RURAL DEVELOPMENT

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RURAL DEVELOPMENT

• European Rural Development policy is a living
  policy, born of political decision-making
  processes and of its implementation on the
  ground.
• The European Unions new policy for rural
  development - as the second pillar of the CAP -
  seeks to establish a coherent and sustainable
  framework for the future of rural areas aiming at
  restoring and enhancing competitiveness and
  therefore contributing to the maintenance of
  employment.

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RURAL AREAS

• The term rural area, at least in the political
  discussion in Europe, covers a multiplicity of
  landscapes, activities and functions.
• understanding of rural areas reflects more than
  how land is covered by nature and mans activity
• Many rural regions in the EU and in particular
  the most rural ones - are more strongly affected
  by population declines than other types of
  region. In all member states of the EU their per
  capita income generally lies below the national
  average.

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RURAL DEVELOPMENT POLICY

• Rural development policy, as we know it today in
  the EU, essentially reflects three different
  concerns
• the need to restructure and accompany change in
  the agriculture sector,
• the promotion of economic and social cohesion
  through regional development policy
• to integrate environmental concerns into the
  Common Agricultural Policy.

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RURAL DEVELOPMENT POLICY - changes

• The pressure for change came from three sources
• from rural areas themselves
• in the form of the need for a further set of
  Reforms of the Common Agricultural Policy to
  increase the competitiveness of European
  Agriculture, to integrate environmental concerns
  and to prepare for Enlargement
• changing understanding of the role of
  agriculture in Europe

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RURAL DEVELOPMENT-Second pillar" of the CAP
(Agenda 2000 ?)

• Main objectives
• Supporting a viable and sustainable agriculture
  and forestry sector at the heart of the rural
  community
• Developing the territorial, economic and social
  conditions necessary for maintaining the rural
  population on the basis of a sustainable
  approach
• Maintaining and improving the environment, the
  countryside and natural heritage of rural areas.

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RURAL DEVELOPMENT POLICY

• Basic principles of the new policy are
• Multi-functionality of agriculture
• Multi-sectoral and integrated approach to the
  rural economy in order to diversify activities,
  create new sources of incom and employment
• Flexible aids for rural development based on
  subsidiarity and promoting decentralisation,
  consultation at regional, localand partnership
  level
• Transparency in drawing up and managing
  programmes, based on more simplified legislation

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RURAL DEVELOPMENT POLICY - Principles

• Integrating all rural areas into rural
  development policy
• Increasing flexibility for Member States
• New division of finances between the Guidance and
  Guarantee sections of the EAGGF
• Rural development programmes designed by Member
  States at the most appropriate geographical level
  (outside Objective 1)
• Simplification one regulation instead of nine
• Closer co-ordination between rural development
  and market policy

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Rural development policy 2000-2006

• To achieve better integration

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Rural development policy 2000-2006
Infrastructure and rural areas
Development and renovation of villages
Environmental protection
Possibility of alternative incomes tourism and
crafts
Rural areas
Regional products
Recreational function of rural areas
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Rural development policy 2000-2006
Maintaining the natural features of landscapes
Improving farm efficiency
Forests
Diversifying alternative incomes and services
AGRICULTURE
Reducing environmental impact
Improving production and marketing methods
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RURAL DEVELOPMENT-measures

• 1. Investments in farm businesses
• This helps farmers to modernise buildings and
  equipment, improve the quality of management and
  develop alternative production potential on the
  farm, particularly in higher value added
  products.
• Investments to improve veterinary and
  phytosanitary hygiene, reduce environmental
  problems and promote animal welfare are also
  supported.
• The conditions for EU support have been clarified
  and simplified. Part-time farmers are now fully
  eligible for support.
• investment support is only possible in sectors
  where production has clear market outlets.

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1. Investments in farm businesses

• Agricultural holdings
• The aim of Community investment aid is
• to modernise agricultural holdings
• improve their viability.
• The support will contribute
• improvement of incomes and of living,
• working and production conditions.

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RURAL DEVELOPMENT-measures

• 2. Human resources
• Setting up of young farmers
• The aid to facilitate the establishment of young
  farmers will be granted when - among other
  factors - the farmer (as the head of the holding)
  is under 40 years of age and sets up an
  agricultural holding for the first time.
• a single premium up to the maximum eligible
  amount of EUR 25 000
• an interest subsidy on loans taken on with a
  view to cover the costs arising from setting up

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2. Human resources

• Early retirement
• Aid for early retirement is set at EUR 15 000 per
  transferor per year.
• Where in the case of a transferor a normal
  retirement pension is paid by the Member State,
  early retirement support shall be granted as a
  supplement thus taking into account the amount of
  the national retirement pension.

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2. Human resources

• Training
• The measure has extended to all involved in
  agricultural activities and their restructuring.
  Forest holders and other persons involved in
  forestry activities for the application of forest
  management practices to improve the economic,
  ecological and social functions are also eligible
  for training benefits.

