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rural development policy - European Commission

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RURAL DEVELOPMENT POLICY FOR NEWMEMBER STATES• Reinforced <strong>rural</strong> <strong>development</strong> <strong>policy</strong>• Existing measures• Complementary measures• Certain derogation from the provisionsforeseen by Regulation (EC) n°1257/1999<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


RURAL DEVELOPMENT POLICY TOWARDS NEW MEMBER STATESTwo angles of approach to Rural Development:• as 2 nd Pillar of the Common Agricultural Policy =>complementing and accompanying the marketpolicies, promoting the multifunctional character ofagriculture• as part of integrated regional <strong>policy</strong> => achieving abalanced territorial <strong>development</strong>, promotingeconomic and social cohesion• Special arrangements to allow smoother Accession<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


RURAL DEVELOPMENT POLICYFirst PillarSecond PillarMarket <strong>policy</strong>RD <strong>policy</strong>FoodproductionEnvironmentalfunctionRuralfunctionMultifunctional Agriculture<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


RURAL DEVELOPMENT POLICYMain instrument is the Rural DevelopmentRegulation 1257/99:• For new MS 30 measures in 10 broad categories (chaptersin Regulation 1257)• 2 sources of EU funding, Guarantee and Guidance<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


Community funding for <strong>rural</strong> <strong>development</strong>in new MSTRDI EAGGF GuaranteeEAGGF GuidanceThroughout new MSOutside Objective 1Only Objective 1I. 'Accompanying measures' Investment in agr. holdings Early retirement Less Favoured Areas Agri-environment Afforestation agr. land Young farmers Training Other forestry Processing and marketingII. CAP reform Meeting standards (Compliancewith Community standards) Food qualityIII. Specific measures for 10 MS Complements to direct payments Setting up of producer groups Technical Assistance Semi subsistence farmingAdaptation and <strong>development</strong> of<strong>rural</strong> areas (art 33)for new MS including: extensionof advisory servicesInside/Outside Obj 1LEADER+ type measures<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


Specific measures for the 10 new Member States• Support for semi-subsistence farms• Producer groups• Technical assistance• Complements to direct payments• Farm advisory and extension services (Art.33)• Specific measures for Malta• Investment derogation under meeting standards• ‘Leader+type’<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


RURAL DEVELOPMENT POLICYGrouping of RD measures (summary):Food and FibreproductionTargeting the competitiveness of the farm sector/individual farmsTargeting downstream of the farm sectorTargeting the economic environment of the farm sectorEnvironmentalandRural functionTargeting the environmentTargeting disadvantaged areas to maintain farmingTargeting the <strong>rural</strong> economy<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


specific measures adapted to the needs of the new members.RuralDevelopment2 SAPARD specific measures:• Support for producer groups• Technical assistanceA new measure for semi-subsistence farms:• Designed to provide transitional income support to farmhouseholds during a period of intensive restructuring andinvestment:• Targeted on farms in the range of 3-15 hectares (to bedetermined by the member state)• Which can demonstrate that they will achieve economicviability and EU standards (quality, food safety,environment etc.) through a business plan.• Flat rate payment of a maximum of €1000 per farm peryear<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture 11


Semi-subsistence support• to help ease <strong>rural</strong> transition problems facing thecompetitive pressure of the single market• to encourage the restructuration of farms for whicheconomic viability cannot be demonstrated• flat rate annual aid with a maximum amount of 1000 €shall be granted to semi-subsistence farms<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


Measure Producer Groups• to encourage the setting-up, to facilitate the administrativeoperation of producer groups• apply to producer groups set up for the purpose of jointlyadapting the production and output of the producers who aremembers of such groups to market requirements,• which have been formally recognised by the Member State.<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


Measure Technical assistance• Preparation, monitoring, evaluation and control measuresnecessary for the implementation of the Rural Developmentprogrammes<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


Leader+ type measuresSupport is granted for :• measures connected with the acquisitionof skills of <strong>rural</strong> communities• pilot and integrated territorial <strong>rural</strong><strong>development</strong> strategies prepared by localaction groups<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


Derogation for investment under meeting standards• (Normal meeting standard support is 10.000 € per year per holding forincome lost; investment is not taken into account)• Investment support : 25.000€ ceiling per year per holding• Investment support for a maximum of 3 years• Compliance with standard at the end of the investment<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


Financial allocations for <strong>rural</strong> <strong>development</strong>programmes in 10 new MS(AS REVISED BY COMMISIONDECISION OF 29 DECEMBER 2003(EUR million)2004200520062004-2006Cyrus22,525,127,274,8Czech Republic163,3182,0197,5524,8Estonia45,350,454,8150,5Hungary181,2201,9219,2602,3Poland862,4961,01 043,02 866,4Slovenia84,794,4102,5281,6Lithuania147,3164,1178,1489,5Latvia98,7110,0119,4328,1Slovakia119,5133,1144,5397,1Malta8,17,39,09,826,9<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


2003 CAP reform and 2004 enlargement• Reform implies changes to the acquis on whichthe accession negotiations were based• Result : need to adapt both the Act of Accessionand the CAP reform texts (meeting standard -Leader type measures)• Principle : There should be no ‘erosion’ of theterms of accession by negotiated countries<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


Implementing rules for the Accession Treaty‘specific measures’<strong>Commission</strong> Regulation 141/2004 laying downrules for applying Council Regulation (EC) No1257/1999 as regards the transitional <strong>rural</strong><strong>development</strong> measures :defines implementing rulesdefines what has to be included in theprogramme descriptiondefines financial table<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


<strong>Commission</strong> Regulation 27/2004as regards the financing of EAGGF Guaranteesection for <strong>rural</strong> <strong>development</strong> in the newMember StatesDefines the financial rules for:new Art.47a - financing of transitionalmeasuresnew Art. 47b - eligibility of expenditure<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


New formula for financial management for EAGGFGuarantee <strong>rural</strong> <strong>development</strong> in new MS• Financial management system close to the SAPARDexperience• Financing by EAGGF-Guarantee but under differentiatedappropriations• Regulation 1258/99 on the financing of the PAC appliesexcept Art. 5 (payments) and Art. 7(2) monthly advances onthe provisions for expenditure)• Arts. 29 to 32 of Regulation 1260/99 apply<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


Number of plans in 10 new MSEAGGF - Guidance9 plansEAGGF - Guarantee10 plans(Cyprus all measurestogether)<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture


Time table for the appraisal procedure• Phase of informal consultation (mid 2003-end2003)• Formal submission of plans:- EAGGF Guarantee “admissible plans”– end of2003 starting from 1 January 2004 (influenceon the starting date for the eligibility period)- EAGGF Guidance – starting from 1 May 2004• Formal approval of plans (after 1 of May 2004)<strong>European</strong> <strong>Commission</strong> - Directorate General for Agriculture

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