EUROPEAN COMMISSION. SA (2016/N) Bavaria - Conservation of endangered breeds in agriculture

Transcription

1 EUROPEAN COMMISSION Subject: Brussels, C(2017) 1837 final State aid / Germany SA (2016/N) Bavaria - Conservation of endangered breeds in agriculture Sir, The European Commission ("the Commission") wishes to inform Germany that, having examined the information supplied by your authorities on the State aid scheme referred to above, it has decided not to raise any objections to the relevant scheme as it is compatible with the internal market pursuant to Article 107(3)(c) of the Treaty on the Functioning of the European Union ("TFEU"). The Commission has based its decision on the following considerations: 1. PROCEDURE (1) By letter of 4 November 2016, registered by the Commission on the same day, Germany notified, according to Article 108(3) TFEU, the above mentioned aid scheme. (2) The Commission sent a request for additional information on 20 December 2016 which the German authorities answered by letter of 16 January 2017, registered by the Commission on the same day. 2. DESCRIPTION 2.1. Title (3) Bavaria: Conservation of endangered breeds in agriculture 2.2. Objective (4) With the present scheme the authorities of Bavaria wish to preserve and stabilise the population of endangered local breeds of cattle, sheep and equidae. The scheme is aiming to compensate for the economic disadvantage stemming from the breeding or keeping of endangered local farm animal breeds traditionally reared for many years in Bavaria. Seiner Exzellenz Herrn Sigmar GABRIEL Bundesminister des Auswärtigen Werderscher Markt 1D Berlin Commission européenne/europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË

2 2.3. Legal basis (5) Richtlinien für die Förderung von Maßnahmen zur Erhaltung gefährdeter einheimischer landwirtschaftlicher Nutztierrassen (Directives on granting of aid for measures for the conservation of endangered local farm animal breeds) Duration (6) From the date of the approval by the European Commission until 31 December Budget (7) The overall budget is EUR 2.4 million (EUR 0.6 million per year) Beneficiaries (8) Beneficiaries are small and medium sized undertakings (SMEs) as defined in Annex I of Commission Regulation (EU) No 702/ The aid can be granted to farmers and their associations, irrespective of the chosen legal form, as well as to other land managers with animal husbandry in Bavaria. The aid will not be granted to: (a) (b) undertakings in difficulty within the meaning of point (35)(15) of the European Union Guidelines for State aid in the agricultural and forestry sectors and in rural areas 2014 to (hereinafter, "the Guidelines"); undertakings subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the internal market Description of the scheme (9) The purpose of the aid scheme is to compensate for the economic disadvantage stemming from the breeding or keeping of endangered local farm animal genetic resources. For reasons of animal husbandry and regional culture it is deemed necessary to preserve local breeds of farm animals in Bavaria by maintaining and restoring a sufficient basis of animal husbandry. The measure is not part of the Rural Development Programme for Bavaria but is an element of the rural development policy. (10) The present notification has as background a State aid scheme which was approved by the Commission under State aid No. SA and ended on 31 December (11) The present notified scheme supports the keeping of cattle, sheep and equidae of endangered breeds and consists of the following measures: (1) insemination by 1 Commission Regulation (EU) No 702/2014 of 25 June 2014 declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union, OJ L 193, , p OJ C 204 of , p. 1. Amended by the Notice published in OJ C 390, , p. 4 and by the Corrigendum published in OJ C 265, , p. 5. 2

