¹ The cantons may grant operators of a farming enterprise interest-free loans for the purpose of operating aid, in order to:

A.

Address financial difficulties of which they are not responsible;

B.

Replace interest-cost loans (debt conversion), or

C.

To facilitate the cessation of operations. ¹

² An applicant is considered to have financial difficulties when, on a temporary basis, it fails to meet its financial obligations even by operating the credit possibilities to a reasonable extent.

³ ... ²

¹ Business assistance loans are paid only if the operation requires the work of at least 1.0 standard labor units (UMOS). ¹

² In addition to art. 3 of the December 7, 1998 Order on Agricultural Terminology ² , the Federal Office of Agriculture (OFAG) may set additional factors for the calculation of standard labour units in special industries. ³

³ ... ⁴

¹ In the areas of the mountain region and the hills where the agricultural land use or the sufficient occupation of the territory is threatened, the minimum labour requirement is set at 0.60 UMOS. ¹

² THE OFAG ² Sets the criteria for deciding whether an operation is located in a threatened region.

¹ Operations assistance loans are granted only if the operator complies with the provisions referred to in s. 3, 4, and 12 to 34 of the Ordinance of 23 October 2013 on direct payments in agriculture ¹ . ²

² The grant of a loan in respect of the aid to the holdings in accordance with Art. 1, para. 1, let. B presupposes that the applicant has one of the following qualifications:

A.

Initial vocational training for farmers sanctioned by a federal certificate of capacity within the meaning of s. 38 of the Law of 13 December 2002 on vocational training (LFPr) ³ ;

B.

A training of farmers sanctioned by a patent within the meaning of Art. 42 LFPr; or

C.

Equivalent training in a specialized agricultural profession. ⁴

³ In the case of married applicants, it is sufficient for one of the spouses to fulfil the conditions mentioned in para. 2.

⁴ The management of a successful operation for a period of at least three years, proof of support, shall be assimilated to the qualifications referred to in para. 2. ⁵

⁵ For operators of an operation located in an area referred to in s. 3, para. 1, initial vocational training in another profession attested by a federal occupational training certificate under s. 37 LFPr or a federal certificate of capacity under s. 38 LFPr is assimilated to the initial training mentioned in para. 2, let. A. ⁶

¹ If the applicant's decisive income exceeds 120 000 francs, it shall not be granted on the basis of aid to the holdings.

² If the income determining is more than 80,000 francs, the loan granted for assistance to operations under s. 1, para. 1, let. B, is reduced by 10 % per additional tranche of 5000 francs. Where the amount resulting from this reduction is less than 20 % of the loan before deduction, it shall not be paid.

³ Is considered to be income determining the taxable income calculated in accordance with the Federal Direct Tax Act of December 14, 1990 ¹ , net of 40 000 francs for married applicants.

⁴ If the claimant's severed capital exceeds 600 000 francs before the loan is granted, the loan shall not be granted on the basis of the aid to the holdings.

⁵ The severed wealth comprises the total of the elements of capital, net of movable property used for exploitation, excluded financial assets, perennial crops and borrowed capital. ²

⁶ The land to be built must be taken into account at the usual venal value in the locality, with the exception of the release parcels allocated to the farm.

¹ After the completion of a fairly large investment, a loan according to Art. 1, para. 1, let. B, may be granted only after a three-year waiting period.

² ... ²

³ Interest-cost debts must not exceed two and a half of the value of return before debt conversion.

⁴ The last debt conversion must be at least ten years old.

¹ The granting of a loan under s. 1, para. 1, let. C, is related to the condition that the lands released are sold or ceded for lease, at least twelve years, to one or more undertakings within the meaning of s. 5 and 7 of the Federal Law of 4 October 1991 on Rural Land Law ² , located at a maximum distance of 15 km by road. ³

² The applicant may keep the buildings and a useful agricultural area of not more than 100 ares, including a maximum of 30 wine-growing areas or fruit crops.

¹ The amount of the loan and the amount of the repayment periods must be fixed so that the burden is bearable.

² The burden is considered to be bearable if the applicant is able to:

A.

Cover the day-to-day expenses of the farm and its family;

B.

To provide the service of interest;

C.

Meet its repayment commitments; and

D.

Realize the necessary future investments, and

E.

To remain solvent.

³ The sum of loans and credits, together with the balance of investment credits and loans in support of previously granted operations, shall not exceed, by exploitation, the following amounts:

Loans granted under s. 1, para. 1, let. B, can be used to convert interest-cost debts to a maximum of 50 % of the value of return.

¹ Applications for loans must be addressed to the canton.

² The canton examines the request, assesses whether the planned measure is necessary, decides on the granting of aid and sets conditions and charges on a case-by-case basis. It may waive the grant of loans of less than 20 000 francs.

