Regulation (EU) 2021/2115 is amended as follows:
(1)
in Article 4(3), point (c), the first subparagraph is replaced by the following:
‘
“permanent grassland and permanent pasture” (together referred to as “permanent grassland”) shall be land that is used to grow grasses or other herbaceous forage naturally (self-seeded) or through cultivation (sown) and that has not been included in the crop rotation of the holding for five years or more or, where Member States so decide, for seven years or more and, where Member States so decide, that has not been ploughed up, or tilled, or reseeded with different types of grass or other herbaceous forage, for five years or more or for seven years or more; it may include other species, such as shrubs or trees, which can be grazed and, where Member States so decide, other species such as shrubs or trees which produce animal feed, provided that the grasses and other herbaceous forage remain predominant.
Member States may decide that land that was classified as arable land on 1 January 2026 remains classified as arable land and is not reclassified as permanent grassland even if the period referred to in the first subparagraph has expired and the land has not been ploughed up, or tilled, or reseeded with different types of grass or other herbaceous forage.’
;
(2)
in Article 10, the second paragraph is replaced by the following:
‘In particular, the basic income support for sustainability, the complementary redistributive income support for sustainability, the complementary income support for young farmers, and the schemes for the climate, the environment and animal welfare, and the crisis payments to farmers following natural disasters, adverse climatic events or catastrophic events shall qualify under the criteria of the paragraphs of Annex 2 to the WTO Agreement on Agriculture listed in Annex II to this Regulation for those interventions. For other interventions, the paragraphs of Annex 2 to the WTO Agreement on Agriculture listed in Annex II to this Regulation are indicative and those interventions may instead comply with a paragraph of Annex 2 to the WTO Agreement on Agriculture not listed in Annex II to this Regulation if that is specified and explained in the CAP Strategic Plan.’
;
(3)
Article 11 is amended as follows:
(a)
paragraph 4 is replaced by the following:
‘4. If a Member State intends to increase its planned outputs referred to in paragraph 1 of this Article set out in its CAP Strategic Plan approved by the Commission, it shall notify the Commission of its revised planned outputs in accordance with Article 119(9) before 1 January of the year preceding the claim year concerned.’
;
(b)
in paragraph 5, the third subparagraph is replaced by the following:
‘Each Member State concerned shall submit a notification in accordance with Article 119(9) with the reduction coefficient referred to in the second subparagraph of this paragraph by 31 March of the year preceding the claim year concerned.’
;
(4)
in Article 12, the following paragraph is inserted:
‘1a. By way of derogation from paragraph 1 of this Article, the system of conditionality shall not apply to beneficiaries of payments referred to in Article 28.’
;
(5)
Article 13 is amended as follows:
(a)
in paragraph 1, the following subparagraphs are added:
‘Farmers certified in accordance with Regulation (EU) 2018/848 of the European Parliament and of the Council ( *1 ) shall be deemed to comply with GAEC standards 1, 3, 4, 5, 6 and 7 listed in Annex III to this Regulation in relation to their organic production units, as defined in Article 3, point (10), of Regulation (EU) 2018/848, and their in-conversion production units, as defined in Article 3, point (11), of that Regulation.
Member States may, taking into consideration the administrative burden of checks, decide that only farmers certified in accordance with Regulation (EU) 2018/848 whose entire holding consists of organic production units, as defined in Article 3, point (10), of Regulation (EU) 2018/848, or of in-conversion production units, as defined in Article 3, point (11), of that Regulation, or of both such production units, are deemed to comply with GAEC standards 1, 3, 4, 5, 6 and 7 listed in Annex III to this Regulation.
In setting their standards, Member States may, where relevant, set the elements referred to in Article 109(2), point (a)(i), of this Regulation so that they are consistent with mandatory requirements established by national law and do not go beyond them, provided that those existing national mandatory requirements comply with the GAEC standards listed in Annex III to this Regulation.
( *1 ) Regulation (EU) 2018/848 of the European Parliament and of the Council of 30 May 2018 on organic production and labelling of organic products and repealing Council Regulation (EC) No 834/2007 ( OJ L 150, 14.6.2018, p. 1 , ELI: http://data.europa.eu/eli/reg/2018/848/oj ).’;"
(b)
paragraph 2a is replaced by the following:
‘2a. When implementing the minimum standards set in accordance with paragraphs 1 and 2, Member States may grant temporary derogations from the requirements of those minimum standards where weather conditions, plant diseases or pest infestations prevent farmers and other beneficiaries from complying with those requirements in a given year. Such temporary derogations shall be limited in their scope to farmers and other beneficiaries or areas affected by such weather conditions, plant diseases or pest infestations, and shall be applied only for as long as they are strictly necessary.’
