EU Rural Development Regulation No 1698/2005 and its forestry relevant measures Budapest 21-22 September 2006

1. EU Rural Development Regulation No 1698/2005 and its forestry relevant measuresBudapest 21-22 September 2006 Tamas Szedlak European Commission Directorate General Agriculture and Rural Development Unit F6. Bioenergy, biomass, forestry and climate change

2. Forestry in the EU • Forests and other wooded land cover 166 million ha, (43,2% of land area) from which forests cover 145 million ha, (37,8%)

3. Country distribution

4. Forest ownership • Public forest represents 40% of forest area and private forests: 60% with about 15 million forest owners. • The average size of EU state-owned forest holdings is about 1 000 ha, • Community forests:~ 300 ha • Private forest holdings have an average size of 13 ha. (many < 5 ha)

5. EU Rural Development Policy • Agenda 2000 • CR (EC) No 1257/1999 • CR (EC) No 1698/2005

6. CR (EC) No 1257/1999 • Afforestation of agricultural land (Art. 31) • Investments to improve the multifunctional role of forests (Art. 30) • Improvement of the forest protection values (Art. 32) • Vocational training (Art.9) Budget: 4.8 Billion € • Afforestation: 2.4 billion € • Other forestry measure: 2.4 billion €

7. Rural Development Regulation 2007-2013 CR (EC) No 1698/2005 Three core objectives: • Improving the competitiveness of the farm and forestry sector through support for restructuring, development and innovation • Improving the environment and the countryside through support for land management • Improving the quality of life in rural areas and encouraging diversification of economic activity

8. Axis 1: Improving competitiveness of the forestry sector • Investments • Infrastructure • Vocational training • Advisory services • Innovation (new products, biomass for energy)

9. Axis 1: Forestry measures Measures aimed at improving human potential through: Vocational training and information actions for persons engaged in the agricultural and forestry sectors Not normal education Use by farmers and forest holders of advisory services To improve performance Level of support: 80% of the cost up to 1,500€ per advisory service Setting up of farm management, farm relief and farm advisory services, as well as of forestry advisory services Main conditions: enlarged to include forestry advisory services Level of support: No limit, but digressive over max. 5 years from setting up

10. Axis 1: Forestry measures Measures aimed at restructuring physical potential through: Improving the economic value of forests - based on management plan - for forests owned by private owners/municipalities or their associations - aid intensity 60 % (natural handicap, N 2000), 85 % (OR),50% - investments at forest holding level, may include harvesting equipment - no support for restocking Adding value to primary agricultural and forestry production- In the case of forestry, support only for micro-enterprises (<10 staff, max. 2 mio € turnover) - aid intensity 50 % (convergence),75/65 %(OR/Aegean), 40 % - investments related to the use of wood as a raw material is limited to all working operations prior to industrial processing Improving and developing infrastructure related to the development and adaptation agriculture and forestry - i.a. access to forest land, energy supply

11. Axis 1: New measure introduced to promote innovation: • Cooperation for development of new products, processes and technologies in the agriculture and food sector and in the forestry sector • Between primary producers in agriculture and forestry, the processing industry and/or third parties • preparatory operations, such as design, product, process or technology development and tests and tangible and/or intangible investments related to the cooperation, before the use of the newly developed products, processes and technologies for commercial purposes.

12. Axis 2 : Improving the environment and the countryside Forestry land: • first afforestation*; • first establishment of agro-forestry systems, • Natura 2000 areas; • forest-environment; • restoring forestry potential and introducing prevention actions; • support for non-productive investments *an agri-environment commitment may be converted into a commitment for first afforestation of agricultural land MS shall designate the areas eligible for afforestation

13. Axis 2: Land management/environment First afforestation Aid intensity for establishment costs:- 70% outside handicap areas- 80% in handicap areas and 85% in the outermost regions "establishment costs" shall include the cost for the plantation material, the cost of the plantation and the cost directly linked to and necessary for the plantation,"fast-growing species for short–term cultivation“: rotation time less than 15 years Of agricultural land: + Annual premiums to cover loss of income to farmers (or associations thereof) maximum 700 EUR/ha, or other natural persons or private-law corporations maximum 150 EUR/ha, up to 15 years.

