Commission Regulation (EU) No 702/2014 of 25 June 2014 declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union

• (b) aid towards the costs for compulsory control measures in relation to the quality schemes undertaken pursuant to Union or national legislation by or on behalf of the competent authority, where it fulfils the conditions laid down in paragraphs 2, 4, 6, 7 and 8 of this Article and in Chapter I;

• (c) aid towards the costs of market research activities, product conception and design and for preparation of applications for the recognition of quality schemes where it fulfils the conditions laid down in paragraphs 2, 6, 7 and 8 of this Article and in Chapter I.

• (a) quality schemes established under the following Regulations and provisions:
• (i) Part II, Title II, Chapter I, Section 2 of Regulation (EU) No 1308/2013 as concerns wine;
• (ii) Regulation (EU) No 1151/2012;
• (iii) Council Regulation (EC) No 834/2007 ([^E0014]);
• (iv) Regulation (EC) No 110/2008 of the European Parliament and of the Council ([^E0015]);
• (v) Regulation (EU) No 251/2014 of the European Parliament and of the Council ([^E0016]);

• (b) quality schemes, including farm certification schemes, for agricultural products recognised by the Member States as complying with the following criteria:
• (i) the specificity of the final product produced under such quality schemes must be derived from a clear obligations to guarantee:
• — specific product characteristics, or
• — specific farming or production methods, or
• — the quality of the final product that goes significantly beyond the commercial commodity standards as regards public, animal or plant health, animal welfare or environmental protection;
• (ii) the quality scheme must be open to all producers;
• (iii) the quality scheme must involve binding final product specifications and compliance with those specifications must be verified by public authorities or by an independent inspection body;
• (iv) the quality scheme must be transparent and assure complete traceability of agricultural products;

• (c) voluntary agricultural product certification schemes recognised by the Member State concerned as meeting the requirements laid down in the Commission Communication — EU best practice guidelines for voluntary certification schemes for agricultural products and foodstuffs ([^E0017]).

The aid referred to in paragraph 1(b) and (c) shall be paid to the body responsible for control measures, the research provider or the consultancy provider.

Article 21

Aid for knowledge transfer and information actions

Aid may also cover short-term farm management exchange and farm visits.

Aid to demonstration activities may cover relevant investment costs.

• (a) the costs of organising the vocational training, skills acquisition actions, including training courses, workshops and coaching, demonstration activities or information actions;

• (b) the costs for travel, accommodation and per diem expenses of the participants;

• (c) the cost of the provision of replacement services during the absence of the participants;

• (d) in the case of demonstration projects in relation to investments:
• (i) the construction, acquisition, including leasing, or improvement of immovable property, with land only being eligible to an extent not exceeding 10 % of total eligible costs of the operation concerned;
• (ii) the purchase or lease purchase of machinery and equipment up to the market value of the asset;
• (iii) general costs linked to expenditure referred to in points (i) and (ii), such as architect, engineer and consultation fees, fees relating to advice on environmental and economic sustainability, including feasibility studies; feasibility studies shall remain eligible expenditure even where, based on their results, no expenditure under in points (i) and (ii) is incurred;
• (iv) the acquisition or development of computer software and the acquisitions of patents, licences, copyrights and trademarks.

Only the depreciation costs corresponding to the life of the demonstration project, as calculated on the basis of generally accepted accounting principles, shall be considered as eligible.

The aid referred to in paragraph 3(a) and (c) shall be paid to the provider of the knowledge transfer and information actions.

The provision of the activities referred to in paragraph 2 may be undertaken by producer groups or other organisations, regardless of their size.

Where the provision of the activities referred to in paragraph 2 is undertaken by producer groups and organisations, membership of such groups or organisations shall not be a condition for access to those activities.

Any contribution of non-members towards the administrative costs of the producer group or organisation concerned shall be limited to the costs of providing the activities referred to in paragraph 2.

In the case of demonstration projects referred to in paragraph 3(d) the maximum aid amount shall be limited to EUR 100 000 over 3 fiscal years.