;
(6)
Article 19is replaced by the following:
‘Article 19
Contribution to risk management tools
By way of derogation from Article 44(1) of Regulation (EU) 2021/2116, a Member State may decide to assign up to 3 % of the direct payments to be paid to a farmer as farmers’ contribution to risk management tools.
Member States that decide to make use of this provision shall apply it to all farmers receiving direct payments in a given year. Alternatively, such Member States may decide to apply it to the farmers for whom a risk management tool exists in a given year if this corresponds better to the risk management tool in place.’
;
(7)
Article 28 is replaced by the following:
‘Article 28
Payments for small farmers
1. Member States may grant a payment to small farmers, as determined by the Member States, by way of a lump sum or of amounts per hectare replacing direct payments under this Section and Section 3 of this Chapter. Member States shall design the corresponding intervention in the CAP Strategic Plan as optional for farmers.
2. By way of derogation from paragraph 1, Member States may decide in the CAP Strategic Plans that the payment to small farmers referred to in that paragraph does not replace direct payments made to support eco-schemes established in accordance with Article 31.
3. The annual payment for each farmer under paragraph 1 shall not exceed EUR 3 000.
4. Member States may decide to set different lump sums or amounts per hectare linked to different area thresholds.’
;
(8)
Article 31 is amended as follows:
(a)
paragraph 5 is amended as follows:
(i)
the second subparagraph is replaced by the following:
‘For commitments referred to in the first subparagraph, point (b), where national law imposes requirements which go beyond the corresponding mandatory minimum requirements laid down in Union law, support may be granted for commitments contributing to compliance with those requirements.’
;
(ii)
the following subparagraph is added:
‘By way of derogation from the first subparagraph, Member States may decide to exclude from the requirement laid down in the first subparagraph, point (a), GAEC standards 2 and 9 established under Chapter I, Section 2, of this Title.’
;
(b)
paragraph 7 is amended as follows:
(i)
the second subparagraph is replaced by the following:
‘By way of derogation from the first subparagraph, payments granted in accordance with point (b) of that subparagraph for animal welfare commitments, commitments combating antimicrobial resistance, commitments for agricultural practices beneficial for the climate and commitments to convert to or maintain organic farming practices and methods laid down in Regulation (EU) 2018/848 may also take the form of an annual payment for the livestock units.’
;
(ii)
the following subparagraph is added:
‘By way of derogation from the first subparagraph, payments granted in accordance with point (b) of that subparagraph may, where appropriate, take the form of an annual payment for beehives. For the purposes of this derogation, the definition of “beehive” set out in the delegated act referred to in Article 56, point (b), shall apply.’
;
(9)
Article 48 is replaced by the following:
‘Article 48
Planning and reporting at operational programme level
Article 7(1), point (a), Article 102, Article 111, points (g) and (h), Article 112(3), point (b), and Article 134 shall apply for the types of intervention in the sectors referred to in Article 42, points (a), (d), (e) and (f), at the level of operational programmes instead of at the level of intervention. The planning and reporting for those types of intervention shall also be carried out at the level of operational programmes.’
;
(10)
in Article 49, the first paragraph is replaced by the following:
‘In the fruit and vegetables sector referred to in Article 42, point (a), Member States shall pursue one or more of the objectives set out in Article 46. The objectives set out in Article 46, points (d) to (i) and (k), shall cover the products whether in a fresh or processed form, while the objectives set out in the other points of that Article shall cover only products in a fresh form.’
;
(11)
in Article 52(2), the second subparagraph is replaced by the following:
‘Those limits may be increased by 0,5 percentage points, where the operational programme comprises one or more interventions linked to any of the objectives referred to in Article 46, point (d), (e), (f), (h), (i) or (j), provided that the amount in excess of the relevant percentage set out in the first subparagraph of this paragraph is used solely to finance expenditure resulting from the implementation of those interventions. In the case of associations of producer organisations, including transnational associations of producer organisations, those interventions may be implemented by the association on behalf of its members.’
