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Scotland Rural Development Programme 2007-2013

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Annex 5: State Aid provisions for the 2007-13 SRDP

9.1 Measures and operations falling within the scope of Article 36 of the Treaty and/or the Community Guidelines for State Aid for the Forest Sector.

MEASURE

MAXIMUM AID RATE/INTENSITY

STATE AID FRAMEWORK

(111) vocational training, information actions, including diffusion of scientific knowledge and innovative practices for persons engaged in the agricultural, food and forestry sectors.

Animal Health and Welfare Management Programme
Benchmarking
Biosecurity

Sampling
Forage Analysis

Individual applicants under tier 2 LMC a grant rate of 75% up to a max of £500.

Individual applicants under tier 3 LMC a grant of 75%.

Group applications a grant rate of 75% plus an additional 10% of the cost of course fees to organiser.

Up to 100% for activities supporting the development and running of new training initiatives.

£260

£410
£50 per action plan and £0.10/metre
£170
£130

1857/2006 aid to small and medium sized enterprises active in the production of agricultural products - Article 15 provision of technical support in the agricultural sector.

For forestry the Community guidelines for state aid in the agriculture and forestry sector 2007 to 2013 (2006/C 319/01) VIIC (para.179).

(112) setting up of young farmers

support of up to £25,000 will be available.

Payment in the form of an interest rate subsidy, payable annually in arrears over a maximum period of 5 years.

The interest rate for which the subsidy is payable will be capped at 3.5% above the Bank of England base rate.

1857/2006 aid to small and medium sized enterprises active in the production of agricultural products - Article 7 aid to setting up young farmers

(114) use by farmers and forest holders of advisory services.

Max. 1,500 â'¬/holding, 80%. Per advisory consultation.

For forestry advice only.

1857/2006 aid to small and medium sized enterprises active in the production of agricultural products - Article 15 provision of technical support in the agricultural sector.

For forestry the Community guidelines for state aid in the agriculture and forestry sector 2007 to 2013 (2006/C 319/01) VIIC (para.179).

(115) setting up of farm management, farm relief and farm advisory services, as well as forestry advisory services.

50%, degressive support, reduced in equal steps 1-5 years, completely phased out in 6 th year.

1857/2006 aid to small and medium sized enterprises active in the production of agricultural products - Article 15 provision of technical support in the agricultural sector.

For forestry the Community guidelines for state aid in the agriculture and forestry sector 2007 to 2013 (2006/C 319/01) VIIC (para.179)

(121) farm modernisation

Up to 40% (50% in LFA)

plus 10% premium on investments by young farmers

1857/2006 aid to small and medium sized enterprises active in the production of agricultural products. Article 4, investment in agricultural holdings.

(122) improving the economic value of the forest

Management of genetically appropriate tree stocks

The payment rate will be up to 50% of the net costs in the investment plan. Subject to a maximum payment per hectare set for each eligible hectare.

Up to 50% of standard cost of £300/ha limited to £2000 per year

For forestry the Community guidelines for state aid in the agriculture and forestry sector 2007 to 2013 (2006/C 319/01) VIIC.

(123) adding value to agricultural and forestry products

For Agricultural products only Annex 1 in Annex 1 out

SMEs

  • up to 50% in Convergence objective areas;
  • up to 40% in regional aid areas.
  • up to 40% in other areas.

1998/2006 de-minimis aid

70/2001 state aid to small and medium sized enterprises, As amended by 1857/2006 aid to small and medium sized enterprises active in the production of agricultural products 1628/2006 state aid to national regional investment aid.

For intermediate enterprises above SME threshold (with less than 750 employees or with a turn over of less than EUR 200 million)

  • up to 25% in Convergence objective areas,
  • up to 20% in regional aid areas
  • up to 20% in other areas

Large companies - de minimis support

1998/2006 de minimis aid and the regional investment aid 'uplifts' can be used via the SMEBER where a project is located in a regional investment aid area.

(125) improving and developing infrastructure related to the development and adaptation of agriculture and forestry, support for renewable energy.

