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EU rural development policy – today and after 2013

Jean-Bernard Benhaiem

DG for Agriculture and Rural Development

European Commission

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Contents

• A reminder about rural areas• Why have a rural development (RD) policy at EU level?• RD policy 2007-2013 – structure, budget, achievements• Ongoing challenges for rural areas, Europe 2020

strategy• Objectives and priorities• Links with other funds, structure• Tools (measures) – key areas• Delivery

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How “rural” is the EU?

Predominantly and significantly rural areas account for:

92% of area53% of employment45% of gross value creation

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Land use in the EU

• Agriculture and forestry account for 78 % of land use

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Rural areas are extremely varied

• Some rural regions in economic difficulties; others show good rates of growth / employment compared to urban areas

• No “typical rural region” in terms of growth and employment: different types of “rurality” determined by the regional “mix of functions” rather than a single economic activity

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Why have an RD policy at EU level?

A policy…• because rural areas face challenges which market forces alone will

not solve

A common policy…• because challenges do not start / end at national boundaries

(climate change!)

An EU policy…• to address the particular characteristics of the EU situation

With a focus on added value!

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RD policy in the current period

• The only integrated policy addressing all aspects of rural areas: economic, environmental, social

• Clear objectives

• Pre-defined measures to guarantee targeted outcome and EU value added

• Delivery system: strategic approach, flexibility for MS

• Monitoring and evaluating system

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Rural development policy 2007-2013:

themes and measures

LEADER axis (min. 5%): integrated, bottom up, innovative

Axis 1: Competitiveness (min. 10%):

Axis 2: Environmentand land management

(min.25%):

Axis 3: Diversification and quality of life (min.10%):

EAFRD: European Agricultural Fund for Rural Development

- Farm modernisation

- Processing

- Infrastructure

- Natural disaster aid

- Training

- LFAs

- Natura 2000

- Agri-environment

- Forestry measures

- Diversification

- Tourism

- Micro-enterprises

- Village renewal

- Basic services

National and Private Co-financing

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1. EU Strategic Guidelines establish the Community Priorities for the period 2007-2013

2. National Strategies reflect EU-priorities according to the situation in the Member State concerned

The strategic approach, 2007-13

3. Establishment of national or regional programmes on the basis of SWOT analysis

4. Programme measures used by interested parties (farmers and others); results monitored continuously

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Planned spending on RD policy, 2007-2013

• EAFRD (EU funding): € 96 billion

• Total public and private spending: € 232 billion

Public27%

EAFRD43%

Private30%

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Division of spending between axes

Axis 244%

Axis 313%

Axis 46%

TA & DP3%

Axis 134%

Axis 1

Axis 2

Axis 3

Axis 4

TA & DP

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What is the policy achieving? (1)

Output indicator 2007-2008

2007- 2009*

Target 2007-2013

Number of assisted young farmers (112) 18,400 37,659 189,000

Number of modernisation projects on farms (121) 46,780 105,800 615,000

Number of supported enterprises for adding value projects (123)

2,650 7,060 69,700

Number of farms participating in quality schemes (132)

37,700 128,750 393,000

Axis 1: Monitoring indicators

%

20

10

17

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* September 2010 data

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What is the policy achieving? (2)

Output indicator 2007-2008 2007-2009* Target 2007-2013

Less Favoured areas (ha) (211 212)

42,900,000 54,000,000 55,000,000

Number of hectares supported by the NATURA 2000 measure (213)

346,288 536,500 1,110,00

Number of hectares under agri-environment committed since 2007 (214)

18,150,000 28,640,000 50,400,000

Number of hectares of afforested agricultural land since 2007 (221)

56,000 72,500 608,000

Axis 2: Monitoring indicators

98

48

57

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* September 2010 data%

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What is the policy achieving? (3)

Output indicator 2007-2008 2007-2009* Target 2007-2013

Number of micro-enterprises supported/created (312)

1,050 6,100 94,875

Number of new tourist actions (313)

1,510 3,700 44,000

Number of village renewals (322)

2,240 12,800 32,400

Number of projects financed by LAG (Axis 4)

1,280 8,760 170,000

Axis 3 and 4: Monitoring indicators

%* September 2010 data 7

9

40

5

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Key issues for after 2013

• Ongoing challenges facing rural areas

• Overarching goals of EU2020 – general policy context

• Links with other EU policies

• Structure

• Measures

• Delivery mechanisms

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Ongoing challenges facing rural areas

Socio-economicchallenges

Environmentalchallenges

Territorialchallenges

• Income gaps

• Price volatility, risk management

• Under-developed rural regions

• GHG emissions

• Soil depletion

• Water/air quality

• Habitats and biodiversity

• Vitality of rural areas

• Diversity of EU agriculture

Synergies and co-ordination with: CAP first pillar, structural funds

Contribution to Europe 2020 strategy

Food security, food safety

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Smart growth - an economy based on knowledge and innovation: R&D and innovation Education, training and lifelong learning Digital society

Sustainable growth - promoting a more resource efficient, greener and more competitive economy: Competitiveness Combating climate change Clean and efficient energy

Inclusive growth - a high-employment economy delivering economic, social and territorial cohesion: Employment Skills Fighting poverty

Europe 2020 strategy

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Europe 2020 and RD policy: clear common ground!

