AGRYA Agricultural & Rural Youth Association

1. AGRYA Agricultural & Rural Youth Association The role of young farmers’ organisationin the CAP reform Dr. Miklós Weisz associate president

2. Topics 1. Young farmers’ status in the EU and in Hungary 2. About AGRYA 3. Needs for the CAP reform 4. Current activities

3. 1. Young farmers’ status in the EU and in Hungary Problems in the generation renewal

4. Test • What is the percentage of young farmers below the age of 35 in Europe? 6% • What is the percentage of older farmers, over the age of 65 in Europe ? Over 34%

5. Test • How many farmers are over the age of 55 in Europe? Almost half of all agricultural workers are 55 years or older. At EU-27 level there is appr. 1 farmer of less than 35 years old for each 9 farmers of more than 55 years. • How many farmers are there over the age of 65? More than 4.5 million farmers are over the age of 65 in Europe.

8. Participants in the Hungarian agriculture (2009) Companies, co-ops: 13 352 Private producers: 626 420 Who apply for subsidies: ~ 180,000

9. Generations in agriculture

10. 2000  2010 Young farmers (< 35): - 2,1% Farmers (35 – 54): - 5,3 %

11. Companies, co-ops Management: ~ 53%: aged 50-62 ~ 16-17 %: retired Generation change without new generations

12. Support measures for generation changein RD Programmes • Installation aid for young farmers • Early retirement for old farmers • higher support for somerural development measures +10%

13. NHRDP 2007-2013 European Agricultural Fund for Rural Development Axis 1 Competitive- ness Axis 2 Environment + Land Managem. Axis 3 Economic divers. +Quality of life Axis 4 LEADER 48% 31% 12% 5%

14. Measure 112 - Setting up of young farmers Measure 112 rationale: • Against the context of an ageing agricultural labour force, the future of the farmers’ profession must be ensured • Young farmers can bring new skills and energy, and a more professional management to the farming sector • Consequently, a high level of young farmers will lead to: • increased adaptability in the face of new challenges • higher labour productivity

15. Overview of Measure 112 • For 2007-2013,a€5billion total public expenditure isprogrammed • €2.89billion EAFRD contribution and €2.11billion National/Regional contribution • Measure 112 has been included in the RDPs of 24 Member States • (not selected by Malta, Netherlands and Slovakia) • Highest total public expenditure programmed is €1.6billion for France • Lowest total public expenditure programmed is €4.8 million for Germany

16. Total Public expenditure programmed for Measure 112 in the central European Member States and percentage to programmed Pillar 2 expenditure per MS 2.40% 3.34% 1.29% 1.34% 1.57% 2.98% 0.03% 0% Source: European Commission – DG Agriculture and Rural Development

17. Installation aid in Hungary (2007-2013) 1. round: 2007. december 3. – 2008. február 7. - 2.514 applications, from which - 1.465 won 2. round: 2009. szeptember 15. – október 31. - 6.145 applications, from which - 906 won 3. round: 2011. autumn ??

18. Installation aid Non-refundable subsidy, the amount depends on the planned size of the farm(in ESU) in the 4th year: - 4 - 6,99 ESU:20 000 euro - 7 - 9,99 ESU: 30 000 euro - above 10 ESU: 40 000 euro 90% of the subsidy: advanced payment 10%: after reaching the farm size

19. Criteria for eligibility aged between 18-40 first time farming (establishment of a new farm or take-over) agricultural education …

20. 10 ESU – in hectares

21. Early retirement 1. round: 2007. december 3. – 2008. január 15. 61 applications, 36 won 2. round: 2010. március 1-31. 71 applications, 46 won NHRDP: 4.500 was planned! (In Germany: 17.000)

22. What are the hindering factors to be a farmer? What do you think?

23. The most important difficulties Other Training Price volatility Red tape Access to subsidies Access to credits Access to land

24. Access to land High installation costs

25. Estimation of Profitability Enough for subsistence Average living standard Extra living standards

26. Intention for Diversification In the next 5 years: 93% plans Processing Services Tourism Bio E production Other

27. 2. About AGRYA • generation based (<40 years old) • national • non-political • agricultural (and rural) association In connection with more than 3,000 Hungarian young farmers Since 1996

28. AGRYA Members • From the whole country with different activities: • Crop production • Animal husbandry • Horticulture • Organic Farming • Alternative activities (rural tourism, bio energy, food processing,…), Innovative projects

29. Farming and selling • General problems: boom and bust, price volatility, financing,… • And special ones: Generation change, farm installation, structural problems,… Selling is rather done individually, but co-ops are forming

30. Aims of AGRYA • To protect and represent the interests of young farmers in Hungary, and in international organisations. • To organise vocational programs for its members helping their farming • To prepare & develop young farmers for the changes and challenges connected with the EU membership • To protect agricultural and cultural traditions, and to strengthen rural areas

31. Main Activities Conferences Young Farmers’ Annual Conference Young Farmer Club discussions

32. www.agrya.hu Call Center

33. Representative work • Participation in national boards (MRD - VM) • Rural Development Programme – Planning • Rural Development Programme – Monitoring Committee • Hungarian National Rural Development Network

34. „Second Wave” Programme For new members From the younger generation (aged 18-25, mainly farmers’ children) - Vocational trainings - Study trips To strengthen their inherence with agriculture

35. International activities CEJA (2004-) RYE (2006-) Exchange programmes International Projects (Citizenship, Youth, Leonardo)

36. Central European Rural Youth Co-operation – CERYC • Sloven – Czech – Polish – Slovak – Romanian – Bulgarian – Hungarian • Cooperation programme • Regional cooperation: • - Similar problems – similar solutions • common representation in international organizations • best practices, references • media appearance

37. „The most innovative young farmer in Europe – 2006” AGRYA delegate

38. Kamilla Kesjár - finalist „Most Innovative Young Farmer in Europe - 2008”

39. Strategy „Build-up a Community With Professional Work”

40. Presidency Altogether 7 members+ National Office

41. Running projects „Grow your own” - Vegetable seed to 2000 children - Competition: photos, blog, web-page - Key words: local production, self-sufficiency value of own work, responsibility

42. Running projects Rural Adventure • Youngs from cities: one week on a farm • Work together with the young farmer • Competition: blog, photos, Facebook, Twitter

43. 3. Needs for the CAP reform

44. Foundation of the CAP 1957 Treaty of Rome agriculture a special concern: - low incomes and declining rural areas - high share of employment and of consumers expenditure - food security - strong political lobby

45. CAP Objectives Article 33 of the Treaty of Rome • increase agricultural productivity to ensure a fair standard of living for agricultural producers • stabilise markets • assure availability of supplies • ensure reasonable prices to consumers

46. CAP principles • Single market: free trade in agricultural products; • Community preference: a preference for products from the EU (by discouraging imports); • Financial solidarity: regarding the CAP, all members have to pay

47. CAP objectives and tools • Tools • Direct Support • Intervention prices • Export subsidy • Consumer Incentives • Import levies • Objectives • Increase Productivity • Standard of Living • Stabilize Markets • Guarantee Supply • Reasonable consumer price

48. Mechanisms to achieve these Objectives Isolate the EC Market from competing imported products World Market EC Market World Market

49. Set high target prices which the regulator hopes the farmer will receive TARGET PRICE

50. Set a Low Intervention Price at which the Regulator will always purchase TARGET PRICE INTERVENTION PRICE