Article 22

Aid for advisory services

• (a) obligations deriving from the statutory management requirements or standards for good agricultural and environmental conditions provided for in Chapter I of Title VI of Regulation (EU) No 1306/2013;

• (b) where applicable, the agricultural practices beneficial for the climate and the environment laid down in Chapter 3 of Title III of Regulation (EU) No 1307/2013 and the maintenance of the agricultural area referred to in Article 4(1)(c) of that Regulation;

• (c) measures aiming at modernisation, competitiveness building, sectoral integration, innovation, market orientation as well as the promotion of entrepreneurship;

• (d) requirements as defined by Member States for implementing Article 11(3) of Directive 2000/60/EC of the European Parliament and of the Council;

• (e) requirements as defined by Member States for implementing Article 55 of Regulation (EC) No 1107/2009 of the European Parliament and of the Council ([^E0018]), and in particular the compliance with the general principles of integrated pest management as referred to in Article 14 of Directive 2009/128/EC of the European Parliament and of the Council ([^E0019]);

• (f) where relevant, occupational safety standards or safety standards linked to the farm;

• (g) specific advice for farmers setting up for the first time, including advice on economic and environmental sustainability.

The provision of advisory service may be undertaken by producer groups or other organisations, regardless of their size.

When providing advice, the provider of the advisory service shall respect the non-disclosure obligations referred to in Article 13(2) of Regulation (EU) No 1306/2013.

Where the provision of advisory services is undertaken by producer groups and organisations, membership of such groups or organisations shall not be a condition for access to the service.

Any contribution of non-members towards the administrative costs of the group or organisation concerned shall be limited to the costs of providing the advisory service.

Article 23

Aid for farm replacement services

The aid shall be paid to the provider of the farm replacement service.

The provision of farm replacement services may be undertaken by producer groups and organisations, regardless of their size. In such case, membership of such groups or organisations shall not be a condition for access to the service.

Article 24

Aid for promotion measures in favour of agricultural products

• (a) the organisation of and participation in competitions, trade fairs and exhibitions;

• (b) publications aimed at raising awareness of agricultural products among the wider public.

However that restriction shall not apply to reference to the origin of agricultural products covered by:

• (a) quality schemes as referred to in Article 20(2)(a), provided that the reference corresponds exactly to that protected by the Union;

• (b) quality schemes as referred to in Article 20(2)(b) and (c), provided that the reference is secondary in the message.

• (a) participation fees;

• (b) travel costs and costs for the transportation of animals;

• (c) costs of publications and websites announcing the event;

• (d) the rent of exhibition premises and stands and costs of their installation and dismantling;

• (e) symbolic prizes up to a value of EUR 1 000 per prize and per winner of a competition.

• (a) costs of publications in print- and electronic media, websites, and spots in electronic media, on radio or television, aimed at presenting factual information on beneficiaries from a given region or producing a given agricultural product, provided that the information is neutral and that all beneficiaries concerned have equal opportunities to be represented in the publication;

• (b) costs for the dissemination of scientific knowledge and factual information on:
• (i) quality schemes as referred to in Article 20(2) open to agricultural products from other Member States and third countries;
• (ii) generic agricultural products and their nutritional benefits and suggested uses for them.

• (a) in kind; or

• (b) on the basis of the reimbursement of the real costs incurred by the beneficiary.

Where the aid is granted in kind the aid shall not include direct payments to the beneficiaries but shall be paid to the provider of the promotion measures.

The provision of promotion measures may be undertaken by producer groups or other organisations, regardless of their size.

The aid for symbolic prizes referred to in paragraph 4(e) shall only be paid to the provider of the promotion measures if the prize has been actually awarded and upon presentation of a proof of the award.

Where the promotion measure is undertaken by producer groups and organisations, participation shall not be subject to membership of these groups or organisations and any contribution in terms of administration fees for the group or organisation shall be limited to the cost of providing the promotion measures.

Article 25

Aid to compensate for damage caused by adverse climatic event which can be assimilated to a natural disaster

• (a) the competent authority of the Member State has formally recognised the character of the event as an adverse climatic event which can be assimilated to a natural disaster; and

• (b) there is a direct causal link between the adverse climatic event which can be assimilated to a natural disaster and the damage suffered by the undertaking.

Where the aid is paid to a producer group or organisation, the amount of aid shall not exceed the amount of aid to which that undertaking is eligible.

The aid shall be paid out within four years from that date.

That damage shall include the following:

• (a) the loss of income from the full or partial destruction of the agricultural production and the means of production as referred to in paragraph 6;

• (b) the material damage as referred to in paragraph 7.

