policy options to stimulate land use and land ... · 1 2nd international workshop on land...
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2nd International Workshop on Land
Consolidation and Land Banking
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POLICY OPTIONS
TO STIMULATE LAND USE
AND LAND CONSOLIDATIONin Romania
Daniela GiurcaMARD - Romania
Budapest
6 – 9 June 2011
The main topics :
• Farmland - dynamics and "status quo“
• Policy Options (document in progress):
to encourage land use
to encourage consolidation
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2
Structure and dynamics of farmland – thousands ha
3
Source: 1938-1965 , RSR Statistical Breviary, National Institute of Statistics (1990-2009)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
19
38
19
50
19
65
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
10.092,809,814.20
9,450.40 9,381.10
9,422.50
15,005.90
14,684.90
agricultural areaarable landforests and other land with forest vegetationpasturesmeadowsorchards and nurseriesvineyards and nurseries
Structure and dynamics of farmland (2009 data)
thousands ha MARD data
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9,415,896
3,323,836
1,527,815
214,298 205,143
Arabil
Pasuni
Fanete
Vii
Livezi
Meadows
Pastures
Arableland
Vineyards
Orchards
Arable land (ha) 9.415.896
Pastures (ha) 3.323.836
Meadows (ha) 1.527.815
Vineyards (ha) 214.298
Orchards (ha) 205.143
Structure of the agricultural land 2009
Arable land (ha) 14.686.988
Forests and additional forestries
territories (ha) 6.753.835
Land with with water and reeds
(ha) 835.712
Land with roads and railway
communication (ha) 389.861
Land with construction and yards
(ha) 703.850
Degraded and unproductive land
(ha) 468.825
Out of the 23.8 million ha representing the total surface of Romania, the agricultural area
amounts to 61%. Romania is on the 6th place among EU countries as agricultural area
used (after France, Spain, Germany, Britain and Poland).
14,686,988
6,753,835
835,712389,861 703,850 468,825
Teren agricol
Paduri si alte terenuri forestiere
Terenuri cu ape si stuf
Terenuri cai de comunicatie si cai ferateTerenuri cu constructii si curti
Terenuri degradate si neproductive
Arable land
Land with with water and reeds
Forests and additional
forestries territories
Land with with water and reeds
Land with construction and yards
Degraded and unproductive land
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MALTA
OLANDA
BELGIA
CYPRU
GERMANIA
ITALIA
SLOVENIA
LUXEMBURG
UK
PORTUGALIA
CEHIA
SUEDIA
MEDIA
SLOVACIA
GRECIA
AUSTRIA
BULGARIA
POLONIA
UNGARIA
FINLANDA
FRANTA
DANEMARCA
SPANIA
ROMANIA
ESTONIA
LETONIA
LITUANIA
IRLANDA
0.03
0.12
0.13
0.18
0.21
0.21
0.24
0.26
0.26
0.33
0.34
0.34
0.35
0.36
0.36
0.38
0.40
0.41
0.42
0.43
0.43
0.48
0.55
0.64
0.70
0.77
0.78
0.94
AGRICULTURAL AREA UTILIZED ha/capita
IRELAND
LITHUANIA
LATVIA
ESTONIA
ROMANIA
SPAIN
DENNARK
FRANCE
FINLAND
HUNGARYPOLAND
BULGARIAAUSTRIA
GREECE
SLOVAKIAAVERAGE
SWEDEN
CZECH REPUBLIC
PORTUGALUKLUXEMBOURG
SLOVENIA
ITALY
GERMANY
CYPRUSBELGIUM
NETHERLANDS
MALTA
Romania ranks the 5th among EU countries regarding agricultural area utilized as per capita
(after Ireland, Lithuania, Latvia and Estonia), the average of EU 27 is around 0.35 ha per capita
Source: : Eurostat Yearbook 2010, date 2007
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MALTA
OLANDA
BELGIA
SLOVENIA
UK
PORTUGA…
ITALIA
LUXEMBURG
CYPRU
GERMANIA
AUSTRIA
GRECIA
MEDIA
IRLANDA
CEHIA
SLOVACIA
SPANIA
SUEDIA
FRANTA
POLONIA
BULGARIA
UNGARIA
ROMANIA
FINLANDA
DANEMARCA
ESTONIA
LETONIA
LITUANIA
0.02
0.06
0.08
0.09
0.10
0.10
0.12
0.12
0.14
0.14
0.17
0.19
0.21
0.23
0.25
0.25
0.26
0.29
0.29
0.31
0.35
0.36
0.41
0.42
0.45
0.48
0.48
0.53
ARABLE AREAha/capita
LITHUANIA
LATVIA
ESTONIA
DENMARK
FINLAND
ROMANIA
HUNGARY
BULGARIA
POLAND
FRANCE
SWEDEN
SPAIN
SLOVAKIA
CZECH REP
IRELAND
AVERAGE
GREECE
AUSTRIA
GERMANY
CYPRUS
LUXEMBOURG
ITALY
PORTUGAL
UK
SLOVENIA
BELGIUM
NETHERLANDS
MALTA
Romania ranks the 6th regarding arable land utilized as per capita among EU countries (as Lithuania,
