Rural development policy after 2013 in the EU and in Hungary – challenges, strategy, tools

1. Rural development policy after 2013 in the EU and in Hungary – challenges, strategy, tools Made by Szilvia Bencze Department of Rural Development Ministry of Rural Development szilvia.bencze@vm.gov.hu

2. Contents Issuesconcerningruraldevelopment CAP post 2013 ConceptforHungarian National Rural Strategy National Rural Strategyinthecontext of thenew CAP

3. EU rural development policy – today and after 2013 Why have an RD policy at EU level? A policy… • because rural areas face challenges which market forces alone will not solve A common policy… • because challenges do not start / end at national boundaries (climate change!) An EU policy… • to address the particular characteristics of the EU situation With a focus on added value!

4. EU rural development policy – today and after 2013 Rural areas areextremelyvaried Some rural regions in economic difficulties; others show good rates of growth / employment compared to urban areas No “typical rural region” in terms of growth and employment: different types of “rurality” determined by the regional “mix of functions” rather than a single economic activity

5. Significant rural poverty at the Eastern boundaries of EU

6. EU rural development policy – today and after 2013 RD policy in the current period The only integrated policy addressing all aspects of rural areas: economic, environmental, social Clear objectives Pre-defined measures to guarantee targeted outcome and EU value added Delivery system: strategic approach, flexibility for MS Monitoring and evaluating system

7. Key issues for after 2013 Ongoing challenges facing rural areas Overarching goals of EU2020 – general policy context Links with other EU policies Structure Measures Delivery mechanisms

8. Ongoing challenges facing rural areas Socio-economic challenges Environmental challenges Territorial challenges • Income gaps • Price volatility, risk management • Under-developedrural regions • GHG emissions • Soil depletion • Water/air quality • Habitats and biodiversity • Vitality of rural areas • Diversity of EU agriculture Food security, food safety Synergies and co-ordination with: CAP first pillar, structural funds Contribution to Europe 2020 strategy

9. Europe 2020 and RD policy: clear common ground! • SMART growth: • Supporting innovation and skills, green technologies and uptake of research • Providing incentives for social innovation • INCLUSIVE growth: • Unlocking local potential, diversifying rural economies and developing local markets and jobs • Opening up alternative opportunities to accompany agricultural restructuring Ruraldevelopment • SUSTAINABLE growth: • Increasing resource efficiency and the provision of public goods • Reducing GHG emissions, enhancing carbon sequestration and developing bio-energy • Ensuring sustainable land management and addressing biodiversity loss

10. CAP post 2013 – new focus

11. Goals of the CAP post 2013 Viablefoodproduction Sustainable management of naturalresources Balancedterritorialdevelopment

12. Possible scenarios for the CAP reform EU NRDS • Conservative – (enhanced status quo, current CAP withgradualadjustments) • Prudent -(balanced reform of the CAP) • Radical - (ruraldevelopment and agri-environmentalfocus) Agricultural policy shallsupportcompetitivenessorthesocial and environmentalprotectionfunction of theruralareas?

13. Objectives and priorities for RD policy - overview 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

14. Getting our priorities right (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

15. Getting our priorities right (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

16. Getting our priorities right (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

17. How should the elements fit together? Common Strategic Framework (CSF) – reflecting Europe 2020 National frameworks – reflecting CSF RD policy Other EU policies (cohesion policy, fisheries) RD programmes: Objectives / priorities Targets Sets of measures

18. What measures will be needed? Current measures (2007-2013) Streamline measure menu Adjust conditions, scope New measures?

