Projektas 3

Projektas 3 Official translation REPUBLIC OF LITHUANIA LAW ON AGRICULTURAL AND RURAL DEVELOPMENT 25 June 2002 No. IX-987 Vilnius CHAPTER I GENERAL PROVISIONS Article 1. Purpose of the Law This Law shall lay down general principles of the working-out and implementation of an agricultural and rural development policy. Article 2. Main Definitions of the Law 1. “Agri-environmental policy” means the totality of measures designed to protect and improve the environment, and to ensure environmental-friendly production of agricultural products and foodstuffs. 2. “Activities alternative to agriculture” means any activities carried out in the rural area, which are not attributable to agricultural activities. 3. “Base crops area” means the sum of areas for crops in the Republic of Lithuania for which direct payments are made. 4. “Organic agriculture” means a system of agricultural activities meeting the requirements set by the Ministry of Agriculture in which agricultural products and foodstuffs are produced organically. 5. “Organically-produced agricultural products and foodstuffs” means certified agricultural products and foodstuffs meeting the requirements set by the Ministry of Agriculture for organically-produced agricultural products and foodstuffs. 6. “Export promotion” means the totality of measures applied by the Government of the Republic of Lithuania or institutions authorised by it, thereby seeking to create legal and economic preconditions for the development of export of agricultural products and foodstuffs, and the improvement of the foreign trade balance. 7. “Producers’ organisation” means a legal person established by agricultural entities which is recognised as a producers’ organisation in the manner prescribed by the Ministry of Agriculture. 8. “Production quota” means the maximum volume of the production of agricultural products and (

1. or)foodstuffs set by the Ministry of Agriculture and allocated to agricultural entities. 9. “Guarantee payment” means a one-off payment by the borrower to the guarantor for providing a guarantee to the bank. 10. “Intervention price” means the intervention buying-in price of agricultural products and foodstuffs. 11. “Intervention buying-in” means the buying-in, storage and selling, carried out by an institution authorised by the Government, of surplus agricultural products and foodstuffs produced by persons of the Republic of Lithuania. 12. “Rural community” means individuals living within the rural area, related by common public needs and interests. 13. “Rural development” means the promotion of the quality of life residents of rural areas, the improvement of rural economic and social structure, as well as relations between the communities in order to ensure economic and social cohesion, to carry out job keeping and creation in rural areas, to maintain and foster ethnical culture, the countryside and the natural environment. 14. “Compensatory allowance” means financial support intended to cover loss of income and to compensate for damages incurred because of the restrictions on agricultural activities imposed by State or municipal institutions, shall, in the manner prescribed by the Ministry of Agriculture, be directly granted to agricultural entities who meet the requirements laid down in the legal acts regulating the granting of such support. 15. “Foodstuffs” means produced, treated or processed crop, stock-farming, poultry-farming, game-farming, bee-keeping and fishery products, as well as naturally or artificially grown wild berries, herbs, mushrooms intended for human nutrition and prepared for human consumption. 16. “Food sector” means the totality of branches engaged in the production of foodstuffs and their provision to consumers, comprising an integrated system. It shall include production of agricultural products for nutritional uses, processing thereof, and trade in such products, as well as the sphere rendering services for these branches. The food sector shall also include the household food sector. 17. “Less-favoured areas” means rural areas in which, due to handicaps related to demography, environmental protection, quality of the soil, and other natural handicaps, agricultural incomes received are lower, however, agricultural activities must continue in order to preserve the environment and the rural area itself. Less-favoured areas shall be designated in accordance with the procedure established by the Ministry of Agriculture. 18. “Services for agriculture” means activities related to agriculture provided for in the list approved by the Ministry of Agriculture. 19. “Private intervention storage” means an intervention measure for market regulation encouraging persons temporarily not to place, in the manner prescribed by the Ministry of Agriculture, agricultural products and foodstuffs place on the market. 20. “Reserve production quota” means a part of a production quota not allocated to agricultural entities, as well as a production quota or a part thereof returned by agricultural entities in the manner prescribed by the Ministry of Agriculture. 21. “Direct payment” means financial support intended to maintain an income level, and granted, in accordance with the procedure established by the Ministry of Agriculture, directly to agricultural entities meeting the requirements of the legal acts regulating the granting thereof. 22. “Agriculture” means a branch of the economy comprising agricultural activities. 