Overview of the European Union Rural Development Policy European Commission - Directorate General for Agriculture (DG AGRI G.2) European Commission - Directorate General for Agriculture
Outline Key points of Rural Development policy 2007-2013 What has changed in rural development policy? What are the main goals of the policy? What is the main focus of the policy? What are the programming steps? How is the policy financed and what are the main instruments? What are the main yardsticks? Next steps: where should we focus our analytical efforts? 2
What has changed in rural development policy? Single system for all rural development programmes Definition of three main objectives for rural development policy Development of coherent hierarchy of objectives in regulation Agreement of EU priorities for rural development in Community Strategic Guidelines Common monitoring and evaluation framework linking EU priorities, strategy development, evaluation and monitoring Definition of common set of indicators within hierarchy of objectives in Common Monitoring and Evaluation Framework 3
Three core objectives Improving the competitiveness of the farm and forestry sector through support for restructuring, modernisation/innovation and quality production Enhancing the environment and the countryside through support for land management Improving the quality of life in rural areas and promoting diversification of economic activity 4
Four axes to implement the objectives: To each core objective corresponds a thematic axis in the rural development programme The three thematic axes are complemented by a «methodological» axis dedicated to the LEADER approach (LEADER axis) A minimum funding for each axis is required to ensure some overall balance in the programme (10% -25%-10%-5%) As building blocks for each thematic axis a range of pre-defined measures is available 5
What is the main focus of the policy? Rural Development Regulation => objectives and scope of assistance from the RD fund Common Strategic Guidelines => EU level priorities, in particular focus on sustainability (Göteborg) and growth and jobs (Lisbon) 6
EU Strategic Guidelines: Common Priorities Objective 1 - the priorities of knowledge transfer, modernisation and innovation in the food chain and priority sectors for investment in physical and human capital. Objective 2 - three EU level priority areas: biodiversity and preservation of high nature value farming and forestry systems and traditional agricultural landscapes, water, and climate change. Objective 3 - the overarching priority of the creation of employment opportunities and conditions for growth in the fields of diversification and quality of life. LEADER - the priority of improving governance and mobilising the endogenous development potential of rural areas. 7
RD 2007-2013: Key points Rural Development 2007-2013 «<<LEADER Axis>>» Axis Axis 1 Competitiveness Axis 2 Environment + Land Management Axis 3 Economic Divers. + Quality of Life Single set of programming, financing, monitoring, auditing rules Single Rural Development Fund 8
Programming steps N-2 (2005) N-1 (2006) N (2007) EU RD strategy proposal EU strategy approval Elaboration and discussion of national strategy National/ regional programme preparation Programme approval Programme Implement. strengths and weaknesses at EU definition of priorities for each thematic area core impact indicators to measure progress translation of EU priorities to national situation complement arity with other EU policies (cohesion) programming at national or regional level in line with national and EU RD stategy core result indicators 9
Rural Development 2007-2013: Agenda legal aspects 20/09/05: Council Regulation (EC) 1698/2005 20/02/06: Council Decision on Community Strategic Guidelines (2006/144/EC) Implementing regulations: 5/09/06: Commission Decision on transition rules (EC) 1320/2006 26/10/06: Commission Decision on implementing regulation 20/09/06: Common Monitoring and Evaluation Framework 10
Funding of the policy (EU Part) - Summary Financial framework 2007-2013: Bio => Original Proposal 88,75 => Final Compromise 69,75 + Funds raised through modulation 7,47 compulsory (EU-15) + Other transfers from Pillar 1 (teu-15 tobacco and cotton reform) 1,38 Total 2007-2013 78,60 All amounts in 2004 prices 11
meur 2004 prices Financial Framework Total Compulsory Modulation Finance 2007-2013 cotton/ tobacco Total meur 2004 prices Financial Framework Total BE 260,7 107,7 5,1 373,4 CY 145,2 DK 206,6 189,4 396,0 CZ 2506,2 DE 5971,9 1211,0 45,4 7228,3 EE 635,1 EL 2335,6 353,1 595,4 3284,1 HU 3388,5 ES 5008,2 1236,1 176,4 6420,8 PL 11796,9 FR 4013,3 1620,2 102,8 5736,2 SI 804,9 IE 1889,0 202,4 2091,4 LT 1553,3 IT 6167,4 776,6 428,1 7372,1 LV 927,4 LU 73,1 7,2 80,4 SK 1754,4 NL 269,2 167,9 437,1 MT 68,4 AT 3249,2 238,0 1,3 3488,6 BG 2314,8 PT 3189,8 280,3 21,8 3491,9 RO 7114,8 FI 1743,6 114,0 1857,6 Total 2 33009,9 SE 1483,9 149,0 1632,9 UK 878,4 820,9 1699,4 Total 1 36739,9 7473,8 1376,3 45590,2 Total 1+2 78600,1 12
RD Budget 07-13 78 600.1 m (EU27, incl. modulation, cotton/tobacco) Breakdown by MS of Community support for RD 2007-2013 Latvia 1.2% Lithuania 2.0% Slovenia 1.0% Malta 0.1% Slovakia 2.2% Bulgaria 2.9% Romania 9.1% Belgium 0.5% Denmark 0.5% Germany 9.2% Greece 4.2% Spain 8.2% Poland 15.0% Hungary 4.3% Estonia 0.8% Czech Republic United Kingdom 3.2% Cyprus 0.2% 2.2% Sweden 2.1% Finland 2.4% Portugal 4.4% Austria 4.4% Italy Netherlands9.4% Luxembourg 0.6% 0.1% France 7.3% Ireland 2.7% 13
