Commission Regulation (EU) 2022/2472 of 14 December 2022 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 (Text with EEA relevance)

Type Regulation
Publication 2022-12-21
Last updated 2023-12-13
State In force
Department European Commission, COMP
Source EUR-Lex
articles 70
Reform history JSON API
  • (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.

Where an SME was set up less than three years from the date of the occurrence of the natural disaster, the reference to the three-year period in paragraph 8, point (b) shall be understood as referring to the quantity produced and sold by an average undertaking of the same size as the applicant, namely a micro enterprise or a small enterprise or a medium enterprise, respectively, in the national or regional sector affected by the natural disaster.

The loss of income 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 directly linked to the 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.

9.

The material damage to assets such as farm buildings, equipment and machinery, stocks and means of production caused by the natural disaster shall be calculated on the basis of the repair cost or economic value of the affected asset immediately before the disaster.

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 disaster.

10.

The aid and any other payments received to compensate the losses, including payments under insurance policies, shall be limited to 100 % of the eligible costs.

Section 5 Aid for research development and innovation

Article 38

Aid for research and development in the agricultural and forestry sectors
1.

Aid for research and development projects in the agricultural and forestry sectors and sub-sectors shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

The aided project shall be of general interest to all undertakings active in the sector or sub-sector concerned as referred to in paragraph 1.

3.

Prior to the date of the start of the aided project the following information shall be published on a publicly accessible website at national or regional level:

  • (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 expected results of the aided project;
  • (d) the place of publication of the expected results of the aided project on the internet;
  • (e) that the results of the aided project will be available at no cost to all undertakings active in the sector or sub-sector concerned.
4.

The results of the aided project shall be made available on a publicly accessible website from the end date of the aided project or the date on which any information concerning those results is given to members of any particular organisation, whatever comes first. The results shall remain available on the internet for a period of at least five years starting from the end date of the aided project.

5.

The aid shall be granted directly to the research and/or knowledge-dissemination organisation.

6.

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

7.

The eligible costs shall be the following:

  • (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 and under the following conditions:
  • (i) 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;
  • (ii) with regard to 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.
8.

Where a research, and/or knowledge-dissemination organisation also pursues economic activities the financing, the costs and the revenues of those economic activities shall be accounted for separately.

9.

Undertakings that can exert influence upon research and/or knowledge-dissemination organisation, in the quality of, for example, shareholders or members, may not enjoy a preferential access to its research capacities or to the results generated by it.

10.

The aid intensity shall be limited to 100 % of the eligible costs.

Article 39

Aid for costs incurred by undertakings participating in EIP Operational Group projects
1.

Aid for costs incurred by undertakings participating in EIP Operational Group projects covered by Article 127 of Regulation (EU) 2021/2115, shall be compatible with the internal market within the meaning of Article 107(3), point (c) of the Treaty and shall be exempted from the notification requirement of Article 108(3) of the Treaty where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

The following costs shall be eligible for EIP Operational Group projects:

  • (a) the costs of preparatory support, capacity building, training and networking with a view to preparing and implementing an EIP Operational Group project;
  • (b) implementation of approved operations;
  • (c) preparation and implementation of the group’s cooperation activities;
  • (d) running costs linked to the management of the implementation of EIP Operational Group project;
  • (e) animation of the EIP community in order to facilitate exchange between stakeholders to provide information and to promote the projects, and to support potential beneficiaries with a view of developing operations and preparing applications.
3.

The aid intensity shall not exceed the maximum support rates provided for each type of operation in Regulation (EU) 2021/2115.

Article 40

Limited amounts of aid to undertakings benefitting from EIP Operational Group projects
1.

Aid to undertakings participating in, or benefitting from, EIP Operational Group projects, as referred to in Article 39(1) of this Regulation, shall be compatible with the internal market within the meaning of Article 107(3), point (c) of the Treaty and shall be exempted from the notification requirement of Article 108(3) of the Treaty, where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

The total amount of aid granted per EIP Operational Group projects shall not exceed EUR 500 000 .

Section 6 Aid in favour of forestry

Article 41

Aid for afforestation and the creation of woodland
1.

Aid for afforestation and the creation of woodland shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

Aid for afforestation and the creation of woodland shall cover the costs of establishment and an annual premium per hectare.

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

3.

Aid for afforestation and the creation of woodland related to investment operations shall cover the following eligible costs:

  • (a) the construction, acquisition, including leasing, or improvement of immovable property, with purchase of land only being eligible to an extent not exceeding 10 % of the total eligible costs of the operation concerned with the exception of land purchase if the aid is granted in the framework of a CAP Strategic Plan;
  • (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 the results of those studies, no expenditure under points (a) and (b) is incurred;
  • (d) the acquisition, development or usage fees of computer software, cloud and similar solutions, and the acquisitions of patents, licences, copyrights, trademarks;
  • (e) the costs of establishing forest management plans or equivalent instruments.

Aid which is granted in the framework of a CAP Strategic Plan and which is provided in the form of financial instruments may cover eligible costs other than those referred to in the first subparagraph, provided that the costs are fully eligible under the relevant CAP Strategic Plan and that the aid is put into effect after the approval of the relevant Strategic Plan by the Commission.

Save where support is provided in the framework of a CAP Strategic Plan in the form of financial instruments, working capital shall not be considered to be an eligible cost.

4.

For investment operations requiring an environmental impact assessment under Directive 2011/92/EU the aid shall be subject to the condition that such assessment has been carried out and the development consent has been granted for the investment project concerned before the date of granting the individual aid.

5.

