Member States should provide the Commission with the available data related to the application of the aid for starch potato provided for in Article 93 of Regulation (EC) No 1782/2003 and the aid for sugar beet and cane producers provided for in Chapter 10f of Title IV of Regulation (EC) No 1782/2003. Article 3(c) of Commission Regulation (EC) No 1973/20042 should be amended accordingly.

Article 90 of Regulation (EC) No 1782/2003 as amended by Regulation (EC) No 319/2006, provides for the possibility to grant aid for energy crops in respect of areas whose production is covered by a contract between the farmer and the collector. Implementing rules on the aid for energy crops set out in Regulation (EC) No 1973/2004 should be adapted accordingly.

Article 33 of Regulation (EC) No 1973/2004 provides that energy products have to be obtained at the most by a second successive processor. However, as far as the non-food on the set-aside scheme is concerned, Article 156 of that Regulation provides that non-food products shall be produced at the most by a third successive processor. Experience after two years of implementation of the energy crops scheme shows that it is appropriate to align the two schemes introducing the third successive processor also in the energy crops scheme. Articles 33, 37 and 38 of Regulation (EC) No 1973/2004 should, therefore, be adapted accordingly.

Provision should be made to determine the detailed rules of the integrated administration and control system set out in Commission Regulation (EC) No 796/2004 of 21 April 2004 laying down detailed rules for the implementation of cross-compliance, modulation and the integrated administration and control system provided for in of Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers3 to be applied as regards the separate sugar payment scheme established under Article 143ba of Regulation (EC) No 1782/2003.

One of the aims of the reform in the sugar sector, as provided for in Council Regulation (EC) No 318/2006 of 20 February 2006 on the common organisation of the markets in the sugar sector4, is to enhance the market-orientation of the Community sugar sector. Therefore, in order to increase the outlets for the products in this sector, it is appropriate to consider sugar beet, Jerusalem artichokes and chicory roots eligible for the aid for energy crops scheme and to accept the cultivation of those crops, for purposes other than sugar production, on land eligible to receive set-aside entitlements.

Article 171cm(5) of Regulation (EC) No 1973/2004 prevents the farmers from lodging an application for an advance on tobacco aid once they have begun making deliveries. That provision does not allow for applications to be lodged in the case of producers of early tobacco varieties. It is therefore appropriate to remove that provision.

In application of Article 71(1) of Regulation (EC) No 1782/2003, Slovenia decided to apply the single payment scheme in 2007. The third subparagraph of Article 71(1) of that Regulation provides that the transitional period shall apply only until 31 December 2005 in respect of hops. Slovenia would therefore be obliged to implement the single payment scheme only for that sector and integrate all the other sectors in 2007. In order to facilitate the transition towards the single payment scheme, Article 48a(11) of Commission Regulation (EC) No 795/2004 of 21 April 2004 laying down detailed rules for the implementation of the single payment scheme provided for in Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers5, provides for the continuation of the applicability of the previous hops regime in Slovenia until 31 December 2006 and therefore to proceed to the implementation of the single payment scheme for all sectors concerned in 2007. It is, therefore, appropriate to align the provisions of Regulation (EC) No 1973/2004 with those contained in Regulation (EC) No 795/2004 and, thus, to provide for the applicability, in Slovenia until 31 December 2006, of the implementing rules provided for in Commission Regulation (EC) No 609/1999 of 19 March 1999 laying down detailed rules for granting aid to hop producers6.

Pursuant to the second paragraph of Article 71 of Regulation (EC) No 1973/2004, Spain has proposed an amendment of Annex X to that Regulation with a view to adding the less-favoured areas in the provinces of Coruña and Lugo situated in the Autonomous Region of Galicia and provided the Commission with a detailed justification of this proposal which indicates that the criteria referred to in Article 113(2) of Regulation (EC) No 1782/2003 are fulfilled. Taking account of this justification, Annex X to Regulation (EC) No 1973/2004 should be amended in order to insert the areas in question.

Annex II to Commission Decision C(2004) 1439/3 of 29 April 2004 concerning the minimum size of eligible area per holding, the agricultural area under the single area payment scheme and the annual financial envelope in respect of the year 2004 for the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Poland and Slovakia, sets out the agricultural area under the single area payment scheme referred to in Article 143b(4) of Regulation (EC) No 1782/2003. The respective figure concerning Poland has been amended by Commission Decision C(2005) 4553 of 25 November 2005. That amount should also be reflected in Annex XXI to Regulation (EC) No 1973/2004.

Annex XXI to Regulation (EC) No 1973/2004 sets the agricultural area under the single area payment scheme for Slovakia at 1 976 thousand hectares. However, the correct area to be taken into account amounts to 1 955 thousand hectares as it has been established in Annex II to Decision C(2004) 1439/3. That amount needs to be reflected in Annex XXI to Regulation (EC) No 1973/2004.

Following a further review in Lithuania of the estimation of the agricultural area under the single area payment scheme in accordance with Article 143b(4) of Regulation (EC) No 1782/2003, Commission Decision C(2006) 1691 of 26 April 2006 increased the overall agricultural area from currently 2 288 thousand hectares to 2 574 thousand hectares. Annex XXI to Regulation (EC) No 1973/2004 should be adapted accordingly.

New tobacco varieties have been introduced to the Community market, which should be included in Annex XXV to Regulation (EC) No 1973/2004.

Regulation (EC) No 1973/2004 should therefore be amended accordingly.

Since the amendments provided for in this Regulation relate to the marketing years starting as from the year 2006, this Regulation should apply as of 1 January 2006. However, as regards the amendment of the agricultural area under the single area payment scheme in relation to Poland, this Regulation should take effect as from the year 2005 as it leads to higher payments to the applicants under that scheme.

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Direct Payments,