EU rural development policy – today and after 2013 Jean-Bernard Benhaiem DG for Agriculture and Rural Development European Commission

Contents A reminder about rural areas Why have a rural development (RD) policy at EU level? RD policy 2007-2013 – structure, budget, achievements Ongoing challenges for rural areas, Europe 2020 strategy Objectives and priorities Links with other funds, structure Tools (measures) – key areas Delivery

How “rural” is the EU? Predominantly and significantly rural areas account for: 92% of area 53% of employment 45% of gross value creation

Land use in the EU Agriculture and forestry account for 78 % of land use

Rural areas are extremely varied Some rural regions in economic difficulties; others show good rates of growth / employment compared to urban areas No “typical rural region” in terms of growth and employment: different types of “rurality” determined by the regional “mix of functions” rather than a single economic activity

Why have an RD policy at EU level? A policy… because rural areas face challenges which market forces alone will not solve A common policy… because challenges do not start / end at national boundaries (climate change!) An EU policy… to address the particular characteristics of the EU situation With a focus on added value!

RD policy in the current period The only integrated policy addressing all aspects of rural areas: economic, environmental, social Clear objectives Pre-defined measures to guarantee targeted outcome and EU value added Delivery system: strategic approach, flexibility for MS Monitoring and evaluating system

EAFRD: European Agricultural Fund for Rural Development Rural development policy 2007-2013: themes and measures LEADER axis (min. 5%): integrated, bottom up, innovative Axis 1: Competitiveness (min. 10%): Axis 2: Environment and land management (min.25%): Axis 3: Diversification and quality of life (min.10%): Farm modernisation Processing Infrastructure Natural disaster aid Training Diversification Tourism - Micro-enterprises - Village renewal - Basic services LFAs Natura 2000 - Agri-environment - Forestry measures A reminder of the themes of RD policy in the current period, and some of its key measures…. EAFRD: European Agricultural Fund for Rural Development National and Private Co-financing

The strategic approach, 2007-13 1. EU Strategic Guidelines establish the Community Priorities for the period 2007-2013 2. National Strategies reflect EU-priorities according to the situation in the Member State concerned 3. Establishment of national or regional programmes on the basis of SWOT analysis 4. Programme measures used by interested parties (farmers and others); results monitored continuously

Planned spending on RD policy, 2007-2013 EAFRD (EU funding): € 96 billion Total public and private spending: € 232 billion

Division of spending between axes

What is the policy achieving? (1) Axis 1: Monitoring indicators Output indicator 2007-2008 2007- 2009* Target 2007-2013 Number of assisted young farmers (112) 18,400 37,659 189,000 Number of modernisation projects on farms (121) 46,780 105,800 615,000 Number of supported enterprises for adding value projects (123) 2,650 7,060 69,700 Number of farms participating in quality schemes (132) 37,700 128,750 393,000 20 10 17 33 * September 2010 data %

What is the policy achieving? (2) Axis 2: Monitoring indicators Output indicator 2007-2008 2007-2009* Target 2007-2013 Less Favoured areas (ha) (211 212) 42,900,000 54,000,000 55,000,000 Number of hectares supported by the NATURA 2000 measure (213) 346,288 536,500 1,110,00 Number of hectares under agri-environment committed since 2007 (214) 18,150,000 28,640,000 50,400,000 Number of hectares of afforested agricultural land since 2007 (221) 56,000 72,500 608,000 98 48 57 12 * September 2010 data %

What is the policy achieving? (3) Axis 3 and 4: Monitoring indicators Output indicator 2007-2008 2007-2009* Target 2007-2013 Number of micro-enterprises supported/created (312) 1,050 6,100 94,875 Number of new tourist actions (313) 1,510 3,700 44,000 Number of village renewals (322) 2,240 12,800 32,400 Number of projects financed by LAG (Axis 4) 1,280 8,760 170,000 7 9 40 5 * September 2010 data %

Key issues for after 2013 Ongoing challenges facing rural areas Overarching goals of EU2020 – general policy context Links with other EU policies Structure Measures Delivery mechanisms

Ongoing challenges facing rural areas Socio-economic challenges Environmental challenges Territorial challenges GHG emissions Soil depletion Water/air quality Habitats and biodiversity Vitality of rural areas Diversity of EU agriculture Income gaps Price volatility, risk management Under-developed rural regions Food security, food safety Synergies and co-ordination with: CAP first pillar, structural funds Contribution to Europe 2020 strategy

Europe 2020 strategy Smart growth - an economy based on knowledge and innovation: R&D and innovation Education, training and lifelong learning Digital society Sustainable growth - promoting a more resource efficient, greener and more competitive economy: Competitiveness Combating climate change Clean and efficient energy Inclusive growth - a high-employment economy delivering economic, social and territorial cohesion: Employment Skills Fighting poverty The Europe 2020 strategy is a major “pointer” for the future of RD policy. The policy MUST be clearly linked to the priorities of Europe 2020.

