Commission proposals for Rural Development Policy after 2013

1. Commission proposals for Rural Development Policy after 2013 Working Party F02 (Rural Development) Meeting of 04/11/11 – session 1

2. Content • The context of the CAP reform • A new framework for rural development • Key elements of the rural development programming • New features in rural development • Financing eligibility rules and management responsibilities • Monitoring and evaluation; Networking 2

3. 1. The context of the CAP reform 3 3

4. How the CAP will address the challenges To contribute to farm income and limit its variability To improve sector competitiveness and share in food chain value-added To compensate areas with natural constraints Commission Communication ‘The CAP towards 2020’ Challenges 3 policy objectives Europe 2020 Viable food production Economic Sustainable management of natural resources and climate action • To guarantee the provision of public goods • To foster green growth through innovation • To pursue climate change mitigation and adaptation Environmental Balanced territorial development Territorial • To support rural vitality and employment • To promote diversification • To allow social and structural diversity in rural areas Simplification 4

5. Objectives and priorities of Rural Development Objectives: • Contributing to the competitiveness of agriculture • Contributing to the sustainable management of natural resources, and climate action • Contributing to a balanced territorial development of rural areas • They are derived from the overall objectives of the CAP as expressed in the Treaty and outlined in the Communication from the Commission on the « CAP towards 2020 » Priorities: • Objectives of Rural Development are transposed into six more operational « Union Priorities for Rural Development », to be achieved through a set of « rural development measures » (instruments) • Priorities also reflect the content of the Europe 2020 strategy, and of the corresponding Thematic Objectives which apply to all the CSF funds (art. 9 of CSF Funds regulation)

6. 2. A new framework for rural development 6 6

7. Horizontal Regulation (common with first pillar) for financial management and controls Single framework for CSF funds - simplification and harmonisation of rules Common Strategic Framework and Partnership Contract Performance review based on milestones and ex ante conditionalities Macro-economic conditionalities 6 priorities for rural development derived from the rural development objectives and translating EU2020 3 cross-cutting objectives: Innovation, Environment, Climate Change Reinforced strategic approach to programming Quantified targets at programme level linked to priorities Streamlined tool-kit of measures to be combined in relevant packages to address priorities and achieve targets Possibility of thematic sub-programmes European Innovation Partnership ‘Agricultural productivity and sustainability’ and Prize for innovative, local cooperation Rural development: what’s new? 7 7

8. Rural development in a new framework Europe 2020 strategy - Defines headline targets to be achieved by the Union Common Strategic Framework (CSF) – covering the EAFRD, ERDF, ESF, Cohesion Fund and EMFF (the “CSF Funds”) , and reflecting EU2020 through common thematic objectives to be addressed by key actions for each of the funds Partnership Contract – national document outlining the intended use of the funds in the pursuit of EU2020 objectives Rural development policy: EAFRD Other CSF funds (ERDF, ESF, CF, EMFF) Rural Development Programme(s) - Structured around six priorities for Rural Development 8 8

9. Regulation on common provisions for CSF Funds • A single Regulation will include: • common provisions for all structural instruments of cohesion policy, the rural development policy and the maritime and fisheries policy (EAFRD, ERDF, ESF, CF, EMFF - “CSF Funds”), and • In addition, general provisions applicable to cohesion policy only • Rationale: • Supports co-ordinated delivery of EU2020 strategy • Maximizes effectiveness of structural instruments, which have complementary policy objectives and shared management mode • Simplifies legislative framework • Common rules proposed for key areas of policy architecture and delivery • Where harmonization not appropriate, specific rules in fund-specific regulations

10. Regulation on common provisions for CSF Funds: overview • Principles of support: General principles, partnership and multi-level governance, compliance with EU and national law, equality/non-discrimination, sustainable development • Strategic approach: Thematic objectives, Common Strategic Framework at EU level, Partnership Contract with each Member State • Ex ante conditionalities: Thematic and general ex ante conditionalities • Performance framework: Performance reserve of 5%; review in 2017 and 2019 • Macro-economic conditionalities • Programming: preparation, adoption/amendment, shared elements of content • Community-led local development: integrated approach and common rules • Financial instruments: Simpler framework at EU, national & regional levels: • Monitoring and evaluation: annual review meeting and strategic progress reports; shared elements on monitoring and evaluation; information on support for climate change objectives • Rules on financial support: including rules on eligibility and durability • Management and control: similar systems based on common principles and common elements where possible