³ Where the application relates to an amount that does not exceed the amount specified in s. 10, para. 2, the canton shall forward the information sheet to the OFAG at the time of notifying the applicant of its decision. It shall notify its decision to the OFAG upon request. ¹

⁴ Where the application exceeds the limit, the canton shall forward its decision to the OFAG, together with the relevant documents. It shall notify the applicant of its decision after the OFAG has approved it.

¹ The 30-day approval period runs from the date of receipt of the complete file by the OFAG.

² The limit is set at 350 000 francs, including the balance of investment credits and loans for assistance to previously allocated holdings. ¹

³ If the OFAG itself decides on the case, it sets the conditions and charges on a case-by-case basis.

¹ During the term of the loan, the operating accounts shall be remitted to the Township upon request.

² Exceptionally, for loans that are less than the amount specified in s. 10, para. 2, exploitation-specific notes may be given.

¹ Loans are, if possible, made against security rights.

² If the borrower is unable to transfer a mortgage to the canton, the canton has the power to order the establishment of a mortgage at the time of the decision on the granting of a loan. The cantonal decision serves as a certificate for the registration of the mortgage in the land registry.

³ The canton can compensate for the annual repayments with the benefits of the Confederation paid to the borrower. ¹

¹ The following are considered important grounds for the revocation of a loan:

A.

The disposition of the operator;

B.

Construction of buildings or land use for non-agricultural purposes;

C.

Termination of the operation on a personal basis under s. 9 of the Federal Act of 4 October 1991 on rural land law ¹ , unless it is a drill down to a descendant;

D.

The permanent use of essential parts of the farm for non-agricultural purposes;

E.

Non-compliance with the terms and conditions set out in the decision;

F.

Borrowing foreign capital without prior consultation of the canton;

G.

The refusal to remedy the consequences of the failure by the canton to comply with the obligation to maintain and operate within the period laid down for that purpose;

H.

The borrower's refusal to pay, in spite of the warning, a capital cost allowance within six months of the date of payment;

I.

The granting of a loan on the basis of false or misleading representations.

² Where the loan has been granted for the purpose of cessation of operations, only the important reasons set out in para. 1, let. E, h and i. ²

³ Instead of a revocation referred to in para. 1, let. A or c, in the case of a contract out of the family or the sale of the holding, the canton may postpone the loan for assistance to the farms under the same conditions on the successor, provided that the latter meets the criteria for entry into the Mentioned in art. 2 to 7 and ensures the required security. Art. 15 is reserved. ³

¹ The authority making the decision sets the time limit for the repayment of the loan. This period shall not exceed 20 years; the period applicable to loans granted for termination shall not exceed 10 years. ¹

² The loan repayment period must be fixed in accordance with the borrower's economic opportunities.

³ Within the time limit under para. 1, the township may defer repayment of the loans referred to in s. 1, para. 1, let. A.

⁴ It may grant a stay of one year within the time limit set out in para. 1 if the economic conditions of the borrower deteriorate for reasons not attributable to the borrower.

⁵ If the borrower's financial position improves significantly, the Township may appropriately increase the amortization periods during the term of the contract or require the early repayment of the balance of the loan.

¹ The disposal with profit before the expiry of the agreed repayment period results in the obligation to return the loans in respect of the aid to the holdings. ¹

² Profit is calculated according to Art. 31, para. 1, 32 and 33 of the Federal Act of 4 October 1991 on rural land law ² The OFAG sets the charge values.

³ ... ³

¹ The provision of the Canton constitutes 100 % of the amount granted by the Confederation. ¹

² The Township requests federal funds from the OFAG as required.

³ The OFAG reviews the Township's proposal and transfers the funds to the Fund within the approved appropriations. Funds are paid only when the Cantonal Benefit has been authorized.

¹ The canton manages the funds provided by the Confederation on a separate account and presents the annual accounts to the OFAG at the latest by the end of April.

² It announces to the OFAG until 10 January the statement as at 31 December of the previous year of the following accounts:

A.

The total state of federal funds;

B.

The total state of the cantonal funds;

C.

Interest on federal funds and cantonal funds;

D.

The use of interest, as defined in s. 85, para. 2, LAgr;

E.

Cash flow;

F.

The sum of the loans allocated for the aid to the holdings, but not yet paid. ¹

³ It announces to the OFAG until July 15 the state on June 30 of the following accounts:

A.

Cash flow;

B.

The sum of the loans allocated for the aid to the holdings, but not yet paid. ²

The cancellation period for the federal funds to be returned is set at three months.

¹ Vocational retraining aid includes:

A.

Contributions to retraining costs;

B.

Contributions to the costs of living.

² By exploitation, only one person can apply for the granting of retraining aid.

¹ In addition to the conditions under s. 86 A LAgr, the granting of contributions to retraining is subject to the following conditions:

A.