;
(12)
Article 69 is amended as follows:
(a)
point (e) is replaced by the following:
‘(e)
setting-up of young farmers and new farmers, rural business start-ups and the business development of small farms;’
;
(b)
the following point is added:
‘(i)
crisis payments to farmers following natural disasters, adverse climatic events or catastrophic events.’
;
(13)
Article 70 is amended as follows:
(a)
paragraph 3 is amended as follows:
(i)
the second subparagraph is replaced by the following:
‘For commitments referred to in the first subparagraph, point (b), where national law imposes requirements which go beyond the corresponding mandatory minimum requirements laid down in Union law, support may be granted for commitments contributing to compliance with those requirements.’
;
(ii)
the following subparagraph is added:
‘By way of derogation from the first subparagraph, Member States may decide to exclude from the requirement laid down in the first subparagraph, point (a), GAEC standards 2 and 9 established under Chapter I, Section 2, of this Title.’
;
(b)
paragraph 8 is replaced by the following:
‘8. Where support under this Article is granted to agri-environment-climate commitments or commitments to convert to or maintain organic farming practices and methods as laid down in Regulation (EU) 2018/848, Member States shall establish a payment per hectare, or where appropriate, per beehive, as defined in the delegated act referred to in Article 56, point (b), of this Regulation. For other commitments, Member States may apply units other than hectares. In duly justified cases, Member States may grant support under this Article as a lump sum.
By way of derogation from the first subparagraph of this paragraph, support for agri-environment-climate commitments beneficial for the climate and commitments to convert to or maintain organic farming practices and methods as laid down in Regulation (EU) 2018/848 may take the form of a payment for the livestock units.’
;
(c)
the following paragraph is added:
‘11. Where a Member State has taken the decision referred to in Article 4(3), point (c), second subparagraph, it shall ensure that such decision does not affect ongoing multiannual commitments undertaken under this Article.’
;
(14)
in Article 72(5), the following subparagraph is added:
‘By way of derogation from the first subparagraph of this paragraph, Member States may decide to include in the calculation additional costs and income foregone in relation to disadvantages resulting from compliance with GAEC standard 2 established under Chapter I, Section 2, of this Title.’
;
(15)
Article 73 is amended as follows:
(a)
in paragraph 3, first subparagraph, point (d), the following point is added:
‘(v)
rearing of bovine, sheep or goat pure-bred animals of high genetic value for breeding to improve the quality and productivity of livestock herds or to preserve rare or local breeds;’
;
(b)
paragraph 5 is replaced by the following:
‘5. Where Union law results in the imposition of new requirements on farmers, support for investments to comply with those requirements may be granted for a maximum of 36 months from the date on which they become mandatory for the holding.
For young farmers setting up for the first time in an agricultural holding as head of the holding support for investments to comply with the requirements of Union law may be granted for a maximum of 36 months from the date of setting up, or until the actions defined in the business plan referred to in Article 75(3) are completed.’
;
(16)
Article 75 is amended as follows:
(a)
the title is replaced by the following:
‘Setting-up of young farmers and new farmers, rural business start-ups, and the business development of small farms’
;
(b)
paragraph 1 is replaced by the following:
‘1. Member States may grant support for the setting-up of young farmers and the start-up of rural businesses, including the setting-up of new farmers, and for the business development of small farms under the conditions set out in this Article and as further specified in their CAP Strategic Plans with a view to contributing to the achievement of one or more of the specific objectives set out in Article 6(1) and (2).’
;
(c)
in paragraph 2, the following point is added:
‘(d)
the business development of small farms, as determined by Member States pursuant to Article 73(4), second subparagraph, point (b).’
;
(d)
paragraph 4 is replaced by the following:
‘4. Member States shall grant support in the form of lump sums or financial instruments or a combination of both. Support shall be limited to:
(a)
a maximum amount of aid of EUR 100 000 for the activities referred to in paragraph 2, points (a), (b) and (c);
(b)
a maximum amount of aid of EUR 75 000 for the activities referred to in paragraph 2, point (d).
Support may be differentiated in accordance with objective criteria.’
;
(17)
in Article 76(5), the first subparagraph is replaced by the following:
‘Member States shall ensure that support is granted only for covering losses which exceed a threshold of at least 20 % of the average annual production or income of the farmer in the preceding three-year period, or a three-year average based on the preceding five-year period excluding the highest and lowest entry. Sectoral production risk management tools shall calculate the losses either at holding level, at the level of the holding’s activity in the sector concerned or in relation to the specific area insured.
