Common Agricultural Policy post 2013

1
Common Agricultural Policy post 2013
Rural Development

• Edyta Wieczorkiewicz

2
Common Agricultural Policy 2007 - 2013

• European Agricultural Guarantee Fund (EAGF)
• I pillar of CAP

• European Agricultural Fund for Rural Development
• (EAFRD)
• II pillar of CAP

3
Funds for Poland 2007-2013 (euro)

• European Development Fund - 35 billion
• European Social Fund - 10 billion
• Cohesion Fund - 22 billionEuropean Fisheries Fund
  - 0.7 billion
• European Agricultural Guarantee Fund - 13.5
  billion
• European Agricultural Fund for Rural Development
  - 13.3 billion

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Common Agricultural Policy 2007 - 2013

• European Agricultural Guarantee Fund (EAGF)
• I pillar of CAP
• direct payments
• market support schemes

• European Agricultural Fund for Rural Development
  (EAFRD)
• II pillar of CAP
• rural development
• (former II pillar plus part of structural policy)

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European Agricultural Fund for Rural Development

• EAFRD mission is to contribute to sustainable
  rural development throughout the Community, in
  addition to policy support to the markets and
  revenue from the CAP, cohesion policy and common
  fisheries policy.

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EU rural development policy 2007-2013
Leader approach 2,5 - 5 of total budget
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Community support for rural development by
Member States in 2007-2013 ()
8
Community support for rural development by
Member States in 2007-2013 (billion euro)
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rural development menu of measures

• Axis 1 Improving the competitiveness of the
  agricultural and forestry sector
• (a) measures aimed at promoting knowledge and
  improving human potential through
• (i) vocational training and information actions,
  including diffusion of scientific knowledge and
  innovative practises, for persons engaged in the
  agricultural, food and forestry sectors
• (ii) setting up of young farmers
• (iii) early retirement of farmers and farm
  workers
• (iv) use of advisory services by farmers and
  forest holders
• (v) setting up of farm management, farm relief
  and farm advisory services, as well as of
  forestry advisory services

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rural development menu of measures

• Axis 1 Improving the competitiveness of the
  agricultural and forestry sector
• (b) measures aimed at restructuring and
  developing physical potential and promoting
  innovation through
• (i) modernisation of agricultural holdings
• (ii) improving the economic value of forests
• (iii) adding value to agricultural and forestry
  products
• (iv) cooperation for development of new
  products, processes and technologies in the
  agriculture and food sector and in the forestry
  sector
• (v) improving and developing infrastructure
  related to the development and adaptation of
  agriculture and forestry
• (vi) restoring agricultural production potential
  damaged by natural disasters and introducing
  appropriate prevention actions

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rural development menu of measures

• Axis 1 Improving the competitiveness of the
  agricultural and forestry sector
• (c) measures aimed at improving the quality of
  agricultural production and products by
• (i) helping farmers to adapt to demanding
  standards based on Community legislation
• (ii) supporting farmers who participate in food
  quality schemes
• (iii) supporting producer groups for information
  and promotion activities for products under food
  quality schemes

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rural development menu of measures

• Axis 1 Improving the competitiveness of the
  agricultural and forestry sector
• (d) transitional measures for the Czech Republic,
  Estonia, Cyprus, Latvia, Lithuania, Hungary,
  Malta, Poland, Slovenia and Slovakia concerning
• (i) supporting semi-subsistence agricultural
  holdings undergoing restructuring
• (ii) supporting setting up of producer groups.

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rural development menu of measures

• Axis 2 Improving the environment and the
  countryside
• (a) measures targeting the sustainable use of
  agricultural land through
• (i) natural handicap payments to farmers in
  mountain areas
• (ii) payments to farmers in areas with
  handicaps, other than mountain areas
• (iii) Natura 2000 payments and payments linked
  to Directive 2000/60/EC
• (iv) agri-environment payments
• (v) animal welfare payments
• (vi) support for non-productive investments

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rural development menu of measures

• Axis 2 Improving the environment and the
  countryside
• (b) measures targeting the sustainable use of
  forestry land through
• (i) first afforestation of agricultural land
• (ii) first establishment of agroforestry systems
  on agricultural land
• (iii) first afforestation of non-agricultural
  land
• (iv) Natura 2000 payments
• (v) forest-environment payments
• (vi) restoring forestry potential and
  introducing prevention actions
• (vii) support for non-productive investments.

