M O N T E N E G R O Negotiating Team for the Accession of the Montenegro to the European Union Working Group for Chapter 11 – Agriculture and Rural Development Bilateral screening: Chapter 11 PRESENTATION OF THE MONTENEGRO Brussels, 11 – 13 December 2012

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Rural Development: Framework, current measures and financing Irina Vukčević Head of the Department for Programming, Sector for Rural Development Ministry of Agriculture and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union  National legal framework  Rural Development Policy in Montenegro  ''MONTENEGRO’S AGRICULTURE AND EUROPEAN UNION – Agriculture and Rural Development Strategy''  National Programme for Food Production and Rural Development  Law on Agriculture and Rural Development  National budget - Agrobudget  Conclusion Contents Chapter 11: Agriculture and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union NATIONAL LEGAL FRAMEWORK Law on Agriculture and Rural Development (Official Gazette ME No 56/09) Law on Budget of Montenegro (Official Gazette ME No 87/09, 78/10 and 66/11) Regulation on conditions, method and time schedule of implementation of the measures of agricultural policy (Official Gazette ME No 87/09, 78/10 and 66/11) Chapter 11: Agriculture and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Montenegro has introduced rural development policy in 2007 based on the acquis of the European Union and nowadays is an essential part of Montenegrin agriculture and rural development policy, Agrobudget and implementation in practice. Rural Development Policy in Montenegro Chapter 11: Agriculture and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Key document for the agricultural policy and implementation of reforms necessary for further development and modernization of agriculture Adopted in 2006 First part – The current agricultural situation and developmental prospects Second part – Platform, objectives and pillars of the reform Third part – Concept of agricultural policy measures and budgetary plan ''MONTENEGRO’S AGRICULTURE AND EUROPEAN UNION – Agriculture and Rural Development Strategy'‘ Chapter 11: Agriculture and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Starting points of the Strategy: a)The current agricultural situation and developmental prospects b)Institutional framework (WTO, EU) c)Strategic documents Sustainable development concept: balance between economic development, environmental protection and social aspects Multi-functionality of agriculture - the main principle of developmental concept ''MONTENEGRO’S AGRICULTURE AND EUROPEAN UNION – Agriculture and Rural Development Strategy'‘ Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Main objectives:  Sustainable resources management  Stable and acceptable supply of safe food  Ensuring an adequate standard of living for the rural population  Increase in competitiveness of food producers ''MONTENEGRO’S AGRICULTURE AND EUROPEAN UNION – Agriculture and Rural Development Strategy'‘ Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Three main pillars of the reforms: Agricultural policy – gradual introduction of the EU Common Agricultural Policy (CAP) Legislation – harmonization of legislation with the EU Acquis communautaire Institutional reforms – modernization and strengthening of human resources ''MONTENEGRO’S AGRICULTURE AND EUROPEAN UNION – Agriculture and Rural Development Strategy'‘ Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union National Programme for Food Production and Rural Development Adopted in 2008, for the period I part: Starting Points (Strategic and Legal framework, Conceptual Starting Points, Agricultural policy measures II part: Description of measures (Rural development policy measures) III part: Financial plan (Indicative budget, Financial plan per measures) IV part: Programme implementation Chapter 11: Agriculture and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Operational Programme for implementation of Strategy Framework for harmonization agricultural policy of Montenegro with CAP Agricultural policy measures Multi-annual budgetary plan for agriculture Frame for donor support Principles: - Gradual introduction “CAP-like” measures - Respecting capacities for implementation (financial and administrative) - Explicit criteria and procedures for the implementation of measures National Programme for Food Production and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Group of measures No of measures National Budget, % National Budget + other resources, % 1. Market policy measures Rural development policy measures Support to general services in agriculture Social transfers to rural population Technical and administrative support to program implementation 12.5 Total36100 Agricultural policy measures, National Programme for Food Production and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development National sources for the implementation of NP at the end of the programme period show a 2.2-fold increase, whereas the sources for rural development policy increased 3.5-fold Financial plan (in 1000s EUR) National Programme for Food Production and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Budgetary expenditures for rural development policy, in comparison to the Strategy (in 1000s EUR) National Programme for Food Production and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Inside the rural development policy, the fastest increase is planned for the second axis and the greatest part of the sources is planned for the first axis. For the Leader projects, for now, relatively small sources are planned, as a preparation for those kinds of projects in the planning period to come. Breakdown of the budget for the rural development policy, by axis for 