19. Measures – some key areas (1) Knowledge transfer • Vocational training, advisory services, demonstrations of new technologies Co-operation: technological • Development / application of technology, techniques, products Co-operation: economic • E.g. short supply chains, sharing of resources Co-operation: environmental • Collective action for better results (e.g. larger areas, bigger projects)

20. Measures – some key areas (2) Business development • Including young farmers Risk management • New toolkit of measures Leader • Strengthen bottom-up and strategy • Open up for joint action with other funds

21. Delivery mechanisms: key elements Strengthening strategic approach and ex-ante evaluation Quantified target levels against common indicators (“target indicators”) for each of the priorities Abolition of the axis system Measures used: more flexibly in combination Harmonise rules with other funds

22. CAP after 2013 – timetable 2013 (n-1) 2012 (n-2) 2011 (n-3) 2014 (n) 2010 (n-4) Publicconsultation Conference Communi- cation on CAP after 2013 Publicationof legalproposals Negotiationsbegin with EP, Council Negotiationswith EP and Council over legal proposals Drafting of programmes Implementation of the new policy

23. The role of the CAP Communicationwithinthedecisionmakingprocess FirstofficialstatementfromtheCommission RequiresofficialresponsefromtheMSs Itensuresgreatroomformaneuveringinthe main issues Opportunityforarrangingnationalstandpoints PronouncingPresidencyConclusions  COM takesitinto account whendraftingthenewsubsidyregulationsforthenextbudgetaryperiod, expectedfor 2011 autumn

24. Main elements of thePresidencyConclusions Majority of theMSsaccept and comfortablewiththeobjectivesdefinedbythe COM Viablefoodproduction: Improvingtheincomes and competitiveness of theagriculturalsector, sufficient, safe, goodqualityfoodproductionforaffordableprices; 2. Sustainable management of naturalresources: Encouraging and payingforpublicgoodsproducedbyagriculture, efficientuse of naturalresourceswithrespecttoenvironmentalprotectionrequirements; 3. Balancedterritorialdevelopment:Maintainingruralcommunities and jobs, promotingeconomicgrowth of ruralareasthroughoutwhole Europe

25. Main contentelements of thePresidencyConclusions Management/regulation of agriculture and ruraldevelopmentshall be strongly linked inthefuturetoo Strong and two-pillar CAP is needed Pillar IPillar II CAP needsto be furthersimplified (rationalisingtheinteractionsbetweenfarmers and authority) • Greener • More equitable • Increasingcompetitiveness • Promotinginnovation • Countingwithenvironmentalprotection and fightagainstclimatechange

26. Presidencyconclusionswithregardtoruraldevelopment Important policy, must remainrobust; Strong ruraldevelopment policy is essentialwithregardtocompetitiveness and sustainability importanttostrengthensynergywithrelated EU policies; Pressure of generationalreplacement => youngfarmersand newentrants; Infrastructuredevelopment, knowledgeenhancement; Improvingdirectsales, encouragingproductionforlocal market; Agri-environmental management is successful, shallremain; Innovation is a centralelement : CAP reliesonit and fostersit at thesametime; Climatechange: agriculture has a keyroleinmitigatingtheprocess and alsoinadaptation; Programming: theframeworkshouldnot be more complicated, and MSsshould be allowedtoflexiblyapplytherulestakinginto account nationalcharacteristics; Aiming at synergy: withthe EU regional and cohesion policy

27. Concept for National Rural Strategy – 2020 Agricultural-, Food-, Environmental-, RURAL STRATEGY „Fortherise of thecountryside and forsustainableagriculture”

28. Interdependenceamongenvironment, agriculture and thecountryside Environmetnalendowments Farming method, intensity Environmentalsafety Environmental quality Productquality Foodsafety Employment Socialsecurity Standard of living

29. Paradigm-shift • Rural policy instead of agricultural policy • Dominance of familyfarmsinstead of largescale farming • Landscape management instead of harmfulmonoculture Agricultureshall be entitledto EU fundsonlyifitundertakesenvironmental, social and employment (so-calledeco-social) tasksapartfromproduction.

