Update on rural development plans to date 2014 2020 environment-15_oct 2013

Agriculture and Rural Development

Rural Development Policy 2014‐2020 – what tools for the environment

Krzysztof SulimaEuropean Commission

DG Agriculture and Rural DevelopmentUnit: Consistency of rural development

Monday 16 December 2013

Main elements of the reform

1. Ensuring better coordination and complementarity with the other ESI Funds - establishing a common framework:

Common Provisions Regulation and Partnership Agreement: ensuring coordination, harmonisation and complementarity

2. Increasing effectiveness, efficiency and performance of the RD policy: Result-oriented: setting of quantified targets at programme level Streamlined system of monitoring and evaluation

3. Strengthening the strategic approach & integrated programming: Clear and structured policy priorities – away from 'axis' system Enhanced flexibility in the use and combination of measures to better

address specific territorial needs

4. Reinforcing complementarity with the CAP's Pillar 1:1. Horizontal Regulation for financial management and controls2


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Europe 2020 Strategy for

Smart, Sustainable and Inclusive Growth

Common Agricultural Policy

Viable food production

Sustainable management of natural resources and

climate action

Territorial balance and diversity of rural areas

EuropeanStructural andInvestmentFunds

11 Thematic Objectives

Horizon 2020

Agricultural research

EuropeanInnovation Partnership

Agricultural Productivity and Sustainability

Pillar 2:EU's rural development

policy6 Union priorities

Pillar 1

Complementarity between ESIF


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Common Provisions Regulation for ESI Funds• Covering the EAFRD, ERDF, ESF, CF, EMFF

• Reflecting EU2020 through 11 common thematic objectives to be addressed by key actions for each of the funds

Partnership AgreementNational document outlining the intended use of the funds in the pursuit of

EU2020 objectives

Rural Development Programme(s)

• (Other funds' operational programmes)

National or Regional

Level

Coordination and complementarity with ESI Funds


A reinforced strategic programming approach

Clear focus on policy priorities:

− 6 Union priorities for rural development

• Define the points of emphasis of the policy with respect to the needs for intervention identified at the level of the Union

• Are broken down into operational focus areas to better structure attribution of measures and planned interventions

− 3 cross-cutting objectives: Innovation, Environment, Climate Change

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6 Union priorities for rural development

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6. Promoting social inclusion, poverty reduction and economic development in rural areas

2. Enhancing farm viability and competitiveness of all types of agriculture in all regions and promoting innovative farm technologies and sustainable management of forests

3. Promoting food chain organisation, including processing and marketing of agricultural products, animal welfare and risk management in agriculture

4. Restoring, preserving and enhancing ecosystems related to agriculture and forestry

5. Promoting resource efficiency and supporting the shift towards a low carbon and climate resilient economy in agriculture, food and forestry sectors

1. Fostering knowledge transfer and innovation in agriculture, forestry, and rural areas


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6. Social inclusion, poverty reduction

and economic development in rural areas

2. Farm viability, competitiveness, innovative farm technologies,

sustainable forest management

3. Food chain organisation, incl.

processing/marketing, animal welfare and risk management

4. Restoring, preserving and

enhancing ecosystems

5. Resource efficiencyand shift towards a

low carbon and climate resilient

economy

1. Knowledge transfer and Innovation In

no

vatio

n, C

limate

Ch

an

ge and

En

viron

men

tRural development priorities Focus areas

(a) innovation, cooperation, and the development of the knowledge base;(b) links between agriculture, food production and forestry and research and innovation;(c) lifelong learning and vocational training.

(a) economic performance of all farms and farm restructuring and modernisation, notably to increase market participation/orientation and diversification;(b) facilitating entry of adequately skilled farmers and generational renewal.

(a) integration of primary producers into the agri-food chain: quality schemes, adding value, promotion in local markets and short supply circuits, producer groups/ organisations; (b) farm risk prevention and management.

(a) biodiversity, including in Natura 2000 areas, areas facing natural or other specific constraints and high nature value farming, and the state of European landscapes;(b) water management, including fertiliser and pesticide management;(c) prevention of soil erosion and soil management.

(a) efficiency in water use(b) efficiency in energy use(c) renewable sources of energy, by products, wastes and non-food raw material for the bio-economy(d) reduction of greenhouse gas and ammonia emissions(e) carbon conservation and sequestration

(a) diversification, creation and development of small enterprises and job creation(b) local development in rural areas(c) information and communication technologies (ICT) in rural areas

Cross-cutting objectives


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Focussing on outcomes

The intervention logic should clearly illustrate how measures work together in a complementary manner:

− Measures can contribute to more than one priority/focus area at a time

− Added-value is created if any measure supports the intervention of the others - the sum is more than the individual parts!

