Member States will be authorised to establish a regulatory fund for pig farmers whose pigs are fattened in their territory. The funds will be organised and administered by national bodies already existing or set up for this purpose. Pig farmers themselves, on the basis of a levy paid for each fattening pig, will finance the national regulatory fund. They will participate in the fund for a period of no less than 5 years, on a voluntary basis, either directly or indirectly through producer groups or any other collective body of which they are members. Pig farmers will be represented in the management of the funds and their supervisory bodies.The regulatory mechanism will have two components: a levy threshold, triggering the collection of an amount in respect of each fattening pig by pig farmers and a payment threshold, triggering the grant of an amount in respect of each fattening pig to pig farmers. The two thresholds will be set by the funds in the light of market factors and their financial situation. The regulatory mechanism must be authorised by the Commission in accordance with the Management Committee procedure. In case the funds have sufficient financial resources to allow them to act in the event of a future recession, they may suspend the collection of the levy temporarily.In order to control pigmeat production, the pig farmer, upon becoming a member of a fund, must declare the number of fattening places. The farmer must not increase that number during the period of membership in the funds. However, when market prospects permit, Member States may be authorised by the Commission to derogate from that requirement.Aid for setting up the system.To facilitate the establishment of the funds, Member States may grant aid to meet the administrative costs incurred during the start-up of the fund. The amount of the aid may not exceed 100% of the costs incurred during the first year, reduced by 20% for each subsequent year, so in the...

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