Commission proposals for Rural Development Policy after 2013

1. Commission proposals for Rural Development Policy after 2013

2. EU perspective on rural areas Predominantly and significantly rural areas account for: 92% of area 53% of employment 45% of gross value creation

3. Europe 2020 and rural development • INCLUSIVE growth: • Unlocking local potential, diversifying rural economies and developing local markets and jobs • Opening up alternative opportunities to accompany agricultural restructuring • SMART growth: • Supporting innovation and skills, green technologies and uptake of research • Providing incentives for social innovation Ruraldevelopment • SUSTAINABLE growth: • Increasing resource efficiency and the provision of public goods • Reducing GHG emissions, enhancing carbon sequestration and developing bio-energy • Ensuring sustainable land management and addressing biodiversity loss 3

4. EU 2020 Headline Targets • 1. Employment • 75% of the 20-64 year-olds to be employed • 2. R&D / innovation • 3% of the EU's GDP (public and private combined) to be invested in R&D/innovation • 3. Climate change / Energy • greenhouse gas emissions 20% (or even 30%, if the conditions are right) lower than 1990 • 20% of energy from renewables • 20% increase in energy efficiency • 4. Education • reducing school drop-out rates below 10% • at least 40% of 30-34–year-olds completing third level education • 5. Poverty / social exclusion • at least 20 million fewer people in or at risk of poverty and social exclusion CSF Thematic Objectives Union priorities for rural development 1. Research, technological development, innovation 1. Horizontal priority: Fostering knowledge transfer and innovation 2. Information and communication technologies 2. Competitiveness of all types of agriculture and farm viability 3. Competitiveness of SMEs, agriculture and fisheries 4. Low-carbon economy 3. Food chain organisation and risk management 5. Climate change adaptation, risk prevention and management 6. Environment and resource efficiency 4. Restoring, preserving and enhancing ecosystems 7. Sustainable transport and infrastructures 5. Resource efficiency and transition to a low carbon and climate resilient economy 8. Employment and labour mobility 9. Social inclusion and combating poverty 6. Social inclusion, poverty reduction and economic development 10. Education, skills and lifelong learning Technical assistance and ex ante conditionalities 11. Institutional capacity and efficient public administration Links between the EU2020 and the EAFRD

5. Rural development priorities 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 5

6. The Common Strategic Framework (CSF) • EU strategic document which ensures the coordination of the CSF funds to translate the EU2020 objectives and targets into key actions: • Establishes for each thematic objective the key actions to be supported by each CSF Fund • Identifies key territorial challenges for urban, rural, coastal areas • Describes cross-cutting principles (non discrimination, sustainable development) • Outlines how the funds complement each other at EU level to meet Union priorities of smart, sustainable and inclusive growth • Provides for the mechanisms for ensuring coherence and consistency with other policies of the Union.

7. Partnership contract (PC) • National document prepared by the Member State with the involvement of partners and approved by the Commission • Submitted together with and at same time as the programmes • Sets out the overall strategy, priorities and arrangements for using the CSF Funds in an effective and efficient way: • alignment with EU2020 strategy (analysis of development needs, expected results and indicative financial allocations per Fund) • integrated approach to territorial development (urban, rural and coastal areas • integrated approach to areas or groups affected by poverty or exclusion • arrangements to ensure effective implementation: partnership, administrative capacity building and reduction of administrative burdens for beneficiaries • Consolidated table of milestones and targets established in all the CSF fund programmes • Summary concerning fulfilment of ex ante conditionalities and actions to be taken where these are not fulfilled

8. Conditionalities Ex-ante conditionalities are essential requirements for the effective use of Union support • General for all the CSF Funds: e.g.implementation of EU public procurement law, EU rules on environmental impact assessments etc. • Specificfor each fund: e.g.sufficient capacity of advisory services, cross-compliance requirements specified in national legislation etc. (rural development) • If the ex-ante conditionalities are not met when submitting the PCMember States provide action plans with detailed timetable (last deadline for compliance 2016) Macro-economic conditionalities link up to general economic governance mechanisms in the union: avoidance of excessive budget deficits etc. Suspension of payments is possible in case of non-compliance with ex ante or macro-economic conditionalities

9. Performance framework • Programmes will contain quantified targets and milestones for EU priorities on the basis of a common set of indicators • milestones established for each priority for the years 2016 and 2018 • targets established for 2022 • Performance review will take place in 2017 and 2019 • The Commission will make recommendations on the basis of the review in 2017 • A performance reservewill be allocated on the basis of the review in 2019 • 5%of the budget of each CSF Fund set aside at the beginning of the programming period (to be allocated within each Member State) • Possible financial correction in cases of serious failure to reach targets in 2022