− Multiple effects of interventions on different focus areas and priorities should be appraised

Outcome-oriented approach, flexible programming and attention to synergies between and within measures


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Required minimum budgetary allocations A minimum amount of the total EAFRD contribution to the RDP

shall be reserved:

− At least 30% for: • Environment and climate related investments (Article 18) • Forestry measures (Articles 22-27 and Article 35)• Agri-environment-climate (Article 29)• Organic farming (Article 30)• Natura 2000 (Article 31)• ANCs (Articles 32-33)

− At least 5% for Leader

Nota bene: These provisions shall not apply to the outermost regions and the overseas territories


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EnvironmentAgri-environment-

climate

Organic farming

Natura 2000 payments

Forestry measures

Ares facing natural or other specific constraints

Environment & climate linked investments

Knowledge transfer & advisory services

Basic services & village renewal

WFD payments

Animal welfare

Co - operation

Leader


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Key elements of strategic programming Ex-ante evaluation

SWOT analysis and needs assessment in the programme area

Strategic response:

− SWOT analysis and identification of needs

− Choice of relevant priorities/focus areas and approach towards cross-cutting objectives

− Setting appropriate targets for each focus area selected

− Establishing and justifying the choice and combination of measures in the light of the SWOT analysis

− Establishing financial allocations to measures/operations and appropriate indicators


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Thematic sub-programmes (TSP) Aimed to contribute to the achievement of RD priorities

− overall SWOT should provide justification for any TSP

May, but not only, relate to: (a) young farmers (b) small farms (c) mountain areas (d) short supply chains (da) women in rural areas (db) climate change mitigation and adaptation and biodiversity

Support rates:− possibility of increase by 10 percentage under TSP for small farms, short supply

chains, climate change mitigation and adaptation and biodiversity− possibility of increase in the case of young farmers and mountain areas in

accordance with Annex I

Specific requirements for each TSP introduced: − Specific SWOT and needs assessment − Intervention logic, selection of measures, target-setting, allocation of resources,

specific reporting, delivery mechanisms


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RD policy: broad menu of measures

Knowledge transfer Basic services & village renewal

Payments to areas facing constraints

Advisory services Investments in forest area development

Animal welfare

Quality schemes Setting-up of producer groups and organisations

Forest-environmental payments

Investments in physical assets

Agri-environment-climate Co-operation

Restoring agricultural production potential

Organic farming Risk management

Farm and business development

Natura 2000 and Water Framework Directive payments

Leader approach


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Agri-environment-climate (art. 29) Why do we need this measure?

− To encourage land managers to apply land management farming practices favourable to the environment and climate change mitigation and adaptation

− To support environmentally positive changes to farming practices as well as maintenance of the existing favourable practices

Main features:• to improve the implementation - a link to knowledge transfer and

information • to multiply environmental/climate benefits - eligibility of individual

and joint beneficiaries & higher transaction costs for the latter• to increase flexibility: annual extension of commitments after the

initial period & shorter contracts for post initial period • one-off payments in the case of permanent changes to land use for

environmental conservation purposes• maximum aid per Ha: € 600 (annual crops), € 900 (perennial crops), € 450 (other land uses) and € 200/LU (endangered local breeds)


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Agri-environmental types of operations/commitments and their potential environmental benefits

Positive impact onPositive impact onPositive impact onPositive impact on

Types of operations Biodiversity and habitats

Water quality Soil quality

Climate change

diversification of rotations maintenance of grassland maintenance of extensive grasslands and grazing; low livestock density

conversion of arable land to grassland grass/buffer strips fallow land/set-aside ecological infrastructures (hedges and small plots)

reduced or zero tillage organic farming ensuring soil cover in arable cultures, especially in winter and during critical periods

establishment of riparian zones, wetlands reduction of agricultural inputs establishing proper nutrient balance, catch crops to avoid nitrogen leaching

extensification of production terraces in the areas concerned by steep slopes

promotion of alternative methods of weeds and pests control

reduction of water use for irrigation and adaptation of irrigation systems to the real needs of crops

appropriate mowing dates and methods


Organic farming (art. 30) Why do we need this measure?