23. “Economic accounts for agriculture” means a system of economic accounting of agricultural activities, set up by the Statistical Office of the European Communities. 24. “Agricultural products” means produced, treated or processed crop, stock-farming, poultry-farming, game-farming, bee-keeping and fishery products, as well as naturally or artificially grown wild berries, herbs, mushrooms intended for direct consumption or for further treatment and processing when producing foodstuffs or non-food products. 25. “Treatment of agricultural products” means preparation of agricultural products without changing their primary physical or chemical composition. 26. “Production of agricultural products” means the activities during which agricultural products are being created or obtained from nature. 27. “Processing of agricultural products” means preparation of agricultural products by changing their primary physical or chemical composition. 28. “Agricultural activities” means activities comprising the production and treatment of agricultural products, processing of one’s own produced and treated agricultural products, production of foodstuffs and selling of such products, as well as provision of services for agriculture. Agricultural activities shall not include the production of foodstuffs from agricultural products produced and treated by others, and selling of such products. 29. “Agricultural entity” means a person registered in accordance with the procedure established by laws or other legal acts, and engaged in agricultural activities. CHAPTER II AGRICULTURAL AND RURAL DEVELOPMENT POLICY Article 3. Agricultural and Rural Development 1. Agricultural and rural development shall be the priority area of the State from economic, ecological, social and ethnocultural viewpoints. 2. The State agricultural and rural development policy shall be established in strategic documents concerning agricultural and rural development, approved by the Seimas and the Government. Article 4. Objectives of the Agricultural and Rural Development Policy When establishing and implementing the State agricultural and rural development policy, the following objectives shall be pursued: 1) to create a market oriented, co-operated, efficient and competitive agricultural sector; 2) to ensure a fair standard of living for the residents of rural areas enabling to satisfy individual social, economic and cultural needs, while creating conditions for the increase of income of agricultural entities; 3) sustainable and comprehensive rural economic development and social and economic cohesion in rural areas, creating conditions for improvement of quality of living of the residents of rural areas; 4) to secure the placing on the market of safe, good-quality and diversified agricultural products and foodstuffs; 5) to expand export; 6) to secure the larger possible supply with agricultural products and foodstuffs produced locally; 7) to develop the country’s balanced food sector with agriculture being its most important integrated part; 8) to protect the environment by applying agri-environmental and forestry-related measures, and to promote sustainable use of renewable natural resources. Article 5. Implementation of the Agricultural and Rural Development Policy 1. The agricultural and rural development policy shall be implemented by the Government, the Ministry of Agriculture, institutions authorised by the Government and municipal institutions within the competence granted by laws and other legal acts. 2. The Government shall set up a Rural Development Council, an advisory institution functioning on a voluntary basis, from representatives of State and municipal institutions, public organisations, and approve its composition and regulations. 3. The Rural development Council shall consider key issues related to agricultural and rural development, assess the implementation of the Agricultural and Rural Development Strategy, submit proposals to the Government, and carry out other functions laid down on its regulations. 4. When implementing the agricultural and rural development policy, State and municipal institutions shall co-operate with representatives of producers of agricultural products and foodstuffs, organisations of purchasers, processors, farmers’ self-government and other public organisations, scientific, educational and consulting agencies. CHAPTER III AGRICULTURAL MANAGEMENT Article 6. Administration and Control of Agricultural Activities State and municipal institutions shall, within the competence granted by laws and other legal acts, administer and control the following spheres of agricultural activities: 1) implementation of intervention measures pertaining to agricultural products and foodstuffs market; 2) support for agricultural and rural development; 3) ensuring of quality and safety of agricultural products and foodstuffs; 4) certification of organically-produced agricultural products and foodstuffs; 5) putting on the market and use of plant-health and protection measures; 6) seed growing; 7) compliance with veterinary requirements; 8) management agricultural and food waste; 9) livestock farming, poultry farming, game farming, fish farming, apiculture; 10) production, placing on the market, use, quality and safety of feedingstuffs and additives to feedingstuffs; 11) rational and sustainable use of land; 12) planning, organisation and supervision of construction and exploitation works related to reclamation systems and hydrotechnical equipment; 13) safety of agricultural machinery; 14) other spheres provided for by legal acts. Article 7. Economic Regulation of the Market of Agricultural Products and Foodstuffs 1. The Government or an institution authorised by it shall, in the manner prescribed by this Law and other laws: 1) regulate with economic measures the production of agricultural products and foodstuffs; 2) pay direct payments and compensatory allowance; 3) carry out intervention buying-in and other intervention regulatory measures; 4) promote export and establish the export and import procedure. 