Transcript RURAL DEVELOPMENT POST 2013

European Commission
Agriculture and Rural Development
Rural Development Policy in the period 20072013 and in the Future Financial Perspectives
Pedro TARNO, Zbigniew FAFARA, Jonathan BAKER
Rural Development Programmes : Denmark, Lithuania, Poland
Directorate General for Agriculture and Rural Development European Commission
Visit of Podlaskie and Warnia Mazury Voivodeship - POLAND
Brussels 15th June 2011
Importance of agriculture
in the EU territory
European Commission
Agriculture and Rural Development
• Agriculture and
Forest = 78 % of
the territory
• 13.7 million farms
(70% with less
than 5 ha)
• The agrifood
sector has 17.5
million employees
(7.7% of total
employment)
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The CAP today
• A substantially reformed policy …
–Role of market intervention mechanisms is significantly
reduced
–Rural Development policy is strengthened with funds
and policy instruments
–Farm support is mainly decoupled and subject to
cross-compliance
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CAP expenditure and CAP reform path
(2007 constant prices)
70
% GDP
billion €
EU-10
EU-12
EU-15
EU-25
EU-27
0,7%
0,6%
50
0,5%
40
0,4%
30
0,3%
20
0,2%
10
0,1%
0
0,0%
1980
1981
1982
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1991
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2007
2008
2009
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Export subsidies
Decoupled direct payments
Other market support
Rural development
Coupled direct payments
% of EU GDP
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Financing the CAP *
• Budget of the European Union is currently around 141
billion € per year
• Some 41% of the EU budget is currently devoted to the
Common Agricultural Policy (63% in 1990, 39%
foreseen for 2013)
• Direct payments and market measures (1st pillar) = 44
billion/year
Rural development (2nd pillar) = 14 billion/year
Total : 58 billion/year
* Based on commitment appropriations – current prices
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The two Pillars of the CAP
• Pillar 1 (76% of the CAP budget)
– Direct Payments (90% of the Pillar 1 budget)
– Market Measures
– 100 % EU financing
• Pillar 2 (24 % of the CAP budget)
– Rural Development
– 4 axes
– Cofinanced with the Member States
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RD policy principles
• Strategic programming (7 year period)
• Partnership/shared responsibility (with Member States;
cofinancing; stakeholder involvement)
• Complementarity and coherence with other EU
instruments (eg regional and social policy,
environmental policy)
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Rural development Priorities
• To enhance competitiveness of the agri-food and
forestry sectors with emphasis on
restructuring/modernisation, knowledge transfer and
innovation, and quality in the food chain
• To promote environment/land management with
emphasis on biodiversity, water and climate change
• To create employment opportunities and growth
conditions through diversification of the rural economy
and enhancing the quality of life in rural areas
• To improve governance and local development through
bottom up approaches
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Rural Development
• Axis 1: Improving the competitiveness of the farm
and forestry sector through support for restructuring,
modernisation/innovation and quality production
(investment aids, modernisation, processing, quality
production, training, young farmers,…)
• Axis 2: Enhancing the environment and land
management through support for land management
(agri-environmental schemes, LFA payments,…)
• Axis 3: Improving the quality of life in rural areas
and promoting diversification of economic activity
(agritourism…)
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Axis 4 : Leader
• Implementation of local development strategies
through a Leader approach (public-private
partnerships or Local Action Groups) 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
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Rural Development/Overall architecture
Rural
Development
2007-2013
« LEADER Approach » (5%)
Objective 1
Competitiveness
(10%)
Objective 2
Environment +
Land
Management
Objective 3
Economic
diversification
Quality of Life
(25%)
(10%)
National Co-financing
Rural Development Fund
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Planned spending on RD policy, 2007-2013
Public
27%
Private
30%
EAFRD
43%
• EAFRD (EU funding):
€ 96 billion
• Total public and private spending: € 232 billion
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Division of spending between axes
Axis 2
44%
Axis 3
13%
Axis 1
Axis 4
6%
Axis 2
TA & DP
3%
Axis 3
Axis 4
TA & DP
Axis 1
34%
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European Commission
Agriculture and Rural Development
COMMON AGRICULTURAL POLICY (CAP) POST 2013
INSTITUTIONAL CONTEXT
-
LISBON TREATY : CO-DECISION PROCEDURE
-
NEW FINANCIAL PERSPECTIVES (2014-2020)
-
NEED TO ALIGN CAP POST 2013 TO EUROPE 2020 STRATEGY
-
COMMISSION‘S COMMUNICATION OF 18TH NOVEMBER 2010 ON THE
FUTURE OF THE CAP : „Meeting the food, natural resources and
territorial challenges of the future“
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Communication on the future
of the CAP
The Policy instruments
European Commission
Agriculture and Rural Development
Better targeted to objectives
Direct payments
• Redistribution (MS
and farmers)
• Better targeting
• Redesign:
• Greening of direct
payments
• Capping of
payments
• Small farmers
support
• Areas with
specific natural
handicaps
Market measures
• Market orientation
• Streamline and
simplification
• Improved food
chain functioning
First Pillar
Rural development
• Environment, climate
change and innovation
as guideline themes
• Improved coherence
with other EU policies
• More effective delivery
mechanisms
• Address risk
management and
income stabilisation tool
• New distribution of
funds (Europe 2020)
Second Pillar
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European Commission
How does the future of
the CAP relate with
Europe 2020 Strategy ?
