Direct Payment Schemes M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 11 – Agriculture and Rural Development Direct Payment Schemes Enis Gjokaj, enis.gjokaj@mpr.gov.me Brussels, 11-13. December 2012

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Relevant Aquis of EU Celex 32009R0073 – Counsil Regulation (EC) No. 73/2009 of 19 January 2009 Establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers, amending Regulations (EC) No. 1290/2005, (EC) No. 247/2006, (EC) No. 378/2007, and repealing Regulation (EC) No. 1782/2003. Chapter 11 Agriculture and Rural Development

Legal Framework in Montenegro Negotiating Team for the Accession of Montenegro to the European Union Legal Framework in Montenegro Law of Agriculture and Rural Development (“OG of Montenegro” No. 56/09); Law on Budget for 2011 (“OG of Montenegro” br. 78/10); Regulation on conditions, method and time schedule of implementation of the measures of agricultural policy for 2011 - Agrobudget (“OG of Montenegro” br. 21/11). Chapter 11 Agriculture and Rural Development

Direct payments in Montenegro (2011) Negotiating Team for the Accession of Montenegro to the European Union Direct payments in Montenegro (2011) Direct payments “CAP like” Direct support to livestock production Direct support to crop production Support to development of dairy production for market Other direct payments Support to strengthening of milk collection network Support to collecting and slaughter of cattle Support to tobacco production Chapter 11 Agriculture and Rural Development

Direct payments“CAP like” M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Direct payments“CAP like” Direct support to livestock production -Objectives Strengthening the livestock production competitiveness and establishing of a commodity producer; Providing conditions for the balanced development of cattle, sheep and goat breeding; Better utilisation of available resources, especially natural meadows; Strengthening of vertical integration in meat production and improvement of food safety systems by encouraging cattle slaughter in slaughterhouses that fulfil the statutory veterinary and sanitary conditions; Contribute to rural development through higher income of agricultural holdings, and thus increase the living standard for agricultural producers in agricultural holdings. Chapter 11 Agriculture and Rural Development

Direct support to livestock production –Eligibility criteria M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Direct support to livestock production –Eligibility criteria Direct support to livestock farming consists of:   a) Premiums for cows and breeding heifers Holdings with more than 3 head; For head above minimum up to100 head;   b) Premiums for sheep and goats Holdings with more than 20 sheep and/or more than10 goats; For head above minimum up to 300 head; c) Slaughter premiums per head of fattened beef cattle and other categories of adult cattle Sell such categories of cattle to approved slaughterhouses up to100 head per year; For cattle reared in Montenegro: Minimum weight of 400 kg, cattle fattened in the pastures, may have minimum weight of 350 kg; Cattle should be fattened for at least 6 months on the holding. Chapter 11 Agriculture and Rural Development

Direct support to livestock production - M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Direct support to livestock production - Eligibility criteria Preconditions for premiums for cows and heifers and slaughter premiums: Identified with ear tags and registered in the database; Owner has passports for animals and a duly filled Farm Book; Purchase notice issued by an approved slaughterhouse; Decision on import issued by the Veterinary Administration obtained at the moment of entry into Montenegro; The number of imported animals and their identification numbers; The beginning of organized beef cattle fattening is to be reported to the Livestock Selection Service; The repurchased list from sloutherhouse. Chapter 11 Agriculture and Rural Development

Direct support to livestock production- Implementation procedure M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Direct support to livestock production- Implementation procedure March: Selection Service disseminates application forms and announces the measure through the media; 01. April - 15. May: Producers apply and fill in the forms for premiums (a and b); 15. May – 30. Oktober: The Service controls the situation in the field: min. 30% of applications for cows and breeding heifers (premium a), and 50% for sheep and goats (premium b); The documentation for slaughter premiums can be submitted to the Service till the end of November. The Service verifies the applications via electronic database; 1. Nov. – 15. December: Writing reports, drawing up premium lists and submitting them to the Ministry; Chapter 11 Agriculture and Rural Development

Direct support to livestock production- financial plan M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Direct support to livestock production- financial plan The type of support per components Number of head Amount of support €/head Premiums for cattle breeding holdings 15.187 75 Premiums for sheep breeding 89.200 9 Premiums for goat breeding 14.173 Premiums for fattened young beef cattle, bulls and oxen 4.003 120 Slaughter premiums for other categories of beef cattle 431 40 % in Agrobudget: (9,83%) Chapter 11 Agriculture and Rural Development