10. Rural development programmes (1) • Ex ante evaluation • Analysis of the strengths, weaknesses, opportunities and threats (SWOT) around the priorities for rural development and identification of the needs that have to be addressed • Description of the strategy: • The quantified targets for each of the rural development priorities • Selection of measures chosen to achieve the targets: • Combinations of measures logically following from ex ante evaluation and SWOT analysis, addressing specific needs linked to specific regional conditions • Adequate financial allocation to the measures • Integration of the cross-cutting themes of innovation, climate change and care for the environment into the programme based on the needs identified • Actions to simplify implementation, ensure availability of sufficient advisory capacity, raise awareness and animate innovation • Principles in relation to selection criteria and local development strategies

11. Rural development programmes (2) • Assessment of ex ante conditionalities and milestones • Description of each measure selected • Description of coordination mechanisms for different tools for local development (Leader, cooperation, village renewal, diversification) • Description of the approach towards innovation and the EIP • Analysis of needs for monitoring and evaluation (sufficient capacity?) • Financial and indicator plans • Information on complementarity with measures financed by other instruments (I pillar, CF, EMFF), implementing arrangements, designation of partners and national network arrangements • Possibility of designing thematic sub-programmes with higher support rates, e.g. to address the needs of young farmers, small farmers, mountain areas, short supply chain • Specific SWOT analysis and identification of needs • Specific targets at sub-programme level and selection of measures • Specific separate indicator plan

12. The measures 12

13. Knowledge transfer and information actions training courses, workshops, coaching, demonstration activities, information actions, short-term farm exchange or visit schemes Advisory services, farm management and farm relief services related to cross-compliance, green elements of direct payments, other agricultural, environmental or economic issues Setting-up of producer groups extended to all Member States limited to groups which classify as SMEs Quality schemes for agricultural products and foodstuffs support for participation in quality schemes 13

14. Investment in physical assets Improving overall performance of farm (economic, environmental, other) Processing, marketing, development of agricultural products (output of process can be non-agricultural product) Infrastructure related to development of agriculture Purely environmental improvements ("non-productive" investments) Farm and business development Setting-up aid for: Young Farmers Non-agricultural activities in rural areas Development of small farms (defined by MS) Investments in non-agricultural activities (diversification of farms, promotion of small enterprises) Support for farm restructuring (small farmers transferring their farm) 14

15. Basic services and village renewal in rural areas Local basic services Small-scale infrastructure, broadband, renewable energy Recreational infrastructure, tourist information Cultural & natural heritage of villages & landscapes Co-operation Development of new products, practices, processes and technologies Horizontal and vertical co-operation between supply chain actors to promote short supply chains and local markets Local development strategies outside the scope of Leader Pilot projects Joint approaches to environmental projects 15

16. Agri-environment-climate payments multi-annual commitments going beyond legal requirements related to biodiversity & ecosystems, climate change, water management, soil management, landscapes, conservation of genetic resources etc… mandatory measure Organic farming separate measure for increased visibility Animal welfare annual commitments going beyond legal requirements Payments to areas facing natural or other specific constraints new bio-physical criteria, mountain areas Natura 2000 and Water framework directive payments compensation payments to farmers for disadvantages resulting from the implementation of these directives 16

17. Forest area development and improvement of forest viability Afforestation, woodland creation Establishment of agro-forestry systems Prevention and restoration of damage to forests from fires and natural disasters Investments in resilience, environmental value of forest ecosystems Investments in new forestry technologies, processing & marketing of forestry products Forest-environmental and climate services and forest conservation Forest-environment commitments going beyond legal obligations Conservation & promotion of forest genetic resources 17

18. Risk management tools contributions to premiums for crop, animal and plant insurance against problems caused by weather and disease contributions to mutual funds offering compensation for losses caused by animal & plant disease and environmental incidents income stabilisation tool (mutual fund) offering compensation for severe drops in income Restoring agricultural production potential damaged by natural disasters and introduction of appropriate prevention actions investments to restore production potential 18

19. Leader Leader approach strengthened across EU funds Common provisions on community led local development Considerable scope for ensuring that local partnerships are free to use these EU funds in a coordinated way Selection committee for a ‘multi-fund’ local development strategy to decide whether to designate a "lead fund" Preparatory support “LEADER start-up kit” and support for small pilot projects Capacity building, training and networking with a view to preparing and implementing a local development strategy 19

20. EIP on Agricultural Productivity and Sustainability • A European Innovation Partnership (EIP) promoting resource efficiency, building bridges between research and practice and generally encouraging innovation • Acts through operational groups • bringing together farmers, researchers, advisors, businesses and other actors concerned by innovation in the agricultural sector • Supported by a European network • to be set-up in the second half of 2012 • 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

21. Fund contribution • Single co-financing rate across measures: • 85% in less developed regions, outermost regions and smaller Aegean islands • 50% in other regions • But higher co-financing (90% in less developed regions, 80 % in other regions) for: • Knowledge transfer and information actions • Setting up of producer groups • Co-operation • Leader • And up to 100% co-financing for operations financed with capped funds from direct payments • Reserved for operations promoting innovation! • Minimum 25% of EAFRD contribution to be allocated to climate change and land management measures • Agri-environment-climate, organic farming, LFAs • Minimum 5% to be allocated to Leader • Half of that in Croatia (re accession treaty)

22. Thank you! 22