2. By June 1 each year, the Government or an institution authorised by it shall announce production quotas for principal agricultural products and foodstuffs, supported quantities and intervention prices. Article 8. Economic Regulation of the Production of Certain Agricultural Products and Foodstuffs 1. The Ministry of Agriculture shall directly or indirectly regulate the production of agricultural products and foodstuffs by means of the following economic measures: 1) allocating quotas in relation to the production of milk, sugar, potato starch, dried fodder, flax fibre to agricultural entities; 2) setting a base crops area, a number of animals, a stocking density, when calculating in accordance with an area of forage crops, and productivity thereof qualifying for direct payments. Upon violation of provision of this support, direct payments specified in Article 9 of this Law shall be reduced proportionally. 2. Production quotas shall be administrated by the National Paying Agency under the Ministry of Agriculture and municipal institutions. Article 9. Direct Payments and Compensatory Allowances 1. In order to maintain an income level of agricultural entities or compensate for income loss, the Ministry of Agriculture shall, in a prescribed manner, pay direct payments or compensatory allowances to agricultural entities. 2. Direct payments shall be paid for crops areas, for animals or on other grounds set by the Ministry of Agriculture. Additional direct payments shall be paid to producers of organically-produced agricultural products and foodstuffs. 3. Compensatory allowances shall be paid to agricultural entities who cease production and transfer their quota or a part thereof to į reserve production quota, as well as on other grounds set by the Ministry of Agriculture. Losses incurred due to the restrictions of agricultural activities, established by State or municipal institutions, shall also be compensated. Compensatory allowances shall be additionally paid to agricultural entities in less-favoured areas and in areas where environmental constraints are applied. Areas where environmental constraints are applied shall be defined an institution authorised by the Government. 4. Direct payments and compensatory allowances shall be administered by the National Paying Agency under the Ministry of Agriculture. Article 10. Intervention Buying-in and other Intervention Measures 1. Seeking that, because of a surplus of certain agricultural products or foodstuffs, or due to other objective reasons, prices of such products would not fall below the level set by the Government, intervention buying-in shall be carried out in the manner prescribed by the Ministry of Agriculture. 2. Other intervention measures, applied in the manner prescribed by the Ministry of Agriculture, shall be as follows: 1) private intervention storage; 2) not putting of certain agricultural products and foodstuffs on the market by a producers’ organisation; 3) aid for processing of agricultural products; 4) aid for consumption of agricultural products and foodstuffs in the internal market, so that the level of consumption of these products would the consumption level in the member states of the European Union. 3. Support to enterprises producing starch shall be provided only when these enterprises adhere to the minimum price, fixed by the Government or an institution authorised by it, of buying-in of potatoes intended for the manufacture of starch. 4. Intervention buying-in and other intervention measures shall be administered by an institution authorised by the Ministry of Agriculture. Article 11. Promotion of Export of Agricultural Products and Foodstuffs. Import thereof 1. The export and import procedure for agriculture products and foodstuffs shall be established by the Government. 2. In order to create the favourable environment for the development of export of agricultural products and foodstuffs, export promotion programmes and measures shall be implemented in the manner prescribed by the Government. When implementing export promotion programmes, the trade balance shall be monitored, studies of the domestic and foreign trade as well as other studies shall be conducted. Export promotion measures shall be administered by institutions authorised by the Government. 3. While promoting the export of agricultural products and foodstuffs, the Government shall: 1) set up trade missions in the states favourable for export of these products; 2) provide support to exporters of these products, who establish in foreign countries wholesale depots, warehouses, shops intended for the storage and sale of products produced in Lithuania; 3) provide support to scientific institutions and economic entities which create new competitive agricultural products and foodstuffs of good quality. 