Cross Compliance - Slovenian Experience

1. Cross Compliance - Slovenian Experience Benedikt JERANKO beno.jeranko@gov.si Head of Direct Payment Section Agency of the Republic of Slovenia for Agricultural Markets and Rural Development Brussels, 25 July 2007

2. Content s • Legal bases in Slovenia • Role of the Agricultural Advisory Service • Training • Control • Procedures at the Agency • Experience and critical view

3. Slovenian agriculture In 2007, Slovenia has launched a regional model of a single payment with coupling in the bovine animals sector and historic rights in the milk and sugar sector. General data on claims submitted in 2007: • Axis1 • 61.000 farms (450.000 ha) submitted a single payment claim • 3.000 farms submitted claims for small cattle • 37.000 farms (in 2006) submitted claims for bovine animal production payments (special and slaughter premiums, suckler cows, milk and extensification premium) • Axis 2 • 50.000 farms submitted LFA claims • 27.000 farms submitted claims for agri-environmental measures

4. Legal bases in Slovenia On the basis of the Agriculture Act, the Government of RS adopted the Decree on statutory management requirements and good agricultural and environmental conditions in farming, which determines the conditions of the implementation of the cross compliance statutory requirements for the implementation of: • Council Regulation (EC) No. 1782/2003; • Commission Regulation (EC) No. 796/2004; • Commission Regulation(EC) No. 1975/2006 as regards the implementation of cross compliance in respect of rural development measures

5. The content of the Slovenian Decree The Slovenian Decree on statutory management requirements and good agricultural and environmental conditions in farming specifies: • Conditions for meeting the cross compliance requirements • The mode of meeting the requirements • Competent authority for verification (AAMRD) • System of penalties (point system) • Persons liable

6. List of statutory management requirements List of statutory management requirements, which is an integral part of the national Decree, contains the data on: • EU REGULATION; • REQUIREMENTS laid down in EU regulation taken into consideration in cross compliance; • NATIONAL LEGISLATION of theRepublic of Slovenia that summarises the requirements laid down in EU regulation; • IMPLEMENTATION OF REQUIREMENTS from national legislation at the level of agricultural holdings; • REQUIREMENTS from national legislation that a person liable should comply with and are checked by controllers; • LEVEL OF INFRINGEMENT of requirements from national legislation expressed as a mark (penalty points).

7. Example from the Decree • The example represents a list of statutory requirements related to the nitrate standard EU REGULATION REQUIREMENTS NATIONAL LEGISLATION IMPLEMENTATION OF REQUIREMENTS REQUIREMENTS LEVEL OF INFRINGEMENT

8. Information and training Information and training are provided at two levels: • Training of on-the-spot agricultural advisors carried out in cooperation with: • Ministry of RS for Agriculture, Forestry and Food, • Agency of RS for Agricultural Markets and Rural Development, and • Agricultural Advisory Service. • Education of farmers is performed by on-the-spot agricultural advisors who are organised in the framework of the Agricultural Advisory Service of Slovenia

9. Agricultural Advisory Service Agricultural Advisory Service is organised within the Chamber of Agriculture and Forestry of Slovenia, which is a non-governmental peer organisation of the Slovenian agriculture. Chamber’s members are all Slovenian farmers. Agricultural Advisory Service: • 309 advisors with higher-education or university degree; • Organisation in 8 regional institutes all over Slovenia ensures that advisors are close to farmers; • Financing of the programme also from the national budget.

10. Advisory methods • Individual counselling • on a farm • in the office, by phone or E-mail • Drawing-up of written instructions and publication of brochures • Lectures, workshops, demonstrations • Training courses

11. Main task of agricultural counselling Advisory service explains a farmer the requirements in such a way that he/she can understand them and is capable of implementing them correctly and successfully in everyday practice. CC Farmer Requirements AAS What does it mean Requirements What should be done How to control How to do it AAMRD Controls

12. What and how to do in practice The example below is a part of lectures intended for farmers on meeting the animal welfare requirements. It indicates the proper handling of ill or injured animals.

13. Training of farmers to date Education was held as a part of regular programmes of the Agricultural Advisory Service: • Within subsidy campaign each year; • Within year-round activities: • Implementation of compulsory educational material for farmers included in the Slovenian agri-environmental programme (25.000 agricultural holdings included); • Special optional programmes; • By preparing expert printed material (MAFF, AAMRD and CAFS). Advisors were not particularly specialised for advising in the field of cross compliance.

14. System being implemented in 2007 In the field of advising and training related to cross compliance, the following is being implemented in 2007: • Certification of on-the-spot advisors for advising in the field of cross compliance; • Carrying out “preventive” controls and advising on farms; • Publication of a special Manual intended to all agricultural holdings in Slovenia.