• (a) the result of multiplying the quantity of the agricultural products produced in the year of the adverse climatic event which can be assimilated to a natural disaster, or each following year affected by the full or partial destruction of the means of production, by the average selling price obtained during that year; from

• (b) the result of multiplying the average annual quantity of agricultural products produced in the three-year period preceding the adverse climatic event which can be assimilated to a natural disaster, or a three-year average based on the five-year period preceding the adverse climatic event which can be assimilated to a natural disaster, excluding the highest and lowest entry by the average selling price obtained.

That reduction may be calculated either at annual farm production level or at crop or livestock level.

That amount may be increased by other costs incurred by the beneficiary due to the adverse climatic event which can be assimilated to a natural disaster.

That amount shall be reduced by any costs not incurred because of the adverse climatic event which can be assimilated to a natural disaster.

Indexes may be used in order to calculate the agricultural production of the beneficiary provided that the calculation method used permits the determination of the real loss of the beneficiary in the given year.

It shall not exceed the repair cost or the decrease in fair market value caused by the disaster, namely the difference between the asset's value immediately before and immediately after the adverse climatic event which can be assimilated to a natural disaster.

Where the reduction of the beneficiary's income referred to in paragraph 6 is calculated on the basis of crop or livestock level, only the material damage related to that crop or livestock shall be taken into account.

The aid intensity may be increased to 90 % in areas facing natural constraints.

Article 26

Aid for the costs of the prevention, control and eradication of animal diseases and plant pests and aid to make good the damage caused by animal diseases or plant pests

• (a) in relation to animal diseases or plant pests for which Union or national rules exist, whether laid down by law, regulation or administrative action; and

• (b) as part of:
• (i) a public programme at Union, national or regional level for the prevention, control or eradication of the animal disease or the plant pest concerned; or
• (ii) emergency measure imposed by competent authority; or
• (iii) measures to eradicate or contain a plant pest implemented in accordance with Council Directive 2000/29/EC.

The programme and measures referred to in point (b) shall contain a description of the prevention, control or eradication measures concerned.

Where the aid is paid to a producer group or organisation, the amount of aid shall not exceed the amount of aid to which that undertaking is eligible.

Aid shall be paid out within four years from that date.

• (a) health checks;

• (b) analyses, including in-vitro diagnostics;

• (c) tests and other screening measures, including TSE and BSE tests;

• (d) the purchase, storage, administration and distribution of vaccines, medicines, substances for the treatment of animals and plant protection products;

• (e) the preventive slaughtering or culling of animals or the destruction of animal products and plants and the cleaning and disinfection of the holding and equipment.

• (a) tests and other screening measures in case of animal diseases, including TSE and BSE tests;

• (b) the purchase, storage, administration and distribution of vaccines, medicines, substances for the treatment of animals and plant protection products;

• (c) the slaughter or culling and destruction of animals and the destruction of products linked to them, or destruction of plants, including those that die or are destroyed as a result of vaccinations or other measures ordered by the competent authorities and the cleaning and disinfection of the holding and equipment.

• (a) the market value of the animals slaughtered or culled or that have died or the products, linked to them, or the plants destroyed:
• (i) as a result of the animal disease or the plant pest;
• (ii) as part of a public programme or measure as referred to in paragraph 2(b). That market value shall be established on the basis of the value of the animals, products and plants immediately before any suspicion of the animal disease or plant pest arose or was confirmed.

• (b) the loss of income due to quarantine obligations, difficulties in restocking or replanting and obligatory crop-rotation imposed as part of a public programme or measure as referred to in paragraph 2(b).

That amount shall be reduced by any costs not directly incurred due to the animal disease or plant pest which would otherwise have been incurred by the beneficiary.

• (a) has formally recognised an outbreak, in the case of an animal disease; or

• (b) has formally acknowledged their presence, in the case of plants pests.

By way of derogation from the first subparagraph of this paragraph, aid in relation to the eligible costs referred to in the following paragraphs may be granted directly to the beneficiary on the basis of reimbursement of the real costs incurred by the beneficiary:

• (a) paragraphs 7(d) and 8(b) in the case of animal diseases or plant pests; and

• (b) paragraphs 7(e) and 8(c) in the case of plant pests and for the cleaning and disinfection of the holding and equipment.