2008 and the financial plan for 2009–2013 (%) Group measures National budget and other sources total100,0 Axis 1 - Measures for improving competitiveness of agro-food sector 66,464,963,762,850,959,6 Axis 2 - Measures for sustainable management of natural resources 9,512,212,912,528,117,4 Axis 3 - Measures for improving quality of life and diversification of economic activities in rural areas 24,222,923,023,920,122,4 Leader projects0,0 0,40,80,90,6 National Programme for Food Production and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development 2Rural development policy measures 2.1 Measures for improving competitiveness of agro- food sector Investments in agricultural equipment and mechanisation Co-financing of investments; IPARD 2.1.2Investments in livestock farmsCo-financing of investments Setting up of perennial crops plantations and building of greenhouses Co-financing of investments in vineyards, orchards, olive plantations and production under glass 2.1.4Land operationsCo-financing of investments and projects 2.1.5Investments in processing of animal products Co-financing of investments for micro, small and medium enterprises; IPARD Investments in storage, packing and processing of plant products Co-financing of investments for micro, small and medium enterprises 2.1.7Investments in processing on family holdingsCo-financing of investments on family farms 2.1.8Producers’ organizations Support for setting up and functioning; percent of market turnover (time-limited) 2.1.9Improving the quality of products Support for introduction of systems of quality control and quality schemes Support for participation of farmers in registered quality schemes: standardised payments per holding (time – limited) Promotion and information activitiesSupport to projects National Programme for Food Production and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development 2..2 Measures for sustainable management of natural resources 2.2.1LFAs Payments per hectare or in the transition period per livestock unit (criteria for territoril classification) 2.2.2Preservation of genetic resources in agriculture Payments per livestock unit or per hectare for the conservation of autochthonous breeds and plant varieties in production (on the basis of the action plan for preservation and sustainable use of genetic resources in agriculture) 2.2.3Organic production Payments per hectare for plant production and per livestock unit in animal husbandry (conditions according to the rules defined by legislation) 2.2.4Sustainable use of mountain pastures Payments per livestock unit grazed on mountain pastures (minimal period) 2.3Measures for improving quality of life and diversification of economic activities in rural areas 2.3.1Diversification of economic activities in rural areasSupport to investments that create the possibility for new employment in non-agricultural sector (teritorially limited) 2.3.2Village renewal and infrastructure improvmentCo-financing of projects in rural areas: local roads, water management, facilities of common importance; IPARD 2.4Leader projectsSupport for the formation of local action groups and other activities; IPARD National Programme for Food Production and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development An indicative financial plan should be taken as the basis for planning current budgetary expenditures, and above all, as the basis for an analysis of the Programme implementation. The Ministry of Agriculture and Rural Development is responsible for the the Programme implementation. The final aim is the effective integration and performance of a CAP-like policy prior to accession, and CAP with all rights and responsibilities after accession National Programme for Food Production and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Adopted in July 2009, is the basic legal document for defining and implementation of the agricultural policy It defines a legal frame for the main aspects of development of agriculture and rural areas, The Law is fully compliant with the Strategy and National Programme The Law takes over the aims and agricultural policy of the Strategy and gives them necessary legal shape, It stipulates the Agricultural policy (types and the measures) Market policy; Rural development (sorted by the axes); Support to general services in agriculture Law on Agriculture and Rural Development (Official Gazette ME No 56/09) Chapter 11: Agriculture and Rural Development Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Rural development policy, implemented through four basic groups of measures, takes a special place in the overall agricultural policy: The first group (axis) is aimed at strengthening the competitiveness of food producers, The second group (axis) refers to sustainable resources management The third group (axis) are measures of support to the quality of life in rural areas The fourth group of measures of rural development should promote and support local communities and local groups in development and implementation of the new strategies and developmental projects The conditions and procedures for implementation of measures in compliance with the National Program, shall be laid down by the Agrobudget. Law on Agriculture and Rural Development (Official Gazette ME No 56/09) Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union National budget - Agrobudget Chapter 11: Agriculture and Rural Development Pursuant to the Law on Agricultural and Rural Development and the Law on Budget of Montenegro, the Government of Montenegro adopts: “the REGULATION on conditions, method and time schedule of implementation of the measures of agricultural policy” This regulation governs the conditions, method and pace of implementation of measures of agricultural policy for