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Support of rural development in Germany from 2007-2013 with particular focus on forestry

Support of rural development in Germany from 2007-2013 with particular focus on forestry Wolfgang Reimer Director of Structural Policy, Rural Development, Organic Farming at the BMELV. CONTENTS. I. The structure of the forestry sector in Germany

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Support of rural development in Germany from 2007-2013 with particular focus on forestry

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  1. Support of rural development in Germany from 2007-2013 with particular focus on forestry Wolfgang Reimer Director of Structural Policy, Rural Development, Organic Farming at the BMELV

  2. CONTENTS I. The structure of the forestry sector in Germany II. National implementation of the EAFRD Regulation a) national strategy b) the joint task of improving agricultural structures III. Prospects (timetable, finances)

  3. Land use in Germany 54.8 % agriculture (17 million ha in total, approx. 12 million arable land (of which 60 % grain)) 30 % forest (11 million ha, 35 % spruce, 31 % pine and larch, 34 % deciduous forest) Agriculture - 350,000 enterprises - average area per enterprise west 32 ha / east 200 ha - 15 % of the enterprises over 50 ha farm 70 % of the land

  4. Structure of the forestry sector 47 % privately-owned forests 29 % state-owned forest (Länder) 4 % state-owned forest (Federal Government) 20 % municipal forest Structure of forest ownershipApprox. 2 million forest owners share 5 million ha of forest; average size of enterprise between 0.7 and 14 ha, depending on Land. ChallengesSmall-scale structure of forest ownership, but enormous concentration processes in the timber industry

  5. Europe Nation Region Strategic Guidelines NationalStrategy Plan (GAK as a framework regulation) Regional Development Programmes Strategic approach The EU defines Strategic Goals that will be implemented via three planning levels: The involvement of NGOs will be reinforced in the planning procedure

  6. Competitiveness Land management Diversification L E A D E R Central elements of the EAFRD Regulation New: One fund – One programme

  7. ■ New: • Forestry sector is accorded the same status as the agricultural sector • Compensation of income losses under NATURA 2000 and agri-environmental measures in the forestry sector (as in the agricultural sector)

  8. Implementation in Germany • National Strategy- Elaboration by the Federal Government in consultation with the Länder • Joint Task "Improvement of Agricultural Structures and Coastal Protection “ (GAK) constitutes a bracket for central measures of the regional programmes as a national framework regulation - Federal Government/Länder consultation on thematic contents • Regional programmes- Elaboration and implementation by the Länder- Recourse to CAP measures and financing - Supplementary offer of specific measures: national cofinancing solely from Länder funds

  9. National Strategy • Assessment of the economic, social and ecological situation of rural areas in Germany and their potential for development • Setting thematic and territorial priorities for each priority axis, including the quantification of the main goals • Inclusion of indicators for the monitoring and evaluation of the national strategy • Allocation of the EU funds assigned to Germany among the Länder • Integration of the GAK framework regulation • Ensuring the coherence of support measures with other policies and programmes at national and European level • Responsibility and decision-making bodies • Description of the coordination procedure between the Federal Government /Länder/ economic and social partners • Establishment of a national network • Adoption and notification

  10. GAK priority areas • Improvement of the production and marketing structures • Measures for forestry • Coastal protection • Sustainable farming • Improvement of rural structures • Other areas

  11. re. 2. Basic principles for the support of forestry measures Recipients of benefits: private owners of forest, municipal authorities and forestry groupings A. Support of initial afforestation Depending on tree species composition, up to 85% for establishment of stands and tending of plantations; depending on land use and soil quality, income-loss premium of between 350 and 700 €/ha for up to 15 years for farmers and of up to 150 €/ha for non-farmers. B. Support of semi-natural forest management Preliminary work, conversion of monocultures, silvicultural measures in young stands, soil protection liming, structuring of semi-natural forest edges, insecticide-free forest protection, use of skidding horses. The rate of support amounts to between 50% and 90%, according to the respective measure.