4. The imported agricultural products and foodstuffs must meet the requirements for safety, quality, phytosanitary, veterinary, breeding and other requirements established by laws and other legal acts. 5. Importers of agricultural products and foodstuffs shall be registered in accordance with the procedure established by laws and other legal acts. Article 12. Safety and Quality Requirements 1. Institutions authorised by the Government shall, within the competence granted to them by laws and other legal acts, approve requirements for the safety and quality of agricultural products and foodstuffs, assessment thereof, inspection procedures and methods, control procedure. 2. Safety and quality of agricultural products and foodstuffs produced, imported and exported from Lithuania shall be verified by institutions authorised by the Government within the competence granted to them by laws and other legal acts. 3. Safety and quality of agricultural products and foodstuffs shall be controlled at all stages of the production, treatment, processing, storage, transportation, buying-in and selling. 4. Persons producing, treating, processing, storing, transporting and selling agricultural products and foodstuffs, must create conditions for officers of institutions authorised by the Government to verify the safety and quality of such products. Article 13. Economic Regulation of Organic Agriculture 1. When developing a policy of organic agriculture, the Ministry of Agriculture shall establish the following: 1) the requirements for agricultural products and foodstuffs; 2) the procedure for setting and administration of an organic agriculture information system; 3) the institutions issuing certificates for organically-produced agricultural products and foodstuffs and exercising control over their production process (hereinafter referred to as a “certification body”); 4) the procedure for monitoring and control of the certification bodies issuing certificates for organic agriculture. 2. Promotional measures for organic agriculture shall be applied in the manner prescribed by the Ministry of Agriculture. 3. Certification bodies shall collect data, set by legal acts, pertaining to agricultural entities and other persons producing and processing organically-produced agricultural products and foodstuffs. Article 14. Regulation of Agri-environment In order to preserve the countryside, biological diversity and components of nature, institutions authorised by the Government shall: 1) draw up and approve agri-environmental programmes, and co-ordinate the implementation thereof; 2) prepare rules and recommendations regarding good-practice farming, provide for the procedure for implementation thereof; 3) organise the implementation of programmes on the reduction of pollution resulting from agricultural activities; 4) compensate agricultural entities for the expenses related to the implementation of the measures aimed at the environmental protection and preservation of he countryside; 5) support the agricultural entities applying the environmental requirements which are higher than mandatory. Article 15. State-supported Programmes on the Promotion of Consumption of Agricultural Products and Foodstuffs 1. In order to promote the consumption of agricultural products and foodstuffs, State-supported programmes on the promotion of consumption of such products shall be carried out in the manner prescribed by the Government or an institution authorised by it. 2. State-supported programmes on the promotion of consumption of agricultural products and foodstuffs shall comprise public information, advertising, organisation of fairs and exhibitions, participation in them, milk supplied to schools and other promotional measures promoting the use of certain agricultural products and foodstuffs. 3. State-supported programmes on the promotion of consumption of agricultural products and foodstuffs shall be approved and their implementation shall be supervised by an institution authorised by the Government. CHAPTER IV TRENDS OF SUPPORT FOR RURAL DEVELOPMENT Article 16. Trends of Support for Rural Development 1. Support for rural development shall be granted pursuant to the following trends: 1) support for persons investing in agricultural activities; 2) support for the establishment of young farmers; 3) support for science, consulting, training; 4) support for persons who decide to stop farming; 5) support for persons engaged in farming in less-favoured areas; 6) support for agri-environment; 7) support for improvements in the processing and marketing of agricultural products; 8) support for afforestation and forest management; 9) support for the building of roads and laying of electricity lines in rural areas, and the use thereof, as well as the improvement of water resources management, social infrastructure, the conservation of heritage, and the implementation of other measures related to reorganisation of rural areas; 10) support for land improvement and reparcelling; 11) support for the development of alternative agricultural activities; 12) support for the development of co-operation; 13) support for the reconstruction of buildings and construction works situated in rural areas and intended for agricultural activities, and the implementation of the programmes covering the adaptation and use of such buildings and construction works for the development of agricultural activities and alternative agricultural activities; 14) support for the development of self-government of farmers, the promotion of initiatives of rural communities and other local initiatives; 15) other measures important for rural development shall be applied in accordance with the procedure established by the Government or institutions authorised by it. 2. Support for afforestation and reorganisation of rural areas shall be granted with regards to projects pertaining to the land management of rural areas. 