1. Integrated Administration and Control System(IACS)
Integrated Administration and Control System is the system which enables European Union to administrate and control the support applications of farmers under the Common Agricultural Policy (CAP).
EU rules on IACS have been regulated by Regulation No. 1306/2013 of financing, administrating and monitoring of the CAP.
Supports administrated and controlled under IACS are shown below:
- Single Payment Scheme
- Single Area Payment Scheme
- Other direct payments
- Rural Development Measures based on area/animal
- Agri-Environmental Measures
- Area Payments allocated to less developed regions
The sub-systems that help IACS to work are shown below:
- Computerized database
- Land Parcel Identification System (LPIS)
- System for the identification and registration of payment entitlements
- Aid applications
- Integrated control system
- Registration system for farmers who have applied for the support
In all the stages of evaluating the support applications, the controls shown below are performed:
- Visual Controls: The controls to check that application forms are properly filled and submitted.
- Harmonization Controls: The controls to compare the information logged into the system with the source documents.
- Administrative Controls: The controls to check the accuracy of the given data and data on the system. These controls have two parts:
- Basic Control: The controls to compare and check the data acquired during the application and the data registered as enterprises in the system.
- Cross Check: The controls to reveal the duplicate applications for the same area or the same payment entitlement by comparing the data acquired during the application with the data presented by the other enterprises.
- On-the-Spot checks: The controls to check the data acquired in application and the actual situations of the enterprises. These checks are performed through remote sensing with the data provided by a satellite.
The Project on Digitization of Land Parcel Identification System has been started in October 2014 in Turkey within the scope of establishment of IACS. As a requirement of the project, ortho-photos of Turkey will be taken and geographical database will be obtained by digitization of the ortho-photos according to the standards of LPIS.
2. The Farm Accountancy Data Network (FADN)
FADN which contains physical and economic data is one of the most important tools used by the European Commission to shape the CAP. The data collected by FADN is used for determining and monitoring the annual agricultural income of the enterprises and for assessing the performance of the enterprises and for many other purposes (such as scientific searches, disaster relief aids etc.). By this way, it is possible to analyse the effects of agricultural policy to the sector. FADN is the only system in which the micro economic data based on the enterprises are collected and analysed.
In 27 Member States, data collected from 85.000 enterprises which are chosen by a modelling method representing 6.400.000 enterprises is analysed by means of FADN. The system is regulated by the Regulation No. 79/65.
In order to contribute to the works for the establishment of the system, "Establishment of pilot FADN" project has been conducted between the years of 2007-2009 in context of 2006 PHARE Program. The consecutive project named "Extension and Enabling the Sustainability of Establishment of pilot FADN project" has started in May 2011 and has ended in December 2012.
FADN system has been established in 9 pilot provinces thanks to the contribution of the first EU twinning project started in 2007. Following the "Directive on the Establishment and Operation Procedure and Principles of FADN System" which was published on the Official Gazette No. 27118 of 22/01/2009, the legislation harmonization was completed.
FADN has been extended to whole Turkey by 2015 and the data has been collected from 6000 enterprises. Feedbacks are provided to the enterprises of which the data is collected from in the end of the year and they are financially analyzed. The system is optional and in order to include more enterprises to the system, 425TL/enterprise incentive pay is offered to the enterprises.
3. EU Paying Agencies
The main EU legislation concerning Paying Agencies is the Regulation No. 1306/2013 on the financing, management and monitoring of the Common Agricultural Policy.
Paying Agencies are the institutions to use the financial support that is provided by European Agricultural Guarantee Fund (EAGF) and European Agricultural Fund for Rural Development (EAFRD) for the implementation of the CAP.
Working areas of the Paying Agencies are given below:
- Intervention buying and sales,
- Export refunds,
- Monitoring product quotas,
- Import and export licenses,
- Direct income payments,
- Rural development measures,
- Food aids,
There are 3 supreme authorities/institutions regarding paying agencies:
Each Member State has to establish a "Competent Authority" that has broad authorities related with the accreditation of paying agencies,
This is an independent agency that audits the annual accounts and functioning of the Paying Agency according to the international standards, and reports the outcomes to the Competent Authority and to the EAGF.
If there is more than one Paying Agency in a country, establishment of a "Coordination Unit" is necessary.