The following costs of establishment shall be eligible:

  • (a) the costs of the plantation and propagation material;
  • (b) the plantation costs and the costs directly linked to the plantation;
  • (c) the costs of other related operations such as storing and treatment of seedlings with the necessary prevention and protection materials;
  • (d) the costs of replacement of die-off during the first year and the replacement of small-scale die-off during the first years following plantation. The costs of the replacement of large-scale die-off may only be supported under Article 43.
6.

The annual premium per hectare shall cover the costs for the income foregone and the costs of maintenance, including early and late cleanings, for a maximum period of 12 years from the date of granting the aid.

7.

Aid shall not be granted for planting the following trees:

  • (a) trees for short rotation coppicing;
  • (b) Christmas trees;
  • (c) fast growing trees for energy production;
  • (d) species non-native to the area, save where support is provided in the framework of the CAP Strategic Plan;
  • (e) investments in afforestation which are not consistent with climate and environmental objectives in accordance with sustainable forest management principles, as developed in the Pan-European Guidelines for Afforestation and Reforestation ([^E0030]).
8.

The species planted shall be adapted to the environmental and climatic conditions of the area and comply with minimum environmental requirements referred to in point (12).

9.

In areas where afforestation is difficult due to severe pedo-climatic conditions, aid may be provided for planting perennial woody species such as shrubs or bushes suitable to the local conditions.

10.

Aid for large enterprises shall be conditional on the presentation of relevant information from a forest management plan or equivalent instrument in accordance with the General Guidelines for the Sustainable Management of Forests in Europe ([^E0031]).

This requirement does not apply to municipalities that are autonomous local authorities with an annual budget of less than EUR 10 million and fewer than 5 000 inhabitants.

11.

The aid intensity shall be limited to 100 % of the eligible costs.

12.

The following minimum environmental requirements shall apply in the context of aid for afforestation and the creation of woodland:

  • (a) the selection of species to be planted, of areas and of methods to be used shall avoid the inappropriate afforestation of sensitive habitats such as peat lands and wetlands and negative effects on areas of high ecological value including areas under high natural value farming. Pursuant to Directive 92/43/EEC and Directive 2009/147/EC on sites designated as Natura 2000 only afforestation consistent with the management objectives of the sites concerned and agreed with the Member State’s authority in charge of implementing Natura 2000 shall be allowed;
  • (b) the selection of species, varieties, ecotypes and provenances of trees shall take account of the need for resilience to climate change and to natural disasters and the pedologic and hydrologic condition of the area concerned, as well as of the potential invasive character of the species under local conditions as defined by Member States. The beneficiary shall be required to protect and care for the forest at least during the period for which the premium for agricultural income foregone and maintenance is paid. This shall include tending, thinning or grazing, as appropriate, in the interest of the future development of the forest and regulating competition with herbaceous vegetation and avoiding the building up of fire prone undergrowth material. As regards fast-growing species, Member States shall define the minimum and maximum time before felling. The minimum time shall not be less than 8 years and the maximum shall not exceed 20 years;
  • (c) in cases where, due to difficult soil, environmental or climatic conditions, including environmental degradation, the planting of perennial woody species cannot be expected to lead to the establishment of forest cover as defined in accordance with the applicable national legislation, the Member State concerned may allow the beneficiary to establish other woody vegetation cover such as shrubs or bushes suited to the local conditions. The beneficiary shall ensure the same level of care and protection as applicable to forests;
  • (d) in the case of afforestation operations leading to the creation of forests of a size exceeding a certain threshold, to be defined by Member States, the operation shall consist of either of the following:
  • (i) the planting of ecologically adapted species or species resilient to climate change in the bio-geographical area concerned, which have been found, through an assessment of impacts, not to threaten biodiversity and ecosystem services, or to have a negative impact on human health;
  • (ii) a mix of tree species which includes either at least 10 % of broadleaved trees by area, or a minimum of three tree species or varieties, with the least abundant making up at least 10 % of the area.

Article 42

Aid for agroforestry systems
1.

Aid for agroforestry systems shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

Aid for agroforestry systems shall cover the costs of establishment, regeneration or renovation and an annual premium per hectare.

3.

Aid for agroforestry systems may cover investment operations.

4.

Save where support is provided in the form of financial instruments, aid for agroforestry systems related to investment operations shall cover the following eligible costs:

  • (a) the construction, acquisition, including leasing, or improvement of immovable property, with purchase of land only being eligible to an extent not exceeding 10 % of the total eligible costs of the operation concerned with the exception of land purchase if the aid is granted in the framework of a CAP Strategic Plan;
  • (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 no expenditure as referred under in points (a) and (b) is incurred;
  • (d) the acquisition, development or usage fees of computer software, cloud and similar solutions, and the acquisition of patents, licences, copyrights, trademarks;
  • (e) the costs of establishing forest management plans or equivalent instrument.

Save where support is provided in the framework of a CAP Strategic Plan in the form of financial instruments, working capital shall not be considered to be an eligible cost.

5.

For investment operations requiring an environmental impact assessment under Directive 2011/92/EU the aid shall be subject to the condition that such assessment shall have been carried out and the development consent shall have been granted for the investment project concerned before the date of granting the individual aid.

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

6.

The following costs for establishment, regeneration or renovation of the agroforestry system shall be eligible:

  • (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.
7.

The annual premium per hectare shall cover the costs of maintenance of the agroforestry system, and shall be paid for a maximum period of 12 years from the date of granting the aid.

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.

8.

Member States shall determine the structure and composition of the agroforestry system, taking account of the following:

  • (a) local pedo-climatic and environmental conditions;
  • (b) forestry species;
  • (c) the need to ensure sustainable agricultural use of the land.
9.

