Principle and scope

1.   Member States shall include in their CAP Strategic Plans a system of conditionality under which farmers and other beneficiaries receiving direct payments under Chapter II or annual payments under Articles 70, 71 and 72 are subject to an administrative penalty if they do not comply with the statutory management requirements under Union law and the GAEC standards established in the CAP Strategic Plans, as listed in Annex III, relating to the following specific areas:
(a)
the climate and the environment, including water, soil and biodiversity of ecosystems;
(b)
public health and plant health;
(c)
animal welfare.
2.   The CAP Strategic Plans shall include rules on an effective and proportionate system of administrative penalties. Those rules shall comply in particular with the requirements set out in Title IV, Chapter IV, of Regulation (EU) 2021/2116.
3.   The legal acts referred to in Annex III concerning the statutory management requirements shall apply in the version that is applicable and, in the case of Directives, as implemented by the Member States.
4.   For the purpose of this Section, ‘statutory management requirement’ means each individual statutory management requirement under Union law listed in Annex III within a given legal act, differing in substance from any other requirement in the same act.