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rural development menu of measures

• Axis 3 The quality of life in rural areas and
  diversification of the rural economy
• (a) measures to diversify the rural economy,
  comprising
• (i) diversification into non-agricultural
  activities,
• (ii) support for the creation and development of
  microenterprises with a view to promoting
  entrepreneurship and developing the economic
  fabric,
• (iii) encouragement of tourism activities

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rural development menu of measures

• Axis 3 The quality of life in rural areas and
  diversification of the rural economy
• (b) measures to improve the quality of life in
  the rural areas, comprising
• (i) basic services for the economy and rural
  population,
• (ii) village renewal and development,
• (iii) conservation and upgrading of the rural
  heritage

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rural development menu of measures

• Axis 3 The quality of life in rural areas and
  diversification of the rural economy
• (c) a training and information measure for
  economic actors operating in the fields covered
  by axis 3
• (d) a skills-acquisition and animation measure
  with a view to preparing and implementing a local
  development.

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rural development menu of measures

• Axis 4 Leader
• (a) implementing local development strategies as
  referred to in Article 62(1)(a), with a view to
  achieving the objectives of one or more of the
  three other axes defined in Sections 1, 2 and 3
• (b) implementing cooperation projects involving
  the objectives selected under point (a)
• (c) running the local action group, acquiring
  skills and
• animating the territory

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Rural Development Programme 2007 - 2013

• 17,4 bln euro (inc. 13,3 bln euro of
  Community contribution)
• 22 measures plus technical aid

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RDP 2007-2013 budget by axis
axis Public expenditure Public expenditure
axis mln euro
Improving the competitiveness of the agricultural and forestry sector 7 486,2 42,98
Improving the environment and the countryside 5 377,1 30,87
The quality of life in rural areas and diversification of the rural economy 3 500,0 20,09
Leader 787,5 4,52
Technical Aid 266,6 1,53
Total 17 417,4
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RDP 2007-2013Measures
Measures budget (mln euro) Implementing body
Axis 1 Improving the competitiveness of the agricultural and forestry sector Axis 1 Improving the competitiveness of the agricultural and forestry sector Axis 1 Improving the competitiveness of the agricultural and forestry sector
vocational trainings for persons engaged in the agricultural forestry sectors 40,0 FAPA
setting up of young farmers 420,0 ARMA
early retirement of farmers 2 549,6 ARMA
use of advisory services by farmers and forest holders 218,0 ARMA
modernisation of agricultural holdings 1 849,07 ARMA
adding value to agricultural and forestry products 932,0 ARMA
improving and developing infrastructure related to the development and adaptation of agriculture and forestry 637,5 Regional Self-government
supporting farmers who participate in food quality schemes 80,0 ARMA
Information and promotion activities 30,0 AMA
commitment for supporting semi-subsistence agricultural holdings (2004-2006) 590,0 ARMA
supporting producer groups 140,0 ARMA
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RDP 2007-2013Measures
Measure budget (mln euro) Implem. body
Axis 2 Improving the environment and the countryside Axis 2 Improving the environment and the countryside Axis 2 Improving the environment and the countryside
payments to farmers in mountain areas and other than mountain areas 2 448,8 ARMA
agri-environment payments 2 314,8 ARMA
first afforestation of agricultural and non-agricultural land 513,5 ARMA
restoring forestry potential and introducing prevention actions 100,0 ARMA
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RDP 2007-2013Measures
Measure budget (mln euro) Implementing body
Axis 3 The quality of life in rural areas and diversification of the rural economy Axis 3 The quality of life in rural areas and diversification of the rural economy Axis 3 The quality of life in rural areas and diversification of the rural economy
diversification into non-agricultural activities 345,6 ARMA
support for the creation and development of microenterprises 1 023,6 ARMA
basic services for the economy and rural population, 1 541,3 Regional Self-government
village renewal and development, 589,6 Regional Self-government
Axis 4 Leader Axis 4 Leader Axis 4 Leader
implementing local development strategies 620,5 Regional Self-government
implementing cooperation projects 15,0 Regional Self-government
running the local action group, acquiring skills and animating the territory 152,0 Regional Self-government
Technical Aid Technical Aid Technical Aid
Technical Aid 266,6 ARMA
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vocational trainings for persons engaged in the
agricultural forestry sectors

• Aim of the measure
• Further training of farmers and forest owners
  and those planning to undertake agricultural
  activities leading to the restructuring and
  modernization of agriculture, increase
  competitiveness and profitability of agricultural
  or forestry activities and to meet relevant
  national and the EU standards.
• BeneficiaryInstitutions or the private and
  public entities, leading training activities in
  the Polish territory.

