The Ministry of Agriculture and Rural Development

Department of the Rural Development

Polish perspective

Dr Dariusz NiećDr Dariusz Nieć

International Conference „Future of the rural development in Europe”International Conference „Future of the rural development in Europe”CRACOVCRACOV, , 30 November 30 November –– 1 December 1 December 2005 2005r.r.

A vA view of Polandiew of PolandTerritoryTerritory

• The territory of Poland covers 312,685 square kilometres

• The population is 38,23 M inhabitants, which constitutes 10,4%of the current population of the EU

A vA view of Polandiew of PolandTerritoryTerritory

• Rural areas account for 93,4% of the territory.

• Agricultural land constitutes 54 % of the territory whereas forests 28,5%.

• Permanents grasslands constitute 11,4% of the area of the country ( meadows – 8,1%, pastures – 3,3%), which amounts to 21,1% of the area occupied by agricultural lands.

A view of PolandA view of PolandConfigurationConfiguration

Poland is a country dominated by lowlands.

Over 96% of the territory is situated below

350 m a.s.l and only 2,9 % lies above 500 m a.s.l.

A view of PolandA view of PolandClimateClimate

• Poland lies in a zone where the influences

• of the continental European and temperate

• climates compete with the influence of the Atlantic climate.

• Relatively dry summers and cold winters

• cause unstable conditions for agricultural production

A view of PolandA view of PolandClimateClimate

Average annual temperature - 6.0 – 8.0°CAverage annual rainfall - 500 – 600 mm

in the lowlands and

1200-1500 mm in the uplands and the mountains.

Characteristic of the rural Characteristic of the rural population in Polandpopulation in Poland

• Over 38 % of the total population inhabit the rural area.

• 18% of the total number employees are employed in the agricultural, hunting and forestry sectors.

• A greater percentage of children and teenagers then in the cities

Characteristic of the rural Characteristic of the rural population in Polandpopulation in Poland

• The rural population constitutes over 40 % of unemployed.

• Disposable income of representative rural family is 30% lower than the income of town family.

Structure of Agricultural Structure of Agricultural HoldingsHoldings

• Extensive land usage is dominating • The average area of the agricultural

holding’s in Poland is 9,6 ha.• Small holdings with between 1 – 5 ha are a

dominating form ( 58,7%)• Largest holdings, which are above 20 ha of

agricultural land, amount to 5,8 %• A share of medium holdings has dropped

in relation to previous years and counted for 35,5%

Structure of Agricultural Structure of Agricultural HoldingsHoldings

Structure of Agricultural Holdings (surface in ha) 2003

514,5

21,2

15,2

44,1

1-2 ha

2 - 5 ha

5 - 10 ha

10 - 15 ha

15 i więcej ha

Description of holdings with Description of holdings with different potential of different potential of

developmentdevelopment

Amongst 1,956.1 M of individual holdings of

the size above 1 ha of agricultural land there have been distinguished:

o Holding operating on a non-permanent or temporary basis (17%)

o Subsistence farms (10,6%)o Semi-subsistence farms (25,5%)o Commercial farms ( 47,7%)

Threads and opportunities of Threads and opportunities of holdings developmentholdings development

• Farm fragmentation• Limitations with regard to changes in

agrarian structure• Low level of farm specialisation

OBJECTIVES – RDPOBJECTIVES – RDP and and SOP SOP 2004-20062004-2006

OBJECTIVE 1 Improvement of the Competitiveness of Agri-Food EconomyPriority 1.1. Increase in the economic effectiveness of agricultural holdingsPriority 1.2. Improvement of incomes in agriculture and rural areasPriority 1.3 Improvement of food safety, quality and market orientation of production

OBJECTIVE 2 The sustainable development of rural areas Priority 2.1. Equalization of opportunities for rural developmentPriority 2.2. Reduction of rural unemployment Prioryty 2.3. Improvement of living conditions, economic and social functions of rural areas Priority 2.4. Environmental protection and the preservation of the natural value of rural areas Priority 2.5. Extension of woodland areas in Poland

RDP MeasuresRDP Measures

• Early retirement • Support for semi-subsistence farms• Support for agriculture producer’s groups• Less-favoured areas• Agri-environmental measure• Afforestation of agricultural land• Meeting EU Standards

Additional measures • Technical assistance• Complements to direct payments

SOP MeasuresSOP Measures

Investments in agricultural holdings.Setting up of young farmers. Training.