Where the calculation methods referred to in the first subparagraph are not appropriate, Member States may assess the losses on the basis of the average annual production or income of the farmer over a period that does not exceed eight years, excluding the highest and lowest entry.
Member States may apply an appropriate alternative assessment for calculating the losses for young farmers and new farmers.’
;
(18)
in Article 77(8), point (b) is replaced by the following:
‘(b)
setting-up of producer groups, producer organisations or interbranch organisations to 10 % of the annual marketed production of the group or organisation, with a maximum of EUR 500 000 over the programming period ending on 31 December 2027; that support shall be degressive and limited to the first five years following recognition.’
;
(19)
in Title III, Chapter IV, Section 1, the following Article is added:
‘Article 78a
Crisis payments to farmers following natural disasters, adverse climatic events or catastrophic events
1. Member States may provide crisis payments to active farmers that are affected by natural disasters, adverse climatic events or catastrophic events. Those payments shall aim at ensuring continuity of the agricultural activity of those farmers and shall be subject to the conditions set out in this Article and as further specified by the Member States in their CAP Strategic Plans.
2. Support under this Article shall be subject to the formal recognition by the competent authority of the Member State that a natural disaster, adverse climatic event or catastrophic event, as defined by the Member State, has occurred and that those events, or measures adopted in accordance with Regulation (EU) 2016/2031 to eradicate or contain a plant disease or pest, or measures adopted to prevent or eradicate animal diseases listed in the Annex to Commission Implementing Regulation (EU) 2018/1882 ( *2 ) or measures adopted regarding an emerging disease in accordance with Article 6(3) and Article 259 of Regulation (EU) 2016/429 have directly caused damage resulting in the destruction of at least 30 % of the average annual production of the farmer in the preceding three-year period or a three-year average based on the preceding five-year period, excluding the highest and the lowest entry. The losses shall be calculated either at holding level, at the level of the holding’s activity in the sector concerned or in relation to the specific area concerned.
3. Member States shall ensure that support under this Article targets farmers who are most affected by natural disasters, adverse climatic events or catastrophic events, by determining eligibility conditions on the basis of available evidence.
4. Member States shall establish the applicable support rates for compensating the loss of production. Those rates shall be higher for farmers who are covered by an insurance scheme or another risk management tool. Indexes may be used for calculating the loss of production.
5. When granting support under this Article, Member States shall ensure that overcompensation as a result of the combination of intervention under this Article with other national or Union support instruments or private insurance schemes is avoided.
6. By way of derogation from Article 111, first paragraph, points (h) and (i) of that paragraph shall not apply to support under this type of intervention.
( *2 ) Commission Implementing Regulation (EU) 2018/1882 of 3 December 2018 on the application of certain disease prevention and control rules to categories of listed diseases and establishing a list of species and groups of species posing a considerable risk for the spread of those listed diseases ( OJ L 308, 4.12.2018, p. 21 , ELI: http://data.europa.eu/eli/reg_impl/2018/1882/oj ).’;"
(20)
in Article 79(1), the first subparagraph is replaced by the following:
‘After consulting the monitoring committee referred to in Article 124 (“the monitoring committee”), the national managing authority, the regional managing authorities where relevant, or the designated intermediate bodies shall set out selection criteria for interventions under the following types of intervention: investments, setting-up of young farmers and new farmers, rural business start-ups and business development of small farms, cooperation, knowledge exchange and dissemination of information. Those selection criteria shall aim to ensure the equal treatment of applicants, the better use of financial resources and the targeting of the support in accordance with the purpose of the interventions.’
;
(21)
Article 80 is amended as follows:
(a)
in paragraph 2, the first subparagraph is replaced by the following:
‘Where support is granted in the form of financial instruments, the definitions of “financial instrument”, “financial product”, “final recipient”, “holding fund”, “specific fund”, “leverage effect”, “multiplier ratio”, “management costs” and “management fees” in Article 2 of Regulation (EU) 2021/1060 and the provisions of Title V, Chapter II, Section II of that Regulation and of point II of Annex XIII thereto shall apply.’