Article 27

Aids to the livestock sector and aid for fallen stock

• (a) aid at a rate of up to 100 % of the administrative costs of the establishment and maintenance of herd books;

• (b) aid at a rate of up to 70 % of the costs of tests performed by or on behalf of third parties, to determine the genetic quality or yield of livestock, with the exception of controls undertaken by the owner of the livestock and routine controls of milk quality;

• (c) aid at a rate of up to 100 % of the costs of the removal of fallen stock, and 75 % of the costs of the destruction of such fallen stock, or aid up to an equivalent aid intensity towards the costs of premiums paid by farmers for insurance covering the costs of the removal and destruction of fallen stock;

• (d) aid at a rate of up to 100 % of the costs of the removal and destruction of fallen stock where the aid is financed through fees or through compulsory contributions destined for the financing of the destruction of such fallen stock, provided that such fees or contributions are limited to and directly imposed on the meat sector;

• (e) aid at a rate of 100 % for the costs of the removal and destruction of fallen stock where there is an obligation to perform TSE tests on the fallen stock concerned or in case of an outbreak of an animal disease referred to in Article 26(4).

The aid towards the costs of premiums paid by farmers for insurance covering the costs of the removal and destruction of fallen stock referred to in paragraph 1(c) of this Article shall comply with the conditions laid down in Article 28(2).

In order to facilitate the administration of the aid referred to in paragraph 1(c), (d) and (e) the aid may be paid to economic operators or bodies that:

• (a) are active downstream from the undertakings active in the livestock sector; and

• (b) provide services linked to the removal and destruction of fallen stock.

Article 28

Aid for the payment of insurance premiums

• (a) constitute a barrier to the operation of the internal market for insurance services;

• (b) be limited to insurance provided by a single insurance company or group of companies;

• (c) be made subject to the condition that the insurance contract be taken out with a company established in the Member State concerned.

• (a) natural disasters;

• (b) an adverse climatic event which can be assimilated to a natural disaster and other adverse climatic events;

• (c) animal diseases or plant pest;

• (d) protected animals.

• (a) compensate only the cost of making good the losses referred to in paragraph 3;

• (b) not require or specify the type or quantity of future agricultural production.

SECTION 2 Aid for investments in favour of conservation of cultural and natural heritage located on agricultural holdings

Article 29

Aid for investments in favour of the conservation of cultural and natural heritage located on agricultural holdings

• (a) investment costs in tangible assets;

• (b) capital works.

SECTION 3 Aid to make good the damage caused by natural disasters in the agricultural sector

Article 30

Aid to make good the damage caused by natural disasters in the agricultural sector

• (a) the competent authority of the Member State has formally recognised the character of the event as a natural disaster; and

• (b) there is a direct causal link between the natural disaster and the damage suffered by the undertaking.

Where the aid is paid to a producer group or organisation, the amount of aid shall not exceed the amount of aid to which that undertaking is eligible.

The aid shall be paid out within four years from that date.

That damage may include the following:

• (a) material damage to assets, such as buildings, equipment, machinery, stocks and means of production;

• (b) loss of income resulting from the full or partial destruction of the agricultural production and the means of agricultural production.

The damage shall be calculated at the level of the individual beneficiary.

• (a) the result of multiplying the quantity of the agricultural products produced in the year of the natural disaster, or in each following year affected by the full or partial destruction of the means of production, by the average selling price obtained during that year, from

• (b) the result of multiplying the average annual quantity of agricultural products produced in the three-year period preceding the natural disaster or a three year average based on the five-year period preceding the natural disaster, excluding the highest and lowest entry by the average selling price obtained.

That amount may be increased by other costs incurred by the beneficiary due to the adverse climatic event which can be assimilated to a natural disaster.

That amount shall be reduced by any costs not incurred because of the natural disaster.

Indexes may be used in order to calculate the annual agricultural production of the beneficiary provided that the calculation method used permits the determination of the real loss of the beneficiary in the given year.

SECTION 4 Aid for research and development in the agricultural and forestry sectors

Article 31

Aid for research and development in the agricultural and forestry sectors

• (a) that the aided project is to be carried out;

• (b) the goals of the aided project;

• (c) an approximate date for the publication of the results expected from the aided project;

• (d) the place of publication of the results expected from the aided project on the internet;

• (e) a reference that the results of the aided project are available to all undertakings active in the particular agricultural and forestry sector or sub-sector concerned at no cost.