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RURAL DEVELOPMENT- measures

• 3. Less favoured areas and areas with
  environmental restrictions
• Compensatory allowances for farmers in
  less-favoured areas will be granted on a hectare
  basis. They will be fixed between EUR 20-25 per
  hectare.
• To be eligible farmers have to apply usual good
  farming practice and to work a minimum area over
  a period of at least five years.
• New feature Rural areas subject to environmental
  constraints can be recognised as less-favoured
  areas (max 10 of the total area)

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RURAL DEVELOPMENT- measures
4. Forestry Support for forestry will
contribute to the maintenance and development of
the economic, ecological and social functions of
forests in rural areas. It will be granted only
for forests of private owners (or by their
associations) or by municipalities.
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RURAL DEVELOPMENT-measures

• 5. Processing and marketing
• Investments must contribute to improving the
  situation of the basic agricultural production
  sector in question.
• They must guarantee the producers of such basic
  products an adequate share in the resulting
  economic benefits.

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RURAL DEVELOPMENT-measures

• 6. Agri-environmental measures
• to support the sustainable development of rural
  areas and to respond to societys increasing
  demand for environmental services.
• Payments will be given to farmers who engage
  themselves in farming practices compatible with
  the increasing need to protect and improve the
  environment, natural resources, soil and genetic
  diversity and to maintain the landscape and the
  countryside.

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RURAL DEVELOPMENT-measures

• 7. Various measures for the general development
  of rural areas (Article 33)
• Land improvement
• Land consolidation
• Replacement services and aid for farm management
• Marketing quality agricultural products
• Essential services for the rural economy and
  population
• Renovation of villages, protection and
  preservationof rural heritage

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7. Various measures for the general development
of rural areas (Article33)

• Diversification of agricultural activities or
  those close to agriculture
• Water resource management
• Improvement of rural infrastructures linked to
  the development of agriculture
• Promotion of tourism and crafts
• Environmental protection and improving animal
  welfare
• Prevention and reconstruction of agricultural
  potential damaged through natural disasters
• Financial engineering

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Whats new in the rural development policy?

• art.33 a new instrument for rural development
  covering all EU rural areas
• GFP introduced concept of Good Farming Practices
• art. 16 rural areas subject to environmental
  constraints can be recognised as less-favoured
  areas
• Horizontal regulation link between the 1st and
  the 2nd pillar of the CAP

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New features on Agri-environmental measures

• Strengthened through the concept of Good
  Agricultural Practices (GPA) as a base line for
  calculating support
• New feature (link with horizontal regulation)
• Member States may use separate financial means
• through non-adherence to environmental provisions
• through modulation of aid to strengthen the 4
  accompanying measures

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New features on Agri-environmental measures

• Regulation 1259/99 it is up to Member States
  (but compulsory) to adopt appropriate
  environmental measures
• Agri-environmental measures(forming part of
  rural development policy)
• Legal provisions
• Specific environmental conditions non-adherence
  to the last two categories could lead to a
  reduction in or with drawl of direct aid

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RURAL DEVELOPMENT - Implementing Rural
Development Policy

• Simplifying agricultural legislation
• Rural development all measures regrouped under a
  single regulation

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RURAL DEVELOPMENT

• Regulation EC no 1257/99 replaces the nine
  previous regulations
• Reg (EC) no 950/97 agricultural structures
• Reg (EC) no 951/97 processing and marketing of
  agricultural products
• Reg (EC) no 952/97 producers groups and
  associations
• Reg (EEC) no 2078/92 agri-environmental measures
• Reg (EEC) no 2079/92 early retirement
• Reg (EEC) no 2080/92 forestry measures
• Reg (EEC) no 867/90 processing and marketing of
  forestry products
• Reg (EEC) no 1610/89 on the provisions of
  regulation (EEC) no4256/88 development of wooded
  regions
• Reg (EEC) no 4256/88 on the provisions of
  regulation (EEC) no 2052 EAGGF - Guarantee

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Regulation (EC) No 1257/99 the aims of rural
development policy(Article 2)

• the improvement of structures in agricultural
  holdings for the processing and marketing of
  agricultural products
• the conversion and reorientation of agricultural
  production potential, the introduction of new
  technologies and the improvement of product
  quality
• the encouragement of non-food production
• sustainable forest development

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Regulation (EC) No 1257/99 the aims of rural
development policy(Article 2)

• the diversification of activities with the aim of
  complementary or alternative activities
• the maintenance and reinforcement of viable
  social fabric in rural areas
• the development of economic activities and the
  maintenance and creation of employment with the
  aim of ensuring a better exploitation of existing
  inherent potential

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Regulation (EC) No 1257/99 the aims of rural
development policy, (Article 2)

• the improvement of working and living conditions
• the maintenance and promotion of low-input
  farming systems
• the preservation and promotion of a high nature
  value and a sustainable agriculture respecting
  environmental requirements
• the removal of inequalities and the promotion of
  equal opportunities for men and women, in
  particular by supporting projects initiated and
  implemented by women.

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Administrative and financial provisions

• EAGGF Guarantee Section-Community support for
  early retirement, less-favoured areas and areas
  with environmental restrictions,
  agrienvironmental measures and afforestation
• Community support for other rural development
  measures will be financed by the EAGGF Guidance
  Section in areas covered by Objective 1
  (integrated into the programmes) and Guarantee
  Section in areas outside Objective 1.

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Administrative and financial provisions

• Guiding principles for the new rural development
  policy
• decentralisation of responsibilities and
• flexibility

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Evolution of EU Farm Subsidies-EAGGF-Guarantee
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Sources of rural development funding
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EAGGF-Guarantee budget