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RURAL DEVELOPMENT

RURAL DEVELOPMENT. European Rural Development policy is a living policy, born of political decision-making processes and of its implementation on the ground.

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RURAL DEVELOPMENT

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  1. 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 Union’s 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.

  2. 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 man’s 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.

  3. 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.

  4. 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

  5. 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.

  6. 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

  7. 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

  8. Rural areas Agriculture Rural development policy 2000-2006 • To achieve better integration

  9. 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

  10. 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

  11. 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.

  12. 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.

  13. 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

  14. 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.

  15. 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.

  16. 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)

  17. 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.

  18. 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.

  19. RURAL DEVELOPMENT-measures 6. Agri-environmental measures • to support the sustainable development of rural areas and to respond to society’s 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.

  20. 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

  21. 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

  22. What’s 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

  23. 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 aidto strengthen the 4 accompanying measures

  24. 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

  25. RURAL DEVELOPMENT - Implementing Rural Development Policy • Simplifying agricultural legislation • Rural development: all measures regrouped under a single regulation

  26. 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

  27. 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;

  28. 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;

  29. 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.

  30. 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.

  31. Administrative and financial provisions • Guiding principles for the new rural development policy: • decentralisation of responsibilities and • flexibility

  32. Evolution of EU Farm Subsidies-EAGGF-Guarantee

  33. Sources of rural development funding

  34. EAGGF-Guarantee budget

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