3. Concrete rural development measures and the procedure for financing thereof shall be established by the Government or institutions authorised by it. 4. Rural development measures shall be included in regional development plans. CHAPTER V SUPPORT FOR AGRICULTURAL AND RURAL DEVELOPMENT Article 17. Support for Agricultural and Rural Development 1. Support for agricultural and rural development shall be granted from national budget funds, resources of special and other support funds of the European Union, private and other funds. 2. Support for agricultural and rural development shall be granted in accordance with this Law and the financial priorities set by documents pertaining to agricultural and rural development, subject to the approval of the Seimas and the Government. 3. Persons meeting the requirements laid down in the legal acts regulating the granting of support shall qualify for support from the funds allocated for agricultural and rural development. 4. Preferential taxation rates shall apply to the agricultural entities whose annual income from agricultural activities makes up more than 50 per cents of the total income. An institution authorised by the Government shall establish the methodology of assessment of a part of income received from agricultural activities. 5. Land set aside because of the restrictions on crops areas and the number of animals, shall be exempt from taxes. 6. The procedure and conditions for payment for agricultural products shall be established by a separate law. Article 18. Administration of Support for Agricultural and Rural Development 1. Funds for the support granted by the European Union for agricultural and rural development shall be administered and functions related to the payment and control thereof shall be carried out by the National Paying Agency under the Ministry of Agriculture and other institutions authorised by the Government of the Republic of Lithuania and accredited by the European Commission. 2. Funds for the support granted by the State for agricultural and rural development shall be administered by the National Paying Agency under the Ministry of Agriculture and other institutions authorised by the Government. Article 19. Compensation for Losses and Insurance Contributions 1. When the State applies restrictions on agricultural activities by means of administrative methods, set by laws, and for the purposes of the environmental protection, phytosanitary, animal disease prevention and liquidation, the losses shall be compensated in the manner prescribed by the Ministry of Agriculture. 2. Contributions for insurance of crops areas, animals, agricultural machinery and premises of production against natural handicaps or insurance for other insurance events shall be compensated in part in accordance with the procedure established by the Ministry of Agriculture. 3. Support shall be granted in the manner prescribed by the Ministry of Agriculture to agricultural entities who, as a result of fire, communicable diseases, natural disasters, have lost part of or all buildings, agricultural machinery, equipment, animals and poultry. Article 20. Compensation for Loan Interest and Guarantee Payments A portion of loan interest, a portion of contributions of insurance for the property pledged to the bank, which has been acquired with loan resources, a portion of guarantee payment shall be compensated in the manner prescribed by the Ministry of Agriculture. Article 21. Support for Breeding and the Acquisition of Breeding Material Breeding of animals shall, in the manner prescribed by the Ministry of Agriculture, be supported, and support shall be granted for the acquisition of breeding material of productive plants, animals, poultry, and fish. Article 22. Support for Co-operation Development 1. The State targeted financing shall, in the manner prescribed by the Ministry of Agriculture, granted to co-operative societies (co-operatives) engaged in agricultural activities and (
2. or)alternative agricultural activities. 2. Co-operative societies (co-operatives) engaged in agricultural activities and (
3. or)alternative agricultural activities shall be granted tax relieves, soft and (
4. or)interest-free loans. 3. When improving the conditions of crediting business of agricultural entities, the State shall, from its own resources, grant a long-term, interest-free loan for the strengthening and development of credit institutions operating on co-operation grounds. 4. The procedure for granting support to producers’ organisations shall be established by the Ministry of Agriculture. CHAPTER VI AGRICULTURAL STATISTICS AND INFORMATIOn sYstem Article 23. Official Agricultural Statistics 1. Official agricultural statistics shall, pursuant to the Law on Statistics, be organised by institutions authorised by the Government. 2. In order to research competitive ability of agriculture, to calculate a value-added tax created in agriculture, and income of agricultural entities received from agricultural activities, institutions authorised by the Government shall set up economic accounts for agriculture. Article 24. Agricultural Census 1. With a view to compiling comprehensive data on country’s agriculture, agricultural surveys shall be carried out. 2. In the course of surveys, private land owners and agricultural entities shall be interviewed. Data relating to land and its use, number of animals, possessed buildings and agricultural machinery, labour force and its use, income and expenditure. 