The operation has been managed for at least five years at the peril and on the applicant's account;

B.

On average over the last three years, its management has required at least 0.75 UMOS;

C.

The vacated land is sold or ceded for lease, at least 12 years, to one or more operations located within the usual operating radius, according to the s. 5 and 7 of the Federal Law of 4 October 1991 on Rural Land Law ² ;

D.

The applicant has not yet reached 52 years of age before the start of retraining.

² The applicant may keep the buildings and a useful agricultural area of not more than 100 ares, including a maximum of 30 wine-growing areas or fruit crops.

¹ Conversion to a non-agricultural profession must last at least six months.

² It must meet the criteria of the qualification procedure provided for in an Ordinance on Training under Art. 19 LFPr ¹ Or understand equivalent training. ²

¹ Contributions are set at 50 % of professional retraining costs, but up to a maximum of 6000 francs per year.

² Contributions to the cost of living amount to a maximum of 4 000 francs per month.

³ Professional reconversions are supported for up to three years.

The costs of retraining or courses, as well as the travel allowance, calculated in accordance with the Federal Direct Tax Act of December 14, 1990, are charged to retraining costs. ¹ .

¹ The OFAG sets out packages for contributions to the costs of living. In doing so, it takes into account, inter alia:

A.

When the operator ceases to operate;

B.

Family structure;

C.

Financial resources available.

² If it is foreseen that the operation of the undertaking ceases at the beginning of the professional conversion or at the latest six months thereafter, the contributions to the costs of living shall be paid in full.

³ If it is foreseen that the operation of the undertaking shall cease no later than two years after the completion of the professional conversion, contributions to the costs of living shall be paid at a maximum of 15 %.

⁴ Unreduced contributions to monthly living costs shall be fixed as follows:

¹ If the claimant's or couple's decisive income, as referred to in s. 5, para. 3, exceeds 80 000 francs, the vocational retraining aid is reduced by 20 % per additional tranche of 5000 francs. Where the amount resulting from this reduction is less than 20 % of the aid before deduction, it shall not be paid.

² If the claimant's or couple's severed fortune, as referred to in s. 5, para. 5, exceeds 600 000 francs at the time of filing the application, assistance for retraining is reduced by 10 000 francs per additional tranche of 20 000 francs.

¹ Applications for aid must be addressed to the canton prior to the termination of the operation. ¹

² The application package must include the following documents:

A.

Indications of ongoing training;

B.

Competency profile;

C.

Concept and costs of professional retraining;

D.

Data on the managed operation until the application is filed;

E.

Likely date of cessation of operation;

F.

Name and address of the person taking over the land;

G.

Income and wealth situation.

³ If the indications required under para. 2, let. A to c, does not clearly indicate the usefulness of the training, it may be required of the applicant to present the result of vocational guidance.

⁴ The Township reviews the application and forwards it to the OFAG for decision, along with its proposal.

¹ The aid is paid by the canton. The payment takes place every six months, the first time six months after the start of professional retraining.

² The canton shall refuse the payment, reduce the amount of aid or claim the reimbursement if the conditions relating to the grant of aid are no longer fulfilled.

¹ On cessation of exploitation, a restriction of ownership based on public law shall be recorded as a reference to the land register, prohibiting the surface remaining to the applicant and the building as part of an operation within the meaning of The order of 7 December 1998 on agricultural terminology ¹ .

² This statement shall be valid for a period of 20 years from the date of termination of operation. The costs are borne by the applicant. During the period mentioned above, the restriction of ownership may be cancelled only with the agreement of the OFAG.

¹ If the applicant does not cease to operate his business no later than two years after the payment of the last amounts, the aid must be repaid in full within two years. In addition to this reimbursement, there are administrative costs of 1000 francs. ¹

² Where retraining is interrupted, the aid granted must be repaid if the beneficiary continues to operate his business. In addition to this reimbursement, there are administrative costs of 1000 francs. The OFAG may waive or partially waive the reimbursement in the event of financial difficulties for which the applicant is not responsible.

³ Any person who, after the grant of retraining aid and after the termination of employment, resumes exploitation within 20 years of the last payment and receives direct payments in accordance with the order of 7 December 1998 on direct payments ² , must repay the retraining aid. The time limits for reimbursement and payment of administrative costs are governed by para. 1. The amount to be paid is deducted from the direct payments. ³

The OFAG exercises high surveillance. It can carry out on-the-spot checks.

The order of 7 December 1998 on aid to operations granted as a social support measure ¹ Is repealed.

¹ Subject to para. 2, this order shall enter into force on 1 ^Er January 2004.

² Section 2 (art. 19 to 30) enter into force on 1 ^Er January 2004 and remains applicable until 31 December 2015. ¹

³ The period of validity of section 2 (art. 19 to 30) is extended until 31 December 2019. ²