− A separate measure to recognise the importance of organic farming in contributing to various rural development priorities

− To support both conversion to and maintenance of organic farming practices and to answer society's demand for the use of such practices

Main features• to multiply environmental/climate benefits - eligibility of individual

and joint beneficiaries & higher transaction costs for the latter• to increase flexibility – duration of contracts linked to support for

conversions may correspond to the conversion period & contracts for maintenance following commitments in the initial period can be shorter (than 5-7 years)

• maximum aid: € 600 (annual crops), € 900 (perennial crops), € 450 (other land uses)

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Natura 2000 & Water Framework Directive (art. 31)

Why do we need this measure?− To contribute to the effective management of Natura 2000 sites

and river basins areas and to help ensuring the protection of these sites

− To compensate eligible land managers for disadvantages in the areas concerned resulting from the implementation of the relevant law

Main features• to simplify – combination of Natura 2000 in agriculture and forest in

one measure• to multiply benefits and ensure better protection- eligibility of the

area extended to so called "stepping stones" & eligibility of beneficiaries to cover other land managers (Natura 2000)

• to focus resources - support for WFD shall be linked to major land use changes and/or major restriction in farming practices and cannot cover all changes (including those of minor scope)

• maximum aid: € 500 in the initial period up to 5 years, € 200 as a regular amount, € 50 as minimum for WFD only

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Baseline - greening What is baseline?

− Baseline is a reference level above which payments under Art. 29, 30, 31, 34 and 35 can be granted i.e. commitments under these Articles must be established at the higher level than the requirements included in the baseline

− Such baseline ensures that RD payments are provided only for interventions guaranteeing additional public goods when compared to the benefits delivered by mandatory requirements

Greening and baseline:

• While greening is not an explicit part of the baseline for Art.29-31, double funding must be avoided i.e. when calculating the payments under these measures amounts necessary to exclude double funding of the greening practices as defined in Pillar I shall be deducted.

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Knowledge transfer and information actions Aim to feed the capacity to innovate by bringing farms and other rural

businesses more fully into the knowledge economy.

New, unified measure whit stronger profile and broader scope:− Training and skills acquisition actions− Demonstration activities − Farm and forestry exchange schemes and visits

Eligible cost are:− cost of organizing the operation− cost of participation − investment (for demonstration activities)

Aid intensity: maximum 100% Co-financing rates between 80 and 90% of eligible public expenditure. Funding is paid to the training provider (WTO green box rules)

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Advisory services Purpose of the measure

− help farmers, young farmers, forest-holders, land managers and SMEs in rural areas to use advisory services

• for better economic and environmental/climate-related performance− promote the setting-up of farm management, farm relief, farm advisory

and forestry advisory services (including the Farm Advisory System)− promote the training of advisors

Advice shall be linked to the Union priorities for RD. Maximum amount of support is 1.500 € per "package" of advice; there is no limit in the use of the advisory services; advice may be partly provided in groups; funding is paid to the provider of advice (WTO green box rules).

Setting-up cost funding in a degressive way over 5 years; funding goes to authority/body setting up the services.

Training of advisors limited to 200.000€ per 3 years of training.24


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Investments in physical assets (1)4 types of investments:

To improve the overall performance and sustainability of the holding• Aid intensities ranging from 40% to 75% depending on the region• Possible higher rates for:

– Young farmers– Collective investments / integrated projects – Investments in areas facing natural and other specific constraints – Investments linked to agri-environment-climate and organic measures– Investments in the framework of European Innovation Partnership

Processing/marketing and development of agricultural products • The output of the production process can be a non-agricultural product• Aid intensities ranging from 40% to 75% depending on the region• Possible higher rates for:

– Collective investments/integrated projects – Investments in the framework of European Innovation Partnership

Infrastructure of agriculture and forestry• Access, land consolidation/improvement, energy and water supply and saving• Aid intensity up to 100%

Non-productive investments linked to agri-environment-climate objectives• Aid intensity up to 100%


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Investments in physical assets(2)

Young farmers setting up for the first time: − Support can be given to comply with Union standards for a

maximum of 24 months from the date of setting up

All farmers:− Support may be given for investments to comply with new EU

requirements for a maximum of 12 months from the date on which they become mandatory for the holding


Basic services and village renewal in rural areas Stimulate growth and promote environmental and socio-economic

sustainability of rural areas, in particular through:− development of local infrastructure (including broadband, renewable

energy and social infrastructure)− development of basic services (including leisure, culture and access to

ICT)− renewal of villages and activities aimed at the restoration and upgrading

of the cultural and natural heritage

Level of support: subject to general State Aid rules Although no legal restrictions on the type of beneficiary, likely large

involvement of public bodies in implementing operations Support extended to developing and updating plans for municipalities/villages Infrastructure supported must be small-scale BUT possible derogation in case

of investments in renewable energy and broadband New type of support: investments aimed at relocation of activities and

conversion of buildings in view of improving the quality of life or increasing the environmental performance of the settlement

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Co-operation (1) Purpose: to overcome disadvantages of fragmentation in rural areas…

…. by helping various entities work together with regard to:

− pilot projects / development of new products, practices, processes and technologies in agri-food & forestry sectors