Rural development

SMART growth:

• Supporting innovation and skills, green technologies and uptake of research

• Providing incentives for social innovation

INCLUSIVE growth:

• Unlocking local potential, diversifying rural economies and developing local markets and jobs

• Opening up alternative opportunities to accompany agricultural restructuring

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

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Objectives and priorities for RD policy - overview

Competitivenessof agriculture

Sustainable management of

natural resources

Balanced territorial development

Long-term strategic objectives

Interpreted in the light of Europe 2020:

smart, sustainable, inclusive growth

Operational priorities with:

•areas of intervention

•improved target indicators

All MS / regions must address these in their RD programmes

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Getting our priorities right (1)

1. Knowledge transfer in agriculture and forestry

• (Cross-cutting priority)

• Human capital and smart networking in agriculture & forestry

• Innovation, knowledge base in agriculture & forestry

• Strengthening links between agriculture & forestry / research & development

2. Competitiveness of agriculture, farm viability

• Restructuring of farms facing major structural problems

• Generational renewal in agricultural sector

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Getting our priorities right (2)

3. Food chain organisation, risk management in agriculture

• Integrating primary producers into food chain

• Supporting farm risk management

4. Preserving & enhancing ecosystems dependent on agriculture & forestry

With regard to:

• biodiversity / landscapes

• water management

• soil management

• carbon sequestration

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Getting our priorities right (3)

5. Resource efficiency & transition to low-carbon economy in agri-food and forestry sectors

• With a focus on water & energy

• Production of (feedstocks for) renewable energy in ag & forestry

• Cutting nitrous oxide & methane emissions from agriculture

6. Realising jobs potential & development of rural areas

• Diversification & job creation

• Social inclusion & poverty reduction

• Local development in rural areas

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Links with other EU funds

Common Strategic Framework (CSF)

• Sets out, co-ordinates funds’ contributions to Europe 2020

• Provisions for territorial action (including Leader)

Joint national frameworks (“Partnership Contracts”?)

• Frameworks to co-ordinate funds at national level

• Should reflect CSF

Rules and procedures

• Harmonise as far as possible

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How should the elements fit together?

Common Strategic Framework (CSF) – reflecting Europe 2020

National frameworks – reflecting CSF

RD policy Other EU policies (cohesion policy, fisheries)

RD programmes:Objectives / priorities

TargetsSets of measures

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What measures will be needed?

Current measures(2007-2013)

Streamlinemeasure

menu

Adjust conditions,scope

New measures?

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Measures – some key areas (1)

Knowledge transfer

• Vocational training, advisory services, demonstrations of new technologies

Co-operation: technological

• Development / application of technology, techniques, products

Co-operation: economic

• E.g. short supply chains, sharing of resources

Co-operation: environmental

• Collective action for better results (e.g. larger areas, bigger projects)

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Measures – some key areas (2)

Business development

• Including young farmers

Risk management

• New toolkit of measures

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Delivery mechanisms: key elements

• Strengthening strategic approach and ex-ante evaluation

• Quantified target levels against common indicators (“target indicators”) for each of the priorities

• Abolition of the axis system

• Measures used more flexibly in combination

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CAP after 2013 – timetable

Publicconsultation

Conference

Communi- cation on CAP after 2013

2010 (n-4) 2011 (n-3) 2012 (n-2) 2013 (n-1) 2014 (n)

Imp

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Publicationof legalproposals

Negotiationsbegin with EP, Council

Negotiationswith EP andCouncil overlegalproposals

Drafting ofprogrammes

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For further information

• CAP Health Check

http://ec.europa.eu/agriculture/healthcheck/index_en.htm

• EU agriculture and CAP reform

http://ec.europa.eu/agriculture/index_en.htm

• EU rural development policy 2007-2013http://ec.europa.eu/agriculture/rurdev/index_en.htm

• Agricultural Policy Analysis and Perspectives

http://ec.europa.eu/agriculture/analysis/perspec/index_en.htm

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Thank you!