Date: 2023-07-21Category: Not ApplicableState: Union GovernmentCountry: Europe
Commission Implementing Regulation (EU) 2023/1509 of 20 July 2023 derogating in respect of the year 2023 from Article 75(1), third subparagraph, of Regulation (EU) No 1306/2013 of the European Parliament and of the Council as regards the level of advance payments for area-related and animal-related rural development measures
Issued by European Commission
· Directorate-General for Agriculture and Rural Development
Executive Summary:
Commission Implementing Regulation (EU) 2023/1509, dated 20 July 2023, allows Member States to derogate from Article 75(1), third subparagraph, of Regulation (EU) No 1306/2013. This derogation pertains to the level of advance payments for area-related and animal-related rural development measures for claim year 2023. The regulation addresses liquidity problems faced by agricultural producers due to various economic and environmental pressures. It enters into force on the third day following its publication in the Official Journal of the European Union.
Key Points / Main Content:
* **Advance Payment Derogation:**
* For claim year 2023, Member States can increase advance payments up to 85% for support granted under rural development, as referred to in Article 67(2) of Regulation (EU) No 1306/2013. This is a temporary deviation from the standard 75% limit.
* **Context of the Regulation:**
* The agricultural sector faces pressure from the Covid-19 pandemic, rising energy and agricultural input prices, and the Russia-Ukraine conflict.
* Increased energy and fertilizer costs have significantly impacted the agricultural sector, potentially affecting yields and food quality.
* Adverse weather events exacerbate liquidity problems for agricultural producers.
* **Legal Basis:**
* The regulation is based on Article 75(3) of Regulation (EU) No 1306/2013.
* It considers Article 104(1), second subparagraph, point (a)(iv), of Regulation (EU) 2021/2116 regarding the application of Article 75 of Regulation (EU) No 1306/2013 to the EAFRD.
* **Entry into Force:**
* The regulation enters into force on the third day following its publication in the Official Journal of the European Union.
Impact Analysis:
* **Member States:**
* *Impact:* Member States gain the flexibility to increase advance payments to agricultural producers, potentially alleviating liquidity issues and supporting the agricultural sector.
* *Action Required:* Member States must decide whether to implement the increased advance payment rate of up to 85% for eligible rural development measures for claim year 2023.
* **Agricultural Producers/Beneficiaries:**
* *Impact:* Agricultural producers eligible for area-related and animal-related rural development support may receive higher advance payments, improving their cash flow and ability to manage increased input costs.
* *Action Required:* Producers should check with their Member State's paying agency to understand if and how the increased advance payment rate will be applied to their support measures in claim year 2023.
* **Paying Agencies:**
* *Impact:* Paying Agencies are responsible for implementing any changes to advance payment procedures.
* *Action Required:* Paying Agencies need to update their systems and procedures to accommodate the possibility of increased advance payments up to 85% for eligible measures in claim year 2023, if the Member State chooses to implement the derogation.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe.
European Commission: An institution of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.
Regulation EU No 1306/2013: Regulation of the European Parliament and of the Council on the financing, management and monitoring of the common agricultural policy.
Regulation EU No 1305/2013: Regulation of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (EAFRD).
Regulation EU 2021/2116: Regulation of the European Parliament and of the Council on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013.
EAFRD (European Agricultural Fund for Rural Development): A fund providing support for rural development within the European Union.
Ursula VON DER LEYEN: The President of the European Commission.
Brussels: The capital of Belgium and a major center of European politics, where the regulation was adopted.
21.7.2023 EN Official Journal of the European Union L 184/19
COMMISSION IMPLEMENTING REGULATION (EU) 2023/1509
of 20 July 2023
derogating in respect of the year 2023 from Article 75(1), third subparagraph, of Regulation (EU)
No 1306/2013 of the European Parliament and of the Council as regards the level of advance
payments for area-related and animal-related rural development measures
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013on
the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC)
No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008(1), and in
particular Article 75(3) thereof,
Whereas:
(1) Pursuant to Article 104(1), second subparagraph, point (a)(iv), of Regulation (EU) 2021/2116 of the European
Parliament and the Council(2), Article 75 of Regulation (EU) No 1306/2013 continues to apply as regards the
EAFRD, in relation to expenditure incurred by the beneficiaries and payments made by the paying agency in the
framework of the implementation of rural development programmes pursuant to Regulation (EU) No 1305/2013
of the European Parliament and of the Council(3).
(2) Pursuant to Article 75(1), third subparagraph, of Regulation (EU) No 1306/2013 Member States may pay advances
of up to 75 % for area-related and animal-related rural development support measures under Regulation (EU)
No 1305/2013.
(3) 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.
(4) 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.
(5) 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.
(6) 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.
(1) Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management
and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC)
No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (OJ L 347, 20.12.2013, p. 549).
(2) Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the financing, management and
monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013 (OJ L 435, 6.12.2021, p. 187).
(3) Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural
development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC)
No 1698/2005 (OJ L 347, 20.12.2013, p. 487).L 184/20 EN Official Journal of the European Union 21.7.2023
(7) 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 for area-related
and animal-related rural development measures.
(8) The measures provided for in this Regulation are in accordance with the opinion of the Committee on the
Agricultural Funds and the Common Agriculture Policy Committee,
HAS ADOPTED THIS REGULATION:
Article 1
By way of derogation from Article 75(1), third subparagraph, of Regulation (EU) No 1306/2013, in respect of claim year
2023, Member States may pay advances of up to 85 % for the support granted under rural development as referred to in
Article 67(2) of that Regulation.
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