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setting up of young farmers

• Aim of the measure
• stimulating structural changes in the
  agricultural sector by facilitating the
  acquisition or establishment of farms by young
  people with appropriate professional knowledge
• support young people taking up the first time
  independent agricultural activity
• Form and amount of supportA single premium of
  75 thousand zl (It was 50 thousand)

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early retirement of farmers

• Aim of the measure
• The action aims at improving the country's
  agrarian structure and speeding up the process of
  generational change among agricultural operators
  as well as improving profitability and
  competitiveness of farms by their takeover by the
  younger people, well prepared for the occupation
  of farmer.

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use of advisory services by farmers and forest
holders

• Aim of measure
• Enable farmers and forest holders to receive
  support through the use of counseling in order
  to
• adaptation of farm cross-compliance
  (cross-compliance)
• increase competitiveness and profitability in
  agriculture and forestry
• supporting restructuring, development and
  innovation in agricultural and forestry
• improve the quality of life in rural areas,
  environmental protection and work safety

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modernisation of agricultural holdings

• Aim of the measure
• Support for the modernization of agricultural
  holdings in order to increase their efficiency
  through better use of factors of production,
  improve product quality, diversifying
  agricultural activities, as well as to harmonize
  the conditions of agricultural production with
  the requirements for environmental protection,
  hygiene in production and animal welfare.
• Providing agricultural producers leading dairy
  production ability to adapt to changing
  conditions, in conjunction with the planned
  termination of the milk quota system in 2015Aid
  is granted for investments in modernization or
  expansion of primary production of plant or
  animal, excluding forestry and fisheries.

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adding value to agricultural and forestry products

• Aim of the measure
• Improving the competitiveness of enterprises in
  the processing and marketing of agricultural
  products subject to higher value added, quality,
  cost reduction and the development of new
  products, processes and production technologies,
  as well as improving production conditions in
  relation to existing or newly launched standards

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improving and developing infrastructure related
to the development and adaptation of agriculture
and forestry

• The measure implemented under two
  schemesScheme I - Land consolidationScheme II
  - Agricultural water resources management

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improving and developing infrastructure related
to the development and adaptation of agriculture
and forestry

• Scheme I
• improving the structure of farms through the
  execution of land consolidation
• lay network and the device functional access
  roads to agricultural and forest land, and
  commuting to the farm buildings
• separation, without an expropriation, the
  necessary land for the purposes of technical and
  social infrastructure in the frames of
  consolidation process
• Scheme II
• improve soil quality by adjusting the water
  relations,
• increase water retention,
• improving protection of agricultural land from
  floods

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restoring agricultural production potential
damaged by natural disasters and introducing
appropriate prevention actions

• Aim of the measure
• Restoration of wealth in the farms, destroyed as
  a result of natural disasters such as floods and
  landslides

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supporting farmers who participate in food
quality schemes

• Aim of the measure
• Improving the quality of agricultural production
  and products intended for human consumption,
• Increasing the intake of high-quality food,
• Support to farmers producing high quality food

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Information and promotion activities

• Aim of the measure
• increasing demand for agricultural products and
  foodstuffs being subject of quality of food
  mechanisms
• deepen the knowledge of consumers about the
  benefits of the food quality products
• to strengthen consumers' knowledge about the
  mechanisms of food quality
• support for producer groups associating entities
  actively involved in food quality

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Information and promotion activities

• Form of aid Producer groups can obtain a
  refund, which will amount to 70 of eligible
  costs of accepted information and promotion
  activities.

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supporting producer groups

• Aim of the measure
• Strengthening the institutional structure of the
  primary agricultural sector in order to support
  the functioning of agricultural producers by
  encouraging them to create groups of agricultural
  producers and cooperation, in particular
• adaptation of production conducted in households
  of members of agricultural producer groups to
  market requirements,
• jointly placing goods on the market, including
  preparation for sale, the centralization of sales
  and delivery to wholesale customers.

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payments to farmers in mountain areas and other
than mountain areas (LFA)

• This is a special kind of area payments.The aid
  is granted to the area of land situated in areas
  of unfavorable natural conditions for
  agricultural production.
• Aim of the measure
• Ensuring the continuity of land use and thus
  maintain the viability of rural areas
• Preservation of rural landscape
• Maintaining a balanced manner management, taking
  into account the environmental aspects.

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agri-environment payments

• This is a special kind of payment related to
  the surface of agricultural land or the animals
  in the farmsAim of the measure
• Conservation of valuable habitats and the
  preservation of biodiversity in rural areas,
• promotion of sustaiable agriculture management
  system,
• adequate use of land and protection of waters,
• protection of local breeds of farm animals and
  local varieties of cultivated plants.