Duties of the Coordination Unit are given below:
- Gathering and organizing the information regarding current Paying Agencies in order to transmit it to the Commission,
- Making suggestions to the Component Authority on conferral, maintaining and withdrawal of the accreditation of a Paying Agency relying on Certification Agencies' annual reports and Commission's reports.
Along with these three agencies, if there are delegated duties, "Delegated Bodies" also participate in the process. In this regard:
- Paying Agencies can delegate some of its duties by signing a time-limited protocol with proper agencies and corporations.
- Authorized agency holds its main activities.
- Current experience of authorized agencies is taken into account, and their storages and technical stuff are used for the duty in question.
- Even though an agency is authorized for a given duty, Paying Agency has the ultimate responsibility.
In order to be accredited, Paying Agency must have an administrative structure and an internal control system assuring that payments are legally and regularly made. For this purpose, Paying Agency must comply with the minimum accreditation conditions regarding internal environment, control activities, information, communication and observation that are laid down by the Commission. Paying Agencies which met these conditions are accredited.
Numbers, organizational structures and practices of Paying Agencies of the Member States vary from one Member State to another. There are 83 paying agencies in 28 EU Member States.
In the context of recent change in the EU policy, it is targeted that each Member State has only one Paying Agency.
In accordance with the latest legislation, each Member State has to have one accredited paying agency at national level taking into account of its own constitutional provisions. In case Member State comprises of regions, it has to have one paying agency per region. However, where paying agencies are established at regional level, Member States shall, in addition, either accredit a paying agency at national level for aid schemes which, by their nature, have to be managed at national level or shall confer the management of these schemes on their regional paying agencies.
4. EU Farm Advisory System (FAS)
Farm Advisory System (FAS) is a comprehensive system set up by Member States (MS) in order to help farmers to better understand and meet the EU rules for environment, public and animal health, animal welfare and the good agricultural and environmental conditions. FAS covers the overall organization and various public and/or private operator bodies contributing to the delivery of the various farm advisory services to farmers required within a MS. On the other hand, Farm Advisory Services refers the various advisory activities, called services, to be provided to farmers, ranging from information to one-to-one advice to group advice to overall farm advice.
FAS, initially introduced by the 2003 Common Agricultural Policy (CAP) Reform and MS had been requested to set up the system no later than the 1st of January 2007, in accordance with the article 13 of Regulation (EC) No 1782/2003. Accompanied by the cross- compliance mechanism which is a set of rules that farmers receiving direct payments are obligated to comply with, the basic rationale of FAS is to provide farmers advisory services to fulfil these mandatory requirements and manage to prevent any punitive consequences that may arise pursuant to the cross-compliance.
The advisory activity, at MS level, has to have the capacity to provide information and advice covering at least the scope of cross-compliance, i.e. the Statutory Management Requirements (SMR) and Good Agricultural and Environmental Conditions (GAEC) referred to in articles 4 and 6 of the Regulation (EU) 73/2009. On the other hand, MS, in setting-up the FAS, have wide latitude to design the FAS in such a way to meet their own needs and priorities. Although, in the first place, farmers who receive more than EUR 15,000 of direct payments per year had been designated to as the first priority service takers, by the recent modification following the "Health check revision of the CAP (2007 – 2008), MS are left free to decide on the farmers that will get service with priority.
FAS, in any way without affecting farmers' responsibility and liability related to legal obligations, should help farmers to gain greater awareness on and meet the EU rules for environment, public and animal health, animal welfare and the GAEC. Advisory services have been completely separated from the supervision and criminal control mechanisms. In this respect, farmers benefit from advisory services on the voluntary basis and are free to take action as a result of advisory activities. Another fundamental basis of the system being privacy, FAS MS authorities should act responsible about keeping confidential the information obtained from the farmers during advisory services.
Farm Advisory Services may partially be funded by the second CAP pillar (Regulation (EC) No 1698/2005) with possible support from the European Agricultural Fund for Rural Development (EAFRD), under measure 114 and 115. The setting up of farm management, farm relief and farm advisory services, as well as forestry advisory services may be supported by MS in their rural development program for 5 years in a gradually decreasing way, under measure 115. The use of advisory services by farmers under measure 114 may be partially funded under EAFRD. The amount of support, provided that the upper limit set to 1,500 euros, is 80 percent of the eligible cost of each advisory service.