Key instruments (EAGGF programmed expenditure 2000-2006 EU15) Restructuring/competitiveness 38% Productive investment in agriculture 13% Productive investment in agri-food SMEs 8% Agricultural infrastructure 11% Other 6% Environment/land management 52% Agri-environment 27% Compensation for handicaps 12% Forestry 10% Other 2% Rural economy 10% Small scale rural infrastructure 6% Microbusiness development 4% Other 0% 14
The «Yardsticks»: common indicators (1) Baseline indicators Objective related - Horizontal Indicator Measurement *1 Economic development GDP/capita (EU-25 = 100) *2 Employment rate Employed persons as a share of total population of the same age class *3 Unemployment Rate of unemployment (% active population) 15
Axis 1 *4 5 Indicator Training and education in agriculture Age structure in agriculture Measurement % farmers with basic and full education attained Ratio : % farmers < 35 / >= 55 years old *6 Labour productivity in agriculture GVA / AWU - total and by sector 7 Gross fixed capital formation in agriculture GFCF in agriculture 8 Employment development of primary sector Employment in primary sector 9 Economic development of primary sector GVA in primary sector *10 Labour productivity in food industry GVA / people employed in food industry 11 12 Gross fixed capital formation in food industry Employment development in food industry GFCF in food industry Employment in food industry 16
Indicator Measurement 13 Economic development of food industry GVA in food industry *14 Labour productivity in forestry GVA / people employed in forestry 15 Gross fixed capital formation in forestry GFCF in forestry 16 Importance of semi-subsistence farming in NMS Number of farms < 1 ESU 17
Axis 2 *17 *18 19 *20 21 22 23 Indicator Biodiversity: Population of farmland birds Biodiversity: High Nature Value farmland and forestry Biodiversity: Tree species composition Water quality: Gross Nutrient Balances Water quality: Pollution by nitrates and pesticides Soil: Areas at risk of soil erosion Soil: Organic farming Measurement Trends of index of population of farmland birds UAA of High Nature Value Farmland Distribution of species group by area of FOWL (% coniferous/% broadleaved/%mixed) Surplus of nitrogen in kg/ha Surplus of phosphorus in kg/ha Annual trends in the concentrations of nitrate in ground and surface waters Annual trends in the concentrations of pesticides in ground and surface waters Areas at risk of soil erosion (classes of T/ha/year) UAA under organic farming 18
*24 Indicator Climate change: Production of renewable energy from agriculture and forestry Measurement Production of renewable energy from agriculture (ktoe) Production of renewable energy from forestry (ktoe 25 Climate change: UAA devoted to renewable energy UAA devoted to energy and biomass crops 26 Climate change/air quality: gas emissions from agriculture Emissions of greenhouse gases from agriculture Emissions of ammonia from agriculture 19
Axis 3 *27 Indicator Farmers with other gainful activity Measurement % holders with other gainful activity *28 *29 *30 31 *32 *33 34 Employment development of nonagricultural sector Economic development of non-agricultural sector Self-employment development Tourism infrastructure in rural area Internet take-up in rural areas Development of services sector Net migration Employment in secondary and tertiary sectors GVA in secondary and tertiary sectors Self-employed persons Number of bedplaces (in hotels, campings, holiday dwellings, etc) % population having subscribed to DSL internet % GVA in services Net migration rate *35 Life-long learning in rural areas % of population of adults participating in education and training 20
Axis 4 *36 Indicator Development of Local Action Groups Measurement Share of population covered by Local Action Groups * refers to Lead indicators 21
(2) Impact indicators 1 2 3 4 5 6 7 Indicator Economic growth Employment creation Labour productivity Reversing Biodiversity decline Maintenance of high nature value farming and forestry areas Improvement in water quality Contribution to combating climate change Measurement Net additional value added expressed in PPS Net additional FTE jobs created Change in Gross Value Added per work unit (GVA/FTE) Change in trend in biodiversity decline as measured by farmland bird species population Changes in high nature value areas Changes in gross nutrient balance Increase in production of renewable energy. 22
Next steps for rural development work Establishment of rural development network Studies on Scenario for 2020, ICT, high nature value areas, rural development instruments Agri-environmental indicators and work with JRC on natural handicaps Definition of rural areas and socio-economic trends Promotion of models through Research Framework Conferences on quality food production and ICT in 2007 23
Where should we focus our analytical efforts? Suggestions for delivery Build on what we have, integrate different approaches Develop basic policy scenarios Assess progress towards main objectives Assess targeting of policy on EU priorities Focus on main instruments Link with common baseline and impact indicators 24
Where should we focus our analytical efforts? Suggestions for development Identify and address analytical weaknesses Reinforce territorial and thematic approaches Address integrated rural development, synergies and contradictory effects Further improve linkages between analysis, modelling and evaluation Adapting tools to the specificity of rural development programming 25
Rural development improving analytical tools and information Development of indicators Evaluation methodology Data Development of models, especially for axis 3 (use of typology?) 26