The maximum aid intensity shall be limited to 100 % of the eligible costs.

Article 43

Aid for the prevention and restoration of damage to forests
1.

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, catastrophic events, climate change-related events, shall be compatible with the internal market within the meaning of Article 107(2), point (b), or respectively Article 107(3), point (c), of the Treaty, and shall be exempted from the notification requirement of Article 108(3) thereof, where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

The aid shall cover the following eligible costs:

  • (a) the establishment of protective infrastructure, including maintenance costs in the case of firebreaks;
  • (b) local, small scale prevention activities against fire, or other natural hazards, including the costs of the use of grazing animals, such as sheds, watering, fences, and transport of the animals;
  • (c) establishing and improving forest fire, pest and diseases monitoring facilities and communication equipment;
  • (d) restoring forestry potential damaged by 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.
3.

The aid shall not be granted for agricultural related activities in areas covered by commitments referred to in Article 34.

4.

Only forest areas belonging to the forest protection plan established by the Member State concerned shall be eligible for aid for prevention of fire.

5.

In the case of the restoration of forestry potential referred to in paragraph 2, point (d), the aid shall be subject to the following conditions:

  • (a) the formal recognition by the competent authorities of the Member State concerned that 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 to the submission by the beneficiaries of proof of appropriate risk management tools to address the potential occurrence of the damaging event in the future where appropriate;
  • (b) the formal recognition by the competent authorities of the Member State concerned that the measures in accordance with Regulation (EU) 2016/2031 to combat, eradicate or contain a plant pest have been implemented;
  • (c) in the case of aid under Article 107(3), point (c), of the Treaty, submission by the beneficiaries of proof that such restoration will include adaptation measures to climate change, unless such adaptation measures form an integral part of the scheme and apply to all beneficiaries.
6.

In the case of aid for prevention of damage to a forest from plant pests, the risk of occurrence of the plant pest shall be supported by scientific evidence and acknowledged by a scientific public organisation.

The list of species of plant pest which cause or may cause damage shall be included in the aid scheme or ad hoc aid submitted by the relevant Member State.

7.

The aided activities or projects shall be consistent with the forest protection plan established by the Member State.

In the case of the restoration of forestry potential referred to in paragraph 2, point (d), the aid for large enterprises shall be conditional on the presentation of relevant information from a forest management plan or equivalent instrument in accordance with the General Guidelines for the Sustainable Management of Forests in Europe. This requirement does not apply to municipalities that are autonomous local authorities with an annual budget of less than EUR 10 million and fewer than 5 000 inhabitants.

8.

Aid shall not be granted for loss of income resulting from fire, 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.

9.

The aid intensity shall be limited to 100 % of the eligible costs.

Aid granted for the eligible costs as referred to in paragraph 2, point (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 44

Aid for investments improving the resilience and environmental value of forest ecosystems
1.

Aid for investments improving the resilience and environmental value of forest ecosystems shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

Investments shall be aimed at the achievement of commitments for environmental aims, for provision of ecosystem services or enhancement of the public amenity value of forest and wooded land in the area concerned or the improvement of the climate change mitigation and adaptation potential of ecosystems, without excluding economic benefits in the long term. Species non-native to the area shall be excluded, save where support is provided in the framework of the CAP Strategic Plan.

3.

For investments requiring an environmental impact assessment under Directive 2011/92/EU, the aid shall be subject to the condition that such assessment shall have been carried out and the development consent shall have been granted for the investment project concerned before the date of granting the individual aid. However, aid provided in the form of financial instruments shall be exempt from that condition.

4.

Except where support is provided in the form of financial instruments, the aid shall cover the following eligible costs:

  • (a) the construction, acquisition, including leasing, or improvement of immovable property, with purchase of land only being eligible to an extent not exceeding 10 % of the total eligible costs of the operation concerned with the exception of land purchase if the aid is granted in the framework of a CAP Strategic Plan;
  • (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, development or usage fees of computer software, cloud and similar solutions, and the acquisitions of patents, licenses, copyrights and trademarks;
  • (e) the costs of establishing forest management plans or equivalent instrument;
  • (f) the costs of the plantation and propagation material;
  • (g) the plantation costs and the costs directly linked to the plantation;
  • (h) the costs of other related operations such as storing and treatment of seedlings with the necessary prevention and protection materials;
  • (i) the costs of replacement of die-off during the first year and the replacement of small-scale die-off during the first years following plantation. The costs of the replacement of large-scale die-off may only be supported under Article 43.
5.

Save where support is provided in the form of financial instruments, costs other than those referred to in paragraph 4, points (a) and (b), connected with leasing contracts, such as lessor’s margin, interest refinancing costs, overheads and insurance charges shall not be considered to be eligible costs.

Save where support is provided in the framework of a CAP Strategic Plan in the form of financial instruments, working capital shall not be considered to be an eligible cost.

6.

The aid intensity shall be limited to 100 % of the eligible costs.

Article 45

Aid for area-specific disadvantages resulting from certain mandatory requirements
1.

Aid related to area-specific disadvantages imposed by requirements resulting from the implementation of Directive 92/43/EEC or Directive 2009/147/EC granted to forest holders, forest managers and their associations shall be compatible with the internal market within the meaning of Article 107(3), point (c) of the Treaty and shall be exempted from the notification requirement of Article 108(3) of the Treaty where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

The aid shall be granted annually and per hectare of forest area in order to compensate beneficiaries for additional costs and income foregone, resulting from disadvantages in the forest areas referred to in paragraph 3, related to the implementation of Directive 92/43/EEC and Directive 2009/147/EC.

3.

