Aid for basic services and infrastructure in rural areas
1. Aid for basic services and infrastructure in rural areas granted in the framework of a CAP Strategic Plan shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it is put into effect after the approval of the relevant CAP Strategic Plan by the Commission and where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.
2. The aid shall fulfil both of the following conditions:
(a)
it is granted in the framework of a CAP Strategic Plan in accordance with Regulation (EU) 2021/2115 in one of the following forms:
(i)
as aid co-financed by EAFRD;
(ii)
as additional national financing to aid co-financed by EAFRD;
(b)
it is identical to the relevant measure provided for in the CAP Strategic Plan referred to in point (a).
3. The aid shall cover:
(a)
investments in the creation, improvement or expansion of all types of infrastructures with eligible costs limited to EUR 2 million (‘small-scale infrastructure’), with the exception of investments in renewable energy and energy efficiency and broadband infrastructure which shall not be eligible;
(b)
investments in the setting-up, improvement or expansion of local basic services for the rural population, including social services, leisure and culture, and the related infrastructure;
(c)
investments for public use in recreational infrastructure, tourist information and small-scale tourism infrastructure;
(d)
investments associated with the maintenance, restoration and upgrading of the cultural and natural heritage of villages, rural landscapes and high nature value sites, including related socioeconomic aspects, as well as environmental awareness actions;
(e)
investments targeting the relocation of activities and conversion of buildings or other facilities located inside or close to rural settlements, with a view to improving the quality of life or increasing the environmental performance of the settlement.
4. The operations covered by the investments referred to in paragraph 3 shall be implemented in accordance with plans for the development of municipalities and villages in rural areas and their basic services, where such plans exist, and shall be consistent with any relevant local development strategy. Such plans are not required with regard to investments supported by financial instruments.
5. The aid shall cover the following eligible costs:
(a)
the costs of drawing up and updating of development and management plans relating to rural areas and their basic services, and to high nature value sites;
(b)
the costs for the preparation of studies associated with cultural and natural heritage, rural landscapes and high nature value sites;
(c)
investment costs for tangible and intangible assets;
(d)
costs linked to environmental awareness actions.
The costs of capitalised works may be also eligible for aid referred to in paragraph 3, point (d).
Working capital shall not be considered to be an eligible cost. The aid shall not be granted as operating aid.
6. As regards activities referred to in paragraph 3, points (a) to (d), the aid intensity shall be limited to 100 % of the eligible costs.
In order not to exceed the maximum aid intensity, for activities referred to in paragraph 3, points (b), (c) and (d), the net revenues shall be deducted from the eligible costs ex ante on the basis of reasonable projections or through a clawback mechanism. Alternatively, for aid not exceeding EUR 1 million, the maximum aid intensity may be set at 80 % of eligible costs.
7. As regards the investments referred to in paragraph 3, point (e), the aid intensity shall not exceed 100 % of the real costs incurred for such activities where the relocation of the activities or the conversion of buildings or other facilities consists of the dismantling, removal and re-building of existing facilities.
Where the relocation of the activities or the conversion of buildings or other facilities results in a modernisation of those facilities or in an increase in production capacity, in addition to the dismantling, removal and re-building of existing facilities as referred to in the first subparagraph, the aid intensities shall not exceed the maximum aid intensity established in the regional aid map which is in force at the time the aid is granted in the area concerned in respect of the costs relating to the modernisation of the facilities or the increase of production capacity. The pure replacement of an existing building or facilities by a new up-to date building or facilities without fundamentally changing the production or the technology involved is not considered to be related to the modernisation.
Business start-up aid for non-agricultural activities in rural areas
1. Business start-up aid for non-agricultural activities in rural areas shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.
2. The aid shall fulfil both of the following conditions:
(a)
it is granted in the framework of a CAP Strategic Plan in accordance with Regulation (EU) 2021/2115 in one of the following forms:
(i)
aid co-financed by EAFRD;
(ii)
additional national financing to the aid referred to in point (i);
(b)
it is identical to the relevant measure provided for in the CAP Strategic Plan referred to in point (a).
3. Aid shall be granted to the following categories of beneficiaries:
(a)
farmers or members of a farm household in rural areas diversifying into non-agricultural activities;
(b)
micro and small enterprises in rural areas;
(c)
natural persons in rural areas.
4. Where the member of a farm household as referred to in paragraph 3, point (a), is a legal person or a group of legal persons, it shall exercise an agricultural activity on the farm at the time the application for the aid is submitted.
5. The aid shall be conditional on the submission of a business plan to the competent authority of the Member State concerned.
The business plan shall describe the following:
(a)
the initial economic situation of the beneficiary;
(b)
milestones and targets for the development of the new activities of the beneficiary;
(c)
details of the actions required for the development of the activities of the beneficiary, such as details of investments, training, advice.
The business plan shall have a maximum duration of five years.
6. The payment of the last instalment shall be conditional upon the correct implementation of the business plan referred to in paragraph 5. Member States shall determine the amount of aid taking into account the socioeconomic situation of the area covered by the CAP Strategic Plan.