3 the use of stock bulls (Zuchtbulleneinsatz im Natursprung), (2) dairy farming with milk yield examination (Milchviehhaltung mit Milchleistungsprüfung), (3) suckler cow husbandry (Mutterkuhhaltung), (4) provision of breeding animals for the production of embryos (Bereitstellung von Zuchttieren zur Gewinnung von Embryonen), (5) keeping of ewes and sires (Haltung von Mutterschafen und Vatertieren) and (6) keeping of brood mares of endangered breeds (Haltung von Zuchtstuten gefährdeter Nutztierrassen). The following local breeds of cattle are eligible: Murnau-Werdenfelser (foreign gene ratio of maximum 50 %), Pinzgauer alter Zuchtrichtung (foreign gene ratio of maximum 25 %), Deutsches Braunvieh alter Zuchtrichtung (foreign gene ratio of maximum 12.5 %), Ansbach-Triesdorfer-Rind (foreign gene ratio of maximum 12.5 %), Rotvieh Zuchtrichtung Höhenvieh (foreign gene ratio of maximum 12.5 %) and Deutsches Gelbvieh (Frankenvieh, pure breed). The following local breeds of sheep are eligible: Rhönschaf, Coburger Fuchsschaf, Weißes Bergschaf mit geschecktem Bergschaf, Braunes Bergschaf mit schwarzem Bergschaf, Alpines Steinschaf, Krainer Steinschaf, Brillenschaf and Waldschaf. The following breeds of equidae are eligible: Rottaler Pferd (Rottaler gene ratio of minimum 25 % and at least four registered generations) and Leutstettener Pferd. (12) The number of female animals of the eligible breeds is registered by the Information and Documentation Centre for Biological Diversity of the Federal Office for Agriculture and Food (Informations- und Dokumentationszentrum Biologische Vielfalt (IBV) der Bundesanstalt für Landwirtschaft und Ernährung). The data is stored in a national database named TRGDEU: the Central Documentation on Animal Genetic Resources in Germany (Zentrale Dokumentation Tiergenetischer Ressourcen in Deutschland), accessible on the website: (13) The number of animals and the endangered status of the eligible breeds is certified by the Friedrich Löffler Institute for Farm Animal Genetics in Mariensee (FLI). The institute has a long-standing expertise in the field of conservation of genetic resources in livestock breeding. It is also represented in the Technical Advisory Group for animal genetic resources in Germany, advising the Federal Government of Germany as well as the Länder on matters relating to the conservation of animal genetic resources. (14) The beneficiaries of the aid will have to comply with the following general requirements: (a) (b) (c) (d) all breeding animals have to be registered in a herd book of an officially recognised breeders' organisation. The entry of the breeding animals in each individual case is examined before an authorisation; the beneficiary has to participate in a breeding conservation programme (Erhaltungszuchtprogramm); the beneficiary has to commit for the keeping of the endangered animals at least five years; the number of animals approved in the first year has to be kept on average during the five year commitment period; the granting authority is to be provided with all genetically relevant data upon request; 3

4 (e) the aid beneficiary has to ensure a sustainable animal husbandry, in line with animal welfare standards and comply with the requirements of good agricultural practice. (15) The German authorities confirmed that the commitments will be voluntary and will be concluded for a period of five years. Moreover they declared that the commitments go beyond the relevant mandatory standards established pursuant to Chapter I of Title VI of Regulation (EU) No 1306/2013 3, the relevant criteria and minimum activities as established pursuant to points (c)(ii) and (c)(iii) of Article 4(1) of Regulation (EU) No 1307/2013 4, as well as other relevant mandatory requirements established by national law, in particular defined in the framework of the breeding conservation programmes aiming to preserve biodiversity. (16) With regard the recognised breeders' organisations, Germany confirmed that they have the necessary skills and expertise concerning the identification of the breeds concerned. They rely, in this respect, on animal identification in accordance with the relevant national legislation (Viehverkehrsverordnung), as well as other data collected by breeders' organisations. (17) Eligible will be only those breeds that have been reared in Bavaria for many years and have been adapted genetically to the environment or originate from Bavaria. Form of aid (18) Direct grant. Eligible costs (19) The German authorities provided detailed information on the calculation method and the economic disadvantage resulting from the different commitments. The calculations were carried out by the Institute for Agricultural Economics of the Bavarian Regional Office for Agriculture (Institut für Agrarökonomie der Bayerischen Landesanstalt für Landwirtschaft). (20) Payments will be made only on the basis of income forgone and additional costs incurred. The payments will be based on the economic disadvantage resulting for farmers from keeping the endangered breeds instead of commercial breeds. This economic disadvantage is calculated on the basis of a comparison of the respective breed-specific contribution margin of the endangered farm animal with the contribution margin resulting from the general production procedure with the respective commercial breed (Fleckvieh). The scheme does not include any transaction costs. (21) The annual compensation grants per animal (in EUR)* will be the following: 3 4 Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008, OJ L 347, , p Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy and repealing Council Regulation (EC) No 637/2008 and Council Regulation (EC) No 73/2009, OJ L 347, , p