Aid shall be paid only in relation to the following forestry areas:

  • (a) Natura 2000 forest areas;
  • (b) features of the landscape which contribute to the implementation of Article 10 of Directive 92/43/EEC, which shall not exceed 5 % of the areas included in the Natura 2000 network covered by the territorial scope of the Strategic Plan concerned.
4.

Aid may be granted to forest holders, forest managers and their associations.

5.

The aid intensity shall be limited to 100 % of the costs referred to in paragraph 2 and shall not exceed EUR 500 per hectare per year in the initial period not exceeding five years and EUR 200 per hectare per year thereafter.

Article 46

Aid for forest-environmental-climate services and forest conservation
1.

Aid for forest-environmental and climate services and for forest conservation shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

Aid shall cover only voluntary management commitments targeted at achieving one or more of the climate- and environment-related specific objectives set out in Article 6(1) of Regulation (EU) 2021/2115 which go beyond the relevant mandatory requirements established by national forestry legislation or other relevant national or Union legislation.

3.

All mandatory requirements referred to in paragraph 2 shall be identified and described in the national legal basis.

4.

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

5.

For commitments undertaken pursuant to this Article, the Member State shall provide a revision clause in order to ensure their adjustment in the case of amendments to the relevant mandatory requirements referred to in paragraph 2.

6.

The aid shall compensate beneficiaries for all or part of the additional costs and income foregone as a result of undertaking the commitments referred to in paragraph 2.

7.

The aid intensity shall be limited to 100 % of the eligible costs and shall not exceed EUR 200 per hectare per year.

8.

Where aid is provided for under a Strategic Plan, the maximum amount provided for in paragraph 7 may be increased in exceptional cases, taking into account specific circumstances as provided for in that Strategic Plan.

Article 47

Aid for knowledge exchange and information actions in the forestry sector
1.

Aid for knowledge exchange and information actions in favour of undertakings active in the forestry sector shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

Member States shall ensure that actions supported under this Article are consistent with the description of the AKIS provided in the CAP Strategic Plan.

2.

Aid shall cover vocational training and skills acquisition actions, including training courses, workshops and coaching, demonstration activities, information actions, and promotion of innovation.

Aid may also cover short-term forest management exchanges and forest visits which shall focus, in particular, on sustainable forestry methods or technologies, the development of new business opportunities and new technologies, and on the improvement of forest resilience.

Aid for demonstration activities may cover relevant investment costs.

3.

The aid shall cover the following eligible costs:

  • (a) the costs of organising and delivering the knowledge exchange 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 purchase only being eligible to an extent not exceeding 10 % of the other total eligible expenditure of the operation concerned with the exception of land purchase if the aid is granted in the framework of a CAP Strategic Plan;
  • (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 points (i) and (ii) is incurred;
  • (iv) acquisition, development or usage fees of computer software, cloud and similar solutions, and acquisitions of patents, licenses, copyrights and trademarks;
  • (c) the costs for travel, accommodation and per diem expenses of the participants.

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

4.

The costs referred to in paragraph 3, point (b), shall only be eligible to the extent incurred for the demonstration project and for the duration period of the demonstration project.

5.

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

6.

The aid referred to in paragraph 3, point (a), shall not involve direct payments to beneficiaries. The aid shall be paid to the provider of the knowledge exchange and information actions.

7.

Bodies providing knowledge exchange and information actions shall have the appropriate capacities in the form of staff qualifications and regular training to carry out such tasks.

8.

The aid shall be limited to 100 % of the eligible costs.

Article 48

Aid for advisory services in the forestry sector
1.

Aid for advisory services in the forestry sector shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

The services concerned shall not be a continuous or periodic activity nor relate to the undertaking’s operating costs. Advisory services shall cover economic, environmental and social dimensions and deliver up to date technological and scientific information developed by research and innovation.

Member States shall ensure that actions supported under this Article are consistent with the description of the AKIS provided in the CAP Strategic Plan.

3.

The Member States shall ensure that the system of advisory services covers as a minimum issues related to the implementation of Directive 92/43/EEC, Directive 2000/60/EC, Directive 2008/50/EC, Directive 2009/147/EC, Regulation (EU) 2016/2031, Article 55 of Regulation (EC) No 1107/2009 and Directive 2009/128/EC.

4.

The aid shall take the form of subsidised service.

The bodies selected to provide the 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 in which they advise.

5.

Member States shall ensure that the provider of the advisory service is impartial and has no conflict of interest.

6.

Where justified and appropriate, the advice may be partly provided in group, while taking into account the situation of the individual beneficiaries of the advisory services.

7.

The aid shall be limited to 100 % of the eligible costs, and shall not exceed EUR 200 000 per undertaking over a period of three years.

Article 49

1.

Aid for investments in infrastructure related to the development, modernisation or adaptation of the forestry sector shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

For investment requiring an environmental impact assessment under Directive 2011/92/EU the aid shall be subject to the condition that such assessment shall have been carried out and the development consent shall have been granted for the investment project concerned before the date of granting the individual aid.

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

3.

Aid for large enterprises shall be conditional on the presentation of relevant information from a forest management plan or equivalent instrument in accordance with the General Guidelines for the Sustainable Management of Forests in Europe.

This requirement does not apply to municipalities that are autonomous local authorities with an annual budget of less than EUR 10 million and fewer than 5 000 inhabitants.

4.

The aid may cover investments which concern infrastructure related to the development, modernisation or adaptation of forests. If the aid is granted outside the framework of a CAP Strategic Plan it shall only include the following:

  • (a) access to forest land;
  • (b) land consolidation and improvement;
  • (c) supply of sustainable energy, energy efficiency, supply and saving of water;
  • (d) the use of livestock instead of machinery;
  • (e) the establishment of temporary storage facilities.
5.