Direct support to crop production -Objectives M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Direct support to crop production -Objectives Increase competitiveness of crop production; Make optimal the utilisation of available arable land resources, through regular cultivation of areas suitable for crops and forage production, while respecting good agricultural practice principles; Better supply of cereals from domestic production; Improve forage production on available arable land; Secure quality seed material from domestic production. Chapter 11 Agriculture and Rural Development

Direct support to crop production- M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Direct support to crop production- Eligibility criteria Payments per hectare of cultivated and/or sawn for basic arable crops: cereals, potatoes, forage plants, buckwheat and other crops (apart. from tobacco) and for seed production of the aforementioned crops; Perennial fodder crops - producers who set up the production up to maximum 5 years in the same plots, provided that they regularly apply agro-technical measures; The minimum surface of individual crops is 0.5 hectares (cereals minumum 1 ha); Different types of crops cannot be added together for the fulfilment of criteria. Chapter 11 Agriculture and Rural Development

Direct support to crop production- M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Direct support to crop production- Eligibility criteria The maximum surface is 100 ha.   The areas under specific crops are registered in relevant registers kept by the Extension Service in Plant Production and records for seed production are also kept by the Phyto-sanitary Administration; The condition for commercial production is use of certified seed, which is verified by a report from Extension Service in Plant Production; The condition for seed production is fulfilling of the criteria and the application for seed production in line with the laws (technical and health control and certification), which is verified by a report from the Phyto-sanitary Administration. Chapter 11 Agriculture and Rural Development

Direct support to crop production- Implementation procedure M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Direct support to crop production- Implementation procedure Support to commercial production: February: Extension Service in Plant Production distributes application forms and announces the measure through the media; March 1 – May 30: Agricultural producers apply and fill in the forms for premiums (spring sowing); Sept 1. – Oct. 30: Agricultural producers apply and fill in the forms for premiums (autumn sowing); June 1 – November 15: Service checks the situation in the field for all areas applied for (100%); July 1 – July 15: Development of a report on spring sowing, drawing up the lists, forwarding to the Ministry; November 1 – Nov. 15: Development of a report on autumn sowing, drawing up the lists, forwarding to the Ministry; July – December: Payment of premiums; Support to seed production – in compliance with the law; July – December: Payment of premiums. Chapter 11 Agriculture and Rural Development

Direct support to crop production- Financial plan M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Direct support to crop production- Financial plan Components Agricultural products Amount of support €/ha Comercial production a) crops 170 b) fodder 150 c) buckwheat 190 Seed production potatoes category Elite 700 cereals 300 % in Agrobudget: 2,08% Chapter 11 Agriculture and Rural Development

Support to development of dairy production for market – M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to development of dairy production for market – Objectives Increase the competitiveness of commercial milk production; Encourage the development of commercial milk production for supply to dairy plants; Increase the share of milk bought out in the total milk production; Improve the quality of milk; Consolidation of dairy farms. Chapter 11 Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to development of dairy production for market-Eligibility criteria Support to producers supplying milk to registered dairies; Support to producers who implement of the national scheme for milk quality improvement;   The minimum of eligibility condition is 200 litres per month. Chapter 11 Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to development of dairy production for market-Implementation procedure Lists of producers, including monthly data on quantities of milk supplied provide the basis for calculation and payment of the premium; Registered dairies present the lists by 10th the month for the milk bought out in the previous month; Payments are made once a month to dairies, as well as to milk suppliers for the milk bought out on the basis of the lists that the dairy submits to the Ministry of Agriculture; Upon a control carried out by the Ministry, the funds for the premiums would be paid to giro accounts of dairies that have to forward the premiums to their milk suppliers as soon as they receive the payment; In case a dairy fails to pay these funds to the milk suppliers immediately, the following premium to the dairy shall not be paid. Chapter 11 Agriculture and Rural Development

Support to development of dairy production for market- M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to development of dairy production for market- Financial plan Type of support Product Amount of support €/l Premium Milk 0,07 % in Agrobudget: 6,84% Chapter 11 Agriculture and Rural Development