(125) provision and upgrading of infrastructure related to access to farm and forest land , energy supplies and water management.

(125) access creation for sustainable forest management

Up to 50% in LFAs (60% young farmers)

40% elsewhere (50% young farmers)

Up to 50% in LFAs (60%) young farmers

40% elsewhere (50%) young farmers

Up to 50% in LFA 40% elsewhere limited to a maximum of £2000 per year at a standard cost of £40 per metre.

1857/2006 aid to small and medium sized enterprises active in the production of agricultural products. Article 4, investment in agricultural holdings.

For forestry the Community guidelines for state aid in the agriculture and forestry sector 2007 to 2013 (2006/C 319/01) VIIC.

(212) payments to farmers in areas with handicaps, other than mountain areas

25-150 Eur HAUAA subject to a minimum payment per agricultural business of £350

The Community Guidelines for state aid in the agriculture and forestry sector 2007 to 2013 (2006/C 319/01) I.V.D. Aid to compensate for handicaps in certain areas article (72) state that articles 37 and 87(3) of regulation 1698/2005, the Commission will declare State Aid compatible with article 87 (3) (c) of the treaty if it fulfils all the conditions of these articles.

(214) agri-environmental payments

Up to 100% of income foregone, subject to following ceilings:

Wild Bird seed Mix/unharvested crop -£368.52/ha

Mown grassland for wildlife- £175.32

Mown Grassland for Corn Buntings -£225.74/ha

Mown grassland for Corncrakes -3 options up to £691.14/ha

Grazed grassland for corncrakes - £313.58/ha

Early and Late cover for corncrakes -£801.66/ha - creation

Early and Late cover for corncrakes- £162.50/ha - management

Management of open/wet grassland -£111.92

Mammal and Bird control --£

Food for Raptors - £

Wardening for Golden Eagles -£

Control of invasive non native species -up to £182/ha for plants, 60% for grey squirrel control

100% for grey squirrel control for red squirrel conservation at standard cost rates.

Management of species rich grassland-£ 111.55/ha

Bracken control £227.94/ha

Management of Habitat Mosaic -£104.70/ha

Rush pasture improvement -£ 100.00/ha

Management of Wetland -£ 90.62/ha

Creation of Wetland -£227.94/ha

Restoration of Lowland raised bog -£

Creation of Water Margins - £294.91/ha

Management of Flood Plains -£39.10/ha

Buffer Areas for Fens and Raised Bogs - £269.32/ha

Moorland - cattle grazing -£1.30/ha

Deer Management - £

Coastal heath management - up to maximum rate of £77.68/ha

Lowland Heath management -£123.16/ha

Wildlife on Upland and Peatland sites -£2.00/ha

Moorland Grazing -£1.30/ha

Moorland management on designated sites - £2.01/ha

Stock disposal on moorland -£19.63/ha

Away wintering of sheep -£

Off wintering of sheep -£

Muirburn and swiping -£67.73/ha

Sheep management - £

Dykes - £

Management of hedges - up to £4694.43/ha

Grass margins/ Beetle banks - ££476.74/ha

Biodiversity cropping -£71.10/ha

Management of cropped Machair -up to £502.39/ha

Conservation headlands -up to £303.77/ha

Retention of Stubbles overwinter -£96/ha

Ancient wood pasture management -up to £136.77/ha

Scrub and Tall herb management - £94.80/ha

Nutrient management plan - £

Soil and Water management programme -max grant of 75% subject to maximum ceiling of £300

Arable reversion to grassland -£250/ha

Livestock tracks and river crossings - 50% grant of actual costs

Conservation management Plan for Small Units -£25.71/ha

Retention/introduction of Traditional Breed Cattle - £436.76 introduction and £185.56 retention.

The Community guidelines for state aid in the agriculture and forestry sector 2007 to 2013 (2006/C 319/01)' IV.C.2.b. Policy on aid for agri -environ mental and animal welfare commitments (51) Aid for agri-environmental or animal welfare commitments shall be declared compatible with Article 87(3)(c) of the Treaty if it fulfils all the requirements as set out in Articles 39 or 40 of Regulation ( EC) No 1698/2005, and of the relevant implementing rules adopted by the Commission.

