Percentage of reduction for non-compliance
In establishing reductions and exclusions, account shall be taken of:
- Severity: depend, in particular, on the importance of the consequences of the non-compliance taking account of the aims of the requirement or standard concerned
- Extent: determined taking account, in particular, of whether the non-compliance has a far-reaching impact or whether it is limited to the farm itself
- Permanence: depend, in particular, on the length of time for which the effect lasts or the potential for terminating those effects by reasonable means
- Reoccurrence: non-compliance with the same requirement, standard or obligation determined more than once within a consecutive period of three years, provided the farmer has been informed of a previous non-compliance and, as the case may be, has had the possibility to take the necessary measures to terminate that previous non-compliance.
Detailed rules are established by the Commission Delegated Regulation (EC) No 640/2014 (art. 38-41).
In case of negligence, as a general rule the percentage of reduction is 3% of the overall amount granted to the farmer and shall not exceed 5%. Paying Agency may decide to reduce the percentage to 1% or to increase it to 5% on the basis of the assessment provided in the control report.
In case of repeated non-compliance (which cannot be considered as intentional) the reduction percentage shall be multiplied by the factor three, in respect of the first repetition. In case of further repetition, the multiplication factor three shall be applied each time to the result of the reduction fixed with the previous repeated non-compliance up to a maximum of 15%. Once the maximum 15% percentage is reached, The Paying Agency shall inform the farmer that a further non-compliance will be treated as intentional. The percentage of reduction of a further non-compliance will be determined by multiplying the result of the previous multiplication by a factor of three.
The percentage reductions for a repeated non-compliance determined together with another non-compliance or repeated non-compliance shall be added together, up to 15% as a maximum.
If intentional non-compliance is determined, as a general rule a reduction of 20% of the overall amount granted to farmer is applied. The Paying Agency may decide to reduce it to no less than 15% or to increase it up to 100% on the basis of the assessment provided in the control report.
Cases of non-compliance with minor severity, extent and duration, shall not, in duly justified cases, lead to a reduction or exclusion. Member States shall set up an early warning system that applies in these cases of non-compliance, notifying the beneficiary of the finding and the obligation to take remedial action (art. 99(2) Regulation (EU) 1306/2013).
Anyway it cannot be considered as minor a case of non-compliance which consitutes a direct risk to public or animal health.
Paying Agency may not impose any reductions at all in the cases:
- where provisions relating to the requirement or standard in question leave a margin not to further pursue the non-compliance found or
- in the cases when support is granted to young farmers (setting up for the first time in an agricultural holding) for investments made to comply with Union standards or
- for support to farmers for investments to comply with new requirements imposed by Union law.
Member States may decide not to apply an administrative penalty for cross compliance per farmer and per calendar year when the amount of the penaly is EUR 100 or less. When this option is applied, the finding of minor non-compliance and the obligation to take remedial shall be notified to the farmer and the competent authority shall take actions to ensure that the farmer remedies to the non-compliance found. (cfr. art. 97(3) of Council Regulation (EC) 1306/2013)