5 Cattle Sheep Equidae Breed Measure Stock bulls Dairy farming Suckler cow husbandry Embryo production Ewes and sires Brood mares Murnau-Werdenfelser Pinzgauer alter Zuchtrichtung Deutsches Braunvieh alter Zuchtrichtung Ansbach-Triesdorfer-Rind Rotvieh Zuchtrichtung Höhenvieh Deutsches Gelbvieh (Frankenvieh) Alpines Steinschaf, Krainer Steinschaf, Brillenschaf Rhönschaf, Coburger Fuchsschaf, Weißes Bergschaf einschl. geschecktes Bergschaf, Braunes Bergschaf einschl. schwarzes Bergschaf., Waldschaf Rottaler Pferd, Leutstettener Pferd * with regard to cattle and equidae, the conversation rate set out in Annex II of Commission Regulation (EU) No 808/ is 1.0 livestock unit per animal. With regard to sheep, the conversation rate is 0.15, therefore the equivalent aid amount is EUR 200 for the breeds Alpines Steinschaf, Krainer Steinschaf and Brillenschaf and EUR 167 for the other sheep breeds. (22) According to the information provided by the German authorities, the grant will only cover a part of the economic disadvantage incurred by the farmer keeping the endangered breed instead of the commercial breed. Where the amount of the grant goes beyond the maximum aid amount established in point (228) of the Guidelines, namely 200 EUR, the German authorities indicate that the compensation for the economic disadvantage is in all cases less than 100 %. It is 42% in case of stock bulls, 22 % for dairy farming with milk yield examination for the breed Murnau-Weldenfelser, 20 % for embryo production and 13% for brood mares. (23) The grant for the keeping of a stock bull is set at EUR 250. According to the information provided the economic disadvantage resulting from the costs of keeping of such a bull compared to the costs of artificial insemination is EUR 589 and the grant thus only offsets 42 % Commission Implementing Regulation (EU) No 808/2014 of 17 July 2014 laying down rules for the application of Regulation (EU) No 1305/2013 of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (EAFRD), OJ L 227, , p