7. The aid shall be limited to EUR 100 000 per beneficiary.
Aid for new participation of farmers in quality schemes for cotton and foodstuffs
1. Aid for new participation, or participation in the five preceding years, of farmers in quality schemes for cotton and foodstuffs shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.
2. The aid shall fulfil both of the following conditions:
(a)
it is granted in the framework of a CAP Strategic Plan in accordance with Regulation (EU) 2021/2115 in one of the following forms:
(i)
aid co-financed by EAFRD;
(ii)
additional national financing to the aid referred to in point (i);
(b)
it is identical to the relevant intervention provided for in the CAP Strategic Plan referred to in point (a).
3. Aid shall be granted for new participation in one of the following types of quality schemes:
(a)
quality schemes for cotton and foodstuffs established under Regulation (EU) No 1151/2012;
(b)
quality schemes for cotton and foodstuffs, including certification schemes, recognised by the Member States as complying with the following criteria:
(i)
the specificity of the final product produced under such quality schemes is derived from clear obligations to guarantee one or more of the following:
—
specific product characteristics;
—
specific farming or production methods;
—
a quality of the final product that goes significantly beyond the commercial commodity standards as regards public, animal or plant health, animal welfare or environmental protection;
(ii)
the scheme is open to all producers;
(iii)
the scheme involves binding final product specifications and compliance with those specifications is verified by public authorities or by an independent inspection body;
(iv)
the scheme is transparent and assures complete traceability of agricultural products;
(c)
voluntary foodstuff certification schemes recognised by the Member State concerned as meeting the requirements laid down in the Commission Communication – EU best practice guidelines for voluntary certification schemes for agricultural products and foodstuffs ( 48 ) .
4. The aid shall be granted in the form of an annual incentive payment, the level of which shall be determined according to the level of the fixed costs arising from participation in quality schemes.
5. The aid shall be granted for a maximum period of seven years.
6. If the initial participation in the quality scheme started before the application for support, the maximum period of seven years shall be reduced by the number of years which have elapsed between that initial participation and the time of the application for support.
7. The aid shall be limited to EUR 3 000 per beneficiary per year.
Aid for information and promotion activities concerning cotton and foodstuffs covered by a quality scheme
1. Aid for information and promotion activities concerning cotton and foodstuffs covered by a quality scheme shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.
2. The aid shall fulfil both of the following conditions:
(a)
it is granted in the framework of a CAP Strategic Plan in accordance with Regulation (EU) 2021/2115 in one of the following forms:
(i)
aid co-financed by EAFRD;
(ii)
additional national financing to the aid referred to in point (i);
(b)
it is identical to the relevant measure provided for in the CAP Strategic Plan referred to in point (a).
3. The aid shall be granted to groups of producers implementing the information and promotion activities.
4. Only information and promotion activities that are implemented in the internal market shall be eligible for aid.
5. The aid shall be granted for information and promotion activities concerning cotton and foodstuffs which are covered by a quality scheme and for which aid is granted in accordance with Article 57.
6. The eligible costs shall be the costs for actions having the following characteristics:
(a)
they are designed to induce consumers to buy the foodstuffs or the cotton covered by a quality scheme as referred to in Article 57(3);
(b)
they draw attention to specific features or advantages of the foodstuff or the cotton, notably to the quality, specific production method, high animal welfare standards and respect for the environment linked to the quality scheme concerned.
7. The actions referred to in paragraph 6 shall not incite consumers to buy a foodstuff or cotton due to their particular origin, except for those covered by the quality schemes referred to in Title II of Regulation (EU) No 1151/2012.
8. The origin of the foodstuff or cotton may be indicated, provided that the mention of the origin is subordinate to the main message.
9. Information and promotion activities related to particular undertakings or commercial brands shall not be eligible for aid.
10. The aid intensity shall be limited to 70 % of the eligible costs.
Aid for cooperation in rural areas
1. Aid for cooperation in rural areas shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.
2. The aid shall fulfil both of the following conditions:
(a)
it is granted in the framework of a CAP Strategic Plan in accordance with Regulation (EU) 2021/2115 in one of the following forms:
(i)
aid co-financed by EAFRD;
(ii)
additional national financing to the aid referred to in point (i);
(b)
it is identical to the relevant measure provided for in the CAP Strategic Plan referred to in point (a).
3. Forms of cooperation covered by this Article shall involve at least two actors and may comprise undertakings active in the agricultural sector, undertakings active in the food chain and other actors, including producer groups, cooperatives and interbranch organizations, where the cooperation benefits rural areas.
4. The following forms of cooperation shall be eligible:
(a)
cooperation between undertakings and other actors as referred to in paragraph 3 of this Article;
(b)
the creation of clusters and networks.