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first afforestation of agricultural and
non-agricultural land

• Aim of the measure
• increase of forest areas through afforestation
• maintaining and strengthening the ecological
  stability of forest areas by reducing the
  fragmentation of forests and creation of
  ecological corridors
• increasing the share of forests in global carbon
  and climate mitigation.

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restoring forestry potential and introducing
prevention actions

• Aim of the measure
• Renewal and maintenance of trees damaged by
  biotic and abiotic factors and the introduction
  of mechanisms to prevent natural disasters, with
  particular attention to fire safety.Aid is
  implemented based on complex projects involving
  forests.

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diversification into non-agricultural activities

• Aim of the measure
• Diversification of agricultural activities
  toward creation or developing by farmers,
  households and spouses of farmers,
  non-agricultural or related to agriculture
  activities, which contributes to the creation of
  non-agricultural sources of income and promotion
  of employment outside agriculture in rural areas.
• BeneficiaryAn individual member of the
  household on the farm, which is insured under the
  Act of 20 December 1990 on social insurance for
  farmers, who is covered by direct payments system

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support for the creation and development of
microenterprises

• Aim of the measure
• Increase the economic competitiveness of rural
  areas, development of entreprise and the labor
  market, and consequently - increase of employment
  in rural areas

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basic services for the economy and rural
population,

• Aim of the measure
• improvement of basic services in rural areas,
  including elements of technical infrastructure
• socio-economic development
• improving living conditions and economic activity

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village renewal and development

• Aim of the measure
• improved quality of life in rural areas
• promotion of rural areas
• preservation of cultural heritage
• growth and investment attractiveness of rural
  areas

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Leader approach tri-sectoral partnership
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Aims of Axis 4 LEADER

• The implementation of Axis 4. Leader, in the long
  term will help to increase jobs and increase
  economic diversity in rural areas.Through the
  LEADER approach will be possible to
• strengthening social capital in rural areas,
• improving of self-organization and management at
  the local level.Implementation of the bottom-up
  integrated local strategies will ensure
  sustainable rural development, including the
  preservation of cultural and natural village
  heritage.

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Measures of Axis 4 Leader
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Design rules for EU aid

• Programming
• Concentration of support
• Consistency support
• Partnership in designing
• Prevention of double financing of projects

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Europe 2020

• Brussels, 3.3.2010
• COM(2010) 2020 final
• COMMUNICATION FROM THE COMMISSION
• EUROPE 2020
• A strategy for smart, sustainable and inclusive
  growth

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Europe 2020

• To achieve a sustainable future, we must
  already look beyond the short term. Europe needs
  to get back on track. Then it must stay on track.
  That is the purpose of Europe 2020. It's about
  more jobs and better lives.

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Europe 2020

• The Commission is proposing five measurable EU
  targets for 2020 that will steer the process and
  be translated into national targets for
  employment for research and innovation for
  climate change and energy for education and for
  combating poverty.

52
Europe 2020

• We have powerful tools to hand in the shape of
  new economic governance, supported by the
  internal market, our budget, our trade and
  external economic policy and the disciplines and
  support of economic and monetary union.

53
Europe 2020

• Europe 2020 puts forward three mutually
  reinforcing priorities
• Smart growth developing an economy based on
  knowledge and innovation.
• Sustainable growth promoting a more resource
  efficient, greener and more competitive economy.
• Inclusive growth fostering a high-employment
  economy delivering social and territorial
  cohesion.

54
Europe 2020

• EU headline targets
• 75 of the population aged 20-64 should be
  employed.
• 3 of the EU's GDP should be invested in RD.
• The "20/20/20" climate/energy targets should be
  met (including an increase to 30 of emissions
  reduction if the conditions are right).
• The share of early school leavers should be under
  10 and at least 40 of the younger generation
  should have a tertiary degree.
• 20 million less people should be at risk of
  poverty.