6 (24) The grant for the measure dairy farming with milk yield examination is set at EUR 250 for the breed Murnau-Werdenfelser. According to the information provided this breed shows with EUR the biggest economic disadvantage compared to the reference breed Fleckvieh. The grant only covers 22 % of this economic disadvantage. (25) The provision of breeding animals for the production of embryos concerns a targeted action for in-situ conservation. The grant for this measure is set at EUR 300. The German authorities provided detailed information on the costs of an embryo transfer. According to the information provided, the total cost of such an intervention amounts to EUR The grant therefore only covers 20 % of the actual costs. The German authorities confirmed that the grant will only be paid if an embryo transfer effectively took place. (26) The grant for the keeping of brood mares of endangered breeds is set at EUR 250. According to the information provided, the yearly economic disadvantage resulting to breeders from keeping the endangered breed instead of the reference breed results in EUR (calculated as a yearly average on the basis of the sale of foals over a period of five years). The grant therefore only covers 13 % of the income foregone. (27) The German authorities commit to grant the aid only for activities undertaken after an application containing data on the beneficiary, on the activity, on the commitment period and the eligible costs, together with all necessary documents, properly submitted to the competent authority and accepted by the latter. (28) The granting authority is the Bavarian Federal State Office for Agriculture (Bayerische Landesanstalt für Landwirtschaft) for applications concerning equidae and the competent regional Offices for Food, Agriculture and Forestry in Bavaria (Ämter für Ernährung, Landwirtschaft und Forsten) for applications concerning cattle and sheep. (29) According to the information submitted by the German authorities, the undertakings which will carry out the operations under this scheme will be provided with the necessary knowledge and information through public authorities for food, agriculture and forestry, counselling entities, regional offices and farm unions and specialized training programmes for farmers (BILA- Bildungsprogramm Landwirt). (30) As explained by the German authorities, the scheme aims to preserve rare and endangered breeds of farm animals, making a contribution to a locationappropriate farming and no negative impact on the environment has been identified. (31) Germany furthermore explained that the scheme aims at the preservation as well as at the promotion of the necessary changes to agricultural practices that make indeed a positive contribution to the environment. The scheme promotes the specific objective linked to the ways of using agricultural land which are compatible with the protection and improvement of the environment, the landscape and its features, natural resources, the soil and genetic diversity. The scheme aims at maintaining and stabilising the endangered farm animal breeds, supporting the pasture and grassland management and landscape conservation, and contributes to preserve the cultural landscape. 6

7 2.8. Other commitments (32) The German authorities have confirmed that aid under the scheme cannot be cumulated with aid received from other local, regional, national or EU schemes to cover same eligible costs, neither with de minimis aid. (33) The German authorities have informed the Commission that a revision clause according to point (724) of the Guidelines will be included in the decisions of the granting authority. (34) Germany has informed the Commission that in order to comply with the transparency requirements, the publication of the aid scheme and the individual aid grants above EUR will be done through the following web page: In addition, information about the aid scheme will be also published on the website of the Bavarian Ministry of Food, Agriculture and Forestry. 3. ASSESSMENT 3.1. Existence of aid - Application of Article 107(1) TFEU (35) According to Article 107(1) of the TFEU, "[s]ave as otherwise provided in the Treaties, any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the internal market". (36) The qualification of a measure as aid within the meaning of this provision therefore requires the following cumulative conditions to be met: (i) the measure must be imputable to the State and financed through State resources; (ii) it must confer an advantage on its recipient; (iii) that advantage must be selective; and (iv) the measure must distort or threaten to distort competition and affect trade between Member States. (37) The scheme in question confers an advantage on its recipients because it relieves them from costs linked to the breeding of animals. This advantage is granted through State resources, is imputable to the State (recitals (5) and (7)) and it favours farmers in Bavaria rearing cattle, sheep and equidae breeds (recital (11)) that are considered as in danger of being lost to farming. According to the case law of the Court of Justice, the mere fact that the competitive position of an undertaking is strengthened compared to other competing undertakings, by giving it an economic benefit which it would not otherwise have received in the normal course of its business, points to a possible distortion of competition. 6 (38) Pursuant to the case law of the Court of Justice, aid to an undertaking appears to affect trade between Member States where that undertaking operates in a market open to intra-eu trade. 7 The beneficiaries of aid operate on a market where intra- 6 Judgment of the Court of 17 September 1980 in Case 730/79 Philip Morris Holland BV v Commission of the European Communities, ECLI:EU:C:1980: See in particular the judgment of the Court of 13 July 1988 in Case 102/87 French Republic v Commission of the European Communities, ECLI:EU:C:1988:391. 7