The aid shall not involve payments to undertakings active in the agricultural sector based on the price of the agricultural products.

• (a) personnel costs related to researchers, technicians and other supporting staff to the extent employed on the project;

• (b) costs of instruments and equipment to the extent and for the period used for the project. Where such instruments and equipment are not used for their full life for the project, only the depreciation costs corresponding to the life of the project, as calculated on the basis of generally accepted accounting principles are considered as eligible;

• (c) costs of buildings and land, to the extent and for the duration period used for the project. With regard to buildings, only the depreciation costs corresponding to the life of the project, as calculated on the basis of generally accepted accounting principles, are considered as eligible. For land, costs of commercial transfer or actually incurred capital costs are eligible;

• (d) costs of contractual research, knowledge and patents bought or licensed from outside sources at arm's length conditions, as well as costs of consultancy and equivalent services used exclusively for the project;

• (e) additional overheads and other operating expenses, including costs of materials, supplies and similar products, incurred directly as a result of the project.

SECTION 5 Aid in favour of forestry

Article 32

Aid for afforestation and the creation of woodland

• (a) be granted in the framework of a rural development programme in accordance with Regulation (EU) No 1305/2013 and the delegated and implementing acts adopted by the Commission pursuant to that Regulation either:
• (i) as aid co-financed by the EAFRD; or
• (ii) as additional national financing to the aid referred to in point (i); and

• (b) be identical to the underlying rural development measure provided for in the rural development programme referred to in point (a).

The aid for afforestation and the creation of woodland may cover investment operations.

Aid for afforestation of land owned by public authorities or for fast growing trees shall cover only the costs of establishment.

• (a) the construction, acquisition, including leasing, or improvement of immovable property, with land only being eligible to an extent not exceeding 10 % of the total eligible costs of the operation concerned;

• (b) the purchase or lease purchase of machinery and equipment up to the market value of the asset;

• (c) general costs linked to the expenditure referred to in points (a) and (b), such as architect, engineer and consultation fees, fees relating to advice on environmental and economic sustainability, including feasibility studies; feasibility studies shall remain eligible expenditure even where, based on their results, no expenditure under in points (a) and (b) is being incurred;

• (d) the acquisition or development of computer software and the acquisitions of patents, licences, copyrights, trademarks;

• (e) the costs of establishing forest management plans or equivalent instrument.

Working capital shall not be considered to be an eligible cost.

The first subparagraph shall not apply to aid which is granted in the form of financial instruments.

• (a) the costs of the plantation and propagation material;

• (b) the plantation costs and the costs directly linked to the plantation;

• (c) the cost for other related operations such as storing and treatments of seedlings with the necessary prevention and protection materials;

• (d) the costs for replanting necessary during the first year of afforestation.

• (a) trees for short rotation coppicing;

• (b) Christmas trees; or

• (c) fast growing trees for energy production.

Article 33

Aid for agroforestry systems

• (a) be granted in the framework of a rural development programme in accordance with Regulation (EU) No 1305/2013 and the delegated and implementing acts adopted by the Commission pursuant to that Regulation either:
• (i) as aid co-financed by the EAFRD; or
• (ii) as additional national financing to the aid referred to in point (i); and

• (b) be identical to the underlying rural development measure provided for in the rural development programme referred to in point (a).

The aid for agroforestry systems may cover investment operations.

• (a) the construction, acquisition, including leasing, or improvement of immovable property, with land only being eligible to an extent not exceeding 10 % of the total eligible costs of the operation concerned;

• (b) the purchase or lease purchase of machinery and equipment up to the market value of the asset;

• (c) general costs linked to the expenditure referred to in points (a) and (b), such as architect, engineer and consultation fees, fees relating to advice on environmental and economic sustainability, including feasibility studies; feasibility studies shall remain eligible expenditure even where, based on their results, no expenditure under in points (a) and (b) is being incurred;

• (d) the acquisition or development of computer software and the acquisitions of patents, licences, copyrights, trademarks;

• (e) the costs of establishing forest management plans or equivalent instrument.

Working capital shall not be considered to be an eligible cost.

The first subparagraph shall not apply to aid which is provided in the form of financial instruments.