30. Strong eco-socialiststate Commongoods and equitabledistribution System approach Building onlocal economyand networktypecooperation Involvement of local communitiesindevelopment Strategicprinciples

31. Strategicobjectives Retaining, increasingruraljobs Retainingruralpopulation, stabilisingdemographicbalance Guaranteeingfoodsafety and security, overcomingdefencelessness Increasingviability of agri-foodsector, improvingour market position, balancingthe ratio betweencropproduction and animalhusbandry Protectingdrinkingwatersystems, conservingwaterresources, soil, naturalhabitats and landscape, increasingenvironmentalsafety Energysupplyrelyingalsoonlocal resources and systems, energysecurity, overcomingdefencelessness Improvingruralquality of life, providing more a vidéki gazdaság több lábra állítása Re-establishingthestronglinkagebetweentown and surroundingcountryside

32. Strategicareas and tasks Protection of naturalvalues, sustainable management of naturalresources and landscape Rural environmentalquality Land policy Sustainableagriculturalstructure and production policy Increasingvalue-added, safefoodsupply, safe market Development of local economy Rural intellectual and physicalinfrastructure, viableruralsettlements, local communities

33. Consistencybetween NRS objectives and thefuture CAP 1. Viablefoodproduction Guaranteeingfoodsafety and security, overcomingdefencelessness Increasingviability of agri-foodsector, improvingour market position, balancingthe ratio betweencropproduction and animalhusbandry 2. Sustainable management of naturalresources Protectingdrinkingwatersystems, conservingwaterresources, soil, naturalhabitats and landscape, increasingenvironmentalsafety 3. Balancedterritorialdevelopment Retaining, increasingruraljobs Retainingruralpopulation, stabilisingdemographicbalance Energysupplyrelyingalsoonlocal resources and systems, energysecurity, overcomingdefencelessness Improvingruralquality of life, providing more a vidéki gazdaság több lábra állítása Re-establishingthestronglinkagebetweentown and surroundingcountryside

34. Consistencybetweenstrategicareasand thefuture CAP 1. Viablefoodproduction Land policy Sustainableagriculturalstructure and production policy Increasingvalue-added, safefoodsupply, safe market 2. Sustainable management of naturalresources Protection of naturalvalues, sustainable management of naturalresources and landscape Rural environmentalquality 3. Balancedterritorialdevelopment Development of local economy Rural intellectual and physicalinfrastructure, viableruralsettlements, local communities

35. Strategicprogrammesin line withthe CAP • Viablefoodproduction • Programme of land and reparcelling • Programme of shifting landuse, farming method, landscape management • Ecological farming programme • Landscape management programmeforflood-basins • „Garden-Hungary” horticulturalprogramme • Animalhusbandryimprovementprogramme • Gene and biologicalconservationprogramme • Fisheryprogramme • Wildlife management programme • Agricultural marketing, domestic and externalprogramme • Local, regionalfoodprocessingprogramme • National and internationalfoodprocessingprogramme • Controlledfoodchainprogramme • Consciousconsumer and customerprogramme • Hungarikumprogramme • Healthymasscateringprogramme • Local foodprocessing, local market and foodsupplyprogramme • Local cooperatives, localmoneyprogrammes • Education, training, environmentaleducation • Adultlearning and technicalconsultancyinagriculture • Programmeforinfrastructurereconstructionin R&D

36. Strategicprogrammesin line withthe CAP • Soilconservationprogramme • Protection and reconstruction of naturalvalues, areas, ecosystemservices • Programmeforprotection of waterresources and waterquality • Spatialwater management programme • Drinkingwaterprogramme • Sustainable management of naturalresources : • Structuralchangeinlanduse, landscape management programme • Management programmes of protected and vulnerablenaturalareas (MTÉT, Natura ) • Nativeanimalhusbandrybasedongrassprogramme • National forestprogramme • Education, training, environmentaleducation

37. Strategicprogrammesin line withthe CAP • Local foodprocessing, local market and foodsupplyprogramme • Sociallandprogramme, careermodelforyoungfarmers • „Garden-Hungary” horticulturalprogramme • Local, regionalfoodprocessingprogramme • Consciousconsumer and customerprogramme • Healthymasscateringprogramme • Balancedterritorialdevelopment:

38. For further information • http://www.kormany.hu/en/ministry-of-rural-development • CAP Health Check • http://ec.europa.eu/agriculture/healthcheck/index_en.htm • EU agriculture and CAP reform • http://ec.europa.eu/agriculture/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

39. Thankyouforyourattention! Szilvia Bencze Department of Rural Development Ministry of Rural Development szilvia.bencze@vm.gov.hu