Latvia and Estonia, Denmark and Finland), EU 27 average of around 0.21 ha per capita
Surce: Eurostat Yearbook 2010, 2007 data
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4
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Dynamics of fallow land ha
R (EC) NO. 1200/2009 of 30 November 2009 implementing Regulation No. 1166/2008
0
100,000
200,000
300,000
400,000
500,000
600,000
ALB
A
AR
AD
AR
GES
BA
CA
U
BIH
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BIS
TRIT
A-N
ASA
UD
BO
TOSA
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BR
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BR
AIL
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BU
ZAU
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S-SE
VER
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LAR
ASI
CLU
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NST
AN
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SNA
DIM
BO
VIT
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LJ
GA
LATI
GIU
RG
IU
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HA
RG
HIT
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NED
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MEH
EDIN
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MT
OLT
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IS
TULC
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BU
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In repaus Cultivat
The structure and volume of fallow land per counties in 2009
according to NIS data
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Data source
Fallow land 865.956 466.901 375.377 497.850 387.230 517.432 1.055.455 898.063 922.636 904.832 na. NIS
Fallow landna. na. na. na. na. 496.268 1.046.700 1.006.076 951.178 980.221 1.025.947
MARD-
Agra_2005-
2010
Definitions (1)R (EC) NO. 1200/2009 of 30 November 2009 implementing Regulation No. 1166/2008
of the European Parliament and the Council on farm structure surveys and the
survey on agricultural production methods, as regards livestock unit coefficients
and definitions (characteristics RGA 2010)
• Fallow land (field and land left unseeded less than five years). This land has not been used throughout the period of agricultural year, being left to recover. This land can be left - without being cultivated -with natural spontaneous vegetation, which can be used as animal feed – seeded exclusively for the production of green fertilizer.
• In this category are included:
– a) without subsidies (code 45) - the remaining field and land left unseeded less than five years - land at rest for which it is not granted any financial aid / subsidy;
– b) with subsidies (code 46) - arable land for which the holding is entitled to subsidies. This section includes all arable land surfaces that receive subsidies not only for having been allowed at rest, but also because they are maintained in good agricultural and environmental conditions. This field can be – without being cultivated - with natural spontaneous vegetation, which can be used as animal feed. "
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9
0
100,000
200,000
300,000
400,000
500,000
600,000
AB AG AR B BC BH BN BR BT BV BZ CJ CL CS CT CV DB DJ GJ GL GR HD HR IF IL IS MH MM MS NT OT PH SB SJ SM SV TL TM TR VL VN VS
Supr necultivata Sup cultivata
The area for which support (direct payments) has been requested from PIAA
Out of the 9,276,094 ha, an area of 455,948 ha has been declared as “uncultivated”
being distributed per county as follows:
Source: PIAA, data from 2009
Uncultivated areaCultivated area
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According to PIAA data:• Large farms (1000 ha) - 1.1% of the total farms work efficiently around 52% of the total area eligible for payments• Small farms between 1-10 ha (around 1 million) - 93.5% of the total farms practice an extensive farming on 32% of the area eligible for support
According to data from Farm Structure Survey in 2007, NIS: •13.8 million ha of agricultural area of the country are cultivated by 3.8 million farmers (10% less than in 2002).
