EU Rural Development Regulation No 1698/2005 and its forestry relevant measures, Tamas Szedlak

Tamas SzedlakEuropean Commission

Directorate General Agriculture and Rural Development Unit F6. Bioenergy, biomass, forestry and climate change

EU Rural Development Regulation No 1698/2005 and its forestry relevant

measuresBudapest 21-22 September 2006

CEPF RD Conference 21-22 September 2006 2

Forestry in the EU

Forests and other wooded land cover 166 million ha, (43,2% of land area) from which forests cover 145 million ha, (37,8%)


Country distributionForest % of land area

01020304050607080

Austri

a

Belgium

Cypru

s

Czech

Rep

ublic

Denm

ark

Estonia

Finlan

d

Franc

e

Germ

any

Greec

e

Hunga

ry

Irelan

dIta

ly

Latvi

a

Lithu

ania

Luxe

mbo

urg

Mal

ta

Nethe

rland

s

Poland

Portu

gal

Slovak

ia

Sloven

ia

Spain

Sweden

United

Kin

gdom


Public forest represents 40% of forest area and private forests: 60% with about 15 million forest owners.

The average size of EU state-owned forest holdings is about 1 000 ha,

Community forests:~ 300 ha Private forest holdings have an average size

of 13 ha. (many < 5 ha)

Forest ownership


EU Rural Development Policy Agenda 2000

CR (EC) No 1257/1999

CR (EC) No 1698/2005


CR (EC) No 1257/1999 Afforestation of agricultural land (Art. 31) Investments to improve the multifunctional

role of forests (Art. 30) Improvement of the forest protection values

(Art. 32) Vocational training (Art.9)

Budget: 4.8 Billion € Afforestation: 2.4 billion € Other forestry measure: 2.4 billion €


Rural Development Regulation 2007-2013 CR (EC) No 1698/2005

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


Axis 1: Improving competitiveness of the forestry sector

Investments Infrastructure Vocational training Advisory services Innovation (new products, biomass for

energy)


Axis 1: Forestry measuresMeasures aimed at improving human potential through:

Vocational training and information actions for persons engaged in the agricultural and forestry sectors

Not normal education

Use by farmers and forest holders of advisory servicesTo improve performanceLevel of support: 80% of the cost up to 1,500€ per advisory service

Setting up of farm management, farm relief and farm advisory services, as well as of forestry advisory services

Main conditions: enlarged to include forestry advisory services

Level of support: No limit, but digressive over max. 5 years from setting up


Axis 1: Forestry measuresMeasures aimed at restructuring physical potential through:

Improving the economic value of forests- based on management plan - for forests owned by private owners/municipalities or their

associations - aid intensity 60 % (natural handicap, N 2000), 85 % (OR),50%

- investments at forest holding level, may include harvesting equipment

- no support for restocking

Adding value to primary agricultural and forestry production- In the case of forestry, support only for micro-enterprises (<10 staff, max. 2 mio € turnover)- aid intensity 50 % (convergence),75/65 %(OR/Aegean), 40 %- investments related to the use of wood as a raw material is limited to

all working operations prior to industrial processing

Improving and developing infrastructure related to the development and adaptation agriculture and forestry

- i.a. access to forest land, energy supply


Axis 1: New measure introduced to promote innovation:

Cooperation for development of new products, processes and technologies in the agriculture and food sector and in the forestry sector

Between primary producers in agriculture and forestry, the processing industry and/or third parties

– preparatory operations, such as design, product, process or technology development and tests and tangible and/or intangible investments related to the cooperation, before the use of the newly developed products, processes and technologies for commercial purposes.


Axis 2 : Improving the environment and the countryside

Forestry land: first afforestation*; first establishment of agro-forestry systems, Natura 2000 areas; forest-environment; restoring forestry potential and introducing

prevention actions; support for non-productive investments

*an agri-environment commitment may be converted into a commitment for first afforestation of agricultural land

MS shall designate the areas eligible for afforestation


Axis 2: Land management/environmentFirst afforestation

Aid intensity for establishment costs:- 70% outside handicap areas- 80% in handicap areas and 85% in the outermost regions

"establishment costs" shall include the cost for the plantation material, the

cost of the plantation and the cost directly linked to and necessary for the

plantation,

"fast-growing species for short–term cultivation“: rotation time less than 15

years

Of agricultural land:

+ Annual premiums to cover loss of income to farmers (or associations

thereof) maximum 700 EUR/ha, or other natural persons or private-law

corporations maximum 150 EUR/ha, up to 15 years.


