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Young farmers in the 2014 – 2020 programming period

Young farmers in the 2014 – 2020 programming period. Josefine Loriz-Hoffmann DG Agriculture and Rural Development European Commission. CEJA, 27/2/2013. Agriculture and Rural Development. Where are we with the CAP reform process?. 12 October 2011. Commission legal proposals on the CAP.

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Young farmers in the 2014 – 2020 programming period

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  1. Young farmers in the 2014 – 2020 programming period Josefine Loriz-Hoffmann DG Agriculture and Rural Development European Commission CEJA, 27/2/2013 Agriculture and Rural Development

  2. Where are we with the CAP reform process? 12 October 2011 Commission legal proposals on the CAP COMAGRI adopted its mandate 21 January 2013 Trialogues Spring 2013 Agreement between legislators July 2013 2

  3. Young farmersPillar I and its relation to Pillar II 3

  4. Support for young farmers in the CAP first pillar OR Coupled support Natural constraint support • Wide range of sectors • Up to 5% or 10% of DP envelope, to be decided by MS • For areas with natural constraints • Up to 5% of the DP envelope Small Farmer Scheme • Simplification of claims and controls • Lump sum payment to be determined by MS under conditions • Entrance in 2014 • Up to 10% of the DP envelope Young Farmer Scheme (Council – optional, EP- obligatory) • For 5 years • Commencing activity • Up to 2% of DP envelope • < 40 years • Cross compliance • Streamlined – Climate change ‘Green’ Payment • Crop diversification • Permanent grassland • Ecological focus area • 30% of the DP envelope Basic Payment Scheme • National or regional flat rate per eligible hectare • Regions and criteria to be chosen by MS • New entitlements in 2014 • Definition of agricultural activity • Definition of active farmer 4

  5. Young farmers in pillars I and II

  6. Pillar I: natural persons who are setting up for the first time an agricultural holding as head of the holding, or who have already set up such a holding during the five years preceding the first submission of an application to the basic payment scheme as referred in Article 73(1) of the Horizontal Regulation, and who are less than 40 years of age at the moment of submitting the application. Pillar II: farmer who is less than 40 years of age at the moment of submitting the application, possesses adequate occupational skills and competence and is setting up for the first time in an agricultural holding as head of the holding. Young farmers - definitions

  7. Young farmersPillar II 7

  8. Beyond 2013: an outlook for young farmers Young farmers can contribute the most to fostering innovation and resource-efficiency to achieve the EU2020 objectives. Young farmers have access to all support instruments, i.e. those specifically designed for them and those which can be tailored to their specific, local needs. Promising approaches – to bundle and combine measures for young farmers with a strategic and flexible approach in relation to the rural development priorities. Also cooperation and collective approaches are encouraged.

  9. Thematic sub-programmes Member States may include within their rural development programmes thematic sub-programmes, contributing to the Union priorities for rural development Aimed to address specific needs identified, in particular in relation to: (a) young farmers; (b) small farms; (c) mountain areas; (d) short supply chains An indicative list of measures and types of operations of particular relevance to each thematic sub-programme is set out in the Annex to the rural development Regulation

  10. Indicative list of measures and operations of particular relevance to a YF thematic sub-programme Business start-up aid for young farmers setting up for the first time in an agricultural holding Investments in physical assets Knowledge transfer and information actions Advisory services, farm management and farm relief services Co-operation Investments in non-agricultural activities

  11. Other targeting tools alongside sub-programmes Selection criteria: in some MS priority to farms, e.g. whose business plan combines the setting up measure with other RD measures (e.g. farm investment) where the holder is a young woman or young migrant Higher aid intensities (up to +20% than standard rates) for YF setting up within the measure for investments in physical assets

  12. Article 20: Specific support for YF (1) • Business start-up aid for young farmers • Conditional on submission of a business plan whose implementation has to start within 6 months from the date of the decision granting the aid • YF whose starting size is to be defined by MS, but significantly higher than the upper threshold applied to small farms development (also supported under art. 20) • Delegated acts to cover: • Conditions under which a legal person may be considered a 'young farmer', including setting of a grace period for the acquisition of occupational skills • Minimum content of the business plan • Criteria to be used by Member States for setting the thresholds applying to young farmers and small farms

  13. Article 20: Specific support for YF • Aid rates: • Max 70.000 per young farmer • Amount of support shall also take into account the socio-economic situation • Flat rate payment, which may be paid in at least two instalments over a period of maximum 5 years • Instalments may be degressive • Payment of the last instalment conditional upon the correct implementation of the business plan

  14. Financial instruments • What is it? • A possibility for Member States to use EAFRD funding in a different form than grants for supporting viable investment decision, facilitating in this way the access to financing for businesses targeted by the RDPs • Types of instruments • Loans, Guarantees, Equity, etc. • Implementation mode – Decision to be taken by MA • Value added associated with FIs • Better access to capital and financial resources • Efficient use of funds - a pool of funds can be re-used several times and reach more beneficiaries • Possibility to combine financial instrument with grants • Leverage effect • Increasing the sustainability of the business environment – support provided before investment to start • Higher impact of public (incl. EAFRD) resources

  15. For further information • The CAP after 2013 http://ec.europa.eu/agriculture/cap-post-2013/index_en.htm • Commission Communication ‘The CAP towards 2020’ http://ec.europa.eu/agriculture/cap-post-2013/communication/index_en.htm • EIP http://ec.europa.eu/agriculture/eip/index_en.htmhtm • Legal proposals http://ec.europa.eu/agriculture/cap-post-2013/legal-proposals/index_en.htm 15

  16. Thank you for your attention! 16

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