;
(b)
in paragraph 3, the second subparagraph is replaced by the following:
‘For activities falling within the scope of Article 42 TFEU, the total amount of support for working capital provided to a final recipient shall not exceed a gross grant equivalent of EUR 300 000 over any period of three years.’
;
(c)
in paragraph 5, the following subparagraph is added:
‘Value-added tax (VAT) shall be eligible expenditure as regards investments made by final recipients in the context of financial instruments. Where those investments are supported by financial instruments combined with programme support in the form of a grant as referred to in Article 58(5) of Regulation (EU) 2021/1060, the VAT shall not be eligible expenditure for the part of the investment cost which corresponds to the programme support in the form of a grant, unless the VAT for the investment cost is non-recoverable under national VAT legislation.’
;
(22)
Article 81 is amended as follows:
(a)
in paragraph 1, the first subparagraph is replaced by the following:
‘Member States may allocate, in the proposal for a CAP Strategic Plan referred to in Article 118 or in the request for amendment of a CAP Strategic Plan referred to in Article 119, an amount of up to 3 % of the initial EAFRD allocation to the CAP Strategic Plan to be contributed to InvestEU and delivered through the EU guarantee or the InvestEU financial instrument referred to in Article 10a of Regulation (EU) 2021/523 and the InvestEU Advisory Hub. The CAP Strategic Plan shall contain a justification for the use of InvestEU and its contribution to the achievement of one or more of the specific objectives set out in Article 6(1) and (2) of this Regulation and chosen under the CAP Strategic Plan.’
;
(b)
paragraph 3 is replaced by the following:
‘3. The amount referred to in paragraph 1 of this Article shall be used for the provisioning of the part of the EU guarantee or for the funding provided under the InvestEU financial instrument under the Member State compartment and for the InvestEU Advisory Hub, upon conclusion of the contribution agreement referred to in Article 10(3) or Article 10a(3) of Regulation (EU) 2021/523. The budgetary commitments of the Union in respect of each contribution agreement may be made by the Commission in annual instalments during the period between 1 January 2023 and 31 December 2027.’
;
(c)
in paragraph 4, the first subparagraph is replaced by the following:
‘Where a contribution agreement as referred to in Article 10(2) or Article 10a(2) of Regulation (EU) 2021/523 for the amount referred to in paragraph 1 of this Article allocated in the CAP Strategic Plan has not been concluded following the adoption of the Commission implementing decision approving that CAP Strategic Plan in accordance with Article 118 of this Regulation, the corresponding amount shall be reallocated in the CAP Strategic Plan following the approval of a request for amendment by the Member State submitted in accordance with Article 119 of this Regulation.’
;
(d)
paragraphs 5, 6 and 7 are replaced by the following:
‘5. Where a guarantee agreement as referred to in Article 10(4), second subparagraph, or in Article 10a(4), second subparagraph, of Regulation (EU) 2021/523 has not been concluded within 12 months from the approval of the contribution agreement, the contribution agreement shall be terminated or prolonged by mutual agreement.
Where the participation of a Member State in InvestEU is discontinued, the amounts concerned paid into the common provisioning fund as provisioning or allocated under the InvestEU financial instrument shall be recovered as internal assigned revenue pursuant to Article 21(5) of the Financial Regulation and the Member State shall submit a request for amendment of its CAP Strategic Plan to use the amounts recovered and the amounts allocated to future calendar years in accordance with paragraph 2 of this Article.
The termination or amendment of the contribution agreement shall be concluded simultaneously with the adoption of a Commission implementing decision approving the relevant amendment of the CAP Strategic Plan and at the latest on 31 December 2026.
6. Where a guarantee agreement as referred to in Article 10(4), third subparagraph, or in Article 10a(4), third subparagraph, of Regulation (EU) 2021/523 has not been duly implemented within the period agreed in the contribution agreement, but not exceeding four years from the signature of the guarantee agreement, the contribution agreement shall be amended. The Member State may request that amounts contributed to the EU guarantee or to the InvestEU financial instrument under paragraph 1 of this Article and committed in the guarantee agreement but not covering underlying loans, equity investments or other risk-bearing instruments are treated in accordance with paragraph 5 of this Article.
