CAP and Rural Development Policy in the EU and Slovak republic

1. CAP and Rural Development Policy in the EU and Slovak republic IMRD, Nitra July 15, 2014

2. Content EU budget CAP Market regulation Rural development policy Rural development policy in EU Regulation 1290/2005, 1698/2005 Community strategic guidelines for rural development policy of EU Implementation of rural development policy in SR Rural development programme of Slovak republic for 2007-2013

3. History of EU budget Introductionofeuropeanbudgetisconnected to establishmentof ECSC (systemofownresources) 1st model – contribution to thebudget France, Germany, Italy – 28%, Netherlands, Belgium – 7,9%, Luxembourg – 0,2% 1970 – 1st BudgetTreaty – 3 incomesofthebudget Tariffsfromimportsfrom 3rd countries, Duties on agriculturalimportsfrom 3rd countries and sugarandizoglucose, 1 % of VAT

4. History of EU budget 1975 – 2nd BudgetTreaty, strenghteningofParliamentposition – possibilityofrefusingthebudgetaswhole 1 % of VAT up to year 1986 1,4% of VAT fromtheyear 1986 (1988) - introduced 4th sourceoffinancing – GNI

6. Sources of EU budget 1988/2013

10. COMMON AGRICULTURAL POLICY

11. CAP • The EU's common policy is one of the oldest policies • Budget of the policy is close to 44% of the total EU budget

12. CAP

13. ACTORS ACQUIS OBJECTS OBJECTIVES PRINCIPLES INSTRUMENTS FUNDS

14. OBJECTIVES • to increase productivity, by promoting technical progress and ensuring the optimum use of the factors of production, in particular labour; • to ensure a fair standard of living for the agricultural Community; • to stabilise markets; • to secure availability of supplies; • to provide consumers with food at reasonable prices.

15. ACQUIS PRIMARY LEGAL SOURCES OF CAP SECONDARY LEGAL SOURCES TERTIARY LEGAL SOURCES

16. ACTORS OF CAP • EuropeanParliament- AgriculturalCommittees • EU Council - CouncilofMinistersofAgricultureofMemberStates • EU Commission - DG Agri • SCA - SpecialCommittee on Agriculture • CommitteeoftheRegions, etc.

17. ACTORS OF CAP - SR • MANAGING AUTHORITY • PAYING AGENCY/INTERVENTION OFFICE • COORDINATION OFFICE • CERTIFICATION / AUDIT AUTHORITY • AUTHORITY OF TRANSFERS

18. OBJECTS OF CAP • individualfarmers, • business companies, • others carrying out the activities under the Regulation 1290/2005, 1698/2005

19. COUNTRIES OF IMPLEMENTATIONOF CAP 1958 (6) – 2007 (28) • 1958: FR, DE, IT, NL, BE, LX • 1973: DK, IRL, UK • 1981: GR • 1986: ES, PT • 1995: AU, FI, SE • 2004: CZ, H, PL, SK, SLO, EST, LAT, LTV, CYP, MT • 2007: BG, R • 2013: CR

20. PRINCIPLES OF CAP • Single market • Preference of EC • Financial solidarity

21. INSTRUMENTS OF CAP CAP MARKET SUPPORT MEASURES • direct subsidies to producers or processors (SFP, SAPS, ADP), • intervention purchase, • quantitative quotas, • protection of common borders

22. FUNDS OF CAP • EUROPEAN AGRICULTURAL GUARANTEE FUND (EAGF) – 1st pillar • EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT (EAFRD) – 2nd pillar

23. CAP REFORMS

24. REFORM ADRIENSEN (1984) • milk quotas to limit and control production • quota represented the ownership of individual member states • overspend was penalized by the financial sanctions amounting to 115% of the indicative price of milk

25. MAC-SHARRY REFORM (1992) • direct payments to farmers - to compensate the reduction in prices of agricultural products • paid per hectare of agricultural land or animal • reductions in intervention prices - a gradual increase in rates of direct payments • set asside • incentives to encourage retirement of farmers over 55 years to take early retirement

26. AGENDA 2000 (1999) • Intervention price for cereals fell by 15 percent with the distribution of cuts in two years • reduction in intervention prices for beef by 20 percent is spread over a period of three years • Significant changes in the agri-environmentsupport and support for rural development (2nd pillar of CAP)

27. LUXEMBOURG REFORM (2003) • Single farm payment • Cancellation of coupled support for agricultural production (decoupling) • Cross Compliance • Set aside • Modulation • Rural Development • Farm advisory system

28. RURAL DEVELOPMENT POLICY

29. Council Regulation (EC) 1290/2005 on the financing of the CAP • This Regulation sets specific requirements and rules on the financing of expenditure falling under the common agricultural policy, including expenditure on rural development • Funds financing agricultural expenditure: • European Agricultural Guarantee Fund (EAGF), • European Agricultural Fund for Rural Development (EAFRD)

