Commission Delegated Regulation (EU) 2022/126 of 7 December 2021 supplementing Regulation (EU) 2021/2115 of the European Parliament and of the Council with additional requirements for certain types of intervention specified by Member States in their CAP Strategic Plans for the period 2023 to 2027 under that Regulation as well as rules on the ratio for the good agricultural and environmental condition (GAEC) standard 1

TITLE I

SUBJECT MATTER

Article 1

Subject matter

This Regulation supplements Regulation (EU) 2021/2115 with:

(a) additional requirements for certain types of intervention, specified by Member States in their CAP Strategic Plans covering the period from 1 January 2023 to 31 December 2027: (i) in the form of direct payments for the cultivation of hemp and cotton; (ii) in the agricultural sectors referred to in Article 42 of Regulation (EU) 2021/2115; (iii) for genetic resources and animal welfare in the framework of environmental, climate and other management commitments and for quality schemes in the area of rural development;

(b) rules on the ratio for the good agricultural and environmental condition (GAEC) standard 1.

TITLE II

ADDITIONAL REQUIREMENTS FOR CERTAIN TYPES OF INTERVENTION IN THE FORM OF DIRECT PAYMENTS

CHAPTER I

Hemp

Article 2

Additional eligibility requirements

When providing, in their CAP Strategic Plans, the definitions foreseen in Article 4(1) of Regulation (EU) 2021/2115, Member States shall make the granting of payments for the production of hemp conditional upon the use of seeds of hemp varieties which fulfil the following requirements:

(a) they are listed in the Common Catalogue of Varieties of Agricultural Plant Species on 15 March of the year in respect of which the payment is granted and published in accordance with Article 17 of Council Directive 2002/53/EC (¹);

(b) their Δ9-tetrahydrocannabinol content (hereinafter referred to as ‘THC content’) did not exceed for 2 consecutive years the limit as laid down in Article 4(4), second subparagraph, of Regulation (EU) 2021/2115;

(c) they are certified in accordance with Council Directive 2002/57/EC (²) or in accordance with Article 10 of Commission Directive 2008/62/EC (³) in the case of conservation varieties.

Article 3

Verification of hemp varieties and quantitative determination of THC content

Article 4

Catch crop

For the purposes of this Chapter, ‘hemp cultivated as catch crop’ means crop of hemp sown after 30 June of a given year.

Article 5

Cultivation requirements

Crops of hemp shall continue to be cultivated under normal growing conditions in accordance with local practice for at least 10 days from the date of the end of flowering so that the checks necessary for the application of this Article can be made.

Hemp cultivated as catch crop shall continue to be cultivated under normal growing conditions in accordance with local practice at least until the end of the vegetation period.

Member States may authorise hemp to be harvested before the end of the 10-day period after the end of flowering, provided that the harvest takes place after flowering has begun and that the inspectors indicate which representative parts of each plot concerned shall continue to be cultivated for at least 10 days following the end of flowering for inspection purposes, in accordance with the method set out in Annex I.

CHAPTER II

Cotton

Article 6

Authorisation of agricultural land for cotton production

The Member States referred to in Article 36 of Regulation (EU) 2021/2115 shall establish, in their CAP Strategic Plans, objective criteria for the authorisation of agricultural land pursuant to Article 37(3) of that Regulation.

Those criteria shall be based on one or more of the following:

(a) the agricultural economy of those regions where cotton is a major crop;

(b) the soil and climate in the areas in question;

(c) the management of irrigation water;

(d) rotation systems and cultivation methods likely to respect the environment.

Article 7

Authorisation of varieties for sowing

The Member States referred to in Article 36 of Regulation (EU) 2021/2115 shall set out, in their CAP Strategy Plans, which varieties, registered in the Common Catalogue of Varieties of Agricultural Plant Species provided for in Directive 2002/53/EC and adapted to their market needs, are authorised for sowing.

Article 8

Additional conditions for receiving the crop-specific payment for cotton

For the crop-specific payments for cotton referred to in Article 37(1) of Regulation (EU) 2021/2115, the Member States referred to in Article 36 of that Regulation shall set out, in their CAP Strategy Plans, a minimum plant density on the sown area fixed on the basis of the soil and weather conditions and, where appropriate, specific regional characteristics.

Article 9

Approval of interbranch organisations

The approval of an interbranch organisation in the sense of Article 39(1) of Regulation (EU) 2021/2115 shall be granted by the Member State where the ginners are established and for a period of one year starting in due time before the sowing season of that year, provided that the organisation fulfills the following criteria:

(a) it covers a total area of at least 4 000 ha that meet authorisation criteria as referred to in Article 6 of this Regulation;

(b) it has adopted internal operating rules, in particular on membership conditions and fees, in accordance with Union and national rules.

Farmers who are members of an approved interbranch organisation whose approval is withdrawn in accordance with the first subparagraph of this paragraph shall not be eligible to receive the increase of the crop-specific payment for cotton pursuant to Article 40(2) of Regulation (EU) 2021/2115.