7. Resources generated by or attributable to the amounts contributed to the EU guarantee in accordance with this Article shall be made available to the Member State in accordance with Article 10(5), point (a), of Regulation (EU) 2021/523 and shall be used for support under the same objective or objectives referred to in paragraph 1 of this Article in the form of financial instruments or budgetary guarantees. Resources generated by or attributable to the amounts contributed to the InvestEU financial instrument in accordance with this Article shall be made available to the Member State in accordance with the contribution agreement and shall be used for support under the same objective or objectives in the form of financial instruments or budgetary guarantees.’
;
(23)
in Article 83(2), the following point is inserted:
‘(ba)
in accordance with the calculation methods established pursuant to Article 54, Article 55 and Article 56(1) and (3) of Regulation (EU) 2021/1060;’
;
(24)
in Article 86, paragraphs 2 and 3 are replaced by the following:
‘2. Expenditure that becomes eligible as a result of an amendment of a CAP Strategic Plan shall be eligible for a contribution from the EAGF from the date of effect of the amendment set by the Member State concerned in accordance with Article 119(8), but not earlier than from the date of submission to the Commission of the request for amendment or from the date of submission to the Commission of notification referred to in Article 119(9).
3. Expenditure that becomes eligible as a result of an amendment of a CAP Strategic Plan shall be eligible for a contribution from the EAFRD from the date of submission to the Commission of the request for amendment, or from the date of notification referred to in Article 119(9).
By way of derogation from the first subparagraph of this paragraph and from paragraph 4, second subparagraph, of this Article the CAP Strategic Plan may provide that, in cases of emergency measures due to natural disasters, catastrophic events or adverse climatic events or a significant and sudden change in the socioeconomic conditions of the Member State or region, the eligibility of EAFRD-financed expenditure relating to amendments to the CAP Strategic Plan may start from the date on which the event occurred.’
;
(25)
the following article is inserted:
‘Article 96a
Maximum financial allocations for crisis payments to farmers following natural disasters, adverse climatic events or catastrophic events
1. The maximum amount for each Member State that may be reserved for crisis payments to farmers following natural disasters, adverse climatic events or catastrophic events referred to in Article 78a shall be limited to the annual amounts set out in Annex XV.
2. The total EAFRD expenditure for the crisis payments referred to in Article 78a shall not exceed the sum of the indicative financial allocations for this type of intervention for financial years 2026 and 2027, as established by Member States in their financial plans in accordance with Article 112(2), point (a), and approved by the Commission in accordance with Article 119. That financial ceiling shall constitute a financial ceiling set by Union law.’
;
(26)
in Article 103, the following paragraph is added:
‘6. Notwithstanding Article 6(1) and Article 30(2) and (3) of Regulation (EU) No 228/2013, Member States with outermost regions within the meaning of Article 349 TFEU may decide, in a request for strategic amendment of a CAP Strategic Plan referred to in Article 119 of this Regulation, to transfer up to 25 % of the amount in their CAP Strategic Plans planned for their outermost regions, which is part of the amount allocated to them for rural development financial year 2027 under Annex XI to this Regulation, to their POSEI programmes established under Regulation (EU) No 228/2013 in order to reinforce them. Such request for strategic amendment shall contain a justification for such transfer and its contribution to the achievement of the specific objectives set out in Article 6(1) and (2) of this Regulation.
If a Member State makes a transfer in accordance with the first subparagraph of this paragraph, the corresponding maximum annual sums provided for in Article 30(2) and (3) of Regulation (EU) No 228/2013 for financial year 2027 shall be deemed to be increased by the specific amount transferred once the amendment of the CAP Strategic Plan has been approved by the Commission.’
;
(27)
in Article 111, the second paragraph is replaced by the following:
‘Point (e) of the first paragraph shall not apply to the type of intervention in the apiculture sector referred to in Article 55(1), points (a) and (c) to (g), interventions under the type of intervention in the wine sector referred to in Article 58(1), points (h) to (k), the information and promotion actions for quality schemes under the type of intervention for cooperation referred to in Article 77, and interventions under the type of intervention for crisis payments to farmers following natural disasters, adverse climatic events or catastrophic events referred to in Article 78a.’
;
(28)
Article 119 is replaced by the following:
‘Article 119
Amendments of the CAP Strategic Plans
1. Member States may amend their CAP Strategic Plans. They shall do so by submitting requests for strategic amendment pursuant to paragraph 2 or by notifying the amendment pursuant to paragraph 9.