Agriculture advisory and extension service support.Improvement of processing and marketing of agricultural products.Restoring forestry production potentially damaged by natural disaster or fire and introducing appropriate prevention instrumentsLand reparcelling Renovation of rural areas and preservation and protection of cultural heritage.Diversification of agricultural and agriculture-related activities to provide multiple activities or alternative incomes.Agricultural water resources managementDevelopment and improvement of the infrastructure related to agriculture.LEADER + Pilot Programme. Technical assistance

ImplementationImplementationThe main involved InstitutionsThe main involved Institutions

MARD - management authority Programming Monitoring and

evaluation ARMA – Paying and

Implementing Agency Control Monitoring

Agricultural Advisory System Advise Training

MARD - management authority Programming Monitoring and

evaluation Final Beneficiary - ARMA Implementing authorities:

ARMA FAPA Marschal offices

Agricultural Advisory System: Advise Training

RDP SOP

INDICATIVE FINANCINDICATIVE FINANCES for ES for RDRD

• RDP 3 592, 4 Milion Euro (UE: EAGGF 2 866 Milion Euro)

• SOP 1 784 Milion Euro (UE: 1192 Milion Euro)

Rural Development Policy

2007-2013

simplification

At present (till 2006 ):

2 Source of financing

(funds)= 2 rogrames

2 Systems of financing, management and control

2 Systems of programming

1 fund= 1 programme

1 System of financing, management and control

1 Systems of programming

In the future (from 2007):

Financing of the Common Financing of the Common Agriculture Policy 2007-2013Agriculture Policy 2007-2013

Rural Development within Common Agriculture Policy in years 2007-2013 will be financed through :

• European Agricultural Fund for Rural Development (EAFRD) – PO ROW 2007 - 2013

Financing ofFinancing of RDP RDP

• Axes 1 and 3 - 10% of allocation,• axis 2 - 25%. • axis 4 (Leader) - UE-15 – at least 5%

of allocation, • New MS (including Poland) - 2,5 %,

level of 5% can be reached during the whole period of implementation.

Financing ofFinancing of RDP RDP

• Axes 1 and 3 – share of EAFRD 75%,• Axes 2 and 4 – share of EAFRD 80%

Poland is covered Convergence Objective

National Strategic National Strategic GuidelinesGuidelines

• Community Strategic Guidelines define strategic priorities of rural development for all Member States

• On the basis of the Community strategic guidelines each Member States prepare National Strategic Plan

• National Strategic Guidelines defines piorities and their importance refering to the Member States and regions needs

National Strategic Plan- National Strategic Plan- objectivesobjectives

• Improving the competitiveness of the agricultural and forestry sector – Improving the human potential– Restructuring and developmentdevelopment of material potential, and

innovation promotion– Improvement of agricultural production and agricultural

products quality

• Land management and environment – Sustainable use of agricultural land– Sustainable use of forest land

• Increasing the quality of life in rural areas and diversification of the rural economy – Diversification of the rural economy– Increasing the quality of life in rural areas

• Building and development of local structures for the benefit of employment and diversification (LEADER)

Structure of OP for RD 2007 - Structure of OP for RD 2007 - 20132013

New programe from the perspective of the implementation and scope of the support will be combination of realized at present (in years 2004-2006):

• Sectoral Operational Programme „Restructuring and modernisation of agri-food sector and rural development” and

• Rural Development Plane.

Assumptions ofAssumptions of OP RD OP RD 2007 - 20132007 - 2013

•OP RD designates in particular beneficiaries, rate, scope and conditions of support for every measure as well as financial plane, system of the implementation and evaluation. • Programme is foreseen for years 2007–2013 and is going to be realized from EU funds originating from European Agricultural Fund for Rural Development with support of national funds (national budget, local administration and beneficiaries funds).•programme covers the territory of country.