Article 10

Obligations for farmers producing cotton

TITLE III

ADDITIONAL REQUIREMENTS FOR CERTAIN TYPES OF INTERVENTION IN THE SECTORS REFERRED TO IN ARTICLE 42 OF REGULATION (EU) 2021/2115

CHAPTER I

Common rules applicable to interventions in the fruit and vegetables sector, in the apiculture sector, in the wine sector, in the hops sector, in the olive oil and table olives sector and in the other sectors referred to in Title III, Chapter III, of Regulation (EU) 2021/2115

Section 1

Common rules on investments, agri-environment-climate related types of intervention, coaching, promotion and communication, mutual funds, replanting, green harvesting and non-harvesting, harvest insurance, market withdrawals and collective storage

Article 11

Investments in tangible and intangible assets

When Member States include, in their CAP Strategic Plans, investments in tangible and intangible assets as foreseen in the fruit and vegetables sector, in the apiculture sector, in the wine sector, in the hops sector, in the olive oil and table olives sector in other sectors referred to in Article 42, point (f), of Regulation (EU) 2021/2115, they shall provide for the following:

(a) the tangible and the intangible assets acquired are used according to the nature, objectives and intended use by the beneficiary, as described in the related interventions of the CAP Strategic Plan and, where relevant, in the approved operational programme;

(b) without prejudice to paragraph 10, the tangible and the intangible assets acquired remain both in the property and possession of the beneficiary until the end of the fiscal depreciation period or during a period of at least 5 years to be set by Member States taking into account the nature of the assets. Each of these periods shall be calculated as of the date of the asset acquisition or as of the date on which the asset is put at the disposal of the beneficiary. However, Member States may provide for a shorter period during which the asset shall remain in the property and possession of the beneficiary, but this period shall not be less than 3 years for the purpose of maintenance of investments or jobs created by micro, small and medium-sized enterprises within the meaning of Commission Recommendation 2003/361/EC (⁴).

The investments in tangible assets referred to in the first subparagraph shall be made at the premises of the beneficiary or, where relevant, at the premises of its producer members or of its subsidiaries complying with the 90 % requirement referred to in Article 31(7) of this Regulation. However, in the apiculture sector, Member States may also provide in their CAP Strategic Plans, for investments in tangible assets made outside the premises of the beneficiary.

Where the investment is made on ground rented under particular national property rules, the requirement of being in the property of the beneficiary may not apply provided the asset have been in the possession of the beneficiary at least for the period required in paragraph (b) of first subparagraph.

If the period referred to in paragraph 1, first subparagraph, point (b), for a given investment exceeds the length of the operational programme, Member States shall ensure that it may be carried over to a subsequent operational programme.

When Member States provide, in their CAP Strategic Plans, support for investments in tangible and intangible assets, pursuing the agro-environmental-climate related objectives referred to in Articles 46, points (e) and (f), and 57, point (b), of Regulation (EU) 2021/2115, such investments shall pursue one or more of the objectives listed in Article 12(1) of this Regulation.

Support for investments in the improvement of an existing irrigation installation or an element of irrigation infrastructure may be provided under the following conditions:

(a) the investments are assessed by the beneficiary ex ante as offering potential water savings reflecting the technical parameters of the existing installations or infrastructures;

(b) where the investments affect bodies of groundwater or surface water whose status have been identified as less than good in the relevant river basin management plan as referred to in Directive 2000/60/EC of the European Parliament and of the Council (⁵) for reasons related to water quantity, an effective reduction in water use is achieved contributing to the achievement of good status of these water bodies, as laid down in Article 4(1) of that Directive.

Member States shall set percentages for potential water savings and effective reduction in water use as an eligibility condition in their CAP Strategic Plans in accordance with Article 111, first paragraph, point (d), of Regulation (EU) 2021/2115. Such water savings targets shall be determined by taking into account the needs set out in the river basin management plans referred to in Directive 2000/60/EC.

The conditions set out in this paragraph shall not apply to investments in an existing irrigation installation or in an element of irrigation infrastructure which affects only energy efficiency, to investments in the creation of a reservoir or to investments in the use of reclaimed water which do not affect a body of groundwater or surface water.

Support for investments in irrigation resulting in a net increase of the irrigated area affecting a given body of groundwater or surface water may be provided under the following conditions:

(a) the status of the water body has not been identified as less than good in the relevant river basin management plan for reasons related to water quantity; and

(b) an environmental impact analysis shows that there will be no significant negative environmental impact from the investment; that environmental impact analysis shall be either carried out by or approved by the competent authority.

Member States shall ensure the recovery of the Union financial assistance from the beneficiary, if one of the following situations occurs within the period referred to in paragraph 1, first subparagraph, point (b):

(a) a cessation of activity of the beneficiary or a transfer to another entity;

(b) a relocation of a productive activity outside the geographical cultivated area by the beneficiary or, where relevant, its members;

(c) a change in ownership, in particular where it gives to a firm or a public body an undue advantage; or

(d) any other significant change affecting the nature, objectives or implementation conditions of the intervention concerned which would result in undermining its original objectives.