2. Requests for strategic amendments of their CAP Strategic Plans shall be submitted to the Commission. The following amendments of the CAP Strategic Plans are strategic amendments:
(a)
amendments introducing new interventions or deleting interventions from the CAP Strategic Plans;
(b)
amendments that lead to changes of milestones or targets under the result indicators which are marked with “PR” in Annex I;
(c)
amendments related to Article 17(5), Article 88(7), Articles 92 to 98 or Article 103(1), (5) and (6);
(d)
amendments of the target and financial plans in the CAP Strategic Plan referred to in Article 112, including amendments to the contribution from EAFRD to InvestEU referred to in Article 81, amendments to the EAFRD total contribution to each type of intervention for the entire period covered by the CAP Strategic Plan or amendments related to the EAFRD contribution rates referred to in Article 91.
Requests for strategic amendments shall be duly justified and shall, in particular, set out the expected impact of the changes to the CAP Strategic Plan on achieving the specific objectives set out in Article 6(1) and (2). They shall be accompanied by the amended CAP Strategic Plan including the updated annexes as appropriate.
3. The Commission shall assess the consistency of strategic amendments with this Regulation and Regulation (EU) 2021/2116, as well as the delegated and implementing acts adopted pursuant to them, and the effective contribution of strategic amendments to achieving the specific objectives.
4. The Commission shall approve the requested strategic amendment provided that the necessary information has been submitted by a Member State concerned and the strategic amendment is compatible with this Regulation and Regulation (EU) 2021/2116, as well as the delegated and implementing acts adopted pursuant to them.
5. The Commission shall make observations within 30 working days from the submission of the request for strategic amendment. The Member States shall provide the Commission with all necessary additional information.
6. The Commission shall approve a request for strategic amendment no later than three months after its submission by the Member State.
7. A request for strategic amendment may be submitted twice per calendar year, subject to possible exceptions provided for in this Regulation or to be determined by the Commission in accordance with Article 122. In addition, three further requests for strategic amendment may be submitted during the duration of the CAP Strategic Plan period. This paragraph shall not apply to requests for amendments to submit the missing elements of the CAP Strategic Plan in accordance with Article 118(5).
A request for strategic amendment related to Article 17(5), Article 88(7) or Article 103(5) or (6) shall not count for the limitation laid down in the first subparagraph of this paragraph.
8. A strategic amendment related to Article 17(5), Article 88(7) or Article 103(1) in relation to the EAGF shall take effect from 1 January of the calendar year following the year of approval of the request for that strategic amendment by the Commission and following the corresponding amendment of the allocations in accordance with Article 87(2).
A strategic amendment related to Article 103(1) or (6) in relation to the EAFRD shall take effect after the approval of the request for that strategic amendment by the Commission and following the corresponding amendment of the allocations in accordance with Article 89(4).
A strategic amendment related to the EAGF, other than the amendments referred to in the first subparagraph of this paragraph, shall take effect from a date to be determined by the Member State but not earlier than from the date of submission to the Commission of the request for that amendment. Member States may set a different date or dates of effect for different elements of the strategic amendment. Where the strategic amendment could place the farmers concerned in a less favourable position than that which they enjoyed prior to that amendment, Member States shall take into account, when determining the date of effect of the amendment, the need of farmers and other beneficiaries to have sufficient time to take that amendment into account. The planned date of effect for strategic amendment related to the EAGF shall be indicated by the Member State in the request for strategic amendment and shall be subject to approval by the Commission in accordance with paragraph 10 of this Article.
9. Member States may, at any time, make and apply amendments to their CAP Strategic Plans other than strategic amendments. They shall notify those other amendments to the Commission by the time they start applying them and add them to the amended CAP Strategic Plan submitted together with the next request for strategic amendment in accordance with paragraph 2.
Where amendments are introduced in relation to GAEC standards 1 and 4, Member States shall ensure and provide a specific justification that such amendments do not put at risk environmental and climate objectives linked to the conservation of permanent grassland or the protection of watercourses from pollution, as appropriate.
Where the Commission does not object to notified amendments within 30 working days from the date of submission of the notification, the amendments shall have legal effects from the date of submission of the notification. The Commission shall object to a notified amendment if it finds that the amendment is not compatible with this Regulation or Regulation (EU) 2021/2116, or the delegated and implementing acts adopted pursuant to them.