Source–after data processing of Farm Structure Survey -2007, NIS
Source: processing of General Directorate of Agricultural Policy , MARD, according to data provided by PIAA
Farms structure
1,6861,766
300
705 10
710
650
4,180
2,018
924
333
5,168
251230
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
< 1 ha 1- 5 ha 5 - 10 ha 10 - 20 ha20 - 30 ha30 - 50 ha 50 - 100
ha
>100 ha
0
1,000
2,000
3,000
4,000
5,000
6,000
No. of farms(thousands)Surface thousands ha
subsistence and semi-
subsistence farms (1-10 ha)
represent 93% of all farms and
operates 32.3% of the surface
No
. o
f fa
rms
th
ou
sa
nd
s
Su
rfac
e th
ou
san
ds
ha
“family” farms (10-100 ha)
represents 5.4% of all farms
and operates 15.5% of the
surface
"commercial" farms (over
100 ha) represent 1.1% of
all farms and operates
52.1% of the surface
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In 2007-2010, from the data processed by PIAA, there is a slight decrease in the number of
small farms between 1-5 ha and a growth in the number of farms between 100-1000 ha
Source: processing of General Directorate of Agricultural Policy, MARD, according to data provided by PIAA
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Dynamics of cultivated surface based on physical size of the farm
About 60 % of the farmers eligible for the area payment scheme are elder than 60
Source: Processing General Directorate for Agricultural Policy, by PIAA data
NUMBER OF FARMERS RECEIVING AREA PAYMENT BASED ON AGE
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Nu
mb
er
of fa
rme
rs
Age years
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Farmers elder than 60 own about 25 % of the eligible surface for area
payment scheme
Source: Processing General Directorate for Agricultural Policy, by PIAA data
SURFACE OWNED BY FARMERS, BASED ON AGE, WHO RECEIVE AREA PAYMENT
13
Nu
mb
er
of fa
rme
rs
Age years
Policy options:
• to encourage the use of land
– draft law for measures to be taken in order to extend the land worked
• to encourage the consolidation of
agricultural land
– draft law for measures to be taken in order to encourage consolidation of agricultural land
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LAW on certain measures in order to extend the land worked - draft (1)
Some definitions:
• the total land area having an agricultural destination from the Land Fund of Romania represents the “national agricultural Fund”
• “agricultural activity” – the production, rearing or growing of agricultural products including harvesting, milking, breeding animals and keeping animals for farming purposes, or maintaining the land in good agricultural and environmental condition as established;
• “farmer“–means a natural or legal person, or a group of natural or legal persons, whatever legal status is granted to the group and its members by national law, whose holding is situated within Community territory and who exercises an agricultural activity;
• “agricultural year“– the period from sowing or planting up to harvesting;
• “land owners” – property owners, of other real rights or those who, according to the civil law, have the quality of possessors or holders without a legal title;
LAW on certain measures in order to extend the land worked - draft (2)
• “agricultural holding” – any surface of agricultural land with the following category of use: arable land, permanent pastures,permanent crops;
• “unutilized agricultural surface” – any surface of arable land, permanent pastures or permanent crops with agricultural destination, which has been utilized before as agricultural surface, but which, during the reference year for investigation (year in which a control is performed), is not worked, does not respect the crop rotation rule or is not maintained in good agricultural and environment conditions;
• “land worked ” – surfaces of land plowed, cultivated as per different technical methods, mowed regularly, grazed.
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LAW on certain measures in order to extend the land worked - draft (3)
Other provisions:
• To establish the obligations of land owners;
• To establish the delegated persons to verify the compliance or non compliance with the obligations of land owners;
• To establish the level of sanctions applied to land owners in case of non-compliance.
