Ⓒ Judith Bermúdez Morte Young farmers and the EU’s rural development policy Chiara Dellapasqua Consistency of rural development DG for Agriculture and Rural Development European Commission CEJA Conference on Multifunctional Agriculture 15th December 2010

2 1.Implementation of setting up support for young farmers 2.The EU’s rural development policy: other tools for young farmers 3.Other gainful activities and beyond 2013

3 1. Age structure in agriculture

4 1. Measure 112: Setting up of young farmers Objective of facilitating young farmers' initial establishment and structural adjustment of their holdings after initial setting up Beneficiaries have to: –be less than 40 years of age –set up for the first time an agricultural holding as head of the holding –possess adequate occupational skills and competence –submit a business plan for the development of the farming activities Support given in the form of a single premium or interest rate subsidy up to EUR 40,000. For combination of support, the maximum may not exceed EUR 70,000, raised from EUR 55,000 after the Health Check

5 1. Total EAFRD contribution for setting up aid Measure programmed in 24 Member States and in 70 RDPs Programmed expenditure for measure 112: After HC&RP: EUR 2.9 billion for 188,400 beneficiaries

6 1. Annual expenditure by MS for measure 112 in 2007, 2008 and 2009

7 1. Setting up aid: implementation Selection criteria: in some MS priority to farms –whose business plan combines the setting up measure with other RD measures (esp. modernisation of farms) –where there is an early retirement of the previous holder –where the holder is a woman or migrant Eligibility requirements Business plan Level of education

8 2. Other RD tools important for young farmers Modernisation of agricultural holdings –For young farmers, aid intensity rate for farm modernisation is 50% of the total eligible investment (60% in LFAs) - 10% higher than for other farmers Vocational training and information actions and use of Advisory services. –Support aims to help young farmers face new challenges and improve the overall performance of their holding. Cooperation for development of new products, processes and technologies in the agriculture and food sector

9 2. Other RD tools important for young farmers Diversification into non-agricultural activities Basic services for the economy and the rural population and Support for the creation and development of micro-enterprises Leader approach Adding value to agricultural and forestry products Meeting standards Participation in food quality schemes Financial engineering

10 3. Other gainful activities Focus on pluriactivity –processing & marketing, renewable energy, agri-tourism, social & educational activities Focus on creative and innovative projects for diversification –E.g. innovation in rural services provision (for disabled people, childcare facilities etc.) Focus on exiting a sector rather than income stabilisation –tobacco sector, wine sector, dairy sector etc.

11 3. Other gainful activities The occurrence of other gainful activities depends on: –Farm size Pluriactivity is mainly a feature of small farms, whereas diversification occurs more frequently on large holdings –Farm specialisation –Farm location Mountain areas, coastal areas or pleasant countryside may be critical advantages –Human capital Older farmers are much less pluriactive than younger ones (some 20% of family farm managers aged more than 65 y.o. are pluriactive, against about 50% for those aged less than 54 y.o.) Education matters …so flexibility in implementing rural development measures is of utmost importance!

12 3. Other gainful activities 35,3% of European farmers had another gainful activity in 2007

13 3. Beyond 2013: an outlook for young farmers Young farmers can contribute the most to fostering innovation and resource-efficiency to achieve the EU2020 objectives. Young farmers should have access to all support instruments, i.e. those specifically designed for them and those which can be tailored to their specific, local needs. Measures could be bundled or combined for young farmers with a strategic and flexible approach in relation to the rural development objectives and priorities. Cooperation and collective approaches should be encouraged.

14 For further information CAP Health Check EU agriculture and CAP reform EU rural development policy Agricultural Policy Analysis and Perspectives

15 Thank you!