8 EU trade takes place. 8 The sector concerned is open to competition at EU level and therefore sensitive to any measure in favour of the production in one or more Member States. Therefore, the present scheme is liable to distort competition and to affect trade between Member States. (39) In light of the above, the conditions of Article 107(1) of the TFEU are fulfilled. It can therefore be concluded that the proposed scheme constitutes State aid within the meaning of that Article. The aid may only be considered compatible with the internal market if it can benefit from one of the derogations provided for in the TFEU Lawfulness of the aid Application of Article 108(3) TFEU (40) The aid scheme was notified to the Commission on 4 November 2016 and has not been implemented yet. Therefore, Germany has complied with its obligation under Article 108(3) TFEU Compatibility of the aid Application of Article 107(3)(c) TFEU (41) Under Article 107(3)(c), an aid may be considered compatible with the internal market, if it is found to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest. (42) For this derogation to be applicable, the aid must comply with the relevant Union State aid rules Application of the European Union Guidelines for State aid in the agricultural and forestry sectors and in rural areas 2014 to 2020 (43) As regards the notified aid scheme, Part II, Section of the Guidelines is applicable. Thus, the Commission will examine below whether the notified scheme complies with the common assessment principles of the Guidelines as well as the specific conditions in Part II, Section Common Assessment Principles Contribution to a common objective (44) As described in recitals (4) and (9), the objective of the present notified aid scheme is to introduce an agri-environment-climate measure aiming at the conservation of the diversity of animal genetic resources in agriculture. It contributes to a common objective in line with point (43) of the Guidelines. The measure is not part of the Rural Development Programme of Bavaria (see recital 8 Statistical data show that in 2014 German trade with all agricultural products with EU countries amounted to EUR million for exports and to EUR million for imports. Source: European Commission, Agriculture in the European Union and the Member States - Statistical factsheets, Germany - April Available at 8

9 (9)). However, it is foreseen in Article 28(10)(b) of Regulation (EU) 1305/ and in Article 7 of Regulation (EU) 807/ Therefore point (47) of the Guidelines is complied with. (45) No negative impacts on the environment within the meaning of point (52) have been identified (recitals (30)-(31)). Need for State intervention (46) According to point (55) of the Guidelines, the Commission considers that the market is not delivering the expected objectives without State intervention concerning the aid measures fulfilling the specific conditions laid down in Part II of the Guidelines. Therefore, such aid should be considered necessary to achieve the objectives of common interest specified under Section 3.1. of Part I of the Guidelines. As the current aid scheme fulfils the specific conditions laid down in Part II, in Section of the Guidelines, as described in recitals (56)-(66) below, point (55) of the Guidelines is complied with. Appropriateness of aid (47) According to point (57) of the Guidelines, the Commission considers that aid granted in the agricultural sector, which fulfils the specific conditions laid down in the relevant Sections of Part II of the Guidelines, is an appropriate policy instrument. As the aid scheme fulfils the specific conditions laid down in Part II, Chapter of the Guidelines, as described in recitals (56)-(66) below, point (57) of the Guidelines is complied with. (48) In order to preserve and expand the population of the endangered breeds, a direct grant per animal was chosen by Germany as the most appropriate aid instrument. That instrument is the one that is logically to be used for premia aimed at compensating for additional costs and loss of income resulting from the commitments mentioned in the specific conditions laid down in Part II, Section of the Guidelines. Therefore point (60) of the Guidelines is complied with. Incentive effect and need for aid (49) The aid will be granted only for commitments that start after the submission of the application form which contains data on the beneficiary, the activity, the commitment period (see recital (27)). The amount of aid is based on standard rates calculated according to the activity and the animal breeds concerned. (50) Therefore, the incentive effect requirements under points (70) and (71) of the Guidelines are complied with. Proportionality of the aid and cumulation 9 10 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, OJ L 347, , p Commission Delegated Regulation (EU) No 807/2014 of 11 March 2014 supplementing Regulation (EU) No 1305/2013 of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and introducing transitional provisions, OJ L 227, , p. 1. 9