The aid shall cover the following eligible costs:

  • (a) the construction, acquisition, including leasing, or improvement of immovable property, with purchase of land only being eligible to an extent not exceeding 10 % of the other total eligible expenditure of the operation concerned, with the exception of land purchase for environmental conservation if the aid is granted in the framework of a CAP Strategic Plan;
  • (b) the purchase or lease purchase of machinery and equipment including the use of the livestock instead of machinery 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 points (a) and (b) is incurred;
  • (d) acquisition, development or usage fees of computer software, cloud or similar solutions and acquisitions of patents, licenses, copyrights and trademarks;
  • (e) the costs of establishing forest management plans and their equivalent instruments.
6.

Save where support is provided in the framework of a CAP Strategic Plan in the form of financial instruments, the following costs shall not be considered to be eligible:

  • (a) costs other than those referred to in paragraph 5, points (a) and (b), connected with leasing contracts, such as lessor’s margin, interest refinancing costs, overheads and insurance charges; and
  • (b) working capital.
7.

The aid intensity shall be limited to 65 % of the eligible costs.

The aid intensity may be increased to a maximum of 80 % for the following investments:

  • (a) investments linked to one or more of the specific environmental- and climate-related objectives referred to in Article 14(3), points (e), (f) and (g);
  • (b) investments in the outermost regions or the smaller Aegean islands.
8.

The aid intensity may be increased to 100 % for non-productive investments, land consolidation land improvement and investments for forest roads which are open to the public free of charge and which serve the multifunctional aspects of the forest.

Article 50

Aid for investments in forestry technologies and in processing, in mobilising and in marketing of forestry products
1.

Aid for investments in forestry technologies and in processing, in mobilising and in marketing of forestry products shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

For investment requiring an environmental impact assessment under Directive 2011/92/EU the aid shall be subject to the condition that such assessment shall have been carried out and the development consent shall have been granted for the investment project concerned before the date of granting the individual aid.

3.

Aid for large enterprises shall be conditional on the presentation of relevant information from a forest management plan or equivalent instrument in accordance with the General Guidelines for the Sustainable Management of Forests in Europe.

4.

The aid shall cover the following eligible costs:

  • (a) the construction, acquisition, including leasing, or improvement of immovable property, with purchase of land only being eligible to an extent not exceeding 10 % of the other total eligible expenditure of the operation concerned, with the exception of land purchase for environmental conservation if the aid is granted in the framework of a CAP Strategic Plan;
  • (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 points (a) and (b) is incurred;
  • (d) acquisition, development or usage fees of computer software, cloud or similar solutions, and acquisitions of patents, licenses, copyrights and trademarks;
  • (e) the costs of establishing forest management plans and their equivalent.
5.

Save where support is provided in the framework of a CAP Strategic Plan in the form of financial instruments, the following costs shall not be considered to be eligible:

  • (a) costs connected with leasing contracts, such as lessor’s margin, interest refinancing costs, overheads and insurance charges; and
  • (b) working capital.
6.

Investments related to the improvement of the economic value of forests shall be justified in relation to expected improvements to forests on one or more holdings and may include investments for soil and resource friendly harvesting machinery and practices.

7.

Investments related to the use of wood as a raw material or energy source shall be limited to all working operations prior to industrial processing.

8.

The aid intensity shall be limited to 65 % of the eligible costs.

9.

The aid intensity may be increased to a maximum of 80 % for the following investments:

  • (a) investments linked to one or more of the specific environmental- and climate-related objectives referred to in Article 14(3), points (e), (f) and (g);
  • (b) investments in the outermost regions or the smaller Aegean islands.

Article 51

Conservation of genetic resources in forestry
1.

Aid for the conservation of genetic resources in forestry, linked to forest-environmental-climate services and forest conservation shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

For the purposes of this Article the following definitions shall apply:

  • (a) ‘in situ conservation’ means the conservation of genetic material in ecosystems and natural habitats and the maintenance and recovery of viable population of species in their natural surroundings;
  • (b) ‘on-forest holding conservation’ means in situ conservation and development at forest holding level;
  • (c) ‘ex situ conservation’ means the conservation of genetic material for forestry outside their natural habitat;
  • (d) ‘ex situ collection’ means a collection of genetic material for forestry maintained outside their natural habitat.
3.

The aid shall cover the costs for the following operations:

  • (a) targeted actions: actions promoting the in situ and ex situ conservation, characterisation, collection and utilisation of genetic resources in forestry, including web-based inventories of genetic resources currently conserved in situ, including on-forest holding conservation, and of ex situ collections and databases;
  • (b) concerted actions: actions promoting the exchange of information for the conservation, characterisation, collection and utilisation of genetic resources in Union forestry, among competent organisations in the Member States;
  • (c) accompanying actions: information, dissemination and advisory actions involving non-governmental organisations and other relevant stakeholders, training courses and preparation of technical reports.
4.

The aid shall be limited to 100 % of the eligible costs.

Article 52

Start-up aid for producer groups and organisations in the forestry sector
1.

Start-up aid to producer groups and organisations in the forestry sector shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation. The members of the producer group or of the producer organisation shall not be large enterprises, with the exception of municipalities.

2.

As an alternative to providing aid to producer groups or organisations, aid up to the overall amount of aid to which the producer group or organisation would have been entitled to according to this Article, may be granted directly to producers to offset their contributions to the costs of running the groups or organisations during the first five years following the establishment of the group or organisation.

3.

