1. The maximum amount of the first tranche of compensatory aid shall be established, for the Member State concerned as a whole, in accordance with the procedure laid down in Article 9, by multiplying the appreciable part of the revaluation by the flat-rate income loss determined in accordance with points 1 to 3 of the Annex.
2. The flat-rate income loss referred to in Article 4(2) of the Regulation is to be equal to:
(a) the sum of 1 %:
- of final agricultural production of cereals including rice, sugar beet, milk and milk products and beef and veal, and
- of the value of the quantities of products supplied under a contract imposing, in accordance with Community rules, a minimum price to the producer, for products not referred to in the first indent, and
- of aid or premiums paid to farmers, with the exception of those referred to in Article 5 of the Regulation;
(b) after subtraction of:
- 0,5 % of the value of intermediate consumption in the form of animal feed, and
- the impact on tax of the reduction in gross value added at market prices resulting from the operations concerning point
(a) and the preceding indent, and
- a deduction corresponding to 1 % of forecast EAGGF expenditure on the following items ...