Where these ceilings are exceeded full justification is provided in Chapter 5 of the programme document and supplementary information sheet submitted as Annex to Programme.

In addition, agreement will be sought separately to pay state aid for supporting positive management works on Natura 2000 sites where these works fall outside the scope of the Rural Development Regulation.

(216) support for non-productive investments

Up to 100% - variable depending on degree of economic return

Standard costs and costs incurred - justification in programme document

1857/2006 aid to small and medium sized enterprises active in the production of agricultural products. Article 5, conservation of traditional landscapes and buildings.

Stand-alone state aids for Access options which relate to non-agricultural activities will be provided in accordance with 1998/2006 on de minimis aid.

(221) first afforestation of agricultural land

Up to 70% of establishment costs

Subject to limit of 700 Euros/ Ha farmers/associations thereof, 150 Euros/ Ha any other natural persons or private law bodies

Community guidelines for state aid in the agriculture and forestry sector 2007 to 2013 (2006/C 319/01) VIIC. Para. 176.

(223) first afforestation of non-agricultural land

Up to 70% of establishment costs

Community guidelines for state aid in the agriculture and forestry sector 2007 to 2013 (2006/C 319/01) VIIC. Para. 176.

(225) forest environment payments

£28-56 / ha

addition payment of £41/hectare for removal of livestock

40-200 Euros ha

Community guidelines for state aid in the agriculture and forestry sector 2007 to 2013 (2006/C 319/01) VIIC. Para. 175.

(227) support for non-productive investments

Up to 100% - variable depending on degree of co-funding from applicant.

1857/2006 aid to small and medium sized enterprises active in the production of agricultural products. Article 5, conservation of traditional landscapes and buildings.

9.2. Measures pursuant to Articles 25, 27 (for the latter only for additional national funding referred to in Article 89 of Regulation ( EC) No 1698/2005) and 52 of Regulation ( EC) No 1698/2005 and operations under the measures pursuant to Articles 28 and 29 of that Regulation which fall outside the scope of Article 36 of the Treaty.

Measure (code)

Aid Intensity

State Aid legal cover

Name of Aid Scheme

Duration of Aid Scheme

(123) adding value to agricultural and forestry products

Annex 1 in, non-Annex 1 out.

Maximum total rate will be 50% in Highlands and Islands and 40% elsewhere

25% for intermediate companies in convergence

20% for intermediate in other areas

15% for large companies in RSA areas

De minimis only for large companies in non RSA areas

- subject to limits imposed by SME Block Exemption.

70/2001 and 1857/2006 state aid to small and medium sized enterprises. Subject to pending notification.

1998/2006 de minimis aid and the regional investment aid 1628/2006 'uplifts' can be used via the SMEBER where a project is located in a regional investment aid area.

Scotland Rural Development Programme 2007-13

2007-13

(124) cooperation for development of new products, processes and technologies in the agricultural and food sector Annex 1 in, non-Annex 1 out.

SMEs. Subject to limits imposed by SME Block Exemption.

Non- SMEs would require notification under the R&D&I Framework.

70/2001 and 1857/2006 state aid to small and medium sized enterprises as amended 364/2004 - extension of scope to include aid for research and development. Subject to pending notification.

Scotland Rural Development Programme 2007-13

2007-13

(311) diversification into non-agricultural activities

Renewable Energy

Up to 50%. Variable rate depending on the extent of commercial return. Subject to limits imposed by de minimis state aid rules.

Up to:-

40% for capital costs

100% for revenue costs

35% for training costs

1998/2006 de minimis aid

Scotland Rural Development Programme 2007-13

2007-13

(312) support for the creation and development of micro-enterprises

Up to 50%. Variable rate depending on the extent of commercial return. Subject to limits imposed by de minimis state aid rules.

1998/2006 de minimis aid

Scotland Rural Development Programme 2007-13

2007-13

(313) encouragement of tourism activities

Information and Awareness raising

Farm and Forest visits and talks

Area Access - Creation and Management of Paths and Routes

Up to 100%. Subject to limits imposed by de minimis state aid rules. Variable rate depending on the extent of commercial return.