Support to strengthening of milk collection network M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Other direct payments Support to strengthening of milk collection network Support to collecting and slaughter of cattle Support to tobacco production Chapter 11 Agriculture and Rural Development

Support to strengthening of milk collection network –Objectives M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to strengthening of milk collection network –Objectives Maintain, strengthen and develop milk-collecting infrastructure; Increase competitiveness of milk production and processing; Increase milk collecting and processing in registered dairy plants; Widen the range of dairy products produced in the country. Chapter 11 Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to strengthening of milk collection network –eligibility criteria The co-financing of milk-collecting costs, including the operations of collecting centres, supports dairy plants in maintaining and widening the collecting networks; Registered dairies and cheese plants that regularly buy milk from domestic producers; The quantity of milk collected, proved by the enclosed milk producers’ lists; Support of 0,02.5 €/liter, which includes also the quantities of less than 200 litres per month, collected from dairy milk suppliers; Extra support for distance more than 50 km, additional 0,03€/liter; Support for increase in quantities of milk collected when compared to the same month of the previous year-additional premium of 0,02 €/liter; Chapter 11 Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to strengthening of milk collection network – Implementation procedure The basis for calculation and payment of premiums are actual monthly quantities of milk collected from domestic producers; Registered dairies and cheese plants present the data by 10th day of the current month for the milk collected the previous month; Payments are made monthly, to dairies and cheese plants. Chapter 11 Agriculture and Rural Development

Support to strengthening of milk collection network - Financial plan M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to strengthening of milk collection network - Financial plan Type of support Type of activities Amount of support €/l Premium Collected milk 0,025 Collection in remote zones from the location of the processor (min. 50 km of distance) 0,03 Increased collection volume compared to the previous year 0,02 % in Agrobudget: 2,83% Chapter 11 Agriculture and Rural Development

Support to collecting and slaughter of cattle -Objectives M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to collecting and slaughter of cattle -Objectives Set up of quality control and traceability systems in meat production; Increase competitiveness of commercial beef production; Raise slaughter of adult cattle in registered slaughterhouses; Strengthen infrastructure for enlargement of cattle collecting network; Strengthen vertical integration in meat production. Chapter 11 Agriculture and Rural Development

Support to collecting and slaughter of cattle –Eligibility criteria M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to collecting and slaughter of cattle –Eligibility criteria Support for collecting costs, as well as fixed costs related to the obligation of traceability and other administrative and technical requirements; Payments per head of cattle, with the exception of calves, that weigh more than 240 kg per animal. Chapter 11 Agriculture and Rural Development

Support to collecting and slaughter of cattle - M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to collecting and slaughter of cattle - Implementation procedure and Financial plan Implementation procedure : Tested and approved lists of purchased and slaughtered throats,    certified by a responsible person; Submit lists of approved slaughterhouses Ministry, not later    15 days after the end of the quarter; Financial plan: Type of support Type of animal Amount of support (€/head) Premium Cattle 20 % in Agrobudget..............................................................................................0,28%. Payments are made quarterly. Chapter 11 Agriculture and Rural Development

Support to tobacco production-Objectives M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to tobacco production-Objectives Increase competitiveness of tobacco production; Utilization of soil resources available that are less convenient for production of other crops; Improve the quality of produced tobacco. Chapter 11 Agriculture and Rural Development

Support to tobacco production- M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to tobacco production- Eligibility criteria Direct payments per hectare of are sawn and/or planted under tobacco; The eligible producers-who set up the production in the current year, provided that they regularly apply the agro - technical measures; The minimum plant density of 17.000 plants/ha; The areas of tobacco planted are entered into the appropriate records kept by the Extension Service in Plant Production; In case the total amount of applications received is higher than the yearly amount planned by the budget, the payment per hectare will be proportionally reduced. Chapter 11 Agriculture and Rural Development

Support to tobacco production- M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Support to tobacco production- Financial plan Type of premium Type of product Amount of support (€/ha) Support of production Tobacco Premium 1.000 % in Agrobudget: 0,33% Chapter 11 Agriculture and Rural Development

Direct payment schemes M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Direct payment schemes Until the EU accession Montenegro will adopt rules in the field of Direct payment schemes as set up in the Common Agricultural Policy Chapter 11 Agriculture and Rural Development

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