

(Revokat bl-Avvi\ Legali 510 tal-2010).

(1) Unutilised entitlements shall revert to the National

reserve in terms of Regulation (EC) 73/ 2009.

(2) Available amounts in the National Reserve shall be utilised

according to decisions taken in terms of Article 57 of Regulation

(EC) No. 73/2009.

(1) Entitlements may only be traded between farmers, by

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.

(2) Entitlements may only be traded in terms of the provisions

of Regulation (EC) No 73/2009.

Where the size of a parcel which is transferred with an

entitlement in accordance with Article 43 of Regulation (EC) 73/

2009 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

should have used at least 80% of the allocated entitlements in the

year of allocation (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 the year of allocation 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

accompanied by the lease of at least an equal number of hectares

eligible 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 ten days before this occurrence.

(1) A request for land or entitlements to be transferred by

inheritance may be made at any time during the year and submitted

to the Paying Agency by the designated heir.

(2) The designated heir shall assume all rights and obligations

in respect of such transferred land or entitlements.

(3) Any relevant evidence in connection with such transfer by

inheritance shall be provided to the Paying Agency upon request.

(1) These regulations only allow donations inter vivos,

whereby the donor irrevocably and gratuitously transfers a thing to

the 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

subregulations (1) and (2) 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.

When a dairy breeder transfers his quota or a part thereof

to another farmer for a period exceeding twelve months, he shall

transfer the equivalent amount of Special Dairy entitlements to the

transferee

Provided that if the transferor owns more quota than

Special Dairy Entitlements he may keep those Special Dairy

Entitlements as long as, after the transfer has taken place, the

Special Dairy Entitlements do not exceed the amount of quota

owned.

(1) A farmer shall submit a payment claim in respect of

allocated entitlements during the application period as indicated by

the Paying Agency.

(2) A payment claim submitted in terms of sub-regulation (1)

shall activate the entitlement in respect of which such claim was

submitted. Farmers shall activate their entitlements in order to be

eligible for payment under the SPS.

(3) In order for such entitlements to be activated, farmers shall

meet all the requirements in terms of Regulation (EC) 73/2009, and

the following conditions shall be satisfied

(a) in the case of area related entitlements a farmer is also

bound to employ an equivalent amount of eligible

land;

(b) in the case of special entitlements farmers shall be in

possession of an active herd book.

A direct payment shall not be granted to farmers if

(a) in the case of land entitlements, the total amount of

entitlements owned is less than 0.1ha or the total area

declared under SPS is less than 0.1ha; or

(b) in the case of special entitlements, the total amount of

special entitlement activated is less than one hundred

euro (€100).

As from claim year 2011 payments shall only be effected to

a farmer if

(a) in the case of activating special dairy entitlements the

farmer produces at least 50% of milk equivalent to

entitlements activated for that year. If the farmer fails

to produce the required amount of milk, payment

under these regulations shall not be effected;

(b) in the case of activating special livestock entitlements

a farmer shall have at least 50% of livestock units

equivalent to the entitlements activated registered on

his holding throughout the claim year. If such

minimum amount is not registered, payment under

these regulations shall not be effected.

The direct payment calculated in respect of payment claims

submitted correctly in terms of regulation 26 and duly accepted,

shall be reduced, in the event of any irregularities, in terms of the

provisions of Regulation (EC) No. 1122/2009.

Any dispute arising from claims to the Paying Agency

made under these regulations shall be referred to arbitration in

terms of regulation 13 of the Paying Agency Regulations.