EU Rural Development Policy 2007 2013 Christine Meisinger
- Slides: 30
EU Rural Development Policy 2007 -2013 Christine Meisinger DG AGRI (E. II. 4), January 2006
RD policy for 2007 -13: § New Council Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) adopted September 2005 § 3 detailed Commission implementing rules under preparation § Two major changes in RD acquis as compared to the current 2000 -06 period: – Simplification (of delivery structures) – Strategic approach (programming and reporting) 2
SIMPLIFICATION 2000 -06 period: In future 2007 -13: 2 sources of finance (funds) 1 fund (EAFRD) 3 systems for financial management and controls 1 system for financial management and controls 5 types of programming 1 programming system For all rural areas in the EU 3
Programming steps (strategic approach) 1. Community strategic guidelines setting out the EU priorities for the period 2007 -2013 2. National strategy plans translating the EU priorities to the member state situation and ensuring complementarity with Cohesion policy 3. National or regional rural development programmes articulating the four axes 4
Regulation and Guidelines § Reg. 1698/2005 => purpose and scope of assistance from EAFRD (the RD fund) § Community Strategic Guidelines => EU level priorities within the framework of Reg. 1698/2005, in particular focus on sustainability (Göteborg) and growth and jobs (Lisbon) 5
Policy content → What the EU supports under rural development: § 3 core objectives § 4 priority axes § 41 detailed measures 6
Three core objectives: n Improving the competitiveness of the farm and forestry sector through support for restructuring, development and innovation n Improving the environment and the countryside through support for land management n Improving the quality of life in rural areas and encouraging diversification of economic activity 7
Four axes to implement the objectives: § Axis 1: Improving the competitiveness of the farm and forestry sector § Axis 2: Improving the environment and the countryside § Axis 3: Quality of life in rural areas and diversification of the rural economy § Axis 4: LEADER (local development in rural areas) 8
Programme balance § Axis 1: at least 10% of EU programme funding § Axis 2: at least 25% § Axis 3: at least 10% § Axis 4: LEADER at least 5% (but counts for the other axes), phasing in for the new MS – average of 2. 5%. 9
Rural Development 2007 -2013 « LEADER » Axis 1 Competitiveness Axis 2 Environment + Land Management Axis 3 Economic Divers. + Quality of Life Single set of programming, financing, monitoring, auditing rules Single Rural Development Fund 10
Axis 1 : Improving Competitiveness Axis built up of 16 measures in 4 blocks: § Human capital § Physical capital § Quality § Transitional measures 11
Axis 1: Improving Competitiveness (1) 1. Measures aimed at promoting knowledge and improving human potential: vocational training, setting up of young farmers, early retirement, provision of advisory services; setting up farm management, farm relief and advisory services. 12
Axis 1: Improving Competitiveness (2) 2. Measures aimed at restructuring physical potential and promoting innovation: farm modernisation, improving the economic value of forests, processing and marketing of agricultural and forestry products, improving and developing of infrastructure, natural disasters and prevention actions. 13
Axis 1: Improving Competitiveness (3) 3. Measures aimed at improving the quality of agricultural production and products: adaptation to new EU standards, participation in food quality schemes, promotion for quality products. 14
Axis 1: Improving Competitiveness (4) 4. Transitional measures for the new Member States: support for semi-subsistence farms undergoing restructuring, setting up of producer groups, provision of advisory services (only for Bulgaria and Romania for the period of 3 years) 15
Axis 1: Increasing Competitiveness Measure example: Farm modernisation (art. 26) § Maximum grant of: - 50% of the eligible costs for all farmers - 60% of the eligible costs for farmers in LFA - conditions: improve the overall performance of the agricultural holding; respect Community standards relevant to the investment; § Grace period for investments needed to implement newly introduced Community standards: up to 3 years from the date on which the standard becomes compulsory on the farm holding. 16
Axis 1: Increasing Competitiveness Measure example: Investment aids for processing and marketing (adding value) (art. 28) § Support for processing, marketing or development of “Annex I” (agricultural) and/or forestry products (NB fishery products excluded) § Maximum grant 50% of the eligible costs for SME § Aid intensity halved for bigger enterprises (i. e. max 25%): - with less than 750 employees or - with a turnover of less than 200 Mio € § No aid for enterprises larger than this - conditions: improve the overall performance of the enterprise; respect the Community standards relevant to the investment; § In the case of forestry, support only for micro-enterprises 17
