The Ministry of Agriculture and Rural Development Department of the Rural Development Polish perspective Dr Dariusz Nieć International Conference „Future of the rural development in Europe” CRACOV, 30 November – 1 December 2005r.

A view of Poland Territory A view of Poland Territory 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 view of Poland Territory 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 Poland Configuration 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 Poland Climate 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 Poland Climate Average annual temperature – 8.0°C Average annual rainfall – 600 mm in the lowlands and mm in the uplands and the mountains.

Characteristic of the rural population 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 population 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 Holdings 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 Holdings

Description of holdings with different potential of development Amongst 1,956.1 M of individual holdings of the size above 1 ha of agricultural land there have been distinguished: oHolding operating on a non-permanent or temporary basis (17%) oSubsistence farms (10,6%) oSemi-subsistence farms (25,5%) oCommercial farms ( 47,7%)

Threads and opportunities of holdings development Farm fragmentation Limitations with regard to changes in agrarian structure Low level of farm specialisation

OBJECTIVES – RDP and SOP OBJECTIVE 1 Improvement of the Competitiveness of Agri-Food Economy Priority 1.1. Increase in the economic effectiveness of agricultural holdings Priority 1.2. Improvement of incomes in agriculture and rural areas Priority 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 development Priority 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 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 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 instruments Land 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 management Development and improvement of the infrastructure related to agriculture. LEADER + Pilot Programme. Technical assistance

Implementation The 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 RDPSOP

INDICATIVE FINANCES for RD RDP 3 592, 4 Milion Euro (UE: EAGGF Milion Euro) SOP Milion Euro (UE: 1192 Milion Euro)

Rural Development Policy simplification At present (till 2006 ): 2Source of financing (funds)= 2 rogrames 2Systems of financing, management and control 2Systems of programming 1fund= 1 programme 1 System of financing, management and control 1 Systems of programming In the future (from 2007):

Financing of the Common Agriculture Policy Rural Development within Common Agriculture Policy in years will be financed through : European Agricultural Fund for Rural Development (EAFRD) – PO ROW

Financing of RDP Axes 1 and % of allocation, axis %. 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 of RDP Axes 1 and 3 – share of EAFRD 75%, Axes 2 and 4 – share of EAFRD 80% Poland is covered Convergence Objective

National Strategic Guidelines 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- objectives Improving the competitiveness of the agricultural and forestry sector –Improving the human potential development –Restructuring and development 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 New programe from the perspective of the implementation and scope of the support will be combination of realized at present (in years ): Sectoral Operational Programme „Restructuring and modernisation of agri- food sector and rural development” and Rural Development Plane.

Assumptions of OP RD 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 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 Development 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): improving the competitiveness of the agricultural and forestry 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): improving the competitiveness of the agricultural and forestry sector – 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 environment 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.

Axis 3 (social): quality of life in rural areas and diversification of the rural economy 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: LEADER Implementation of local development strategy; National and international co- operation; Local Action Groups, gaining the experience, animation.

Timetable of proceedings on OP RD 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 o f the project (draft) of OP RD 2007 – 2013, December 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 , till March 2006; 7.Acceptation of the OP RD , 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 ).

Implementation system of OP RD 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.