Commission Implementing Regulation (EU) 2023/1508 of 20 July 2023 derogating in respect of the year 2023 from Article 44(2), second subparagraph, of Regulation (EU) 2021/2116 of the European Parliament and of the Council as regards the level of advance payments for interventions in the form of direct payments and area-based and animal-based rural development interventions

21.7.2023 EN Official Journal of the European Union L 184/17 COMMISSION IMPLEMENTING REGULATION (EU) 2023/1508 of 20 July 2023 derogating in respect of the year 2023 from Article 44(2), second subparagraph, of Regulation

(EU) 2021/2116 of the European Parliament and of the Council as regards the level of advance payments for interventions in the form of direct payments and area-based and animal-based rural development interventions THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013(1), and in particular Article 44(6) thereof,

Whereas:

(1) Pursuant to Article 44(2), second subparagraph, of Regulation (EU) 2021/2116, from 16 October to 30 November Member States may pay advances of up to 50 % for interventions in the form of direct payments and prior to 1 December they may pay advances of up to 75 % for area-based and animal-based rural development interventions under Regulation (EU) 2021/2115 of the European Parliament and of the Council(2).

(2) The Covid-19 pandemic, its impact on food supply chains, and the surge in the prices of energy and agricultural inputs since autumn 2021 have been putting the agricultural sector under pressure. In addition, the Russia’s invasion of Ukraine aggravated the situation and had a further negative impact on the agriculture sector. Input prices, such as energy, fertiliser and feed costs have increased significantly in all agricultural sectors.

(3) As a result, the share of energy and fertilisers costs in total intermediate consumption had increased significantly in 2022, with the largest increase being observed for field crops and permanent crops farms, in both cases because of their exposure to fertiliser costs. Fertiliser prices are still at historically very high levels. Data suggests that farmers have reacted by reducing their use of fertilisers with, as of yet, uncertain negative consequences on yields and the quality of food and feed commodities.

(4) The prices of other inputs for farmers and food chain operators in the Union such as for example plant protection products and animal health treatments, machinery and packaging have increased in line with the general inflation.

(5) Recently, prices for most agricultural commodities such as cereals, oilseeds and dairy products have been falling significantly. In some Member States, the situation has become particularly difficult as the ratio between input prices and commodity prices has deteriorated.

(6) These circumstances, in addition to recent adverse meteorological events in certain regions, such as extreme drought and floods, are liable to cause liquidity problems for agricultural producers. To tackle these liquidity problems, Member States should be allowed to pay increased advance payments in respect of claim year 2023.

(7) The measures provided for in this Regulation are in accordance with the opinion of the Committee on the Agricultural Funds and the Common Agricultural Policy Committee,

(1) OJ L 435, 6.12.2021, p. 187.

(2) Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 and (EU) No 1307/2013 (OJ L 435, 6.12.2021, p. 1).L 184/18 EN Official Journal of the European Union 21.7.2023

HAS ADOPTED THIS REGULATION:

Article 1

1. By way of derogation from Article 44(2), second subparagraph, point (a), of Regulation (EU) 2021/2116, in respect of claim year 2023, Member States may pay advances of up to 70 % for interventions in the form of direct payments under Title III, Chapter II of Regulation (EU) 2021/2115, and for the measures referred to in Chapter IV of Regulation (EU) No 228/2013 of the European Parliament and of the Council(3)and in Chapter IV of Regulation (EU) No 229/2013 of the European Parliament and of the Council(4).

2. By way of derogation from Article 44(2), second subparagraph, point (b), of Regulation (EU) 2021/2116, in respect of claim year 2023, Member States may pay advances of up to 85 % for the support granted under rural development area- based and animal-based interventions under Title III, Chapter IV, of Regulation (EU) 2021/2115.

Article 2 This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 20 July 2023.

For the Commission The President Ursula VON DER LEYEN

(3) Regulation (EU) No 228/2013 of the European Parliament and of the Council of 13 March 2013 laying down specific measures for agriculture in the outermost regions of the Union and repealing Council Regulation (EC) No 247/2006 (OJ L 78, 20.3.2013, p. 23).

(4) Regulation (EU) No 229/2013 of the European Parliament and of the Council of 13 March 2013 laying down specific measures for agriculture in favour of the smaller Aegean islands and repealing Council Regulation (EC) No 1405/2006 (OJ L 78, 20.3.2013, p. 41).