Those farmers shall not receive set-aside entitlements who declare less than a number of hectares within the meaning of Article 54(2) which would be needed to produce a number of tonnes equal to 92 tonnes of cereals as defined in Annex IX on the basis of the yields determined according to the regionalisation plan applicable in the region concerned in the year before the year of application of the single payment scheme divided by the proportion referred to in the third subparagraph of paragraph 2 of this Article.

(d) with regard to the single payment scheme, detailed rules relating in particular to the establishment of national reserve, the transfer of entitlements, the definition of permanent crops, permanent pastures, agricultural land and grassland, the options provided for in Chapter 5 of Title III and the list of crops allowed on the set-aside land as well as detailed rules relating to compliance with the Memorandum of Understanding on certain oil seeds between the European Economic Community and the United States of America within the framework of the GATT approved by Decision 93/355/EEC(39);

Section I single payment scheme and other area-related aid schemes

an income support for farmers (hereinafter referred to as the "single payment scheme");

Farmers who made investments resulting in a potential increase of the amount in direct payments that they should have been granted if the single payment scheme had not been introduced should also benefit from the allocation of entitlements.

CHAPTER 4 LAND USE UNDER THE SINGLE PAYMENT SCHEME

Moreover, this is also justified by the fact that that obligation or authorisation is established on the basis of historical references and once the single payment scheme is in place it will not be possible to determine who should receive set-aside entitlements of authorisations out of the reserve as the support will be decoupled.

The inclusion of arable crops, beef and sheep extends the single payment scheme to premiums which are paid in the outermost regions and Aegean islands, in order to achieve further simplification and to avoid leaving in place a legal and administrative framework for a limited number of farmers in those areas.

the lease contract expires later than the last date for lodging an application under the single payment scheme, and

2.In cases of revocable anticipated inheritance, the access to the single payment scheme shall be given only once to the designated inheritant by the date for lodging an application for the payment under the single payment scheme.

areas for the purposes of the single payment scheme, as the case may be, each fulfilling the conditions particular to them;

Areas declared for the purposes of the Single Payment scheme should, in principle, fall within the same crop-group.

Article 33 of Regulation (EC) No 1782/2003 allows farmers to access to the single payment scheme under specific circumstances.

However during the first 3 years of application of the single payment scheme, the percentage of 30 % may be replaced by 50 %;

Regulation (EC) No 1782/2003 introduced the single payment scheme as well as certain other direct payment schemes.

3.The value and number of the payment entitlements allocated on the basis of the farmers' declarations for the establishment of the payment entitlements in the first year of application of the single payment scheme shall be provisional.

For the first year of application of the single payment scheme, the information referred to in paragraph 1 (a) shall be based on the provisional payment entitlements.

4.The definitive establishment of payment entitlements to be allocated in the first year of application of the single payment scheme shall be subject to the application under the single payment scheme in accordance with Article 34(3) of Regulation (EC) No 1782/2003.

This Regulation lays down detailed rules for the implementation of the single payment scheme provided for in Title III of Regulation (EC) No 1782/2003.

For modifications of applications to the single area payment scheme, the date referred to in Article 8(2) of Regulation (EC) No 2419/2001 shall be 15 June 2004.

1.Payment entitlements may only be declared for payment, once per year, by the farmer who holds them at the latest date for lodging an application under the single payment scheme

4.The buyer shall apply for payment under the single payment scheme in accordance with Article 12, adding to his application a copy of the sales contract.

«Area-related aid schemes» shall mean the single payment scheme and all aid schemes established under Title IV of Regulation (EC) No 1782/2003, except those established under Chapters 7, 11 and 12 of that Title;

The single area payment application shall be treated as an aid application within the meaning of Article 2(i) of Regulation (EC) No 2419/2001.

3.The lessee shall apply for payment under the single payment scheme in accordance with Article 12, adding to the application a copy of the lease contract.

Detailed rules for the implementation of Title III of Regulation (EC) No 1782/2003 establishing the single payment scheme for farmers should be laid down.

«Single application» shall mean the application for direct payments in respect of the single payment scheme and other area-related aid schemes established under Titles III and IV of Regulation (EC) No 1782/2003;

The operative event for the conversion of the amount to be granted under the single area payment scheme into the national currencies of the new Member States shall be 1 July 2004.

in the case of the single payment scheme, the area declared may be deemed as being determined only if it is actually being accompanied by a corresponding number of payment entitlements;

2.For the first year of application of the single payment scheme the Member States may derogate from the provisions of Articles 12 and 13 if the payment entitlements are not yet definitively established at the latest date fixed for the submission of the single application.

