Josefine Loriz-HoffmannDirectorate General Agriculture and Rural Development

11 October - Open Days 2007

Rural Development Policy 2007-2013

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Why is rural development policy so important ?

Predominantly and significantly rural areas make up:

• 92 % of surface area of the EU

• 53 % of employment

• 45 % or cross value creation

Albeit great diversity and variety: serious structural

deficits exist in many parts of Europe

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Socio-economic challenges for rural areas Higher rates of population decline and out-migration of qualified young people.

Per capita income is about a third less

Education levels are lower

A smaller share of households has access to broadband internet.

The service sector is less developed.

Lack of investment in village renewal and low accessibility to public services.

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But new opportunities are created by :

Changes in lifestyles and consumer expectations

Better communication

New tourism patterns

Relocation of business and research activity

Recreational services for urban population

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Environmental challenges for rural areas

Divergent environmental performance of agriculture in preservation of natural resources

Problems of nitrogen surplus, ammonia emissions, eutrophication, soil degradation, biodiversity decline in many areas

Risk of decline in biodiversity and disappearance of cultural landscape due to land abandonment

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New environmental opportunities: Increased share of organic production and

renewable resources. Natura 2000 framework and high nature

value farming systems Landscape management by farmers

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Rural Development Policy 2007-2013

Three core objectives covering the main

development needs in rural areas :

Increasing the competitiveness of the farm and

forestry sector through support for restructuring,

modernisation and quality production

Enhancing the environment and the countryside

through support for land management

Enhancing the quality of life in rural areas and

promoting diversification of economic activities

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Rural Development Programme

architecture

Rural Development Strategic Objectives

« LEADER » Axis

Axis 1 Competi-tiveness

(min.10%)

Axis 2Environment,

Land Management

(min.25%)

Axis 3Economic

Divers.

Quality of life

(min.10%)

Single set of programming, financing, monitoring, auditing rules

Single Rural Development Fund

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Possible support under Axis 1: Increasing

Competitiveness

1. Measures aiming at improving human potential:

vocational training; setting up of young farmers; early retirement; management,

relief and advisory services, ...

2. Measures aiming at restructuring physical potential:

investments to improve production, processing and marketing structures (and

infrastructures), innovation and cooperation ...

3. Measures aiming at improving the quality of agricultural production and products:

adaptation to new EU-standards: participation in food quality schemes;

promotion for quality products

4. Transitional measures for the new Member States :

semi-subsistence farms; setting up of producer groups

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Possible support under Axis 2: Land management

and environment

1. Measures targeting the sustainable use of agricultural land:

mountain areas; other areas with handicaps; Natura 2000

areas; Water framework directive, agri-environment and

animal welfare; ...

2. Measures targeting the sustainable use of forestry land:

first afforestation; first establishment of agro-forestry systems;

Natura 2000 areas; forest-environment; restoring forestry

production potential and introducing prevention actions; ...

NB: Agri-environment measures are compulsory for each programme

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Possible support under Axis 3: Diversification of the

rural economy and quality of life

1. Measures aiming at the diversification of the rural economy:

diversification towards non-agricultural activities; creation and

development of micro-enterprises; rural tourism;

2. Measures aiming at the improvement of the quality of life:

Basic services; conservation and upgrading of rural heritage,

village renewal; training and capacity building; ...

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“LEADER” Axis

Implementation of local development strategies

through a LEADER approach to contribute to the

achievement of the objectives of one or several of the

three thematic axes

Inter-territorial and trans-national cooperation

Capacity building and working of local action groups

NB: Leader is compulsory for each programme

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Programming Steps

1) EU strategy document setting out the EU priorities for the

three thematic axes

2) National strategy plans translation the EU priorities to the

national situation and ensuring complementarity with other

policies (Cohesion policy – ESF/ERDF)

3) 94 National or regional rural development programmes

articulating the four axes

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Adoption of RD programmesState of play on 23/08/07

87 programmes submitted among 94 18 programmes approved

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Balance between axes per Member State

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

To

tal

AT

BE

BG

CY

CZ

DE

DK

EE

ES FI

FR

GR

HU IE IT LT

LU LV

MT

NL

PL

PT

RO

SE SI

SK

UK

Direct Payments

Tech. Ass.

Axe 4

Axe 3

Axe 2

Axe 1