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Europe 2020

• The Commission is putting forward seven flagship
  initiatives to catalyse progress under each
  priority theme
• 1. "Youth on the move"
• 2. "Innovation Union"
• 3. "A digital agenda for Europe"
• 4. "Resource efficient Europe"
• 5. "An industrial policy for the globalisation
  era"
• 6. "An agenda for new skills and jobs"
• 7. "European platform against poverty"

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EUROPA 2020 - HEADLINE TARGETS EUROPA 2020 - HEADLINE TARGETS EUROPA 2020 - HEADLINE TARGETS
Raise the employment rate of the population aged 20-64 from the current 69 to at least 75. Achieve the target of investing 3 of GDP in RD in particular by improving the conditions for RD investment by the private sector, and develop a new indicator to track innovation. Reduce greenhouse gas emissions by at least 20 compared to 1990 levels or by 30 if the conditions are right, increase the share of renewable energy in our final energy consumption to 20, and achieve a 20 increase in energy efficiency. Reduce the share of early school leavers to 10 from the current 15 and increase the share of the population aged 30-34 having completed tertiary education from 31 to at least 40. Reduce the number of Europeans living below national poverty lines by 25, lifting 20 million people out of poverty. Raise the employment rate of the population aged 20-64 from the current 69 to at least 75. Achieve the target of investing 3 of GDP in RD in particular by improving the conditions for RD investment by the private sector, and develop a new indicator to track innovation. Reduce greenhouse gas emissions by at least 20 compared to 1990 levels or by 30 if the conditions are right, increase the share of renewable energy in our final energy consumption to 20, and achieve a 20 increase in energy efficiency. Reduce the share of early school leavers to 10 from the current 15 and increase the share of the population aged 30-34 having completed tertiary education from 31 to at least 40. Reduce the number of Europeans living below national poverty lines by 25, lifting 20 million people out of poverty. Raise the employment rate of the population aged 20-64 from the current 69 to at least 75. Achieve the target of investing 3 of GDP in RD in particular by improving the conditions for RD investment by the private sector, and develop a new indicator to track innovation. Reduce greenhouse gas emissions by at least 20 compared to 1990 levels or by 30 if the conditions are right, increase the share of renewable energy in our final energy consumption to 20, and achieve a 20 increase in energy efficiency. Reduce the share of early school leavers to 10 from the current 15 and increase the share of the population aged 30-34 having completed tertiary education from 31 to at least 40. Reduce the number of Europeans living below national poverty lines by 25, lifting 20 million people out of poverty.
SMART GROWTH SUSTAINABLE GROWTH INCLUSIVE GROWTH
INNOVATION EU flagship initiative "Innovation Union" to improve framework conditions and access to finance for research and innovation so as to strengthen the innovation chain and boost levels of investment throughout the Union. CLIMATE, ENERGY AND MOBILITY EU flagship initiative "Resources efficient Europe" to help decouple economic growth from the use of resources, by decarbonising our economy, increasing the use of renewable sources, modernizing our transport sector and promoting energy efficiency. EMPLOYMENT AND SKILLS EU flagship initiative "An agenda for new skills and jobs" to modernise labour markets by facilitating labour mobility and the development of skills throughout the lifecycle with a view to increase labour participation and better match labour supply and demand.
EDUCATION EU flagship initiative "Youth on the move" to enhance the performance of education systems and to reinforce the international attractiveness of Europe's higher education. COMPETITIVENESS EU flagship initiative "An industrial policy for the globalization era" to improve the business environment, especially for SMEs, and to support the development of a strong and sustainable industrial base able to compete globally. FIGHTING POVERTY EU flagship initiative "European platform against poverty" to ensure social and territorial cohesion such that the benefits of growth and jobs are widely shared and people experiencing poverty and social exclusion are enabled to live in dignity and take an active part in society.
DIGITAL SOCIETY EU flagship initiative "A digital agenda for Europe" to speed up the roll-out of high-speed internet and reap the benefits of a digital single market for households and firms. COMPETITIVENESS EU flagship initiative "An industrial policy for the globalization era" to improve the business environment, especially for SMEs, and to support the development of a strong and sustainable industrial base able to compete globally. FIGHTING POVERTY EU flagship initiative "European platform against poverty" to ensure social and territorial cohesion such that the benefits of growth and jobs are widely shared and people experiencing poverty and social exclusion are enabled to live in dignity and take an active part in society.
57
Europe 2020 and the future of  CAP

• All EU policies must participate in achieving
  the goals and indicators identified in Europe in
  2020
• CAP has a particularly important role in the
  priorities
• Sustainable Growth (project Climate, energy and
  mobility) 
• Intelligent Growth (project Innovation)
• National Reform Programmes
• Common Strategic Framework

58
Polish key strategic documents for the new
financial perspective

• National Reform Programmes
• Long-term national development strategy
• Mid-term national
• development strategy
• nine integrated national strategies

• focus on priority areas for the socio-economic 
  development of Poland
• implementation of 
• the objectives of Europe 2020

59
integrated development strategies
60
National Strategy for Regional Development

• specific objectives
• 1. Supporting the growth of regional
  competitiveness (competitiveness)2. Building on
  territorial cohesion and the prevention of
  marginalization of problem areas (coherence)3.
  Creating the conditions for efficient, effective
  and partner implementation of development
  activities territorially-oriented (efficiency).