the market- price policy, rural development policy, activities of public interest, social transfers to family agricultural holdings Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union National budget - Agrobudget Chapter 11: Agriculture and Rural Development Breakdown of the budget for the rural development policy, by axis, (%) Breakdown of agricultural budget by group of measure (%) Group of measures Market policy26,927,227,031,7 RURAL DEVELOPMENT POLICY30,125,431,328,4 Support to general services in agriculture17,420,95,35,0 Social transfers to rural population14,715,613,313,7 Other11,010,823,021,1 TOTAL BUDGET100, Rural development policy30,125,431,328,4 Axis 1: Measures for improving competitiveness of agro-food sector 21,517,219,319,9 Axis 2: Measures for sustainable management of natural resources 3,14,64,43,9 Axis 3: Measures for improving quality of life and diversification of economic activities in rural areas 5,53,67,64,6 Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development National budget - Agrobudget Rural development policy measures 2009 and 2010 (16 measures) Axis 1 - Measures for improving competitiveness of agro-food sector Investments in agricultural equipment and mechanisation Investments in livestock farms Investments in perennial crops plantations Investments in greenhouses building and equipment Land operations Investments in processing of animal products Investments in storage, packing and processing of plant products Investments in processing on family holdings Producers’ organizations Improving the quality of products Promotion of agricultural products Axis 2 - Measures for sustainable management of natural resources Preservation of genetic resources in agriculture Organic production Sustainable use of mountain pastures Axis 3: Measures for improving quality of life and diversification of economic activities in rural areas Diversification of economic activities in rural areas Village renewal and infrastructure improvment Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development National budget - Agrobudget Rural development policy measures 2011 (13 measures) Axis 1 - Measures for improving competitiveness of agro-food sector Support to investments in agricultural holdings (MIDAS)* Support to setting-up of perennial crop plantations Support to investments in processing of animal products Support to investments in storage, packing and processing of plant products Support to investments in processing on family holdings Support to producers' organisations Improving the quality of products and support to quality schemes Promotion of agriculture and agricultural products Axis 2 - Measures for sustainable management of natural resources Preservation of genetic resources in agriculture Organic farming Sustainable use of mountain pastures Axis 3: Measures for improving quality of life and diversification of economic activities in rural areas Diversification of economic activities in rural areas Measures for improving the quality of life and diversification of economic activities in rural areas Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development National budget - Agrobudget Rural development policy measures 2012 (11 measures) Axis 1 - Measures for improving competitiveness of agro-food sector Support to investments in agricultural holdings (MIDAS)* Support to setting-up of perennial crop plantations Support to investments in processing on family holdings Support to producers' organisations Improving the quality of products and support to quality schemes Promotion of agriculture and agricultural products Axis 2 - Measures for sustainable management of natural resources Preservation of genetic resources in agriculture Organic farming Sustainable use of mountain pastures Axis 3: Measures for improving quality of life and diversification of economic activities in rural areas Diversification of economic activities in rural areas Measures for improving the quality of life and diversification of economic activities in rural areas Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Structure of the measures: Reasons for implementation Objectives Measure description and eligibility criteria Beneficiaries Payment method Implementation Implementation procedure Supervision and control Financial plan National budget - Agrobudget Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Conclusion Chapter 11: Agriculture and Rural Development In process of preparing rural development activities in Montenegro, we have received valuable support from EU:  Twinning project “Support to Establish an IPA Rural Development Programming and Implementation System in Montenegro” focused on enhancement of rural development of Montenegro, in line with the requirements of the European acquis. Selected consortium Austria, France and Slovakia.  Twinning project, “Strengthening rural development Programme under IPARD“. Project purpose is to strengthen the capacity of IPARD Operating Structure to implement Rural Development Programme under IPARD in efficient and effective manner. Selected consortium - Netherlands, Estonia and Lithuania  Danish bilateral project - supporting to MARD  TAIEX – study visits to Croatian and Macedonian MA and PA  Participating in several seminars, conferences, workshops, organizing by EU Chapter 11: Agriculture and Rural Development

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Conclusion Chapter 11: Agriculture and Rural Development  The Sector for Rural Development has fully taken over the role of Managing Authority with all corresponding responsibilities  Submitted IPARD Programme to DG AGRI  Preparation of new strategic documents in line with CAP Chapter 11: Agriculture and Rural Development

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