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The main points of the new EAFRD Regulation (Version as of summer 2005)

The main points of the new EAFRD Regulation (Version as of summer 2005). Euronatur – 6/9/2005. Rural Areas in EU27. Source: DG Agri / Eurostat 2005. History of the RD in the EU. 1975: Mountain Farmers Programme 1988: Structural funds (mainly Objectives 5b „Development of Rural Areas“)

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The main points of the new EAFRD Regulation (Version as of summer 2005)

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  1. The main points of the new EAFRD Regulation(Version as of summer 2005) Euronatur – 6/9/2005

  2. Rural Areas in EU27 Source: DG Agri / Eurostat 2005

  3. History of the RD in the EU 1975: Mountain Farmers Programme 1988: Structural funds (mainly Objectives 5b „Development of Rural Areas“) 1992: „Accompanying Measures“ (Mc Sharry - Reform) 2000: Regulation 1257/99 – Rural Development as the „2nd Pillar“ of the CAP (2000 – 2006) 2004: Commission's proposal for the „European Agricultural Fund for Rural Development“ (EAFRD) (2007 – 2013) (Guarantee and Guidance will be merged) 2005: European Council compromise (not adopted yet)

  4. Axis 1 Competitiveness (min. 10 %) Axis 2 Environment + Land Management (min. 25 %) Axis 3 Diversification + Quality of Life (min. 10%) L E A D E R (min. 5%) Axes of EAFRD EU10 only min. 2,5% for Leader

  5. Axis 1 Competitiveness Axis 2 Environment + Land Management Axis 3 Diversification + Quality of Life L E A D E R Competitiveness • improving human potential (articles 20 – 24) • Training • Setting-up of young farmers (max. € 55.000,-) • Early retirement • Farm audit (max. € 1.500,-) • restructuring and developing physical potential and promoting innovation (articles 25 – 28) • farm modernisation, (40 – 75 % funding) • improving the economic value of forests (50 – 85% funding) • adding value to agricultural and forestry products • improving and developing infrastructure

  6. Axis 1 Competitiveness Axis 2 Environment + Land Management Axis 3 Diversification + Quality of Life L E A D E R Competitiveness • improving the quality of agricultural production and products (articles 29 – 31) • to adapt to demanding EU standards (max. €10.000 / farm) • supporting farmers who participate in food quality schemes • supporting producer groups for information and promotion activities for products under food quality schemes

  7. Axis 1 Competitiveness Axis 2 Environment + Land Management Axis 3 Diversification + Quality of Life L E A D E R Competitiveness • transitional measures for the EU10 (Articles 32 and 33) • semi-subsistence farms undergoing restructuring (until 2013) € 1.500,- per farm per year • supporting setting up of producer groups “jointly placing goods on the market, including preparation for sale, centralization of sales and supply to bulk buyers” up to € 290.000 in 5 years

  8. Axis 1 Competitiveness Axis 2 Environment + Land Management Axis 3 Diversification + Quality of Life L E A D E R Improving Environment & Land Management • measures targeting the sustainable use of agricultural land(article 34-38) • natural handicap payments to farmers in mountain areas (between € 25,- and € 250,-/ ha) • payments to farmers in areas with handicaps(between € 25,- and 150/ha) (new description in 2010) • NATURA 2000 payments and payments linked to Directive 2000/60/EC (max. € 500,- / ha for 5 years) • agrienvironment payments • Annual crops € 600,- / ha • Local threatened or endangered breeds (€ 200,- / livestock unit) • Animal welfare € 500,- / livestock unit

  9. Axis 1 Competitiveness Axis 2 Environment + Land Management Axis 3 Diversification + Quality of Life L E A D E R Improving Environment & Land Management Utilised agricultural area under NATURA 2000 areas • Sweden 40 % • Greece 29 % • Spain 23 % • France 5 % • Germany 4 % • Belgium 3 %

  10. Competitiveness Land Management Diversification L E A D E R Axis 1 Competitiveness Axis 2 Environment + Land Management Axis 3 Diversification + Quality of Life L E A D E R Improving Environment & the countryside • The sustainable use of forestry land (article 39 – 45) • First afforestation of agricultural land (€ 150 to € 500 / ha / a) • First establishment of agro forestry systems on agricultural land • NATURA 2000 payments • (between € 40,- and € 200,- / ha / year) • 70% co funding outside of LFA • up to 85 % EU-co funding in LFA

  11. Competitiveness Land Management Diversification L E A D E R Axis 1 Competitiveness Axis 2 Environment + Land Management Axis 3 Diversification + Quality of Life L E A D E R Diversification & Quality of life • to diversify the rural economy, comprising (articles 50 – 52) • diversification into non-agricultural activities • the creation and development of medium-sized and micro- enterprises* • encouragement of tourism activities (no infrastructure) * The commission proposed to give funds only to micro-enterprises. Due to the member states´ proposal payments were opened for medium-sized enterprises as well.)

  12. Competitiveness Land Management Diversification L E A D E R Axis 1 Competitiveness Axis 2 Environment + Land Management Axis 3 Diversification + Quality of Life L E A D E R Diversification & Quality of life to improve the quality of life in the rural areas, (articles 54 – 55) • basic services for the economy and rural population • conservation and upgrading of the rural heritage. • Management plans for Natura 2000 – areas with high ecological value • Environmental education • Investing in conservation • Preserving and upgrading the natural heritage

  13. Competitiveness Land Management Diversification L E A D E R Axis 1 Competitiveness Axis 2 Environment + Land Management Axis 3 Diversification + Quality of Life L E A D E R Diversification & Quality of life • Training (article 56) • skills-acquisition and animation measure with a view to preparing and implementing a local development strategies (article 57)

  14. Competitiveness Land Management Diversification L E A D E R Axis 1 Competitiveness Axis 2 Environment + Land Management Axis 3 Diversification + Quality of Life L E A D E R LEADER • LEADER should be connected to the other axes of emphasis such that it becomes a cross-section of tasks • LEADER should be implemented all over, and thus become mainstream (no LEADER regions anymore) • LEADER connects all areas of the economy in the rural area • A program with a “bottom-up concept“ • Local action groups work out development strategies • Formation of networks (local-regional-international)

  15. Europe Nation national strategy strategic guidelines Central elements of ELER-VO • The EU defines strategic goals • Three levels of planning are implemented: Region regional development programmes The involvement of NGO‘s will be increased at the planning stage!

  16. Funds Annual breakdown of commitment appropriations for 2007–2013 (EUR million – 2004 prices) – Proposal of Commission

  17. New challenges in the RD • LEADER+ as a cross-section of tasks • Natura 2000 becomes an element of Rural Development. Parts of it can thus be financed by Rural Development. • EU Expansion to 25 states (27 states starting in 2007).

  18. Why is it so important to strengthen RD? • With the reorganization of Rural Development, new tasks must be dealt with: • EU Expansion by 10 (12) states with sizeable developmental needs in their rural areas • Financing the Natura 2000 settlement. Additional EU financial need: min. 3bn € per year! • Financing the LEADER Programme.

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