Axis 1: Increasing Competitiveness Measure example: Establishment of Producer groups (art. 35) § Annual flat rate aid for setting up and administrative operation of producer groups. § Objectives: - Improved market presence, - joint marketing, - better information. § Conditions: Support for the first 5 years after recognition Group must be officially recognised by competent authority of the Member State during programming period. Flat rate aid is a percentage of the group's annual marketed production during the first five years of recognition: 18
Axis 2 : Environment/Land Management built up of 13 measures in 2 blocks § Agricultural land: mountain areas; other areas with handicaps; Natura 2000 areas; agri-environment; animal welfare; support for non-productive investments § Forestry land: first afforestation; first establishment of agro-forestry systems, Natura 2000 areas; forest-environment; restoring forestry potential and introducing prevention actions; support for nonproductive investments N. B. : § Agri-environment measures are compulsory for each programme § Cross compliance sanctions (under 1 st Pillar of CAP) apply 19
Axis 2: Land management/environment Measure example: Less Favoured Areas § Designation of areas – mountain areas, other less-favoured, and areas affected by specific handicaps § Aid Amounts: minimum € 25/ha, maximum € 250/ha (mountain areas), € 150/ha (other handicaps) § Calculation of allowance: compensate for additional costs/income foregone related to handicap; avoid overcompensation § For other (intermediate) LFA: current 2000 -06 regime continued until 2010, report and proposal by the Commission in 2008, Council decision in 2009, new regime enters into force in 2010 20
Axis 2: Land management/environment Example measure: Agri-environment § § The only compulsory measure (at programme level) Beneficiaries: Farmers and other land managers 5 to 7 year contracts (on a voluntary basis) Annual payments for commitments going beyond the baseline covering additional costs, income foregone and transaction costs § Maximum aid rates: € 600/ha - annual crops, € 900/haspecialised perennial crops, € 450 other land uses, local breeds € 200/LU § Baseline = cross compliance + minimum requirements fertiliser and pesticide + national legislation 21
Axis 3 : Diversification, quality of life built up of 8 measures in 3 blocks: § Diversification of the rural economy: diversification to non-agricultural activities; support for micro-enterprises; tourism § Improvement of the quality of life: basic services; village renewal; conservation and upgrading of the rural heritage (natural and cultural) § Training and capacity building 22
Axis 3 Example measures: Diversification of rural economy Diversification into non-agricultural activities § The beneficiary is a farm-household member Micro-enterprises, entrepreneurship § § Less than 10 staff, turnover < € 2 million Addressed to the wider rural population Tourism activities § § Small scale infrastructure, recreation infrastructure, development and marketing services Addressed to the wider rural population General § issues of demarcation with Cohesion Policy e. g. tourism, rural roads. . § no specific aid ceilings in axis 3 (possible 100% aid intensity subject to state aid guidelines) 23
Axis 4: Leader § Leader: ‘Links between actions for the development of the rural economy’ § Specific features – area-based approach (local development strategies) – public-private partnership (Local Action Group) – bottom-up approach – integrated approach – innovation – cooperation – networking 24
Axis 4 : Leader Support for 3 measures: § Implementation of local development strategies through a Leader approach to contribute to the achievement of the objectives of one or several of the three other axes § Inter-territorial and trans-national co-operation between LAGS § Running costs of Local Action Groups (LAGs), capacity building and animation 25
Rural Development Coverage – EU Policies Rural Development Fund (EARDF) Social Fund (ESF) Land Management Agro. Competitiveness Employment Human Capital Training Physical Capital Investment Other measures Mountain areas Other LFA Natura 2000 Agri-Environ. Afforestation Regional Fund (ERDF) Rural Economy Economic Diversification Rural infrastructure Basic services Urban/Rural Linkage LEADER Approach Integration of Environmental Concerns/Objectives 26
Community cofinancing rates § At the level of the axis as share of total eligible public expenditure § For axis 1 and 3 a maximum cofinancing rate of 50% (75% in Convergence regions) § For axis 2 and 4 a maximum cofinancing rate of 55% (80% in Convergence regions) § (For all axes 85% in outermost regions) 27
Implementation structure →The structures needed to deliver, control and monitor EU rural development support effectively on the ground. Main components: § Partnership § Management, control and information § Monitoring, evaluation (CMEF) and reporting § Technical assistance and networks 28
Financial Perspective 2007 -2013 (16 Dec. ) § Heading 2 – agriculture, rural development, fish, financial instrument for environment, incl. transfers from heading 1 b § for Rural Development Policy: € 69. 75 bn – at least € 33. 01 bn to EU 12 – at least € 18. 91 bn to E 15 – € 4. 07 bn: A (1. 35), Fi (0. 46), Ir (0. 5), I (0. 5), Lu (0. 2), F (0. 1), Sw (0. 82), P (0. 32) 29
Thank you for your attention. 30
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