Common organisation of agricultural markets (CMO): regime of the single payment scheme and support to vine-growers 2014-2020

PURPOSE: to reform the current common organisation of agricultural markets (single CMO) as regards the regime of the single payment scheme (SPS) and support to vine-growers.

LEGISLATIVE ACT: Regulation (EU) No 1028/2012 of the European Parliament and of the Council amending Council Regulation (EC) No 1234/2007 as regards the regime of the single payment scheme and support to vine-growers.

CONTENT: following an agreement with the European Parliament at first reading, the Council adopted a regulation amending the existing common organisation of the markets (single CMO) as regards the regime of the single payment scheme and support to vine-growers.

Council Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) provides for a possibility for Member States to grant decoupled aid under the single payment scheme to vine-growers. The current support programmes have a five-year duration whilst payment entitlements giving rise to direct payments are granted for an indeterminate period of time.

In order to simplify the management of this specific support measure and to ensure its consistency with the objectives of the rules for direct support schemes for farmers, the amended regulation adapts the regime to allow Member States to definitively decrease the funds allocated to the support programmes in the wine sector and thereby increase the national ceilings for direct payments.

This regulation provides for the definitive transfer of the measure on support to vine-growers to the SPS. This transition will occur in two stages: Member States must notify:

• by 1 December 2012 their decision concerning support for vine-growers for one year applicable to the 2014 calendar year and
• by 1 August 2013 their decision concerning the single payment from 2015.

This Regulation is one of two transitional regulations adopted this year ahead of the Common Agricultural Policy (CAP) reform which is scheduled to enter into force in 2014. The first transitional regulation, adopted by the Council in July 2012, concerned the application of direct support schemes for farmers for the calendar year 2013 and provides for a smooth transition from the current direct payments system (Regulation (EC) No 73/2009) to the new payments scheme foreseen by the Commission in the CAP reform proposals.

ENTRY INTO FORCE: 21/12/2012.