Brussels, 07/02/2006 (Agence Europe) - On Wednesday, the Commission is to adopt a proposal amending the 2004 regulation of exemption on State aid to small and medium enterprises (SMEs) in the agricultural sector. The proposal, which is to be examined by Member States before taking effect on 1 January 2007, provides for the scope of the regulation to also cover disease and bad weather compensation, which should lead to a significant reduction of notifications. The regulation will also cover aid to the elimination of dead animals. And, from 2010 onwards, aid to compensate for bad weather losses shall only be exempted if the farmer has also take out insurance cover. The proposal also provides for a limit of EUR 400,000 for investment aid that a farmer may receive over three years (500,000 in disadvantaged areas). Finally, the regulation will only apply to aid granted to farmers (farmers) but not to processing or marketing.