Article 2
1. The measures provided for in Article 1 shall comprise: (a) the grant, subject to the conditions as to eligibility for assistance laid down below, of an annuity to farmers applying therefor aged between fifty-five and sixty-five who practice farming as their main occupation. Member States may: - substitute for such annuity an equivalent lump sum payment; - on the ground of age or means of the prospective beneficiary, vary the amount of or refuse to grant the annuity. Annuities shall be eligible for assistance from the Guidance Section of the EAGGF, up to the amount of 900 units of account per year in the case of a married farmer or 600 units of account in the case of a single farmer. 1OJ No L 94, 28.4.1970, p. 13. 2OJ No 136, 17.12.1962, p. 2892/62. However, during the first five years following implementation of this Directive, the only expenditure eligible shall be that in respect of: - farmers who practise farming as their main occupation and who are aged between sixty and sixty-five, and that in respect of persons of like age coming within subparagraph (c); - farmers who practise farming as their main occupation and who are at least fifty-five years old, where: (i) in Member States which, on the date when this Directive enters into force, have a working agricultural population of more than 15 % of their total working population, the area of the farm concerned does not exceed 15 hectares ; or (ii) farming has become the main occupation of such farmers through the decease of their spouse ; or (iii) such farmers are more than 50 % disabled. An annuity shall not be eligible for assistance if it is granted to a farmer at a time when there is being implemented in respect of his farm a development plan as referred to in Article 4 of the Council Directive of 17 April 1972 1 on the modernization of farms. (b) the grant of a premium, which shall not be eligible for assistance and shall be calculated by reference to the utilized agricultural area released, to farmers applying therefor; Member States may: - in the light of the objectives set in pursuance of the Directive on the modernization of farms, or on the ground of the age or means of the prospective beneficiary, vary the amount of or refuse to grant the premium; - pay the premium in instalments; - refuse to grant all or part of the premium to any person receiving an annuity as provided for in subparagraph (a); (c) the grant of annuities as provided for in subparagraph (a) to permanent hired or family workers applying therefor aged between fifty-five and sixty-five who undertake to cease working in agriculture and who: - are employed on farms on which the farmer benefits from any measure provided for under (a) or (b); - are covered by the social security system ; and - satisfy the conditions laid down in Article 3 (c). Member States may: - substitute for such annuity an equivalent lump-sum payment; - on the ground of the age or means of the prospective beneficiary, vary the amount of or refuse to grant the annuity. As regards grants under this head, assistance from the Guidance Section of the EAGGF shall for each farm ceasing business be in respect of a single annuity only and in an amount not exceeding 600 units of account per annum. 2. Grants as provided for in paragraph 1 shall be subject to the condition that the recipient cease working in agriculture and that, where the recipient is a farmer, the utilized agricultural area farmed by him be reallocated in accordance with Article 5. 3. Member States shall take all measures necessary to ensure that the social security benefits which recipients of annuities or premiums as provided for in paragraph 1 would have received had they not ceased to farm are not reduced, and that the contributions made by them to social security funds are not unduly increased. Where the recipient of an annuity as provided for in paragraph 1 (c) is receiving unemployment benefit, Member States may reduce the annuity accordingly.