Agriculture and Rural Development
The CAP contributes to :
- SMART growth by supporting innovation, technology and
skills, improving uptake of research and developing high value
added and quality products;
-SUSTAINABLE growth by promoting resource efficiency,
increasing competitiveness, providing environmental public
goods, fighting climate change and biodiversity loss;
-INCLUSIVE growth by unlocking local potential, diversifying
rural economies, developing local markets and opening
alternative opportunities to accompany agricultural
restructuring
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RURAL DEVELOPMENT OBJECTIVES
POST 2013
Long-term strategic objectives
Competitiveness
of agriculture
Sustainable
management of
natural resources
Balanced territorial
development
Interpreted in the light of Europe 2020:
smart, sustainable, inclusive growth
Operational priorities with:
•
areas of intervention
•
improved target indicators
All MS / regions
must address
these in their RD
programmes
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RURAL DEVELOPMENT OPERATIONAL
PRIORITIES POST 2013 (1)
1. Knowledge transfer in agriculture and forestry
•
(Cross-cutting priority)
•
Human capital and smart networking in agriculture & forestry
•
Innovation, knowledge base in agriculture & forestry
•
Strengthening links between agriculture & forestry / research &
development
2. Competitiveness of agriculture, farm viability
•
Restructuring of farms facing major structural problems
•
Generational renewal in agricultural sector
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RURAL DEVELOPMENT OPERATIONAL
PRIORITIES POST 2013 (2)
3. Food chain organisation, risk management in
agriculture
•
Integrating primary producers into food chain
•
Supporting farm risk management
4. Preserving & enhancing ecosystems dependent on
agriculture & forestry
With regard to:
•
biodiversity / landscapes
•
water management
•
soil management
•
carbon sequestration
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RURAL DEVELOPMENT OPERATIONAL
PRIORITIES POST 2013 (3)
5. Resource efficiency & transition to low-carbon
economy in agri-food and forestry sectors
•
With a focus on water & energy
•
Production of (feedstocks for) renewable energy in ag & forestry
•
Cutting nitrous oxide & methane emissions from agriculture
6. Realising jobs potential & development of rural
areas
•
Diversification & job creation
•
Social inclusion & poverty reduction
•
Local development in rural areas
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SOME LESSONS FOR THE FUTURE (1)
FUND COORDINATION: FROM DEMARCATION
TO STRATEGIC INTEGRATION UNDER EU 2020
• Reduce/eliminate the need for complex demarcations between EU funds in the
rural space; improve strategic coordination
EU2020 STRATEGY FOR SMART SUSTAINABLE
AND INCLUSIVE GROWTH
Proposed:
COMMON EU STRATEGIC FRAMEWORK FOR ALL FUNDS
Corollary:
COMMON NATIONAL STRATEGIC FRAMEWORK FOR ALL FUNDS
STRATEGICALLY COORDINATED AND COHERENT EU FUND INTERVENTIONS
COORDINATED INTEGRATED LOCAL DEVELOPMENT INITIATIVES (e.g.
local strategies by LAGs and PPPs)
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RURAL DEVELOPMENT POST 2013
What measures will be needed?
Current measures
(2007-2013)
Streamline
measure
menu
Adjust conditions,
scope
New measures?
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RURAL DEVELOPMENT POST 2013
Delivery mechanisms: key elements
• Abolition of the axis system
• Strengthening strategic approach and ex-ante
evaluation
• Quantified target levels against common indicators
(“target indicators”) for each of the priorities
• Measures used more flexibly in combination
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European Commission
Agriculture and Rural Development
THANK YOU FOR YOUR ATTENTION !
For further information
The CAP after 2013
http://ec.europa.eu/agriculture/cap-post-2013/index_en.htm
The Communication on the future of the CAP
http://ec.europa.eu/agriculture/cap-post-2013/communication/ index_en.htm
EU rural development policy 2007-2013
http://ec.europa.eu/agriculture/rurdev/index_en.htm
Agricultural Policy Analysis and Perspectives
http://ec.europa.eu/agriculture/analysis/perspec/index_en.htm