11. Horizontal regulation on the financing, management and monitoring of the CAP: content • Scope and definitions (Force majeure and exceptional circumstances) • General provisions on agricultural funds (EAGF and EAFRD) • Farm Advisory System • Financial management of the funds • Control systems and penalties • Cross-compliance • Common provisions • Annex I on the minimum scope of Farm Advisory System • Annex II on the rules on cross-compliance What changes: • Combines horizontal issues for direct payments, rural development and sCMO that before have been spread across a number of regulations • Repeals regulations 352/78, 2799/98, 814/2000, 1290/2005, 485/2008 • The rules on management and controls will be aligned, as far as possible, for the two pillars of the CAP so as to bring legal clarity and harmonised procedures

12. Proposal for HZ-Regulation Application of cross-compliance rules for beneficiaries of certain area and animal-related measures Articles 91(2)(b) and (c) (agricultural activity and holding) and 92 (beneficiaries) Information and list of cc to the beneficiary Article 95 Application of the cross-compliance penalty Articles 91(1) and (2)(a), 97 (in general and de minimis) and 98 (derogation for RO and BG) Calculation of cross-compliance penalties Articles 99 (principles) and 101 (delegation) Control systems Articles 61, 62 and 64 (controls), Articles 68-78 IACS) and Article 96 (cross-compliance checks) Sanctions/penalties Articles 65 (principles), 66 (delegation) Former R1698/2005 Article 50(a)(1) in general Article 51(5); exclusion from the scope of beneficiaries of the conservation of genetic resources Article 50a(2) Articles 51(1) (in general), 51(2) (de minimis) and 51(3) (derogations for new MS) Article 51(4) (principles) Article 74(4) (basis for implementing rules) Article 91(b) (basis for implementing rules) Correspondence between Horizontal Regulation and Regulation 1698/2005

13. 2. Key elements of the rural development programming 13 13

14. Rural development priorities Focus areas / key Actions 1. Knowledge transfer and Innovation (a) fostering innovation and the knowledge base in rural areas (b) strengthening the links between agriculture and forestry and research and innovation (c) fostering lifelong learning and vocational training in the agricultural and forestry sectors 2. Competitiveness of all types of agriculture and farm viability (a) facilitating restructuring of farms facing major structural problems, notably farms with a low degree of market participation, market-oriented farms in particular sectors and farms in need of agricultural diversification (b) facilitating generational renewal in the agricultural sector (a) better integrating primary producers into the food chain through quality schemes, promotion in local markets and short supply circuits, producer groups and inter-branch organisations (b) supporting farm risk management 3. Food chain organisation and risk management (a) restoring and preserving biodiversity, including in Natura 2000 areas and HNV farming, and the state of European landscapes (b) improving water management (c) improving soil management 4. Restoring, preserving and enhancing ecosystems (a) increasing efficiency in water use by agriculture (b) increasing efficiency in energy use in agriculture and food processing (c) facilitating the supply and use of renewable sources of energy, of by-products, wastes, residues and other non food raw material for purposes of the bio-economy (d) reducing nitrous oxide and methane emissions from agriculture (e) fostering carbon sequestration in agriculture and forestry 5. Resource efficiency and shift towards a low carbon and climate resilient economy 6. Social inclusion, poverty reduction and economic development in rural areas (a) facilitating diversification, creation of new small enterprises and job creation (b) fostering local development in rural areas (c) enhancing accessibility to, use and quality of information and communication technologies (ICT) in rural areas Innovation, Climate Change and Environment as cross-cutting objectives 14

15. The rural development programming: main elements • Ex ante evaluation • Analysis of the strengths, weaknesses, opportunities and threats (SWOT) around the priorities for rural development • Description of the strategy: target setting against the priorities for rural development and expected contribution of selected measures to achieve the priorities and respective targets • Assessment of ex ante conditionalities and milestones • Description of each measure selected • Description of coordination mechanisms between different tools in relation to local development • Description of the approach towards innovation and the EIP • Analysis of needs for monitoring and evaluation • Financial and indicators plans • Information on complementarity with measures financed by other instruments 15

16. The rural development programming: sub-programmes • Possibility of designing thematic sub-programmes to put emphasis on and address specific needs of particular sectors, geographical areas or types of beneficiaries, in particular in relation to young farmers, small farmers, mountain areas, short supply chain: • Higher support rates (aid intensities) • Specific SWOT analysis and identification of needs • Specific targets at sub-programme level and selection of measures • Specific separate indicator plan • No separate specific financial management for sub-programmes 16

17. The rural development programming: streamlined set of measures • Continuity with respect to the present programming period, but: • Reduced number of measures (grouping based on typology of interventions) to simplify financial management • Fine-tuning (eligibility conditions, scope, etc.) to address bottlenecks in implementation • New measures to cover emerging needs (e.g. risk-management tool to address economic and environmental production risks, cooperation and start-up toolkit for LEADER) • Flexibilityin the choice of measures within any priority to fully exploit their possible synergetic effects towards the established targets 17