The notified amendments to which Commission made objections shall not have legal effects and Member State shall delete them from the amended CAP Strategic Plan submitted pursuant to the first subparagraph of this paragraph. The expenditure resulting from those amendments shall not be eligible for a contribution from the EAFRD or the EAGF. The Member State may submit those amendments to the Commission for approval in a request for strategic amendment, referred to in paragraph 2 of this Article. The rules concerning approvals of strategic amendments referred to in paragraphs 2 to 8 and 10 and 11 of this Article shall apply mutatis mutandis to approval of amendments to which the Commission objected in accordance with the second subparagraph of this paragraph. Article 121 shall apply mutatis mutandis to Commission actions pursuant to this paragraph.
10. Each strategic amendment shall be approved by the Commission by means of an implementing decision without applying the committee procedure referred to in Article 153.
11. Without prejudice to Article 86, strategic amendments shall only have legal effects after their approval by the Commission.
12. Corrections of clerical or obvious errors or of a purely editorial nature that do not affect the implementation of the policy and the intervention shall not be considered to be a request for amendment or notification under this Article. Member States shall inform the Commission of such corrections.’
;
(29)
Article 120 is deleted;
(30)
in Article 122, point (a) is replaced by the following:
‘(a)
procedures and time limits for the submission of requests for strategic amendment of CAP Strategic Plans and notifications of amendments of CAP Strategic Plans;’
;
(31)
in Article 124(4), point (d) is replaced by the following:
‘(d)
any proposal by the managing authority for amendment of a CAP Strategic Plan and, as regards a proposal for amendment of a CAP Strategic Plan related to the EAGF, the date of effect of the amendment proposed by the managing authority in accordance with Article 119(8).’
;
(32)
Article 134 is amended as follows:
(a)
paragraph 3 is replaced by the following:
‘3. In order to be admissible, the annual performance report shall contain all the information required in paragraphs 4, 5, 7 and 10. The Commission shall inform the Member States concerned within 15 working days from the submission of the annual performance report if it is not admissible, failing which it shall be deemed admissible.’
;
(b)
paragraph 5 is replaced by the following:
‘5. The quantitative information referred to in paragraph 4 shall include:
(a)
the realised outputs achieved by the end of the previous financial year;
(b)
the gross expenditure at the end of the financial year, relevant to the outputs referred to in point (a) of this subparagraph, before application of any penalties or other reductions, and for the EAFRD, taking into account reallocation of cancelled or recovered funds pursuant to Article 57 of Regulation (EU) 2021/2116;
(c)
the ratio between gross expenditure referred to in point (b) of this subparagraph and the relevant realised outputs referred to in point (a) of this subparagraph (“realised unit amount”);
(d)
results and distance to corresponding milestones set in accordance with Article 109(1), point (a).
The information referred to in the first subparagraph, points (a), (b) and (c), of this paragraph, shall be broken down per unit amount as set out in the CAP Strategic Plan in accordance with Article 111, first paragraph, point (h). For output indicators which are marked in Annex I as used only for monitoring, only the information referred to in the first subparagraph, point (a), of this paragraph shall be included.’
;
(c)
paragraph 6 is deleted;
(d)
in paragraph 7, point (b) is replaced by the following:
‘(b)
any issues which affect the performance of the CAP Strategic Plan, in particular as regards deviations from milestones, providing the justifications referred to in Article 135, or where appropriate, giving reasons, and where relevant, describing the measures taken.’
;
(e)
paragraphs 8 and 9 are deleted;
(f)
in paragraph 10, the second subparagraph is deleted;
(g)
paragraph 13 is replaced by the following:
‘13. The Commission may make observations on the admissible annual performance reports, within one month from the day on which the Commission informs the Member States of their admissibility. Where the Commission does not provide observations within that deadline, the reports shall be deemed to be accepted. Article 121 shall apply mutatis mutandis .’
;
(33)
in Article 155(3), the introductory part is replaced by the following:
‘Expenditure relating to legal commitments to beneficiaries incurred under the multiannual measures referred to in Articles 22, 28, 29, 33 and 34 of Regulation (EU) No 1305/2013 or the measure referred to in Article 31 of that Regulation may be eligible for an EAFRD contribution in the CAP Strategic Plan period, subject to the following conditions:’
;
(34)
Article 159 is deleted;
(35)
Annexes I, II and III are amended in accordance with Annex I to this Regulation;
(36)
the text set out in Annex II to this Regulation is added as Annex XV.