10 (51) Pursuant to point (82) of the Guidelines, in principle, in order for the aid to be proportionate the Commission considers that the aid amount should not exceed the eligible costs. Point (84) of the Guidelines states that the criterion of proportionality is deemed to be fulfilled if the eligible costs are correctly calculated and the maximum aid intensities or maximum aid amounts set out in Part II of the Guidelines are respected. In that regard it is noted that the Guidelines establish certain maximum aid amounts which may be increased in duly substantiated cases taking into account specific circumstances to be justified to the Commission. As described in recitals ((22)-(26)), the aid compensates only partially for additional costs and loss of income resulting from the commitments. The aid amounts for certain local animal breeds go beyond the maximum aid amounts established in point (228) of the Guidelines. However, the German authorities provided justification for those exceptional rates, as required by point (229) of the Guidelines (see recitals (22)-(26)). Thus, the Commission considers that, in view of the specific characteristics of the activity and the increased costs for those breeds it is justified to depart from the maximum ceilings. With regard to point (85) of the Guidelines, the eligible costs are supported by clear, specific and contemporary documentary evidence (recital (27)). The aid amount per animal is not calculated by the granting authority when granting the aid since the amounts per animal are established as standard amounts (listed in recital (21)), only covering a part of the economic disadvantage incurred by the beneficiary. (52) The amounts of aid are fixed on the basis of standard assumption of additional costs and income forgone and the calculations are based on figures established by appropriate expertise, as provided for in point (93) of the Guidelines (see recital (19)). (53) Pursuant to points (99) and (104) of the Guidelines, the legal basis and the compulsory application form include rules for cumulation and avoidance of double funding. They are described in recital (32). Avoidance of undue negative effects on competition and trade (54) According to point (113) of the Guidelines, the Commission considers that where an aid fulfils the conditions laid down in the applicable Sections of Part II of the Guidelines, the negative effect on competition and trade is limited to the minimum. The aid scheme fulfils the conditions laid down in Part II, in Section of the Guidelines, as described in recitals (56)-(66) below, and therefore point (113) of the Guidelines is complied with. Transparency (55) The information required under point (128) of the Guidelines will be published on a comprehensive State aid website (see recital (34)). Therefore, the transparency requirement is complied with Specific assessment according to the category of aid (Part II, Section ) (56) According to point (208) of the Guidelines the aid for agri-environment-climate commitments applies to undertakings which undertake on a voluntarily basis operations consisting of one or more agri-environment-climate commitments. These conditions are fulfilled as shown in recitals (14) and (15). 10

11 (57) In line with point (209) of the Guidelines, Germany confirmed that the measure aims at the preservation as well as at the promotion of the necessary changes to agricultural practices that make a positive contribution to the environment. (recital (31)). (58) Germany confirmed that, in line with point (210) of the Guidelines, the aid will cover only those voluntary commitments going beyond the relevant mandatory standards established pursuant to Chapter I of Title VI of Regulation (EU) No 1306/2013, the relevant criteria and minimum activities as established pursuant to points (c)(ii) and (c)(iii) of Article 4(1) of Regulation (EU) No 1307/2013, as well as other relevant mandatory requirements established by national law (recital (14)). (59) With regard to point (211) of the Guidelines, the German authorities explained that the undertakings which will carry out the operations under this scheme will be provided with the necessary knowledge and information through several specialized bodies and training/information programmes (recital (29)). (60) The voluntary commitments under an agri-environment-climate measure must be undertaken for a period of 5 to 7 years. The commitments undertaken by the beneficiaries last for a period of at least 5 years (recital (14)(c)). Therefore, the condition of point (212) of the Guidelines is fulfilled. (61) As regards the condition of point (216) of the Guidelines, that commitments under the agri-environment-climate measure to rear local breeds in danger of being lost to farming must require to rear animals genetically adapted to one or more traditional production systems or environments in the country, the German authorities stated that the eligible breeds originate from Bavaria or have been reared in Bavaria for many years and have been genetically adapted to the environment (recital (17)). (62) According to point (217) of the Guidelines the following species of farm animals are eligible for aid: cattle; sheep; goats; equidae; pigs and birds. The scheme concerns cattle, sheep and equidae (recital (11)), therefore this condition is complied with. (63) According to point (218) local breeds will be considered as being in danger of being lost to farming if the number, at national level, of breeding females concerned is stated, that number and the endangered status of the listed breeds is certified by a duly recognised relevant scientific body; a duly recognised relevant technical body registers and keeps up-to-date the herd or flock book for the breed and the bodies concerned possess the necessary skills and knowledge to identify animals of the breeds in danger. As described in recitals (12), (13), (14)(a) and (16) these conditions are complied with. (64) The aid must be granted annually and must cover compensation to beneficiaries for all or part of the additional costs and income foregone resulting from the commitments they made (point (221) of the Guidelines). The aid in question covers compensation to beneficiaries for the additional costs and income foregone resulting from the commitments they made (recital (20)). The aid is granted annually (recital (21)). Therefore, the conditions of point (221) of the Guidelines are fulfilled. 11