− short supply chains / local markets− environment, climate, provision of biomass− general economic co-operation, development of tourism services− diversification of farming to various social functions− non-Leader local development strategies− drawing-up of forest management plans

Operators can be in different MS / regions

Support can be combined with support from other Union funds on same territory

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Co-operation (2) "Forms" of co-operation (types of group)

− operational groups of European Innovation Partnership− clusters & networks− other (various types of entity)

Eligible categories of cost:− preparatory studies− "animation"− running costs "of the co-operation"− other "direct costs" of specific projects in certain cases (investment

costs)

In certain circumstances, 2 possible approaches:− Cover "co-operation" costs with art. 36, other costs with other

measures− Provide all support through art. 36

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Animal welfare Contributing to the improved quality of life of livestock

─ The EU support compensates for going beyond the compulsory standards.

─ Compensation for additional cost or income foregone (compensation for a part or all the costs incurred).

─ The maximum aid intensity is 500 € per livestock unit.

─ The commitments can be undertaken for a period of a minimum of one year, which is renewable up to seven years.

─ Farmer must be identified as active farmer.

─ The higher animal welfare methods respond to a consumer demand for products produced in a manner closer to the natural needs of animals.

─ The EU supported animal commitments should improve the condition of livestock in clearly measurable and controllable manner.

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Forestry measures Contributing to the sustainable management of forests.

Simplified support: One measure (article 22) covering the following sub-measures:

- Afforestation and creation of woodland

- Establishment of agro-forestry systems

- Prevention and restoration of damage to forests from forest fires and natural disasters and catastrophic events

- Investments improving the resilience and environmental value of forest ecosystems

- Investments in forestry technologies and in processing, mobilising and marketing of forest products

This simplification allows beneficiaries to implement integrated projects with increased added value.

Forest-environment payments for going beyond the mandatory requirements. - Forest-environmental and climate services and forest conservation

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Forestry – more accessible and stronger EU support

New concept of beneficiaries

- The main objective is to provide support to the person/entity managing the forest.

New types of support

-Preventive actions against pests and diseases.-Conservation and promotion of genetic resources.-The use of grazing animals in prevention of forest fires.-Mobilising of wood.-Support for purchase of forestry machinery to provide forest management services to a larger group of forest owners.

Forest Management Plan (FMP)-Information from the FMP is requested for all forestry support. This information is required from beneficiaries exceeding the size limit set by the Member State. -Support is available under the Rural Development policy for a preparation of the FMP.

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Forestry – payments

Payments:

- Establishment costs and maintenance support up to 100 % (area-based or standard costs-based payments).

- Investment support is paid 40-70 % of the total costs.

- Forest, environmental, climate services and forest conservation payments may be granted as a flat-rate or one-off payment for going beyond the mandatory requirements.

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26 June 2013

Jan/Feb 2014

Dec/Jan 2013/14

April 2014

May 2014

1 January 2015

Tentative calendar for the NEW CAP


Transitional rules (1)Content1.No new legal commitments after 2013 on:

early retirement meeting standards

2.Possibility of extension of on-going commitments until end 2014: Agri-environment Animal welfare Forest-environment

3.Use of current technical assistance to prepare the new period: Ex-ante evaluation of new programs Preparatory cost for local development strategies Activities for a smooth transition

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Transitonal rules (2) New legal commitments can be allowed to be undertaken under old

rules (Reg. 1698/2005) until the adoption of new programmes:− LFA− Natura 2000 and WFD− Agri-environment− Animal welfare− Forest-environment measures

Member States may continue undertaking commitments for these measures even after they run out of financial resources of the current period

They may do so until the adoption of the new programmeReason: Cover the possible gap for MS who have used up the current

financial resources but have no sufficiently stabilised programme on time for the 15 of May 2014 deadline for applications.

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Transitonal rules (3) For LFA, Agri-environment, Natura 2000 and WFD, Animal welfare and

Forest-environment and for the 2 afforestation measures (only as regards the annual premium):

Expenditure after the end of 2015 or before that but after the current financial resources have been used up, shall be eligible from the new financial resources

NB: Co-financing rates of the corresponding new measures apply

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Transitional rules (4) For Member States that start applying the new programmes in 2014,

the baseline for: -Agri-environment-climate -Organic farming -Natura 2000 and WFD, and -Animal welfare shall be the existing one in 2014.

Reason: New DP and HZ provisions will only enter into force in 2015.

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Thank you for


Update on rural development plans to date 2014 2020 environment-15_oct 2013

Technology

short supply chains

climate change mitigation

areas facing natural

current financial resources

multiply environmental climate benefits

higher transaction costs

joint beneficiaries

advisory services