The new EU Regulation on

1. The new EU Regulation on Rural Development Support by the European Agricultural Fund for Rural Development (EAFRD)and its implementation in Germany Priv.- Doz. Dr. habil. Dieter Schweizer Federal Ministry of Consumer Protection, Food and Agriculture

2. Outline I. EAFRD Regulation und Strategic Guidelines at a glance II. Financial framework III. Time frame IV. National implementation in Germany

3. Competitiveness Land management Diversification L E A D E R I. EAFRD Regulation and Strategic Guidelines at a glance Central elements of the EAFRD Regulation New: One fund – One programme • EAFRD contribution to public expenditure • at least 20 % • max. 75 % in the cohesion regions (so far: Objective 1 areas = new Länder) max. 50 % in the other regions (max. 80/55 % for land management and LEADER)

4. Europe Nation Region Strategic Guidelines NationalStrategy Plan (GAK as a framework regulation) Regional Development Programmes Re I. EAFRD Regulation and Strategic Guidelines at a glance Strategic approach The EU defines Strategic Goals that will be implemented via three planning levels: The involvement of NGOs will be reinforced in the planning procedure

5. Re I. EAFRD Regulation and Strategic Guidelines at a glance EU Strategic Guidelines for Rural Development • The Community strategic guidelines are adopted by the EU Council. • They indicate the key problems and, as a result of this, the central targets and priorities of rural development support at Community level. • In the process, they assign a permanent place to the second pillar of CAP in the implementation of the Lisbon and Gothenburg Strategy (growth, employment, sustainability) as well as in the flanking measures of the reformed CAP. • Points of criticism: • Proof of the European value-added • Delimitation of rural areas according to OECD indicators • Uniform indicators for the Strategy and the Programmes

6. re I. EAFRD Regulation and Strategic Guidelines at a glance ■ New measures • Diversification towards non-agricultural activities Expanding the group of beneficiaries to include members of the agricultural household. • Adjourning the new delimitation of less-favoured areas until 2010 • Compensatory payments for restrictions due to the Water Framework Directive • Regulating the incentive effect of agri-environmental measures by a flat-rate approach within the framework of the implementing regulation (transaction costs) • Additional compensation for income losses with regard to NATURA 2000 and agri-environmental measures in forestry (as in agriculture) • Promotion of genetic resourcesThis is not directly tied to the support or criteria applying to agri-environmental measures

7. II. Financial framework ■COM proposal • Financial framework of a total of 1.24 % of the gross national income (GNI) for commitments and 1.14 % forpayments respectively By way of comparison: EU budget in 2005 = 1.00 % of GNI for payments; Demand made by the net contributors (D, F, GB, NL, S und A): Financial framework of a total of max. 1.0 % of GNI (including the agricultural expenditure within the limits of the ceiling set by the European Council in October 2002); • COM estimate EAFRD funds: 88,75 billion euros

8. Re II. Financial Framework • Position of the Federal Government: • The Federal Government attaches great importance to rural development support under the second pillar of agricultural policy; it therefore requires adequate financial resources. • Allocation of funds: not a distribution according to cohesion criteria as demanded by various MS

9. Re II. Financial framework • Vote of the European Council of 16/17 June 2005: • so far no agreement on the financial framework 2007 – 2013. • prospects for agreement difficult under the UK Presidency (until the end of 2005). • Vote of the Agriculture Council on 20 June 2005: • political agreement on the EAFRD Regulation. • financial amount of 88,75 billion € continues to be subject to a political agreement on the financial perspective.

10. III. Time frame • ■ Presentation of the implementing regulation in the STAR Committee on • 19 October 2005 • ■ Adoption of the Strategic Guidelines for Rural Development until October 2005

11. Re III. Time frame • ■ Until the end of 2005: Adoption of the National Strategy • ■ First half of 2006:Preparation of the regional development programmes and submission to the COM • ■ Until the end of 2006: Approval of the regional development programmes • ■ From January 2007 onwards: Implementation of the regional development programmes

12. V. Rural development support in Germany

13. Implementation in Germany • National Strategy- Elaboration by the Federal Government in consultation with the Länder • Joint Task "Improvement of Agricultural Structures and Coastal Protection “ (GAK) constitutes a bracket for central measures of the regional programmes as a national framework regulation • - Federal Government/Länder consultation on thematic contents • Regional programmes- Elaboration and implementation by the Länder- Recourse to CAP measures and financing • - Supplementary offer of specific measures: national cofinancing solely from Länder funds

14. National Strategy for Rural Development • Contents and tasks • Assessment of the economic, social and ecological situation of rural areas in Germany and their potential for development • Setting thematic and territorial priorities for each priority axis, including the quantification of the main goals • Inclusion of indicators for the monitoring and evaluation of the national strategy • Allocation of the EU funds assigned to Germany among the Länder • Integration of the GAK framework regulation • Ensuring the coherence of support measures with other policies and programmes at national and European level • Responsibility and decision-making bodies • Description of the coordination procedure between the Federal Government /Länder/ economic and social partners • Establishment of a national network • Adoption and notification

15. Integration of the Joint Task "Improvement of Agricultural Structures and Coastal Protection “ (GAK) • Mandate of the Basic LawParticipation of the Federal Government in Länder tasks • - that are important for the entire population - and that are required to improve the living conditions • GAK Act- Statutory stipulation of measures to improve agricultural structures - Extensions especially as a result of the further development of EC legislation on support = Compensatory allowance for less-favoured areas = Agri-environmental measures = Conversion of farm and forestry buildings

16. GAK priority areas • Improvement of the production and marketing structures • Measures for forestry • Coastal protection • Sustainable farming • Improvement of rural structures • Other areas

17. GAK measures • 1. Improvement of the production and (Axis 1)marketing structures Individual farm support- Investment promotion- Management systems Processing / marketing- Investments (producer groups, enterprises)- Organisation of producer groups (outside of EAFRD)

18. GAK measures 2. Forestry measures (mainly axis 1) - forest road construction- silvicultural measures / repair of forest damage - processing/marketing of forest products- afforestation/ - premium- forestry groupings (outside of EAFRD) 3. Coastal protection (Axis 1) 4. Sustainable farming (Axis 2) Compensatory allowance in less-favoured areasMarket and site-adapted farming - extensification of arable land/grassland - organic farming- animal welfare measures

19. GAK measures 5. Improvement of rural structures (mainly axis 3) Integrated rural development- Village renewal and development - Cooperations (agriculture with partners in the rural area)- Rural development concepts- Regional management- Rural infrastructure measures- Land consolidation (Axis 1) Water management- Flood control (Axis 1)- Semi-natural river development - Sewage works • Other areas (outside of EAFRD)Improvement of the genetic quality of farm animals (performance testing)