1. Article 38 of rural development Regulation Definition of the implementing rules for payments linked to the WFD Strategic co-ordination group for the WFD common implementation strategy Bruxelles, 4 November 2009 European Commission, DG AGRI, Unit G1: Consistency of rural development

2. DG AGRI4 November 2009 2 I) Presentation of Article 38 of Reg (EC) n°1698/2005  To compensate farmers for the disadvantages resulting from the implementation of the WFD → Requirements stemming from other Community legislations for the protection of water fall out of the scope of Art.38  Support granted annually and per hectare of Utilised Agricultural Areas  Compensation for the additional costs and income foregone resulting from the disadvantages introduced by the WFD → Article 38 does not cover voluntary measures → Article 38 does not cover investments related operations  The use of Article 38 by MS in their RDP requires: → the PoM to be established → implementing rules to be adopted

3. DG AGRI4 November 2009 3 II) Implementing rules for Art. 38 for WFD payments (1/3)  Specification of the scope of application Proposal to limit the support to desadvantages related to specific requirements :  introduced for the purpose of implementing the WFD  go beyond the level of protection at the time the WFD was adopted  go beyond cross compliance requirements and standards  impose major changes in type of land use and/or major restrictions in farming practice resulting in a significant loss of income

4. DG AGRI4 November 2009 4 2. Amount of support  Provisions of Article 38 sets that maximum level of support shall be set  Proposal to maintain levels of support set for Natura 2000 payments –500€/ha/year for the five first years –200€/ha/year after –Possibility of derogation for duly justified cases  Proposal to set a minimum amount of support: 50€/ha II) Implementing rules for Art. 38 for WFD payments (2/3)

5. DG AGRI4 November 2009 5 3. Articulation with Article 31 “Meeting standards”  To avoid risks of double funding  Proposal to exclude from the scope of Art.31 kinds of operation eligible under Art. 38 II) Implementing rules for Art. 38 for WFD payments (3/3)

6. DG AGRI4 November 2009 6 III) Timetable for the adoption of the implementing rules  First presentation at the Rural Development Committee (RDC) in October  Discussion and agreement on a text in the RDC possibly by December  Adoption possibly by the end of the year

7. DG AGRI4 November 2009 7 Thank you for your attention !