61
National Strategy for Regional Development
62
National Strategy for Regional Development

• COMPETITIVENESS
• WHAT?The use of strong potentials,
  proliferationpotential for weaker
• FOR WHOM?Territories with the greatest capacity
  to creategrowth, smaller urban centers, rural
  areas, functional areas of clear spatial
  specialization

63
National Strategy for Regional Development

• CONSISTENCY
• WHAT?
• Overcoming the difficulties of development,
• prevent the marginalization of the
  least-developing areas
• accelerate the restructuring process
• improving access to public goods and services
• FOR WHOM?Areas with the weakest indicators in
  the country

64
National Strategy for Regional Development

• EFFICIENCY
• WHAT?
• Strengthening the strategic dimension
• improve the quality of management
• improving coordination
• increased cooperation
• increased activity.

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67
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National Strategy for Regional DevelopmentGENERAL
RULES (SUMMARY)
69
The strategy for integrated rural development,
agriculture and fisheries
70
The strategy for integrated rural development,
agriculture and fisheriesspecific objectives
71
The strategy for integrated rural development,
agriculture and fisheries

• NOTEonly part of the defined priorities and
  directions for intervention will be implemented
  by the programs for agriculture, fisheries and
  rural development - some are an integral part of
  other development strategies

72
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC
AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE
REGIONSThe CAP towards 2020Meeting the food,
natural resources and territorial challenges of
the future
73
COMMUNICATION The CAP towards 2020

• CHALLENGES FACING THE REFORMFood
  securityEnvironment and Climate
  ChangeTerritorial balance

74
COMMUNICATION The CAP towards 2020 WHY DO
WE NEED A REFORM?

• CAP has evolved, however, further changes are
  necessary in order to meet new challenges such
  as
• response to growing concerns about food security
  both at the EU level and globally,
• improve the sustainable management of natural
  resources such as water, air, biodiversity and
  soil

75
COMMUNICATION The CAP towards 2020 WHY DO
WE NEED A REFORM?

• to deal with both the increasing pressure on
  agricultural production conditions caused by
  ongoing climatic changes, as well as the need for
  farmers to reduce their contribution to GHG
  emissions, play an active role in mitigation and
  provide renewable energy,
• to retain and enhance competitiveness in a world
  characterized by increasing globalisation, and
  rising price volatility while maintaining
  agricultural production across the whole European
  Union,

76
COMMUNICATION The CAP towards 2020 WHY DO
WE NEED A REFORM?

• to make best use of the diversity of EU farm
  structures and production systems, which has
  increased following EU enlargement, while
  maintaining its social, territorial and
  structuring role,
• to strengthen territorial and social cohesion in
  the rural areas of the European Union, notably
  through the promotion of employment and
  diversification,

77
COMMUNICATION The CAP towards 2020 WHY DO
WE NEED A REFORM?

• to make CAP support equitable and balanced
  between Member States and farmers by reducing
  disparities between Member States taking into
  account that a flat rate is not a feasible
  solution, and better targeted to active farmers,
• to pursue the simplification of the CAP
  implementation procedures and enhance control
  requirements and reduce the administrative burden
  for recipients of funds.

78
COMMUNICATION The CAP towards 2020
contribution to the strategy "Europe 2020"

• Smart growth by increasing resource efficiency
  and improving competitiveness through
  technological knowledge and innovation,
  developing high value added and quality products
  developing green technologies and using
  information and communication technology,
  investing in training, providing incentives for
  social innovation in rural areas and improving
  uptake of research

79
COMMUNICATION The CAP towards 2020
contribution to the strategy "Europe 2020"

• Sustainable growth by maintaining the food,
  feed and renewable production base, ensuring
  sustainable land management, providing
  environmental public goods, addressing
  biodiversity loss, promoting renewable energies,
  fostering animal and plant health, increasing
  resource efficiency through technological
  development and using results of research,
  further reducing emissions, enhancing carbon
  stocks and fully developing the potential of
  rural areas

80
COMMUNICATION The CAP towards 2020
contribution to the strategy "Europe 2020"

• Inclusive growth by unlocking economic
  potential in rural areas, developing local
  markets and jobs, accompanying the restructuring
  of agriculture and supporting farmers' income to
  maintain a sustainable agriculture throughout
  Europe.