£100 per farm visit

£50 per farm talk

up to 100% based on standard costs for capital items and actual costs for appropriate capital items

1998/2006 de minimis aid

1998/2006 de minimis aid

Scotland Rural Development Programme 2007-13

Scotland Rural Development Programme 2007-13

2007-13

2007-13

(321) basic services for the economy and rural population

Up to 100%. Subject to limits imposed by De minimis state aid rules. Variable rate depending on the extent of commercial return.

1998/2006 de minimis aid

Scotland Rural Development Programme 2007-13

2007-13

(322) village renewal and development

Up to 100%. Subject to limits imposed by de minimis state aid rules. Variable rate depending on the extent of commercial return.

1998/2006 de minimis aid

Scotland Rural Development Programme 2007-13

2007-13

(323) conservation and upgrading of the rural heritage

Up to 100%. Subject to limits imposed by de minimis state aid rules. Variable rate depending on the extent of commercial return.

1998/2006 de minimis aid

Scotland Rural Development Programme 2007-13

2007-13

(331) training and information for economic actors operating in the fields covered by Axis 3

Up to 80%. Subject to limits imposed by state aid Training Block Exemption rules.

68/2001 training aid

Subject to pending notification.

Scotland Rural Development Programme 2007-13

2007-13

(341) skills acquisition and animation with a view to preparing and implementing a local development strategy

Up to 100%. Subject to limits imposed by de minimis state aid rules.

1998/2006 de minimis aid

Scotland Rural Development Programme 2007-13

2007-13

(41) local development strategies

N/a

N/A

N/A

(411) competitiveness

Up to 50% max for local projects subject to Agric and SME Block Exemption if distorting competition

70/2001 state aid to small and medium sized enterprises.

BER 1857/2006 aid to small and medium sized enterprises active in the production of agricultural products. Article 4, investment in agricultural holdings.

(1857/2006 Aid to companies active in the processing and marketing of agricultural products should be covered by the rules governing aid to small and medium-sized enterprises in other sectors laid down in Regulation ( EC) No 70/2001. Regulation ( EC) No 70/2001 should therefore be amended accordingly).

1998/2006 de minimis aid

Scotland Rural Development Programme 2007-13

2007-13

(412) environment land management

Up to 50% max for local projects subject to SME Block Exemption if distorting competition

IV.C.2.b. Policy on aid for agri -environmental and animal welfare commitments

(51) Aid for agri-environmental or animal welfare commitments shall be declared compatible with Article 87(3)(c) of the Treaty if it fulfils all the requirements as set out in Articles 39 or 40 of Regulation ( EC) No 1698/2005, and of the relevant implementing rules adopted by the Commission.

Scotland Rural Development Programme 2007-13

2007-13

(413) quality of life /diversification

Up to 50% max for local projects subject to SME Block Exemption if distorting competition

BER 1857/2006 aid to small and medium sized enterprises active in the production of agricultural products. Article 5, conservation of traditional landscapes and buildings.

Agri environment schemes - notified Aid No NN 50/2005.

Stand-alone state aids for Access options which relate to non-agricultural activities will be provided in accordance with 1998/2006 on de minimis aid.

Regulation 70/2001 for general state aids

Regulation 1998/2006 sets de minimis for forestry at â'¬200,000 per beneficiary over rolling three year period

Scotland Rural Development Programme 2007-13

2007-13

(421) trans regional and trans national co-operation

up to 70% max for transnational projects subject to SME Block Exemption if distorting competition

1974/2006 Agricultural SMEBER

70/2001 state aid to small and medium sized enterprises.

SME de minimis regulation 1998/2006

Scotland Rural Development Programme 2007-13

2007-13

(431) running the local action group, skills, animation

100% subject to a max of 20% of LAG budget

N/A

(511) Technical Assistance -National Rural Network, Leader network

Up to 100%

N/A

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Page updated: Friday, July 20, 2007