Europe 2020 and RD policy: clear common ground! INCLUSIVE growth: Unlocking local potential, diversifying rural economies and developing local markets and jobs Opening up alternative opportunities to accompany agricultural restructuring SMART growth: Supporting innovation and skills, green technologies and uptake of research Providing incentives for social innovation Rural development SUSTAINABLE growth: Increasing resource efficiency and the provision of public goods Reducing GHG emissions, enhancing carbon sequestration and developing bio-energy Ensuring sustainable land management and addressing biodiversity loss This slide shows in BROAD TERMS how RD policy is / can be relevant to the priorities of Europe 2020 (the bullet points don’t actually refer to individual MEASURES) 18

Objectives and priorities for RD policy - overview Long-term strategic objectives Competitiveness of agriculture Sustainable management of natural resources Balanced territorial development Interpreted in the light of Europe 2020: smart, sustainable, inclusive growth Operational priorities with: areas of intervention improved target indicators All MS / regions must address these in their RD programmes N.B. Also to be mentioned: innovation, the environment and climate change are cross-cutting guiding themes.

Getting our priorities right (1) 1. Knowledge transfer in agriculture and forestry (Cross-cutting priority) Human capital and smart networking in agriculture & forestry Innovation, knowledge base in agriculture & forestry Strengthening links between agriculture & forestry / research & development 2. Competitiveness of agriculture, farm viability Restructuring of farms facing major structural problems Generational renewal in agricultural sector

Getting our priorities right (2) 3. Food chain organisation, risk management in agriculture Integrating primary producers into food chain Supporting farm risk management 4. Preserving & enhancing ecosystems dependent on agriculture & forestry With regard to: biodiversity / landscapes water management soil management carbon sequestration

Getting our priorities right (3) 5. Resource efficiency & transition to low-carbon economy in agri-food and forestry sectors With a focus on water & energy Production of (feedstocks for) renewable energy in ag & forestry Cutting nitrous oxide & methane emissions from agriculture 6. Realising jobs potential & development of rural areas Diversification & job creation Social inclusion & poverty reduction Local development in rural areas

Links with other EU funds Common Strategic Framework (CSF) Sets out, co-ordinates funds’ contributions to Europe 2020 Provisions for territorial action (including Leader) Joint national frameworks (“Partnership Contracts”?) Frameworks to co-ordinate funds at national level Should reflect CSF Rules and procedures Harmonise as far as possible

How should the elements fit together? Common Strategic Framework (CSF) – reflecting Europe 2020 National frameworks – reflecting CSF RD policy Other EU policies (cohesion policy, fisheries) RD programmes: Objectives / priorities Targets Sets of measures

What measures will be needed? Current measures (2007-2013) Streamline measure menu Adjust conditions, scope New measures?

Measures – some key areas (1) Knowledge transfer Vocational training, advisory services, demonstrations of new technologies Co-operation: technological Development / application of technology, techniques, products Co-operation: economic E.g. short supply chains, sharing of resources Co-operation: environmental Collective action for better results (e.g. larger areas, bigger projects)

Measures – some key areas (2) Business development Including young farmers Risk management New toolkit of measures

Delivery mechanisms: key elements Strengthening strategic approach and ex-ante evaluation Quantified target levels against common indicators (“target indicators”) for each of the priorities Abolition of the axis system Measures used more flexibly in combination 28 28

CAP after 2013 – timetable 2010 (n-4) 2011 (n-3) 2012 (n-2) 2013 (n-1) Public consultation Conference Communi- cation on CAP after 2013 Publication of legal proposals Negotiations begin with EP, Council Negotiations with EP and Council over legal proposals Drafting of programmes Implementation of the new policy

For further information CAP Health Check http://ec.europa.eu/agriculture/healthcheck/index_en.htm EU agriculture and CAP reform http://ec.europa.eu/agriculture/index_en.htm EU rural development policy 2007-2013 http://ec.europa.eu/agriculture/rurdev/index_en.htm Agricultural Policy Analysis and Perspectives http://ec.europa.eu/agriculture/analysis/perspec/index_en.htm

Thank you!