81
The way ahead link with Europe 2020

• INCLUSIVE growth
• Unlocking local potential, diversifying rural
  economies and developing local markets and jobs
• Opening-up alternative opportunities to accompany
  agricultural retructuring

• SMART growth
• Supporting innovation and skills, green
  technologies and uptake of research
• Providing incentives for social innovation

Rural Development

• SUSTAINABLE growth
• Increasing resource efficiency and the provision
  of public goods
• Reducing emissions, enanching carbon
  sequestration and developing bioenergy
• Ensuring sustainable land management and
  addressing biodiversity loss

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82
COMMUNICATION The CAP towards 2020
Objectives of the future CAP

• Objective 1 Viable food production
• Objective 2 Sustainable management of natural
  resources and climate action
• Objective 3 Balanced territorial development

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COMMUNICATION The CAP towards 2020
Objective 2 Sustainable management of natural
resources and climate action

• to guarantee sustainable production practices and
  secure the enhanced provision of environmental
  public goods as many of the public benefits
  generated through agriculture are not remunerated
  through the normal functioning of markets.
• to foster green growth through innovation which
  requires adopting new technologies, developing
  new products, changing production processes, and
  supporting new patterns of demand, notably in the
  context of the emerging bioeconomy.

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COMMUNICATION The CAP towards 2020
Objective 2 Sustainable management of natural
resources and climate action

• to pursue climate change mitigation and
  adaptation actions thus enabling agriculture to
  respond to climate change. Because agriculture is
  particularly vulnerable to the impact of climate
  change, enabling the sector to better adapt to
  the effects of extreme weather fluctuations, can
  also reduce the negative effects of climate
  change.

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COMMUNICATION The CAP towards 2020
Objective 3 Balanced territorial development

• to support rural employment and maintaining the
  social fabric of rural areas.
• to improve the rural economy and promote
  diversification to enable local actors to unlock
  their potential and to optimize the use of
  additional local resources.
• to allow for structural diversity in the farming
  systems, improve the conditions for small farms
  and develop local markets because in Europe,
  heterogeneous farm structures and production
  systems contribute to the attractiveness and
  identity of rural regions.

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COMMUNICATION The CAP towards 2020 Future
instruments

• Direct payments
• Market measures
• Rural Development

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COMMUNICATION The CAP towards 2020 Rural
Development

• the competitiveness of agriculture by promoting
  innovation and restructuring and by enabling the
  farm sector to become more resource efficient
• the sustainable management of natural resources,
  by taking care of the environment and
  agriculture's resilience to climate change and
  the countryside, and maintaining the production
  capacity of the land
• the balanced territorial development of rural
  areas throughout the EU by empowering people in
  local areas, building capacity and improving
  local conditions and links between rural and
  urban areas.

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COMMUNICATION The CAP towards 2020 Rural
Development

• environment, climate change and innovation -
  guiding themes, that steer the policy more than
  ever before
• strengthening the coherence between rural
  development policy and other EU policies
• simplifying and cutting the administrative burden
  where possible
• common strategic framework for EU funds may be
  envisaged.

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Challenges, objectives and proposals of the future CAP Challenges, objectives and proposals of the future CAP Challenges, objectives and proposals of the future CAP
Challenges Objectives Proposals
Economic (food security, market stability, food chains) 1. Farm income support and limitation of variability 2. Competitiveness and value share enhancement of agricultural sector 3. Compensation in areas with specific natural constraints 1. Redistribution, redesign and better targeting of direct payments 2. Introduction of a risk management toolkit (under the second pillar) 3. Streamline and simplify current market instruments 4. The promotion of innovation, restructuring and resourceefficiency to enhance competitiveness 5. Balance power along the supply chain, increase the transparency of the sector and strengthen contractual relations
Environmental (GHG emissions, soil depletion, water/air quality, habitats and biodiversity) 1. Sustainable production practices and the provision of environmental public goods 2. Green growth through innovation 3. Climate change mitigation and adaptation actions 1. Enhance the provision of public goods via the greening component of direct payments 2. Promote green growth through innovation 3. Pursue climate change mitigation actions
Socio-territorial (vitality of rural areas, diversity of EU agriculture) 1. Support for rural employment 2. Enhance and diversify the rural economy 3. Improve conditions for small farms and develop local markets 1. Support rural employment 2. Improve the rural economy and promote diversification 3. Allow for structural diversity in farming systems
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COMMUNICATION The CAP towards 2020 Rural
Development - toolkit