30. Council Regulation (EC) 1698/2005 Aims of rural development policy Support for rural development shall contribute toachievingthefollowingobjectives: • improving the competitiveness of agriculture and forestryby supporting restructuring, development and innovation, • improving the environment and thecountryside bysupportinglandmanagement; • improving the quality of life in rural areas andencouraging diversification of economic activity

31. STRATEGIC PLANNING OF RURAL DEVELOPMENT

32. STRATEGIC PLANNING OF RURAL DEVELOPMENT

33. EU STRATEGIC GUIDELINES FOR RURAL DEVELOPMENT • EC adopted the Community strategic guidelines for rural development policy for the programming period from 1 January 2007 to 31 December 2013 • Strategic guidelines establishing strategic priorities for rural development at Community level for the programming period

34. NATIONAL STRATEGIC PLAN • Each Member State shall submit the National Strategic Plan, setting out priorities for action of the EAFRD and the Member State taking into account the strategic guidelines, their specific objectives, the contribution from the EAFRD and other financial resources • National Strategic Plan is a reference tool for preparing EAFRD programming and is implemented through „Programs for rural development“

35. NATIONAL STRATEGIC PLAN National strategic plan includes: • assessment of the economic, social and environmental situation and development potential • strategy chosen for joint action showing the consistency of the choices and the Community strategic guidelines • thematic and territorial priorities for rural development under each axis, including the main quantified objectives and appropriate indicators for monitoring and evaluation

36. NATIONAL STRATEGIC PLAN • list of rural development programs • sources to ensure coordination with other common agricultural policy instruments, ERDF, ESF, Cohesion Fund, Community support instrument for fisheries and EIB • description of the arrangements and the indication of the amount dedicated for establishing the National network for rural development

37. RURAL DEVELOPMENT PROGRAMMES • These programs implement a rural development strategy through a series of measures, grouped in accordance with the axes • Each rural development program covering the period between 1 January 2007 and 31 December 2013 • Member State may submit either a single program for its entire territory or a set of regional programs

38. RURAL DEVELOPMENT PROGRAMMES Each rural development programme shall include: • an analysis of the situation in terms of strengths andweaknesses, the strategy chosen to meet them and the exante evaluation; • a justification of the priorities chosen having regard tothe Community strategic guidelines and the nationalstrategy plan, as well as the expected impact according to the ex ante evaluation; • information on the axes and measures proposed for eachaxis and their description, including the specific verifiableobjectives and indicators. • a financing plan

39. RURAL DEVELOPMENT PROGRAMMES • an indicative breakdown of the initialamounts by measure in terms of public and private expenditure; • a table on additional national financingper axis; • information on the complementarity with the measuresfinanced by the other common agricultural policyinstruments, through cohesion policy as well as by theCommunity support instrument for fisheries;

40. RURAL DEVELOPMENT PROGRAMMES • programme implementing arrangements, • the designation of the partners and the results of the consultations of the partners.

41. RURAL DEVELOPMENT SUPPORT AXIS 1IMPROVING THE COMPETITIVENESS OF THEAGRICULTURAL AND FORESTRY SECTOR

42. MEASURES • measures aimed at promoting knowledge and improvinghuman potential through: • vocational training and information actions; • use of advisory services by farmers and forestholders; • setting up of farm management, farm relief andfarm advisory services, as well as of forestryadvisory services; • setting up of young farmers; • early retirement of farmers and farm workers;

43. MEASURES • measures aimed at restructuring and developing physicalpotential and promoting innovation through: • modernisation of agricultural holdings; • improving the economic value of forests; • adding value to agricultural and forestry products; • cooperation for development of new products,processes and technologies in the agriculture andfood sector and in the forestry sector;

44. MEASURES • improving and developing infrastructure related tothe development and adaptation of agriculture andforestry; • restoring agricultural production potential damagedby natural disasters and introducing appropriateprevention actions;

45. MEASURES • measures aimed at improving the quality of agriculturalproduction and products by: • helping farmers to adapt to demanding standardsbased on Community legislation; • supporting producer groups for information andpromotion activities for products under food qualityschemes;

46. RURAL DEVELOPMENTSUPPORT AXIS2IMPROVING THE ENVIRONMENT AND THECOUNTRYSIDE

47. MEASURES • measures targeting the sustainable use of agriculturalland through: • natural handicap payments to farmers in mountainareas; • payments to farmers in areas with handicaps, otherthan mountain areas; • Natura 2000 payments; • agri-environment payments; • animal welfare payments;

48. MEASURES • measures targeting the sustainable use of forestry landthrough: • first afforestation of agricultural land; • first establishment of agroforestry systems onagricultural land; • first afforestation of non-agricultural land; • Natura 2000 payments; • forest-environment payments; • restoring forestry potential and introducing preventionactions;

49. RURAL DEVELOPMENTSUPPORT AXIS 3THE QUALITY OF LIFE IN RURAL AREAS ANDDIVERSIFICATION OF THE RURAL ECONOMY

50. MEASURES • measures to diversify the rural economy, comprising: • diversification into non-agricultural activities, • support for the creation and development of microenterpriseswith a view to promoting entrepreneurshipand developing the economic fabric, • encouragement of tourism activities;