# Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005, Article 19: Farm and business development

Extent: S+N.I.

1. Support under this measure shall cover:
(a) business start-up aid for:
(i)young farmers;
(ii)non-agricultural activities in rural areas;
(iii)the development of small farms;
(b) investments in creation and development of non-agricultural activities;
(c) annual payments or one-off payments for farmers eligible for the small farmers scheme established by Title V of Regulation (EU) No 1307/2013 ("the small farmers scheme") who permanently transfer their holding to another farmer;
2. Support under point (a)(i) of paragraph 1 shall be granted to young farmers.
Support under point (a)(ii) of paragraph 1 shall be granted to farmers or members of a farm household who diversify into non-agricultural activities and to micro- and small- enterprises and natural persons in rural areas.
Support under point (a)(iii) of paragraph 1 shall be granted to small farms as defined by the relevant authority.
Support under point (b) of paragraph 1 shall be granted to micro- and small enterprises and natural persons in rural areas, as well as to farmers or members of a farm household.
Support under point (c) of paragraph 1 shall be granted to farmers eligible to participate in the small farmers scheme who, at the time of submitting their application for support, have been so eligible for at least one year and who undertake to permanently transfer their entire holding and the corresponding payment entitlements to another farmer. Support shall be paid from the date of the transfer until 31 December 2020 or calculated in respect of that period and paid in the form of a one-off payment.
3. Any natural or legal person or a group of natural or legal persons, whatever legal status is granted to the group and its members by national law, may be considered to be a member of a farm household, with the exception of farm workers. Where a legal person or a group of legal persons is considered to be a member of the farm household, that member must exercise an agricultural activity on the farm at the time of the support application.
4. The application for support under point (a)(i) of paragraph 1 shall be submitted at the latest 24 months after the date of setting up.
Support under point (a) of paragraph 1 shall be conditional on the submission of a business plan. Implementation of the business plan shall start at the latest within nine months from the date of the decision granting the aid. The business plan shall have a maximum duration of five years.
The business plan shall provide that the young farmer is to comply with Article 9 of Regulation (EU) No 1307/2013, as applicable in the relevant authority concerned, within 18 months from the date of the decision granting the aid.
The relevant authority shall define the action(s) referred to in point (s) of Article 2(1) in the rural development programmes.
The relevant authority shall define upper and lower thresholds per beneficiary or holding for allowing access to support under points (a)(i) and (a)(iii) of paragraph 1. The lower threshold for support under point (a)(i) of paragraph 1 shall be higher than the upper threshold for support under point (a)(iii) of paragraph 1. Support shall be limited to holdings falling within the definition of micro and small enterprises.
4a. By way of derogation from Article 37(1) of Regulation (EU) No 1303/2013, support under point (a)(i) of paragraph 1 of this Article may also be provided in the form of financial instruments, or as a combination of grants and financial instruments.
5. Support under point (a) of paragraph 1 shall be paid in at least two instalments. Instalments may be degressive. The payment of the last instalment under points (a)(i) and (a)(ii) of paragraph 1 shall be conditional upon the correct implementation of the business plan.
6. The maximum amount of support under point (a) of paragraph 1 is laid down in Annex II. The relevant authority shall define the amount of support under points (a)(i) and (a)(ii) of paragraph 1 also taking into account the socio-economic situation of the programme area.
7. Support under point (c) of paragraph 1 shall be equal to 120 % of the annual payment that the beneficiary is eligible to receive under the small farmers scheme.
8. In order to ensure the efficient and effective use of support for rural development, the appropriate authority may make regulations laying down the minimum content of business plans and the criteria to be used ... for setting the thresholds referred to in paragraph 4 of this Article.

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Source: https://www.legislation.gov.uk/eur/2013/1305/article/19 (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-1305/article-19
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.