Obligations:
• Land owners, whether they have the status of farmer or not, have the obligation to work the land or to perform agricultural activities regardless the type of right to hold, considering the following standards:
– Maintaining the permanent pastures by ensuring a minimum level of grazing or by mowing them at least once a year;
– Avoiding to let undesired vegetation grow on agricultural land, including the land not destined for production.
In case of non-compliance with these obligations, the land owners will be fined.
Romania’s Obligations regarding Cross-compliance (1)
• Respect the Good Agricultural and EnvironmentalConditions (GAECs) from 2007 onwards, (MO 30/2010regarding the approval of the Good Agricultural andEnvironmental Conditions for Romania);
• Respect the Statutory Management Requirements(SMRs) from 2012 onwards, (common project regulatedby Ministry Order of MARD, NSVAFS, regarding theapproval of legal requirements for environmentalmanagement and for the identification and registrationof animals, regarding direct support schemes andmeasures for farmers in Romania/under approval withinMARD)
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Romania’s Obligations regarding Cross-
compliance (2)• Cross-compliance is an instrument of Common Agricultural Policy
that creates a link between area payments granted to farmers and the improvement of agricultural environment by keeping all agricultural lands, especially land not used for agricultural purpose, in good agricultural and environmental conditions, as well as compliance with the statutory management requirements (SMR’s).
• Article 23 (1) of Reg. (EC) 73/2009, provides a system for reduction of payments or exclusion from payments of farmers that do not comply with the cross-compliance rules.
• The entry into force, starting with 2012, of the provisions regarding reduction of payments or exclusion from payments of farmers that do not comply with the cross-compliance rules, will result in avoiding land abandonment and ensuring their good agricultural and environmental conditions at the moment at least for the SAPS
Law regarding some measures to stimulate farmland consolidation
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ASSIGNOR
A natural person or authorized natural person,
a farmer who owns a holding and carries out
agricultural activities
FOR :
Farmland surfaces up to 50 hectares
inclusively, per holding
IF
He leases or transfers agricultural land that
make up the holding totally or partly
Deducts expenses related to notary
services, land registration procedures and
real estate publicity
ASSIGNEE
A natural person or authorized natural person
or legal person who purchases or leases land
from the assignor in order to extend and
consolidate farmland area
The
ASSIGNEE
RECEIVES
Assurance to
access bank
loans
contracted for
the purchase
of land
Deduction in
the amount of
100% out of
notary
expenses and
land
registration
The ASSIGNOR
RECEIVES
LEASING
30 Euro/ha/year to
lease on 5 years
50 Euro/ha/year to
lease on 10 years
100 Euro/ha/year to
lease on 15 years;
transfer
200 Euro/ha
CONDITIONSAge of at least 55 years old and they
are at least 10 years younger than the regular pension age on the date
of transferThey stop definitively any farm
activity with commercial purposes;They carried out agricultural
activities for 10 years previous to transfer date
Cede holdings they own and which
are located in extra-urban areas that they lease or transfer based on
legal papers among the living, totally or partially.
They are registered in the pension
system and other social security schemes of farmers, on the date of
transfer
CONDITIONSThey succeed to assignors, they are
natural persons or natural personsregistered and authorized in conformity
with provisions of Government EmergencyOrdinance no 44/2008 and are eligible for
non-reimbursable financial supportgranted within the Rural Development
National Program, Measure 112 – Settingup of young farmers,
or
Natural persons or natural personsregistered and authorized in conformity
with provisions of Government EmergencyOrdinance no. 44/2008, under the age of 50
Legal persons who carry out agriculturalactivities,
or
Agency for State Property, in the purposeand conditions established in Law
no.268/2001
Elements of opportunity on the measure:
• Area owned by farmers eligible for direct payments, aged between 50-60 years: 2,330,083 ha in 2010 according to PIAA.
• To evaluate the amount of the support that could be accessed, a certain pace to access the support has been established based on tendencies of structural evolution in the last years at an optimistic margin.
• The accession of the support scheme is carried out between 2011 and 2013 included, if there is a possibility to adopt the legislation in 2011. Since at the moment this is unlikely to happen, it is possible that the scheme may cover only the period between 2012 and 2013.
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Thank you !
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