• (a) the costs for planting trees, including the costs of the plantation material, the plantation, the storing and the treatments of seedlings with the necessary prevention and protection materials;

• (b) the costs for converting existing forests or other wooded land, including the costs for felling trees, thinning and pruning and protection against grazing animals;

• (c) other costs directly linked to the establishment, regeneration or renovation of an agroforestry system, such as costs for feasibility studies, establishment plan, soil examination, soil preparation and protection;

• (d) the costs of silvopastoral, namely, grazing system watering and protective facilities;

• (e) the costs of the necessary treatment connected to the establishment, regeneration or renovation of an agroforestry system, including watering and cutting;

• (f) the costs for replanting during the first year after the establishment, regeneration or renovation of an agroforestry system.

The eligible costs of maintenance may relate to the established tree belts, the weeding, pruning and thinning and protective actions and investments such as fences or individual protection tubes.

• (a) local pedo-climatic and environmental conditions;

• (b) forestry species; and

• (c) the need to ensure sustainable agricultural use of the land.

• (a) 80 % of the eligible costs for investment operations and of the costs for establishment, regeneration or renovation referred to in paragraphs 5 and 7; and

• (b) 100 % of the annual premium referred to in paragraph 8.

Article 34

Aid for the prevention and restoration of damage to forests from forest fire, natural disasters, adverse climatic events which can be assimilated to a natural disaster, other adverse climatic events, plant pests and catastrophic events

• (a) be granted in the framework of a rural development programme in accordance with Regulation (EU) No 1305/2013 and the delegated and implementing acts adopted by the Commission pursuant to that Regulation either:
• (i) as aid co-financed by the EAFRD; or
• (ii) as additional national financing to the aid referred to in point (i); and

• (b) be identical to the underlying rural development measure provided for in the rural development programme referred to in point (a).

• (a) the establishment of protective infrastructure;

• (b) local, small scale prevention activities against fire, or other natural hazards, including the use of grazing animals;

• (c) establishing and improving forest fire, pest and diseases monitoring facilities and communication equipment;

• (d) restoring forest potential damaged from fires, natural disasters, adverse climatic events, which can be assimilated to a natural disaster, other adverse climatic events, plant pests, catastrophic events and climate change related events.

• (a) the fire, natural disaster, adverse climatic event which can be assimilated to a natural disaster, other adverse climatic event, plant pest, catastrophic event or climate change related event has occurred; and

• (b) the event referred to in in point (a) of this paragraph, including measures adopted in accordance with Directive 2000/29/EC to eradicate or contain a plant pest, has caused the destruction of at least 20 % of the relevant forest potential.

The list of species of harmful organisms which may cause a plant pest shall be provided for in the rural development programme of the Member State concerned.

For beneficiaries above a certain size, to be determined by the Member States, the aid shall be conditional on the presentation of the relevant information from a forest management plan or equivalent instrument in line with sustainable forest management as defined by the Second Ministerial Conference on the Protection of Forests in Europe of 1993, detailing the preventive objectives.

Costs other than those referred to in paragraph 5 related to the particularities of the forestry sector may be considered to be eligible costs.

Aid granted for the eligible costs as referred to in paragraph 5(d) and any other payments received by the beneficiary, including payments under other national or Union measures or insurance policies for the same eligible costs shall be limited to 100 % of the eligible costs.

Article 35

Aid for investments improving the resilience and environmental value of forest ecosystems

• (a) be granted in the framework of a rural development programme in accordance with Regulation (EU) No 1305/2013 and the delegated and implementing acts adopted by the Commission pursuant to that Regulation either:
• (i) as aid co-financed by the EAFRD; or
• (ii) as additional national financing to the aid referred to in point (i); and

• (b) be identical to the underlying rural development measure provided for in the rural development programme referred to in point (a).

The first subparagraph shall not apply to aid which is provided in the form of financial instruments.

• (a) the construction, acquisition, including leasing, or improvement of immovable property, with land only being eligible to an extent not exceeding 10 % of the total eligible costs of the operation concerned;

• (b) the purchase or lease purchase of machinery and equipment up to the market value of the asset;

• (c) general costs linked to expenditure referred to in points (a) and (b), such as architect, engineer and consultation fees, fees relating to advice on environmental and economic sustainability, including feasibility studies; feasibility studies shall remain eligible expenditure even where, based on their results, no expenditure under points (a) and (b) is incurred;

• (d) the acquisition or development of computer software and the acquisitions of patents, licenses, copyrights and trademarks;

• (e) the costs of establishing forest management plans or equivalent instrument.