Axis 2: Forestry – new measureFirst establishment of agroforestry systems on agricultural land

Main conditions: Support granted to create systems combining extensive agriculture and forestry on the same land. Christmas trees and fast-growing species are excluded from support.

– Member States, taking account of local conditions, forestry species and the need to ensure continuation of the agricultural use of the land, shall determine the maximum number of trees planted per hectare.

Aid intensity, for establishment costs only:- 70% outside handicap areas- 80% in handicap areas and 85% in the outermost regions


Axis 2: Forestry – current art. 32 (1), 1st indentNATURA 2000 payments: Main conditions:

The measure becomes Natura 2000-specific. Support covers cost incurred and income foregone resulting from the restrictions of the use of the forestland due to Natura 2000.

Levels of support: Minimum 40€/ha, maximum 200€/ha

Forest-environment payments: Main conditions:

The measure becomes more environment-specific, similar to agri-environment. Support is granted for forest-environment commitments going beyond (national) mandatory standards, and running for 5 years (or another period where justified); support covers additional costs and income foregone

Levels of support: Minimum 40€/ha, maximum 200€/ha


Restoring forestry production potential and introducing prevention actions: Main conditions: Preventive actions against fires shall concern forests under high-medium forest-fire risk according to the MS forest protection plans. Level of support: No limit

examples: establishment of protective infrastructures such as forest paths, tracks, water supply points, fire breaks, cleared and felled areas, launching of operations to maintain fire breaks and cleared and felled areas; preventive forestry practices such as vegetation control, thinning, diversification of vegetation structure; setting-up or improvement of fixed forest fire monitoring facilities and communication equipment.

Axis 2: Forestry


Support for non-productive investments : Main conditions: "non-productive investments” shall mean investments that do not lead to any significant increase in the value or profitability of the agricultural or the forestry holding. Level of support: No limitNew separate measure taking over part of the existing CR 1257/1999 Art. 33(11th) and 30(1)(2nd) measures and complementing them with regard to the forest-environmental measure: grant of non-productive support is linked to the achievement of commitments undertaken under the forest-environmental measure, or in order to enhance the public amenity value of the area concerned.

Axis 2: Forestry


Axis 3 : Diversification, quality of life Diversification of the rural economy:

diversification to non-agricultural activities; support for micro-enterprises; encouragement of tourism activities*

*-small-scale infrastructure such as information centres and the signposting of tourist sites;

-recreational- infrastructure such as the offering access to natural areas, and small-capacity accommodation,

-the development and/or marketing of tourism services relating to rural tourism

Improvement of the quality of life:basic services for the economy and rural population; village renewal; conservation and upgrading of the rural heritage (natural and cultural)

Training and capacity building


Axis 4 : Leader 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 cooperation between LAGs

Capacity building and functioning of LAGs


Programme balance Axis 1: Competitiveness at least 10% of EU

programme funding Axis 2: Land management at least 25% (10%

in French Overseas Departments) Axis 3: Wider rural development at least 10% Axis 4: LEADER at least 5% (but counts for

the other axes)


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


Programming steps1. Community strategic guidelines setting out the EU priorities for

the period 2007-2013

2. National strategy plans translating the EU priorities to the

member state situation and ensuring complementarity with

Cohesion policy

3. National or regional rural development programmes articulating

the four axes


Reporting based on a common framework for monitoring and evaluation

Annual progress reports at programme level

National summary reports on progress in implementation of the national strategy: 2010 – 2012 - 2014

Commission summary report to the Council and the EP on the progress in implementation of the EU strategy and priorities: 2011 – 2013 – 2015

Ongoing evaluation: ex-ante (programme)ongoing activities (annual progress report)mid-term (2010)ex-post (2014)

} specific reports


Thank you for your attention!

EU Rural Development Regulation No 1698/2005 and its forestry relevant measures, Tamas Szedlak

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