12 (65) In line with point (227)(a) of the Guidelines, the aid for the conservation of genetic resources covers costs concerning actions promoting the in situ conservation, characterisation, collection and utilisation of genetic resources (recital (25)). (66) According to point (228) of the Guidelines, aid must be limited to the following maximum amount: EUR 200 per livestock unit per year for local breeds in danger of being lost to farming. This amount may however be increased in duly substantiated cases taking into account specific circumstances to be justified in the notification to the Commission (point (229) of the Guidelines). The German authorities provided detailed calculation for the sub-measures and conveyed detailed justification for the additional aid exceeding the maximum amounts (recitals (22) to (26)). Against this background, the Commission considers that the condition concerning the aid amount is fulfilled. (67) Under the present scheme aid may be provided to other land managers with animal husbandry in Bavaria (recital (8)), therefore point (659) of the Guidelines is applicable. In view of the fulfilment of the applicable conditions set out in point of Part II of these Guidelines (recitals (56)-(66)), the Commission considers that this provision defined in point (660) is respected. The additional provisions referred to in points (661) and (662) are complied with as the other land managers (horse owners, referred to in recital (8)) undertake, on a voluntary basis, operations consisting of agri-environment-climate commitments on agricultural land and the operations have an environmental objective (recital (31)). The provision referred to in point (663) is not pertinent, as the commitments supported by the present aid scheme are covered by point (218) of the Guidelines. (68) According to point (724) of the Guidelines, Germany committed to ensure the adjustment of the scheme in the case of amendments of the relevant mandatory standards, requirements or obligations with regard to the agri-environmentalclimate commitments (recital (33)). (69) Taking the above into consideration, the Commission considers that the relevant provisions of the Guidelines are complied with Other general conditions (70) The legal basis excludes from the scope of the beneficiaries undertakings in difficulty within the meaning of point (35)(15) of the Guidelines and undertakings which are subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the internal market (recital (8)). Therefore the conditions of points (26) and (27) of the Guidelines are fulfilled. 4. CONCLUSION The Commission has accordingly decided not to raise objections to the notified aid scheme on the grounds that it is compatible with the internal market pursuant to Article 107(3)(c) TFEU. 12

13 If any parts of this letter are covered by the obligation of professional secrecy according to the Commission communication on professional secrecy in State aid decisions 11 and should not be published, please inform the Commission within fifteen working days of notification of this letter. If the Commission does not receive a reasoned request by that deadline Germany will be deemed to agree to the publication of the full text of this letter. If Germany wishes certain information to be covered by the obligation of professional secrecy please indicate the parts and provide a justification in respect of each part for which non-disclosure is requested. Your request should be sent electronically via the secured system Public Key Infrastructure (PKI) in accordance with Article 3(3) of Commission Regulation (EC) No 794/ , to the following address: agri-state-aids-notifications@ec.europa.eu. For the Commission Phil HOGAN Member of the Commission 11 Commission communication C(2003) 4582 of 1 December 2003 on professional secrecy in State aid decisions, OJ C 297, , p Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EU) 2015/1589 laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union (OJ L 140, , p. 1). 13