Management of OP RDManagement of OP RD

1. Managing institution (MARD – elaboration,

negotiations, management, control and

monitoring);

2. Accredited paying agency (verification,

acceptation and realization of payments);

3. Certifying Body (MF - verification and

certification of payments);

Axis of Operational Programme for Rural Axis of Operational Programme for Rural DevelopmentDevelopment

• Axis 1 (economic): improving the competitiveness of the agricultural and forestry sector;

• Axis 2 (environmental): improving the environment and the countryside;

• Axis 3 (social): quality of life in rural areas and diversification of the rural economy;

• Axis 4: LEADER.

Axis 1 (economic):Axis 1 (economic): improving the improving the competitiveness of the agricultural and competitiveness of the agricultural and

forestry sectorforestry sector

• Vocational training and information actions for people employed in agriculture and forestry;

• Setting up young farmers;• Early retirement;• Modernisation of agricultural holdings; • Improvement of the economic value of forests;• Adding value to agricultural and forestry products;• Improvement of the infrastructure related to the

development and adaptation of agriculture and forestry;

• Restoring potential of agriculture production damaged by natural disasters and fire and introducing appropriate prevention actions.

Axis 1 (economic):Axis 1 (economic): improving the improving the competitiveness of the agricultural and competitiveness of the agricultural and

forestry sectorforestry sector – – cont.cont.

• Participation of farmers in food quality schemes;

• Support for producer groups in information and promotion activities for products covered by the quality schemes;

• Support for semi-subsistence farms in restructuring phase;

• Producer groups; • Setting up of management, relief and

advisory services and exercising of a advisory services by farmers and forest owners.

Axis 2 (environmental): improving the Axis 2 (environmental): improving the environment and the countrysideenvironment and the countryside

• Natural handicap payments in mountain areas and payments in other areas with handicaps ;

• Natura 2000 payments and payments linked to Directive 2000/60/EC;

• Agri-environment payments;• Non-productive investments;• Improvement of the animal welfare;• afforestation of agricultural land;• afforestation of non-agricultural land; • Forest-environment payments;• Restoring forestry production potential and

introducing prevention actions.

AAxis 3 (social): quality of life in rural xis 3 (social): quality of life in rural areas and diversification of the rural areas and diversification of the rural

economyeconomy

• Diversification into non-agricultural activities;

• Encouragement of tourism activities;• Basic services for the economy and rural

population; • Conservation and upgrading of the rural

heritage; • Training and information.

Axis 4: LEADERAxis 4: LEADER

• Implementation of local development strategy;

• National and international co-operation;

• Local Action Groups, gaining the experience, animation.

Timetable of proceedings Timetable of proceedings on OP RD 2007 - 2013on OP RD 2007 - 2013

1. Consultation of the National Strategic Plane (including socio-economic representatives), October - December 2005;

2. Public consultation of a draft OP RD, September – December 2005;

3. Preparation of the ex-ante evaluation of the project (draft) of OP RD 2007 – 2013, December 2005 - March 2006;

4. Consultation of the National Strategic Plane with the European Commission, February 2006;

5. Consultation of the OP RD with the European Commission, March 2006;

6. Preparation of the national legal acts in the field of rural development for years 2007-2013, till March 2006;

7. Acceptation of the OP RD 2007-2013, till the end of 2006; 8. Preparation of monitoring indicators and assumptions for

the informatic system (continuous, parallel process to the works on the OP RD 2007-2013).

Implementation systemImplementation system of OP RD of OP RD 2007 - 2013 2007 - 2013

• Realization of measures on areas of its implementation (called zone implementation) i.e. LFA, agri-environmental programmes, Natura 2000 payments;

• Adoption of diversified access criteria for beneficiaries;

• Implementation of activities in frame of LEADER axis – on the basis of Local Action Groups (LAGs)

• Delegation to the regional level implementing functions for some of measures.