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1. Member States may grant support for investments under the conditions set out in this Article and as further specified in their CAP Strategic Plans.

2. Member States may only grant support under this Article for those investments in tangible and intangible assets that contribute to achieving one or more of the specific objectives set out in Article 6(1) and (2). For holdings above a certain size, to be determined by the Member States in their CAP Strategic Plans, support for the forestry sector shall be conditional on the presentation of the relevant information from a forest management plan or equivalent instrument in accordance with the sustainable management of forests as defined in the General Guidelines for the Sustainable Management of Forests in Europe, adopted at the Second Ministerial Conference on the Protection of Forests in Europe held in Helsinki on 16-17 June 1993.

3. Member States shall establish a list of ineligible investments and categories of expenditure, including at least the following:

(a) purchase of agricultural production rights;

(b) purchase of payment entitlements;

(c) purchase of land for an amount exceeding 10 % of the total eligible expenditure for the operation concerned, with the exception of land purchase for environmental conservation and carbon-rich soil preservation or land purchased by young farmers through the use of financial instruments; in the case of financial instruments, that ceiling shall apply to the eligible public expenditure paid to the final recipient, or, in the case of guarantees, to the amount of the underlying loan;

(d) purchase of animals, and purchase of annual plants and their planting. for a purpose other than:

(i) restoring agricultural or forestry potential following natural disaster, adverse climatic events or catastrophic event;

(ii) protecting livestock against large predators or being used in forestry instead of machinery;

(iii) rearing endangered breeds as defined in Article 2, point (24), of Regulation (EU) 2016/1012 of the European Parliament and of the Council () under the commitments referred to in Article 70; or (iv) preserving plant varieties under threat of genetic erosion under the commitments referred to in Article 70;

(e) interest rate on debt, except in relation to grants given in the form of an interest rate subsidy or guarantee fee subsidy;

(f) investments in large-scale infrastructure, as determined by Member States in their CAP Strategic Plans, not being part of the community-led local development strategies set out in Article 32 of Regulation (EU) 2021/1060, except for broadband and flood or coastal protection preventive actions aimed at reducing the consequences of probable natural disasters, adverse climatic events or catastrophic events;

(g) investments in afforestation which are not consistent with environmental and climate-related objectives in line with sustainable forest management principles, as developed in the Pan-European Guidelines for Afforestation and Reforestation.

The first subparagraph, points (a), (b), (d) and (f), shall not apply where support is provided through financial instruments.

4. Member States shall limit the support to one or more rates not exceeding 65 % of the eligible costs. The maximum support rates may be increased:

(a) up to 80 % for the following investments:

(i) investments linked to one or more of the specific objectives set out in Article 6(1), points (d), (e) and (f) and, as regards animal welfare, in Article 6(1), point (i);

(ii) investments by young farmers who fulfil the conditions provided for by Member States in their CAP Strategic Plans in accordance with Article 4(6);

(iii) investments in the outermost regions or the smaller Aegean islands;

(b) up to 85 % for investments of small farms, as determined by Member States;

(c) up to 100 % for the following investments:

(i) afforestation, establishment and regeneration of agro-forestry systems, land consolidation in forestry and non-productive investments linked to one or more of the specific objectives set out in Article 6(1), points (d), (e) and (f), including non-productive investments aimed at protecting livestock and crops against damage caused by wild animals;

(ii) investments in basic services in rural areas and infrastructure in agriculture and forestry, as determined by Member States;

(iii) investments in the restoration of agricultural or forestry potential following natural disasters, adverse climatic events or catastrophic events and investments in appropriate preventive actions, as well as investments in maintaining the health of forests;

(iv) non-productive investments supported through community-led local development strategies set out in Article 32 of Regulation (EU) 2021/1060 and the projects of EIP operational groups as referred to in Article 127(3) of this Regulation.

5. Where Union law results in the imposition of new requirements on farmers, support may be granted for investments to comply with those requirements for a maximum of 24 months from the date on which they become mandatory for the holding.