Where the margin referred to in the first subparagraph is exceeded, the number of hectares shall be adjusted by 1 August of the first year of application of the single payment scheme at the latest.

It is appropriate to establish specific provisions for the conversion into the national currencies of the new Member States of the amount to be granted in respect of the year 2004 under the single area payment scheme.

In order to improve the effectiveness and usefulness of the administration and control mechanisms, it is necessary to adapt the system established by Council Regulation (EEC) No 3508/92 of 27 November 1992 establishing an integrated administration and control system for certain Community aid schemes(6) with a view to including the single payment scheme, the support schemes for durum wheat, protein crops, energy crops, rice, potato starch, nuts, milk, seed, grain legumes and specific regional aids as well as controls on the application of the rules on cross compliance, modulation and the farm advisory system.

2.In case of regional implementation of the single payment scheme as provided for in Article 58 of Regulation (EC) No 1782/2003, Member States shall communicate the information referred to in paragraph 1 (a) and (b) for each of the regions concerned, and, by 1 August of the first year of application of the single payment scheme at the latest, the corresponding part of the ceiling established in accordance with Article 58 (3) of Regulation (EC) No 1782/2003.

If speculative risks exist in the first years of application of the single payment scheme, Member State may be allowed to increase the percentage of retention for sales without land.

This Regulation lays down transitional rules for the implementation in respect of the year 2004 of the single area payment scheme for the new Member States provided for in Article 1b of Regulation (EC) No 1259/1999.

2.The payment shall be made only to farmers within the meaning of Article 2(a) of Regulation (EC) No 1782/2003, irrespective whether they have applied or not to the single payment scheme or they hold payment entitlements.

a farmer has leased to another farmer his holding or part of it no later than the date for lodging an application under the single payment scheme in its first year of application,

In cases where the number of eligible hectares declared by farmers in the first year of application of the single payment scheme is lower than the number of eligible hectares established in accordance with the first subparagraph, a Member State may reallocate, in part or in full, the amounts corresponding to the hectares which have not been declared as a supplement to each payment entitlement allocated in the first year of application of the single payment scheme.

In order to facilitate the transition between the current regimes for arable crops payments and livestock premiums and the new single payment scheme, it is appropriate to provide for some adaptations to the current direct payments in those sectors.

Moreover, if more than 50 % of the area determined is concerned by the non-compliance, the farmer shall be totally excluded from receiving aid under the single area payment scheme in respect of the current calendar year.

Article 52 of Regulation (EC) No 1782/2003 provides for particular controls on the tetrahydrocannabinol (THC) content in the case where a farmer grows hemp on parcels declared for the purposes of the Single Payment scheme.

the identification of the payment entitlements in accordance with the identification and registration system provided for in Article 7 for the purposes of the single payment scheme, broken down by set-aside entitlements and other entitlements;

2.Where the cases referred to in Article 33(2) of Regulation (EC) No 1782/2003 occur in the period between1 January and the date for lodging an application in the first year of application of the single payment scheme, paragraph 1 of this Article shall apply.

7.A Member State may decide that the application for the definitive establishment of payment entitlements referred to in paragraph 4 may be lodged at the same time as the application for payment under the single payment scheme.

The definitive value and number shall be established, by 31 December of the first year of application of the single payment scheme at the latest, after the checks made pursuant to Commission Regulation (EC) No 795/2004 are carried out.

In order to facilitate the implementation of the single payment scheme, it is appropriate to allow Member States to proceed already in the year preceding the first year of application of the scheme to the identification of the potential beneficiaries of the scheme in particular, in case of modifications in the holding due to inheritance or legal changes and to the provisional establishment of payment entitlements.

In accordance with Article 34(2) of Regulation (EC) No 1782/2003, the Member States may not fix a later date than 15 May of a given year for the submission of applications for aid under the Single Payment scheme.

With regard to areas declared for the purpose of receiving aid under the Single Payment scheme, a differentiated approach should, however, be taken given the fact that such payments are no more connected to an obligation to produce.

1.The exemption from set-aside provided for in Article 55 (a) of Regulation (EC) No 1782/2003 shall apply for a number of hectares not higher than the number of set-aside entitlements which a farmer received in the first year of application of the single payment scheme.