• () a wide range of tools would remain useful,
  from investments and infrastructure to payments
  for ecosystem services, support for LFA,
  environmental and climate change measures,
  support for innovation, knowledge transfer and
  capacity building, business creation, social and
  institutional development fostering production
  methods with a link to local specificities and
  considering specific needs of Member States to
  increase their economic efficiency. Improvements
  may consist in better linking measures together
  ()

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COMMUNICATION The CAP towards 2020 Rural
Development - toolkit

• also essential
• risk management toolkit should be included to
  deal more effectively with income uncertainties
  and market volatility
• further strengthen and simplify the quality
  (including organic farming) and promotion policies

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COMMUNICATION The CAP towards 2020 - options
Continuing the reform process through gradual
changes, while correcting the most pressing
problems (such as a more balanced distribution of
aid)
Option 1
CAP more balanced (balance between policy
objectives, Member States and farmers) and the
first pillar more flexible and geared to the
protection of the environment
Option 2
CAP focuses on goals related to environmental
protection and climate change through rural
development program (elimination of subsidies and
market instruments)
Option 3
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COMMUNICATION The CAP towards 2020 - conclusions

• The role of rural development in the future CAP
  will be determined by several institutional
  factors
• EU 2020 strategy,
• the EU Budget Review,
• the positions already expressed by the Council
  and the Parliament,
• the end of the transitional period of the CAP for
  the newest Member States,
• possible future accessions,
• possible new agricultural agreement under the WTO
  Doha Round and a new protocol on climate change,
  replacing the Kyoto Protocol

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COMMUNICATION The CAP towards 2020 - conclusions

• The Communication remains at a high level of
  generality in most cases, though the greening
  of the first pillar seems to be one of the
  greatest innovations in the history of the CAP.
• At the same time, the role of rural development
  appears to be downgraded in the second pillar
  with the moving of several of its existing
  instruments to the first pillar. The list of
  rural development themes has expanded and new
  emphasis is given to innovation and risk
  management, in line with the EU 2020 strategy.
  These new themes seem to strengthen the current
  priorities of rural development, serving as tools
  to reach the predefined aims.

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COMMUNICATION The CAP towards 2020 - conclusions

• Objectives of the future CAP are likely to be
  more specific and are closely related to the
  economic, environmental and social challenges
  facing EU agriculture. However, challenges and
  proposals to meet them are only partially
  consistent as the former are clearly specified,
  while the latter remain unclear in many cases.
• If challenges defined are to be met, a suitable
  set of policy instruments will be required,
  including a strong and effective rural
  development policy.

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COMMUNICATION The CAP towards 2020 - conclusions

• Rural development should aim to promote
  competitiveness, enhance the sustainable
  management of natural resources and create
  balanced development of rural areas in the
  future, echoing aims of the current axes of the
  second pillar.
• Although no reference is made to rural
  development axes in the Communication, no major
  changes regarding future priorities are expected
  (???). However, the alleviation of significant
  rural poverty should be a future priority, and be
  aimed at decreasing the urban/rural income gap
  which has continuously grown in many areas.

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COMMUNICATION The CAP towards 2020 - conclusions

• It seems that the CAP budget can be cut in the
  future, resulting in a restructuring of resources
  within the CAP in line with the new priorities.
• Rural development should be a major part of the
  CAP with proper budget allocations.

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COMMUNICATION The CAP towards 2020 - conclusions

• It appears that the reconfiguration of the two
  pillars will affect their respective budgetary
  allocations, thereby changing the balance of
  expenditure between the pillars and their
  associated funds.
• Reallocation of rural development resources by
  Member States are highly needed, possibly through
  the use of objective criteria. Such criteria
  should be clear and easily applicable and should
  be connected to priorities. The indicators of
  agricultural areas, NATURA 2000 area and
  GDP/capita might serve as initial proposals to
  be considered.

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COMMUNICATION The CAP towards 2020 - conclusions

• Proposals on creating coherence between rural
  development policy and other EU policies are of
  utmost importance (axes 3 and 4).

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COMMUNICATION The CAP towards 2020 - conclusions

• Proposals on creating coherence between rural
  development policy and other EU policies are of
  utmost importance (axes 3 and 4).

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II pillar of CAP- future steps

• legislation
• analysis of the experience - preparing for the
  programming
• effects of implementation of the RDP -
  continuation or abandonment of the measures?
• increasing complementarity with Cohesion Policy
• implementation model - centrally or regionally?

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HAPPY END