  12. C. Support of forestry groupings (forstwirtschaftliche Zusammenschlüsse - FWZ) Start-up investments, management - or alternatively – premium for mobilisation of timber resources) – state aid without involvement of EAFRD!- D. Support of forest infrastructure With regard to road construction, the rate of support amounts to up to 70 %, or up to 42% for enterprises of more than 1,000 ha. With regard to timber-conservation installations, there is a support rate of up to 30 %.

  13. re. C. Support of forestry groupings Forestry groupings can be supported by means of a national aid under the Joint Task for the Improvement of Agriculture and Coastal Protection without the involvement of EAFRD: • Under start-up investments, the following are eligible for support: devices, machines agricultural buildings, lumbering sites and preparatory investigations, e.g. into logistics and marketing concepts. The support rate amounts to up to 40 %. • Management and counselling The support rate amounts to up to 60 % in the first four years, up to 50% in the following three years, and up to a maximum of 40,000 € per year for a further three years - or alternatively – • Premium for mobilising timber resources a premium based on solid metres for independent timber marketing by forest groupings:

  14. Support of forestry groupings • Expenses for multi-enterprise timber marketing are eligible for support, of up to 2€ per solid metre of marketed timber • Coordination of supra-regional sale of forest products by forestry associations • Measures which serve the preparation, conclusion and fulfilment of framework contracts commissioned by members are eligible for support of up to 0.20 € per solid metre. • The maximum per forestry grouping and year is [80,000 €].

  15. Efficiency criteria for forestry groupings: The Länder have stipulated a minimum amount of land in respect of start-up investments and management, and a minimum marketing amount per ha of membership area and year in respect of the mobilisation premium. The aim is to continually improve the competitiveness of the forestry groupings, including in respect of the ongoing concentration processes on the purchasing side. The support of the forestry groupings is expected to be processed as so-called “De-minimis” aid within the meaning of Regulation (EC) No. 69/2001 (maximum of 200,000 € in three years).

  16. Measures which are supported by the Länder outside the Joint Task for the Improvement of Agricultural Structures and Coastal Protection: Art. 28, 29 (machine-related support, investments, bioenergy) Art. 46, 47 (forestry-related environmental measures, e.g. deadwood, maintenance of biotopes; Natura 2000 compensation)  Art. 48 (preventative protection against forest fires e.g. forest-fire breaks, firefighting water points; emergency aid following natural events, e.g. aid for timber storage)

  17. Financial framework • Vote by the European Council in December 2005 There is a total of almost 70 billion euro, expressed in constant 2004 prices, available for the support period 2007 – 2013. This sum is available in real terms, taking into account an annual inflation rate of 2 %. The Commission has shared the overall budget passed by the European Council on 12 September 2006 between the Member States. Germany will receive approximately 5.9 billion euro for the new support period, expressed in constant 2004 prices. If the modulation funds, including tobacco, are also incorporated into the calculations, the figure rises to 7.2 billion euro.

  18. Financial framework • In individual Länder, the decreasein EU support funds for the 2nd pillar of CAP amounts to up to 37 % or 23 % (including the modulation funds). • Taking into account the indexation of 2 % per year, there will be a nominal amount of 8.1 billion euro in EU funds available for the 2nd pillar for the support period 2007 – 2013, taking into account the existing modulation.Accordingly, the decrease in EU funds in Germany amounts to a nominal amount of approximately 12 % in current prices and 23 % expressed in 2004 prices.

  19. Timetable • ■ Adoption of the implementing regulations in the STAR committee in September 2006 • (possibly problematic due to the state-aid framework) • ■ Adoption of the Strategic Guidelines of the Commission by the Council, following the adoption of the implementing regulations

  20. Timetable • ■ Submission of the National Strategy in Brussels at the beginning of September • ■ At the same time, drawing up of the regional development programmes and submission to the COM • ■ By the end of 2006:Approval of the regional development programmes • ■ From January 2007:Implementation of the regional development programmes

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