The aid shall cover the following costs:

  • (a) costs of the rental of suitable premises, at market rates;
  • (b) costs for the acquisition of office equipment;
  • (c) administrative staff costs and costs of a qualified forest manager;
  • (d) overheads and legal and administrative fees;
  • (e) costs for acquisition of computer hardware and the acquisition or usage fees of computer software, cloud and similar solutions;
  • (f) in the case of purchase of premises, an amount corresponding to rental costs at market rates.
4.

Aid shall not be paid in respect of costs incurred after the fifth year following the official recognition of the producer group or organisation by the competent authority of the Member State on the basis of its business plan, except for collective environment and climate actions to achieve the objectives referred to in Article 6 of Regulation (EU) 2021/2115.

5.

Where the aid is paid in annual instalments, Member States shall only pay the last instalment after having verified the correct implementation of the business plan.

6.

The aid intensity shall be limited to 100 % of the eligible costs.

Article 53

Aid for forestry land consolidation
1.

Aid for forestry land consolidation shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

The aid shall be granted towards and limited to the legal and administrative costs, including survey costs.

3.

The aid shall be limited to 100 % of the real costs incurred.

Article 54

Aid for cooperation in the forestry sector
1.

Aid for cooperation in the forestry sector shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

Aid shall only be granted to promote cooperation that contributes to achieving one or more of the objectives set out in Article 6 of Regulation (EU) 2021/2115.

3.

Forms of cooperation covered by this Article shall involve at least two actors irrespective of whether they are active in the forestry sector or in the forestry and agricultural sectors. The cooperation shall benefit mainly the forestry sector or the forestry and agricultural sectors.

4.

The following forms of cooperation shall be eligible:

  • (a) cooperation among different undertakings in the forestry sector and other actors active in the agricultural and forestry sectors that contribute to achieving one or more of the specific objectives set out in Article 6 of Regulation (EU) 2021/2115, including producer groups, and cooperatives;
  • (b) the creation of clusters and networks.
5.

Aid shall not be granted for cooperation solely involving research bodies.

6.

Aid may be granted for cooperation relating, in particular, to the following activities:

  • (a) pilot projects;
  • (b) the development of new products, practices, processes and technologies in the forestry sector;
  • (c) cooperation among small operators in the forestry sector in organizing joint work processes and sharing facilities and resources;
  • (d) horizontal and vertical cooperation among supply chain actors for the establishment and development of short supply chains and local markets;
  • (e) promotion activities in a local context relating to the development of short supply chains and local markets;
  • (f) collective action undertaken with a view to mitigating or adapting to climate change;
  • (g) implementation, in particular by groups of public and private partners other than those referred to in Article 31(2), point (b), of Regulation (EU) 2021/1060, of local development strategies other than those referred to in Article 32 of that Regulation.
7.

Aid shall only be granted to new forms of cooperation, including existing ones if starting a new activity.

8.

Aid for the establishment and development of short supply chains, as referred to in paragraph 6, points (d) and (e), shall cover only supply chains involving no more than one intermediary between forest holder/manager and consumer.

9.

Operations, which consist of investments and direct costs of specific projects linked to the implementation of a forest management plan or equivalent, shall comply with the rules and requirements, as specified in the applicable Article on investment aid of this Regulation, as well as Article 4 on notification thresholds.

10.

The following costs shall be eligible, in so far as they concern forestry activities:

  • (a) the costs for studies of the area concerned, of feasibility studies, and of drawing up a business plan or local development strategy other than the one referred to in Article 32 of Regulation (EU) 2021/1060;
  • (b) the running costs of cooperation, such as the salary of a ‘coordinator’;
  • (c) the costs of operations to be implemented;
  • (d) the costs for promotion activities;
  • (e) the costs for drawing up forest management plans or equivalent instruments.
11.

Aid shall be limited to a maximum period of seven years.

12.

The aid shall be limited to 100 % of the eligible costs.

Section 7 Aid in Favour of SMEs in Rural Areas

Article 55

Aid for basic services and infrastructure in rural areas
1.

Aid for basic services and infrastructure in rural areas granted in the framework of a CAP Strategic Plan shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it is put into effect after the approval of the relevant CAP Strategic Plan by the Commission and where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

The aid shall fulfil both of the following conditions:

  • (a) it is granted in the framework of a CAP Strategic Plan in accordance with Regulation (EU) 2021/2115 in one of the following forms:
  • (i) as aid co-financed by EAFRD;
  • (ii) as additional national financing to aid co-financed by EAFRD;
  • (b) it is identical to the relevant measure provided for in the CAP Strategic Plan referred to in point (a).
3.

The aid shall cover:

  • (a) investments in the creation, improvement or expansion of all types of infrastructures with eligible costs limited to EUR 2 million (‘small-scale infrastructure’), with the exception of investments in renewable energy and energy efficiency and broadband infrastructure which shall not be eligible;
  • (b) investments in the setting-up, improvement or expansion of local basic services for the rural population, including social services, leisure and culture, and the related infrastructure;
  • (c) investments for public use in recreational infrastructure, tourist information and small-scale tourism infrastructure;
  • (d) investments associated with the maintenance, restoration and upgrading of the cultural and natural heritage of villages, rural landscapes and high nature value sites, including related socioeconomic aspects, as well as environmental awareness actions;
  • (e) investments targeting the relocation of activities and conversion of buildings or other facilities located inside or close to rural settlements, with a view to improving the quality of life or increasing the environmental performance of the settlement.
4.

The operations covered by the investments referred to in paragraph 3 shall be implemented in accordance with plans for the development of municipalities and villages in rural areas and their basic services, where such plans exist, and shall be consistent with any relevant local development strategy. Such plans are not required with regard to investments supported by financial instruments.

