# 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 38: Mutual funds for adverse climatic events, animal and plant diseases, pest infestations and environmental incidents

Extent: E+S+N.I.

1. In order to be eligible for support the mutual fund concerned shall:
(a) be accredited by the competent authority in accordance with national law;
(b) have a transparent policy towards payments into and withdrawals from the fund;
(c) have clear rules attributing responsibilities for any debts incurred.
2. The relevant authority shall define in the programme the rules for the constitution and management of the mutual funds, in particular for the granting of compensation payments and the eligibility of farmers in the event of crisis, as well as for the administration and monitoring of compliance with these rules. The relevant authority shall ensure that the fund arrangements as set out in the programme provide for penalties in case of negligence on the part of the farmer.
The occurrence of incidents mentioned in point (b) of Article 36(1) must be formally recognised as such by the competent authority of the relevant authority concerned.
3. The financial contributions referred to in point (b) of Article 36(1) may only relate to:
(a) the administrative costs of setting up the mutual fund, spread over a maximum of three years in a degressive manner;
(b) the amounts paid by the mutual fund as financial compensation to farmers. In addition, the financial contribution may relate to interest on commercial loans taken out by the mutual fund for the purpose of paying the financial compensation to farmers in case of crisis;
(c) supplementing the annual payments into the fund;
(d) the initial capital stock of the mutual fund.
Support under point (b) of Article 36(1) shall only be granted to cover for loss caused by the outbreak of adverse climatic events, animal or plant disease, pest infestation, or measures adopted in accordance with Directive 2000/29/EC to eradicate or contain a plant disease or pest or environmental incident, which destroy more than 30 % of the average annual production of the farmer in the preceding three-year period or a three-year average based on the preceding five-year period, excluding the highest and lowest entry. Indexes may be used in order to calculate the annual production of the farmer. The calculation method used shall permit the determination of the actual loss of an individual farmer in a given year. ...
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4. As regards animal diseases, financial compensation under point (b) of Article 36(1) may be granted in respect of diseases mentioned in the list of animal diseases established by the World Organisation for Animal Health or in Annex II of Regulation (EU) No 652/2014.
5. Support shall be limited to the maximum support rate laid down in Annex II. Support under point (b) of paragraph 3 shall take into account any support already provided under points (c) and (d) of paragraph 3.
The relevant authority may limit the costs that are eligible for support by applying:
(a) ceilings per fund;
(b) appropriate per unit ceilings.

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Source: https://www.legislation.gov.uk/eur/2013/1305/article/38 (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-1305/article-38
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.