In case of non-compliance by the beneficiary with the conditions provided by Member States in their CAP Strategic Plans on the basis of paragraphs 1 to 8 and the first subparagraph of this paragraph, Member States shall ensure the recovery of the Union financial assistance in proportion to the duration of non-compliance.

Member States may choose not to recover the Union financial assistance when the beneficiary ceases a productive activity due to a non-fraudulent bankruptcy.

If a producer member leaves its organisation or producer group, Member States shall ensure that the investment or its residual value is recovered by the beneficiary and that its residual value is added to the operational fund.

In duly justified circumstances, Member States may provide that the beneficiary is not required to recover the investment or its residual value.

Where investments are replaced, the residual value of the replaced investments shall be:

(a) added to the operational fund of the producer organisation; or,

(b) subtracted from the cost of the replacement.

Notwithstanding the first subparagraph, Member States shall not provide support for the mere replacement of investments by identical assets.

Article 12

Interventions related to agri-environment-climate objectives

When Member States include, in their CAP Strategic Plans, interventions pursuing agri-environment-climate objectives in the fruit and vegetables sector, in the apiculture sector, in the wine sector, in the hops sector, in the olive oil and table olives sector or in other sectors referred to in Article 42, point (f), of Regulation (EU) 2021/2115, they shall provide in their CAP Strategic Plans that the interventions covered pursue one of the following aims:

(a) achieving a reduction in the current use of production inputs, emission of pollutants or waste from the production process;

(b) achieving the replacement of the use of energy from fossil fuel sources with renewable energy sources;

(c) achieving a reduction in the environmental risks linked to the use of certain production inputs or to the production of certain residues, including plant protection products, fertilisers, manure or other animal dejections;

(d) achieving a reduction in water use;

(e) being linked to non-productive investments needed to achieve the agri-environment-climate related objectives, in particular where those objectives relate to the protection of habitats and biodiversity;

(f) achieving an effective and measurable reduction of greenhouse gas emissions or a durable carbon sequestration;

(g) increasing the resilience of the production to risks linked to climate change, such as soil erosion;

(h) achieving conservation, sustainable use and development of genetic resources; or

(i) leading to the protection or an improvement of the environment.

Member States shall ensure that beneficiaries provide evidence of the expected positive contribution to one or more environmental objectives at the moment of the submission for approval of the proposed operational programme, of the intervention or of the amendment of such programme or intervention.

Article 13

Coaching

When Member States include, in their CAP Strategic Plans, coaching interventions in the fruit and vegetables sector, in the hops sector, in the olive oil and table olives sector, or in other sectors referred to in Article 42, point (f), of Regulation (EU) 2021/2115, they shall provide in their CAP Strategic Plans that the interventions covered pursue one of the following objectives:

(a) exchanging best practices related to crisis prevention and management interventions helping the beneficiary to benefit from experience with implementation of crisis prevention and risk management interventions;

(b) promoting the setting-up of new producer organisations, merging existing ones or enabling individual producers to join an existing producer organisation as well as advising producers groups on their way to reach the recognition as producer organisation pursuant to Regulation (EU) No 1308/2013;

(c) creating networking opportunities for coaching providers and recipients, in particular marketing channels as a means of crisis prevention and management.

Article 14

Promotion, communication and marketing

When Member States include, in their CAP Strategic Plans, promotion, communication and marketing interventions in the fruit and vegetables sector, in the wine sector, in the hops sector, in the olive oil and table olives sector or in other sectors referred to in Article 42, point (f), of Regulation (EU) 2021/2115, they shall provide in their CAP Strategic Plans that the interventions covered pursue one of the following objectives:

(a) increasing awareness of the merits of Union agricultural products and of the high standards applicable to their production methods in the Union;

(b) increasing the competitiveness and consumption of Union agricultural products and certain processed products produced in the Union and raising their profile both inside and outside the Union for sectors other than wine;

(c) increasing awareness about Union quality schemes both inside and outside the Union;

(d) increasing the market share of Union agricultural products and certain processed products produced in the Union, specifically focusing on the markets in third countries that have the highest growth potential;

(e) contributing, where relevant, to restore the normal market conditions in the Union market in the event of serious market disturbance, loss of consumer confidence or other specific problems;

(f) increasing awareness of sustainable production;

(g) increasing consumer awareness of brands or trademarks of producer organisations, associations of producer organisations, transnational producer organisations, transnational associations of producer organisation and their subsidiaries within the meaning of Article 31(7) of this Regulation in the fruit and vegetables sector;

(h) diversifying, opening and consolidating the markets for Union wines in third countries and increasing awareness of the intrinsic qualities of Union wines on those markets. A reference to wine origin and brands may only be used when it complements the promotion, communication and marketing of Union wines in third countries;

(i) informing consumers about the responsible consumption of wine;

(j) increasing consumption of fresh or processed fruit and vegetables by improving consumer awareness on healthy diets, nutritious characteristics of the product, its high quality and its safety.

Article 15

Mutual funds

Where a beneficiary only applies for that support in the second or the third year of operation of the mutual funds, the support shall be 16 % or 8 % of the contribution of the beneficiary to the capital of the mutual fund in the second and third year of its operation, respectively.