15. Certification of advisors for CC The programme for obtaining a certificate for advising in the field of cross compliance was approved by the MAFF and comprises: • A 3-day seminar held by acknowledged Slovenian experts for individual fields of CC (it took place in three locations in November and December 2006, 288 advisors were included) • Practical work on a farm (held in May and June 2007) covering: • Inspection of a farm on the basis of a special questionnaire • Drawing-up of a special report • Consignment review of the written material on farms (being implemented). After successfully completed all three phases, advisors with a valid advising license will obtain a special certificate for advising in the field of cross compliance.

16. Visit of each farm Advisors with obtained certificate will visit all farms according to the following schedule: • Farms with established infringements as regards CC • Large farms • Risky farms The visit will cover: • General inspection of a farm; • Review of compliance with CC requirements; • Review of the records that have to be kept by an agricultural holding; • Advising on arrangement or improvement of the existing conditions.

17. The Ministry of Agriculture, Forestry and Food and the Chamber of Agriculture and Forestry of Slovenia have prepared a “MANUAL FOR THE IMPLEMENTATION OF CROSS COMPLIANCE REQUIREMENTS INTENDED TO AGRICULTURAL HOLDINGS”, which: is intended to all agricultural holdings and will be sent to them by mail; uniformly explains the requirements of all CC standards; provides instructions for handling and a self-evaluation tool; explains the mode of sanctions in case of infringements. Manual for the implementation of CC requirements

18. Form and contents of the Manual The contents in the columns of an individual “sheet”: • Cross compliance requirement indicatesspecific requirements of a certain standard and furthermore stipulates: • Level of infringement in case of incompliance with a requirement of the standard, • Goal that is aimed by a requirement. • A question from a record on control that represents a statement according to which controllers will verify a requirement for a certain standard. • Technical reasons and justification why the compliance with the requirements of a certain standard is necessary. • Handling of a farmer in everyday practice to prevent the infringement of a requirement of to eliminate irregularities. • Questions to assist farmers that enable the performance of self-control to obtain a realistic picture on meeting the cross compliance requirements for the entire agricultural holding.

19. Form and contents of the Manual -example • CC requirement • Level of infringement • Goal • A question from a record • on control • Technical reasons. • Handling of a farmer. Questions to assist farmers.

20. Control of compliance with requirements The control of compliance with the CC requirements is performed administratively on the basis of the existing registers and on-the-spot: • Within regular on-the-spot controls; • The performance of controls is a task delegated to a control organisation; • The control covers min. 1% of all persons liable selected on the basis of risk analysis for each standard separately; • The compliance with 94 requirements from all 15 standards is controlled; • Within controls carried out by “independent” inspection services

21. “Regular” on-the-spot control • The control is carried out on the entire farm; • Following the control, a controller completes a record signed by a controller himself and a farmer in 2 copies (1 copy remains on the farm); • The record forms a basis for a further action of the AAMRD; • Sanctions are settled by reducing the subsidy paid.

22. Other controls • On the basis of an agreement between the AAMRD and the contractors, which is amended annually, they are performed by: • Inspectorate for Agriculture, Forestry and Food; • Veterinary Administration; • Police; • Inspectorate for the Environment and Spatial Planning. • The AAMRD considers final decisions • Sanctions are settled by: • Reducing the subsidy paid if a notification precedes the payment; • Recovery if a notification is received after the payment was made. In case the infringer does not return the money after a call, the recovery is carried out by the Tax Administration of the RS.

23. The most frequent infringements established by inspection services All services work in cooperation and forward their findings. The most frequent infringements are as follows: • Spilling of slurry in the period of prohibition and in prohibited areas, • Inappropriate storage premises for food fertilisers, • Inappropriate marking of animals and improper keeping of registers of farm animals, • Inappropriate handling of animals, • Incineration in the wild and incineration of waste on a farm, • Inappropriate use of agricultural land or uncultivated agricultural land, • Infringements related to keeping and use of phytosanitary agents.

24. System of penalties • Slovenia has implemented a penalty points system. • The points per individual standards are summed-up: • If the total is 99 points, the eligible payments in a current year are reduced by 1 %. • In case of 100 or more points, the reduction of payment amounts to 3 %. • The percentages per individual standards are summed-up, however, they may not exceed 5 % of reduction for all payments in one year. • Even in case of a higher percentage the reduction of payments in a current year remains 5 %.

25. Penalties for repeated infringements • If the same infringement occurs in a consecutive year within the same standard: • The percentage of reduction is multiplied by factor 3, • However, the total percentage in a current year may not exceed 15 %. • When the reductions amount to 15 %, the AAMRD notifies a beneficiary that in case the infringement occurs again within the same standard, it will be deemed as intentional. • In case of intentional infringements, the total amount of reduction may exceed 15 %, and according to the importance of the infringement a beneficiary may even be forfeitured of a right to payment in a current year.

26. Experience, problems • Legislation • General legislation that is difficult to implement; • Education of and information for farmers: • The role of on-the-spot advisor being in direct contact with a farmer is of crucial importance • Written material must be easily understood and sufficiently professional • Implementation of new methods (internet) • Control • On-the-spot controls are very demanding and of long duration; • Demanding training of controllers; • Difficult cooperation with bodies outside the agricultural sector (police);