3. The interviewed persons must provide the data required in a census questionnaire. 4. Data obtained during the census shall be confidential and may only be used to get summary data. 5. The procedure and periodicity of agricultural censuses shall be established by the Government. Article 25. Integrated Administration and Control System 1. Seeking to ensure effective administration of State and European Union aid for agricultural and rural development, the Government of the Republic of Lithuania shall set up an integrated administration and control system. 2. The integrated administration and control system shall comprise the following elements: 1) a system for the identification and registration of agricultural parcels comprising graphic and attributive data; 2) an alphanumeric system for the identification and registration of animals; 3) aid applications; 4) an integrated control system; 5) a computerised data base. 3. The ministry of Agriculture shall establish the procedure for the setting-up and administration of the integrated administration and control system. Article 26. Agricultural and Rural Business Register 1. Seeking to ensure adequate administration and control of direct payments, support for rural development and other types of support, the Government shall establish an agricultural and rural development register. 2. The purpose and subject matter of the Register shall be defined in the Register regulations. The Register regulations shall be approved by the Government. 3. Functions relating to the keeping of the Register and the provision of data for State registers shall be assigned to an institution authorised by the Government and local authorities. Article 27. Network of Accountancy Data Relating to Farms 1. With a view to gathering information necessary to shape a policy of agricultural and rural development, institutions authorised by the Government shall each year carry out voluntary examination of the results of economic-financial activities of agricultural entities, and develop a network of accountancy data relating to farms. 2. The Ministry of Agriculture shall set a list of data necessary to create a network of accountancy data relating to farms, as well as the procedure for the collection, analysis and use of such data. Article 28. System of Information Relating to the Market in Agricultural Products and Foodstuffs 1. With a view to achieving the efficiency of agricultural products and foodstuffs market regulation measures, the institutions authorised by the Government shall research the market in agricultural products and foodstuffs, and develop its information system. 2. The Ministry of Agriculture shall set a list of data necessary to create a system of information relating to the market in agricultural products and foodstuffs, as well as the procedure for the collection, analysis and use of such data. Article 29. Provision and Use of Information 1. In order to control the compliance with the legal acts regulating the support for agricultural and rural development, and to ensure the implementation of the market regulation measures, the competent State and municipal authorities shall, in the manner prescribed by laws and other legal acts, have the right, within their competence, to obtain information from agricultural entities. 2. The competent State and municipal authorities shall ensure that the provided information will be used only for the purpose established by laws and other legal acts. CHAPTER VII FINAL PROVISIONS Article 30. Liability for Violations of this Law Persons who have violated the requirements of this Law shall be held liable in accordance with the procedure established by law. Article 31. Proposal to the Government 1. The Government shall, prior to the entry into force of this Law, designate authorised bodies and draw up laws and other legal acts necessary for the implementation of the provisions of this Law. 2. Before 1 May each year, the Government shall submit to the Seimas a report on the implementation of this Law. Article 32. Entry into Force of this Law 1. The Law shall enter into force on 1 January 2003, with the exception of paragraph 5 of Article 17. 2. Paragraph 5 of Article 17 of this Law shall enter into force from the date of the accession of the Republic of Lithuania to the European Union. 3. Upon the entry into force of this Law, the following legal acts shall become invalid: 1) the Republic of Lithuania Law on the State Regulation of Economic Relations in Agriculture (Valstybės žinios (Official Gazette), 1995, No. 1-5); 2) the Republic of Lithuania Law Amending Article 2, 4, 8, 9 of the Law on the State Regulation of Economic Relations in Agriculture (Official Gazette, 1996, No. 116-2694); 3) the Republic of Lithuania Law Amending Articles 6, 9 and 11 of the Law on the State Regulation of Economic Relations in Agriculture (Official Gazette, 1997, No. 96-2429); 4) the Republic of Lithuania Law Amending and Supplementing Articles 2, 4, 5, 6, 9, 14 of the Law on the State Regulation of Economic Relations in Agriculture (Official Gazette, 2000, No. 30-828); 5) the Law of the Republic of Lithuania on the State Support to Young Farmers (Official Gazette, 1999, No. 45-1434). I promulgate this Law passed by the Seimas of the Republic of Lithuania. PRESIDENT OF THE REPUBLIC VALDAS ADAMKUS