14. Axis 2: Forestry – new measure First establishment of agroforestry systems on agricultural land • Main conditions:Support granted to create systems combining extensive agriculture and forestry on the same land. Christmas trees and fast-growing species are excluded from support. • Member States, taking account of local conditions, forestry species and the need to ensure continuation of the agricultural use of the land, shall determine the maximum number of trees planted per hectare. • Aid intensity, for establishment costs only:- 70% outside handicap areas- 80% in handicap areas and 85% in the outermost regions

15. Axis 2: Forestry – current art. 32 (1), 1st indent NATURA 2000 payments: • Main conditions: The measure becomes Natura 2000-specific. Support covers cost incurred and income foregone resulting from the restrictions of the use of the forestland due to Natura 2000. • Levels of support: Minimum 40€/ha, maximum 200€/ha Forest-environment payments: • Main conditions: The measure becomes more environment-specific, similar to agri-environment. Support is granted for forest-environment commitments going beyond (national) mandatory standards, and running for 5 years (or another period where justified); support covers additional costs and income foregone • Levels of support: Minimum 40€/ha, maximum 200€/ha

16. Axis 2: Forestry Restoring forestry production potential and introducing prevention actions: Main conditions: Preventive actions against fires shall concern forests under high-medium forest-fire risk according to the MS forest protection plans. Level of support: No limit examples:establishment of protective infrastructures such as forest paths, tracks, water supply points, fire breaks, cleared and felled areas, launching of operations to maintain fire breaks and cleared and felled areas; preventive forestry practices such as vegetation control, thinning, diversification of vegetation structure; setting-up or improvement of fixed forest fire monitoring facilities and communication equipment.

17. Axis 2: Forestry Support for non-productive investments: Main conditions: "non-productive investments” shall mean investments that do not lead to any significant increase in the value or profitability of the agricultural or the forestry holding. Level of support: No limit New separate measure taking over part of the existing CR 1257/1999 Art. 33(11th) and 30(1)(2nd) measures and complementing them with regard to the forest-environmental measure: grant of non-productive support is linked to the achievement of commitments undertaken under the forest-environmental measure, or in order to enhance the public amenity value of the area concerned.

18. Axis 3 : Diversification, quality of life • Diversification of the rural economy:diversification to non-agricultural activities; support for micro-enterprises; encouragement of tourism activities* *-small-scale infrastructure such as information centres and the signposting of tourist sites; -recreational- infrastructure such as the offering access to natural areas, and small-capacity accommodation, -the development and/or marketing of tourism services relating to rural tourism • Improvement of the quality of life:basic services for the economy and rural population; village renewal; conservation and upgrading of the rural heritage (natural and cultural) • Training and capacity building

19. Axis 4 : Leader • 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 cooperation between LAGs • Capacity building and functioning of LAGs

20. Programme balance • Axis 1: Competitiveness at least 10% of EU programme funding • Axis 2: Land management at least 25% (10% in French Overseas Departments) • Axis 3: Wider rural development at least 10% • Axis 4: LEADER at least 5% (but counts for the other axes)

21. 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

22. Programming steps • Community strategic guidelines setting out the EU priorities for the period 2007-2013 • National strategy plans translating the EU priorities to the member state situation and ensuring complementarity with Cohesion policy • National or regional rural development programmes articulating the four axes

23. Reporting based on a common framework for monitoring and evaluation • Annual progress reports at programme level • National summary reports on progress in implementation of the national strategy: 2010 – 2012 - 2014 • Commission summary report to the Council and the EP on the progress in implementation of the EU strategy and priorities: 2011 – 2013 – 2015 • Ongoing evaluation: ex-ante (programme) ongoing activities (annual progress report) mid-term (2010) ex-post (2014) } specific reports

24. Thank you for your attention!