5. Aid shall not be granted for cooperation solely involving research bodies.
6. Aid may be granted to cooperation relating to the following activities:
(a)
pilot projects;
(b)
the development of new products, practices, processes and technologies in the food sector;
(c)
cooperation among small operators in organizing joint work processes and sharing facilities and resources and for the development and/or marketing of tourism services relating to rural tourism;
(d)
horizontal and vertical cooperation among supply chain actors for the establishment and development of short supply chains and local markets;
(e)
promotion activities in a local context relating to the development of short supply chain and local markets;
(f)
collective actions undertaken with a view to mitigating or adapting to climate change;
(g)
joint approaches to environmental projects and ongoing environmental practices, including efficient water management, the use of renewable energy and the preservation of agricultural landscapes;
(h)
horizontal and vertical cooperation among supply chain actors in the sustainable provision of biomass for use in food and energy production and industrial processes;
(i)
implementation, in particular by groups of public and private partners other than those defined in Article 32(2), point (b), of Regulation (EU) No 1303/2013, of local development strategies other than those defined in Article 2, point (19), of Regulation (EU) No 1303/2013 addressing one or more of the Union priorities for rural development;
(j)
diversification of farming activities into activities concerning health care, social integration, community-supported agriculture and education about the environment and food;
(k)
implementation of smart-village strategies.
7. Aid shall only be granted to new forms of cooperation, including existing ones if starting a new activity.
8. Aid for pilot projects referred to in paragraph 6, point (a), and for the development of new products, practices, processes and technologies in the food sector referred to in paragraph 6, point (b), may also be granted to individual actors where this possibility is provided for in the national Strategic Plans. The results of pilot projects referred to in paragraph 6, point (a), and activities referred to in paragraph 6, point (b), carried out by individual actors shall be disseminated.
9. Aid for the establishment and development of short supply chains, as referred to in paragraph 6, points (d) and (e), shall cover only supply chains involving no more than one intermediary between farmer and consumer.
10. Aid under this Article shall comply with Articles 206 to 210a of Regulation (EU) No 1308/2013.
11. Aid shall be limited to a maximum period of seven years.
12. The following costs shall be eligible:
(a)
the costs of preparatory support, capacity building, training and networking with a view of preparing and implementing a cooperation project;
(b)
costs for studies of the area concerned, feasibility studies, and the drawing up of a business plan or local development strategy other than the one referred to in Article 32 of Regulation (EU) 2021/1060;
(c)
costs for the animation of the area concerned in order to make feasible a collective territorial project; in the case of clusters, the animation may also concern networking between members and the recruitment of new members;
(d)
the running costs of cooperation, such as the salary of a coordinator;
(e)
the direct costs of specific projects linked to the implementation of a business plan, an environmental plan, a local development strategy other than the one referred to in Article 32 of Regulation (EU) 2021/1060 or other actions targeted towards innovation, including testing;
(f)
costs for promotion activities.
13. The aid shall be limited to 100 % of the eligible costs.
14. Direct costs under paragraph 12, point (e), which relate to investments, shall be limited to the eligible costs of investment aid, and shall comply with the conditions specified in the corresponding Articles of Regulation (EU) No 651/2014 and in the relevant Articles of this Regulation, including the specific conditions on notification thresholds.
Aid for CLLD projects
1. Aid for costs incurred by SMEs participating in CLLD projects, referred to in Article 31 of Regulation (EU) 2021/1060 and designated as LEADER local development under the EAFRD, shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) of the Treaty, where it fulfils conditions laid down in this Article and in Chapter I of this Regulation.
Aid for costs incurred by municipalities participating in CLLD projects, referred to in Article 31 of Regulation (EU) 2021/1060 and designated as LEADER local development under the European Agricultural Fund for Rural Development in favour of projects referred to in paragraph 3 of this Article, shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) of the Treaty, where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.
2. The following costs shall be eligible for CLLD projects:
(a)
the costs of preparatory support, capacity building, training and networking with a view of preparing and implementing a CLLD strategy;
(b)
implementation of approved operations;
(c)
preparation and implementation of the cooperation activities;
(d)
running costs linked to the management of the implementation of the CLLD strategy;
(e)
animation the CLLD strategy in order to facilitate exchange between stakeholders to provide information and to promote the strategy and the projects, and to support potential beneficiaries with a view of developing operations and preparing applications.
3. The costs incurred by municipalities participating in CLLD projects, referred to in paragraph 1, shall be eligible for aid under this Article provided that they are pursued in one or more of the following areas:
(a)
research, development and innovation;
(b)
environment;
(c)
employment and training;
(d)
culture and heritage conservation;
(e)
forestry;
(f)
promotion of food products not listed in ANNEX I of the Treaty;
(g)
sports.
4. The aid intensity shall not exceed the maximum support rates provided for each type of operation in Regulation (EU) 2021/2115.
Limited amounts of aid for CLLD projects
1. Aid to undertakings participating in, or benefitting from CLLD projects as referred to in Article 60(1), shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) of the Treaty, where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.
Aid to municipalities participating in, or benefitting from CLLD projects as referred to in Article 60(1), shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) of the Treaty, where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.
2. The costs incurred by municipalities participating in CLLD projects, referred to in paragraph 1, shall be eligible for aid under this Article provided that they are pursued in one or more of the following areas:
(a)
research, development and innovation;
(b)
environment;
(c)
employment and training;
(d)
culture and heritage conservation;
(e)
forestry;
(f)
promotion of food products not listed in ANNEX I of the Treaty;
(g)
sports.
3. The total amount of aid under this Article granted per CLLD project shall not exceed EUR 200 000.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
