Autumn 2006 - the relevant section of European Commission's proposed exemption regulation " targeted at the specific needs of primary agricultural production.")

 From  http://ec.europa.eu/agriculture/stateaid/exemption/commprop_en.pdf

 

Article 10

Aid in respect of animal and plant diseases and pest infestations

1. Aid to compensate farmers for the costs of prevention and eradication of animal or plant diseases or pest infestations incurred for the costs of health checks, tests and other screening measures, purchase and administration of vaccines, medicines and plant protection products, slaughter and destruction costs of animals and costs of destruction of crops shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty if it fulfils the following conditions and the conditions set out in paragraphs 4 to 9:

    (a) the gross aid intensity must not exceed 100%;
    (b) the aid must not involve direct payments to producers.
2. Aid to compensate farmers for losses caused by animal or plant diseases or pest infestations shall be compatible with the common market within the meaning of Article 87(3)(c) of the Treaty and shall be exempt from the notification requirement of Article 88(3) of the Treaty if it fulfils the following conditions and the conditions set out in paragraphs 4 to 9:
    (a) compensation must be calculated in relation to
      (i) the market value of animals killed or plants destroyed by the disease or pest infestation or of animals killed or plants destroyed by public order as part of a compulsory public prevention or eradication programme;
      (ii) income losses due to quarantine obligations and difficulties in restocking or replanting;
    (b) the outbreak of disease or pest infestation must have led to a production loss which exceeds 30% of the average production of the farmer concerned in the preceding three-year period or a three-year average based on the preceding fiveyear period, excluding the highest and lowest entry;
    (c) the gross aid intensity must not exceed 75% and 80% in less favoured areas or in areas referred to in Article 36 (a) (i), (ii) or (iii) of Regulation (EC) No. 1698/2005, as designated by Member States in accordance with Articles 50 and 94 of that Regulation;
    (d) the aid must be limited to losses caused by diseases for which an outbreak has been formally recognised by public authorities.
3. The maximum amount of costs or loss eligible for aid must be reduced by :
    (a) the amount of any direct aid payments received;
    (b) any amount received under insurance schemes; and
    (c) costs not incurred because of the disease, which would otherwise have been incurred.
4. Payments must be made in relation to diseases or pests for which Community or national provisions exist, whether laid down by law, regulation or administrative action. Payments must thus be made as part of a public programme at Community, national or regional level for the prevention, control or eradication of the disease or pest concerned. The diseases or pest infestation must be clearly identified in the programme, which must also contain a description of the measures concerned.

5. The aid must not relate to a disease in respect of which Community legislation provides for specific charges for control measures.

6. The aid must not relate to measures in respect of which Community legislation provides that the cost of such measures is to be borne by the agricultural holding, unless the cost of such aid measures is entirely offset by compulsory charges on producers.

7. As regards animal diseases, the aid must be granted in respect of diseases listed in Article 3 or the Annex to Council Decision 90/42413.

8. For losses suffered after 1 January 2010, the aid must be granted in relation to events for which the farmer concerned [contributes at least  % to a cost sharing mechanism].

9. Aid schemes must be introduced within three years following the occurrence of the expense or loss. Aid must be paid out within four years following the occurrence. 13 OJ L 224, 18.8.1990, p. 19.


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