Working capital shall not be considered to be an eligible cost.

Article 36

Aid for disadvantages related to Natura 2000 forest areas

• (a) be granted in the framework of a rural development programme in accordance with Regulation (EU) No 1305/2013 and the delegated and implementing acts adopted by the Commission pursuant to that Regulation either:
• (i) as aid co-financed by the EAFRD; or
• (ii) as additional national financing to the aid referred to in point (i); and

• (b) be identical to the underlying rural development measure provided for in the rural development programme referred to in point (a).

• (a) Natura 2000 forest areas in accordance with Article 3 of Directive 92/43/EEC and Article 3 of Directive 2009/147/EC;

• (b) features of the landscape which contribute to the implementation of Article 10 of Directive 92/43/EEC; those areas shall not exceed 5 % of the areas included in Natura 2000 network covered by the territorial scope of the rural development programme concerned.

Those amounts may be increased in exceptional cases taking into account specific circumstances to be justified in the rural development programmes.

Member States shall deduct from the aid the necessary amount in order to exclude double funding of the practices referred to in Article 29 of Regulation (EU) No 1307/2013.

Article 37

Aid for forest-environmental and climate services and forest conservation

• (a) be granted in the framework of a rural development programme in accordance with Regulation (EU) No 1305/2013 and the delegated and implementing acts adopted by the Commission pursuant to that Regulation either:
• (i) as aid co-financed by the EAFRD; or
• (ii) as additional national financing to the aid referred to in point (i); and

• (b) be identical to the underlying rural development measure provided for in the rural development programme referred to in point (a).

Commitments shall be undertaken for a period of between five and seven years. However, where necessary and duly justified, Member States may determine a longer period for particular types of commitments.

Where necessary the aid may cover transaction costs up to a value of 20 % of the aid.

In duly justified cases for operations concerning environmental conservation, the aid for commitments to renounce commercial use of trees and forests may be granted as a flat rate or as an one-off payment per unit calculated on the basis of additional costs and income foregone.

That maximum amount may be increased in exceptional cases taking into account specific circumstances to be justified in the rural development programmes.

Article 38

Aid for knowledge transfer and information actions in the forestry sector

Aid may also cover short-term forest management exchanges and forest visits.

Aid to demonstration activities may cover relevant investment costs.

Aid for demonstration projects which is co-financed under the EAFRD or granted as additional national financing to such aid, and which is provided in the form of financial instruments, may cover eligible costs other than those referred to in paragraph 3(b), provided that the costs are fully eligible under Regulation (EU) No 1305/2013 and that the aid is identical to the underlying measure included in the rural development programme approved under that Regulation.

• (a) the costs of organising and delivering the knowledge transfer or information action;

• (b) in the case of demonstration projects related to investments:
• (i) the construction, acquisition, including leasing, or improvement of immovable property, with land only being eligible to an extent not exceeding 10 % of total eligible costs of the operation concerned;
• (ii) the purchase or lease purchase of machinery and equipment up to the market value of the asset;
• (iii) general costs linked to expenditure referred to in points (i) and (ii), such as architect, engineer and consultation fees, fees relating to advice on environmental and economic sustainability, including feasibility studies; feasibility studies shall remain eligible expenditure even where, based on their results, no expenditure under in points (i) and (ii) is incurred;
• (iv) acquisition or development of computer software and acquisitions of patents, licenses, copyrights and trademarks;

• (c) the costs for travel, accommodation and per diem expenses of the participants.

Article 39

Aid for advisory services in the forestry sector

The advice may also cover issues linked to the economic and environmental performance of forestry holdings.

The provider of advisory service shall have the appropriate resources in the form of regularly trained and qualified staff and advisory experience and reliability with respect to the fields they advise in.

Aid which is co-financed under the EAFRD, or granted as additional national financing to such co-financed aid, may be paid to the Managing Authority referred to in point (a) of Article 65(2) of Regulation (EU) No 1305/2013.

Article 40

Aid for investments in infrastructure related to the development, modernisation or adaptation of the forestry sector

• (a) be granted in the framework of a rural development programme in accordance with Regulation (EU) No 1305/2013 and the delegated and implementing acts adopted by the Commission pursuant to that Regulation either:
• (i) as aid co-financed by the EAFRD; or
• (ii) as additional national financing to the aid referred to in point (i); and