5.

The aid shall cover the following eligible costs:

  • (a) the costs of drawing up and updating of development and management plans relating to rural areas and their basic services, and to high nature value sites;
  • (b) the costs for the preparation of studies associated with cultural and natural heritage, rural landscapes and high nature value sites;
  • (c) investment costs for tangible and intangible assets;
  • (d) costs linked to environmental awareness actions.

The costs of capitalised works may be also eligible for aid referred to in paragraph 3, point (d).

Working capital shall not be considered to be an eligible cost. The aid shall not be granted as operating aid.

6.

As regards activities referred to in paragraph 3, points (a) to (d), the aid intensity shall be limited to 100 % of the eligible costs.

In order not to exceed the maximum aid intensity, for activities referred to in paragraph 3, points (b), (c) and (d), the net revenues shall be deducted from the eligible costs ex ante on the basis of reasonable projections or through a clawback mechanism. Alternatively, for aid not exceeding EUR 1 million, the maximum aid intensity may be set at 80 % of eligible costs.

7.

As regards the investments referred to in paragraph 3, point (e), the aid intensity shall not exceed 100 % of the real costs incurred for such activities where the relocation of the activities or the conversion of buildings or other facilities consists of the dismantling, removal and re-building of existing facilities.

Where the relocation of the activities or the conversion of buildings or other facilities results in a modernisation of those facilities or in an increase in production capacity, in addition to the dismantling, removal and re-building of existing facilities as referred to in the first subparagraph, the aid intensities shall not exceed the maximum aid intensity established in the regional aid map which is in force at the time the aid is granted in the area concerned in respect of the costs relating to the modernisation of the facilities or the increase of production capacity. The pure replacement of an existing building or facilities by a new up-to date building or facilities without fundamentally changing the production or the technology involved is not considered to be related to the modernisation.

Article 56

Business start-up aid for non-agricultural activities in rural areas
1.

Business start-up aid for non-agricultural activities in rural areas shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

The aid shall fulfil both of the following conditions:

  • (a) it is granted in the framework of a CAP Strategic Plan in accordance with Regulation (EU) 2021/2115 in one of the following forms:
  • (i) aid co-financed by EAFRD;
  • (ii) additional national financing to the aid referred to in point (i);
  • (b) it is identical to the relevant measure provided for in the CAP Strategic Plan referred to in point (a).
3.

Aid shall be granted to the following categories of beneficiaries:

  • (a) farmers or members of a farm household in rural areas diversifying into non-agricultural activities;
  • (b) micro and small enterprises in rural areas;
  • (c) natural persons in rural areas.
4.

Where the member of a farm household as referred to in paragraph 3, point (a), is a legal person or a group of legal persons, it shall exercise an agricultural activity on the farm at the time the application for the aid is submitted.

5.

The aid shall be conditional on the submission of a business plan to the competent authority of the Member State concerned.

The business plan shall describe the following:

  • (a) the initial economic situation of the beneficiary;
  • (b) milestones and targets for the development of the new activities of the beneficiary;
  • (c) details of the actions required for the development of the activities of the beneficiary, such as details of investments, training, advice.

The business plan shall have a maximum duration of five years.

6.

The payment of the last instalment shall be conditional upon the correct implementation of the business plan referred to in paragraph 5. Member States shall determine the amount of aid taking into account the socioeconomic situation of the area covered by the CAP Strategic Plan.

7.

The aid shall be limited to EUR 100 000 per beneficiary.

Article 57

Aid for new participation of farmers in quality schemes for cotton and foodstuffs
1.

Aid for new participation, or participation in the five preceding years, of farmers in quality schemes for cotton and foodstuffs shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

The aid shall fulfil both of the following conditions:

  • (a) it is granted in the framework of a CAP Strategic Plan in accordance with Regulation (EU) 2021/2115 in one of the following forms:
  • (i) aid co-financed by EAFRD;
  • (ii) additional national financing to the aid referred to in point (i);
  • (b) it is identical to the relevant intervention provided for in the CAP Strategic Plan referred to in point (a).
3.

Aid shall be granted for new participation in one of the following types of quality schemes:

  • (a) quality schemes for cotton and foodstuffs established under Regulation (EU) No 1151/2012;
  • (b) quality schemes for cotton and foodstuffs, including certification schemes, recognised by the Member States as complying with the following criteria:
  • (i) the specificity of the final product produced under such quality schemes is derived from clear obligations to guarantee one or more of the following:
  • — specific product characteristics;
  • — specific farming or production methods;
  • — a 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 scheme is open to all producers;
  • (iii) the scheme involves binding final product specifications and compliance with those specifications is verified by public authorities or by an independent inspection body;
  • (iv) the scheme is transparent and assures complete traceability of agricultural products;
  • (c) voluntary foodstuff 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 ([^E0032]).
4.

The aid shall be granted in the form of an annual incentive payment, the level of which shall be determined according to the level of the fixed costs arising from participation in quality schemes.

5.

The aid shall be granted for a maximum period of seven years.

6.

If the initial participation in the quality scheme started before the application for support, the maximum period of seven years shall be reduced by the number of years which have elapsed between that initial participation and the time of the application for support.

7.

The aid shall be limited to EUR 3 000 per beneficiary per year.

Article 58

Aid for information and promotion activities concerning cotton and foodstuffs covered by a quality scheme
1.