18. 4. New features in rural development 18 18

19. EIP on Agricultural Productivity and Sustainability • Aimed at promoting resource efficiency, building bridges between research and practice and generally encouraging innovation • Acts through operational groups responsible for innovative projects and is supported by a network • Operational groups: bringing together farmers, researchers, advisors, businesses and other actors concerned by innovation in the agricultural sector • The EAFRD contributes through: • Support for the EIP operational groups and the EIP Network • Other rural development measures, e.g. Co-operation, Investment in physical assets, Business development, Knowledge transfer and Farm Advisory Services • Following endorsement by Council and European Parliament, establishment of Steering Board during first trimester of 2012 • EIP Network to be set-up in the second half of 2012 19

20. Prize for innovative, local cooperation in rural areas Calls for proposals in relation to one of the rural development priorities launched yearly by the Commission Award of the prize to cooperation projects involving at least two entities (local action groups and individual entities) located in different Member States and realising an innovative, local concept Pre-selection of applications by national rural development Networks Fifty winning projects to be selected by the Commission each year 20

21. 5. Financing, eligibility rules and management responsibilities 21 21

22. Fund contribution and financial instruments • Single co-financing rate across measures up to: • 85% in less developed regions, outermost regions and smaller Aegean islands • 50% in other regions • Minimum 25% of the EAFRD envelope to be allocated to climate change mitigation and adaptation and land management measures (agri-environment-climate, organic farming, LFAs), and minimum 5% to LEADER • Higher co-financing rate – up to 80% (90% in less developed regions, outermost regions and smaller Aegean islands) for: • Knowledge transfer and information actions • Setting up of producer groups • Business start-up for young farmers • Co-operation • Leader • Up to 100% EAFRD co-financing for innovative operations financed with capped funds from direct payments 22

23. Management and controls • Responsibilities of the Commission • To ensure sound financial management by carrying out measures and controls defined in Horizontal Regulation (HR) • Responsibilities of Member States • Adopt all provisions in line with HR to protect Union’s financial interests • Designate authorities (Managing Authority (MA), accredited paying agency (PA), certification body) • Set up and ensure effective functioning of management and control system • Define tasks of MA, PA and local action groups re application of eligibility and selection criteria and project selection procedure

24. Management and controls (2) • Responsibilities of Managing Authorities • managing & implementing programme efficiently, effectively and correctly and especially • ensuring appropriate and secure electronic system for data • providing Commission with relevant indicator data on operations • ensuring that those involved in implementation are aware of obligations • ensuring conformity of evaluations and evaluation plans and submitting them to Monitoring Committee and Commission • providing Monitoring Committee with necessary information • drawing up and submitting annual progress report • ensuring Paying Agency receives all necessary information • Ensuring publicity for programme • Delegation of tasks to intermediate bodies possible, but Managing Authority retains full responsibility for efficiency and correctness

25. 5. Monitoring and Evaluation; Networking 25 25

26. Monitoring • Monitoring and Evaluation System: to be drawn up in cooperation between the Commission and the Member States and including common indicators relating to the initial situation as well as to the financial execution, outputs, results and impact of the programmes • Monitoring Committee: • A single national Committee may be set-up in Member States implementing regional programmes; • A single Committee may be set-up for all programmes co-financed by the CSF funds (art. 41 CSF Funds regulation); • Involved in the definition of selection criteria, activities and outputs of the evaluation plan, actions to fulfil ex-ante conditionalites, approval of implementation reports, and in the activities of the National Rural Development Network • Period 2016 – 2023: by 31st May annual implementation report of the rural development programme in relation to the previous year, plus • 2017: information on sub-programmes, progress in ensuring an integrated approach (including local development strategies) and towards meeting the targets for each priority • 2019: also contribution to achieving the EU2020 priorities  2017 and 2019 reports will serve as basis for progress reports for performance review 26

27. Evaluation • Ex ante evaluation • Forms part of drawing up rural development programmes • Aims at optimising the links between needs, targets, contribution to EU2020 objectives and budget allocation • Evaluation during the programming period – based on an evaluation plan • Assessment of effectiveness, efficiency and impact of each programme • At least once, an evaluation shall assess how support from the EAFRD has contributed to the achievement of the priorities included in the programme (art. 49 CSF Fundsregulation) • Ex post evaluation • Prepared and submitted by Member States for each rural development programme by 31 December 2023. Union level synthesis of ex-post evaluations of programmes to be realised by the Commission 27

28. Networking • European network for rural development - aims to: • increase the involvement of stakeholders in policy implementation • improve the quality of rural development programmes • play a role in informing the broader public • European evaluation network for rural development – aims to: • facilitate the exchange of expertise/good practices on evaluation methodologies • develop evaluation methods and tools • provide support on evaluation processes, data collection and management • EIP network • to enable the networking of operational groups, advisory services and researchers 28

29. Thank you! 29 29