EU Rural Development - Rural Development - Lecture Slides, Slides of Human Development

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EU Rural Development Policy 2007-2013 Docsity.com RD policy for 2007-13: • New Council Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) adopted September 2005 • 3 detailed Commission implementing rules under preparation • Two major changes in RD acquis as compared to the current 2000-06 period: – Simplification (of delivery structures) – Strategic approach (programming and reporting) 2 Docsity.com Regulation and Guidelines • Reg. 1698/2005 => purpose and scope of assistance from EAFRD (the RD fund) • Community Strategic Guidelines => EU level priorities within the framework of Reg. 1698/2005, in particular focus on sustainability (Göteborg) and growth and jobs (Lisbon) 5 Docsity.com Policy content → What the EU supports under rural development: • 3 core objectives • 4 priority axes • 41 detailed measures 6 Docsity.com 7 Three core objectives:  Improving the competitiveness of the farm and forestry sector through support for restructuring, development and innovation  Improving the environment and the countryside through support for land management  Improving the quality of life in rural areas and encouraging diversification of economic activity Docsity.com 10 Rural Development 2007-2013 « LEADER » Axis Axis 1 Competi- tiveness Axis 2 Environment + Land Management Axis 3 Economic Divers. + Quality of Life Single set of programming, financing, monitoring, auditing rules Single Rural Development Fund Docsity.com Axis 1 : Improving Competitiveness Axis built up of 16 measures in 4 blocks: • Human capital • Physical capital • Quality • Transitional measures 11 Docsity.com Axis 1: Improving Competitiveness (1) 1. Measures aimed at promoting knowledge and improving human potential: vocational training, setting up of young farmers, early retirement, provision of advisory services; setting up farm management, farm relief and advisory services. 12 Docsity.com Axis 1: Improving Competitiveness (4) 4. Transitional measures for the new Member States: support for semi-subsistence farms undergoing restructuring, setting up of producer groups, provision of advisory services (only for Bulgaria and Romania for the period of 3 years) 15 Docsity.com Measure example: Farm modernisation (art. 26) • Maximum grant of: - 50% of the eligible costs for all farmers - 60% of the eligible costs for farmers in LFA - conditions: improve the overall performance of the agricultural holding; respect Community standards relevant to the investment; • Grace period for investments needed to implement newly introduced Community standards: up to 3 years from the date on which the standard becomes compulsory on the farm holding. 16 Axis 1: Increasing Competitiveness Docsity.com Measure example: Investment aids for processing and marketing (adding value) (art. 28) • Support for processing, marketing or development of “Annex I” (agricultural) and/or forestry products (NB fishery products excluded) • Maximum grant 50% of the eligible costs for SME • Aid intensity halved for bigger enterprises (i.e. max 25%): - with less than 750 employees or - with a turnover of less than 200 Mio € • No aid for enterprises larger than this - conditions: improve the overall performance of the enterprise; respect the Community standards relevant to the investment; • In the case of forestry, support only for micro-enterprises 17 Axis 1: Increasing Competitiveness Docsity.com Axis 2: Land management/environment Measure example: Less Favoured Areas • Designation of areas – mountain areas, other less-favoured, and areas affected by specific handicaps • Aid Amounts: minimum €25/ha, maximum € 250/ha (mountain areas), €150/ha (other handicaps) • Calculation of allowance: compensate for additional costs/income foregone related to handicap; avoid overcompensation • For other (intermediate) LFA: current 2000-06 regime continued until 2010, report and proposal by the Commission in 2008, Council decision in 2009, new regime enters into force in 2010 20 Docsity.com Axis 2: Land management/environment Example measure: Agri-environment • The only compulsory measure (at programme level) • Beneficiaries: Farmers and other land managers • 5 to 7 year contracts (on a voluntary basis) • Annual payments for commitments going beyond the baseline covering additional costs, income foregone and transaction costs • Maximum aid rates: €600/ha - annual crops, € 900/ha- specialised perennial crops, € 450 other land uses, local breeds €200/LU • Baseline = cross compliance + minimum requirements fertiliser and pesticide + national legislation 21 Docsity.com Axis 3 : Diversification, quality of life built up of 8 measures in 3 blocks: • Diversification of the rural economy: diversification to non-agricultural activities; support for micro-enterprises; tourism • Improvement of the quality of life: basic services; village renewal; conservation and upgrading of the rural heritage (natural and cultural) • Training and capacity building 22 Docsity.com Axis 4 : Leader Support for 3 measures: • Implementation of local development strategies through a Leader approach to contribute to the achievement of the objectives of one or several of the three other axes • Inter-territorial and trans-national co-operation between LAGS • Running costs of Local Action Groups (LAGs), capacity building and animation 25 Docsity.com 26 Social Fund (ESF) Rural Development Fund (EARDF) Regional Fund (ERDF) Agro- Competitiveness Land Management Rural Economy Employment Human Capital Training Physical Capital Investment Other measures Mountain areas Other LFA Natura 2000 Agri-Environ. Afforestation Economic Diversification Rural infrastructure Basic services Urban/Rural Linkage LEADER Approach Integration of Environmental Concerns/Objectives Rural Development Coverage – EU Policies Docsity.com Community cofinancing rates • At the level of the axis as share of total eligible public expenditure • For axis 1 and 3 a maximum cofinancing rate of 50% (75% in Convergence regions) • For axis 2 and 4 a maximum cofinancing rate of 55% (80% in Convergence regions) • (For all axes 85% in outermost regions) 27 Docsity.com