Aid for information and promotion activities concerning cotton and foodstuffs covered by a quality scheme shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

The aid shall fulfil both of the following conditions:

  • (a) it is granted in the framework of a CAP Strategic Plan in accordance with Regulation (EU) 2021/2115 in one of the following forms:
  • (i) aid co-financed by EAFRD;
  • (ii) additional national financing to the aid referred to in point (i);
  • (b) it is identical to the relevant measure provided for in the CAP Strategic Plan referred to in point (a).
3.

The aid shall be granted to groups of producers implementing the information and promotion activities.

4.

Only information and promotion activities that are implemented in the internal market shall be eligible for aid.

5.

The aid shall be granted for information and promotion activities concerning cotton and foodstuffs which are covered by a quality scheme and for which aid is granted in accordance with Article 57.

6.

The eligible costs shall be the costs for actions having the following characteristics:

  • (a) they are designed to induce consumers to buy the foodstuffs or the cotton covered by a quality scheme as referred to in Article 57(3);
  • (b) they draw attention to specific features or advantages of the foodstuff or the cotton, notably to the quality, specific production method, high animal welfare standards and respect for the environment linked to the quality scheme concerned.
7.

The actions referred to in paragraph 6 shall not incite consumers to buy a foodstuff or cotton due to their particular origin, except for those covered by the quality schemes referred to in Title II of Regulation (EU) No 1151/2012.

8.

The origin of the foodstuff or cotton may be indicated, provided that the mention of the origin is subordinate to the main message.

9.

Information and promotion activities related to particular undertakings or commercial brands shall not be eligible for aid.

10.

The aid intensity shall be limited to 70 % of the eligible costs.

Article 59

Aid for cooperation in rural areas
1.

Aid for cooperation in rural areas shall be compatible with the internal market within the meaning of Article 107(3), point (c), of the Treaty and shall be exempted from the notification requirement of Article 108(3) thereof where it fulfils the conditions laid down in this Article and in Chapter I of this Regulation.

2.

The aid shall fulfil both of the following conditions:

  • (a) it is granted in the framework of a CAP Strategic Plan in accordance with Regulation (EU) 2021/2115 in one of the following forms:
  • (i) aid co-financed by EAFRD;
  • (ii) additional national financing to the aid referred to in point (i);
  • (b) it is identical to the relevant measure provided for in the CAP Strategic Plan referred to in point (a).
3.

Forms of cooperation covered by this Article shall involve at least two actors and may comprise undertakings active in the agricultural sector, undertakings active in the food chain and other actors, including producer groups, cooperatives and interbranch organizations, where the cooperation benefits rural areas.

4.

The following forms of cooperation shall be eligible:

  • (a) cooperation between undertakings and other actors as referred to in paragraph 3 of this Article;
  • (b) the creation of clusters and networks.
5.

Aid shall not be granted for cooperation solely involving research bodies.

6.

Aid may be granted to cooperation relating to the following activities:

  • (a) pilot projects;
  • (b) the development of new products, practices, processes and technologies in the food sector;
  • (c) cooperation among small operators in organizing joint work processes and sharing facilities and resources and for the development and/or marketing of tourism services relating to rural tourism;
  • (d) horizontal and vertical cooperation among supply chain actors for the establishment and development of short supply chains and local markets;
  • (e) promotion activities in a local context relating to the development of short supply chain and local markets;
  • (f) collective actions undertaken with a view to mitigating or adapting to climate change;
  • (g) joint approaches to environmental projects and ongoing environmental practices, including efficient water management, the use of renewable energy and the preservation of agricultural landscapes;
  • (h) horizontal and vertical cooperation among supply chain actors in the sustainable provision of biomass for use in food and energy production and industrial processes;
  • (i) implementation, in particular by groups of public and private partners other than those defined in Article 32(2), point (b), of Regulation (EU) No 1303/2013, of local development strategies other than those defined in Article 2, point (19), of Regulation (EU) No 1303/2013 addressing one or more of the Union priorities for rural development;
  • (j) diversification of farming activities into activities concerning health care, social integration, community-supported agriculture and education about the environment and food;
  • (k) implementation of smart-village strategies.
7.

Aid shall only be granted to new forms of cooperation, including existing ones if starting a new activity.

8.

Aid for pilot projects referred to in paragraph 6, point (a), and for the development of new products, practices, processes and technologies in the food sector referred to in paragraph 6, point (b), may also be granted to individual actors where this possibility is provided for in the national Strategic Plans. The results of pilot projects referred to in paragraph 6, point (a), and activities referred to in paragraph 6, point (b), carried out by individual actors shall be disseminated.

9.

Aid for the establishment and development of short supply chains, as referred to in paragraph 6, points (d) and (e), shall cover only supply chains involving no more than one intermediary between farmer and consumer.

10.

Aid under this Article shall comply with Articles 206 to 210a of Regulation (EU) No 1308/2013.

11.

Aid shall be limited to a maximum period of seven years.

12.

The following costs shall be eligible:

  • (a) the costs of preparatory support, capacity building, training and networking with a view of preparing and implementing a cooperation project;
  • (b) costs for studies of the area concerned, feasibility studies, and the drawing up of a business plan or local development strategy other than the one referred to in Article 32 of Regulation (EU) 2021/1060;
  • (c) costs for the animation of the area concerned in order to make feasible a collective territorial project; in the case of clusters, the animation may also concern networking between members and the recruitment of new members;
  • (d) the running costs of cooperation, such as the salary of a coordinator;
  • (e) the direct costs of specific projects linked to the implementation of a business plan, an environmental plan, a local development strategy other than the one referred to in Article 32 of Regulation (EU) 2021/1060 or other actions targeted towards innovation, including testing;
  • (f) costs for promotion activities.
13.

The aid shall be limited to 100 % of the eligible costs.

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