Land improvement and preparations for programming period Marko Gorban 17 May 2012

Content of presentation RDP Challenges and outlook for land improvement Preparations for the programming period

RDP

Land improvement as part of CAP II pillar Total budget for EU rural development policy is 96,2 bln euros Land improvement is supported through Infrastructure related to agriculture and forestry MS spend 5 bln euros to the measure (5,3% of budget) On EU-level 28% of funds foreseen for measure have been used

Supporting land improvement investments in Estonia ENDP measure 3.4 Integrated land improvement – budget 8,3 mln euros RDP measure 1.8 Infrastructure of agriculture and forest management – budget 41,8 mln euros

Implementation of RDP and measure 1.8

Main results of RDP measure projects approved 37 thousand ha of land improvement systems constructed, reconstructed and renovated 632 km of roads constructed, reconstructed and renovated More than 460 environmental protection facilities constructed, reconstructed and renovated

Challenges and outlook for land improvement

Climate change Source: European Commission - DG AGRI, EEA, JRC

Food security By 2050 world population over 9 bln people To feed the world population in 2050, need to produce 70% more food - it presumes additional 1 bln tons of cereals production - it presumes additional 200 mln tons of meat production To provide this food, additional 5% of agricultural land (70 mln ha) needs to be taken into use Rest of the food demand can be covered by increase in average yields 0,7% annually (by 2050 average yield is 4,3 t/ha) Urbanization and changes in consumption patterns – by % of people are living in cities

Land use in Estonia 940 thousand ha of agricultural land SAPS applied to 885 thousand ha Agri-environmental support applied to 417 thousand ha LFA support applied to 368 thousand ha Permanent pasture 287 thousand ha Organically farmed 120 thousand ha

Land improvement in Estonia 1,3 mln ha of drainage systems, including 644 thousand ha on agricultural land and 697 thousand ha on forest land ha of agricultural land and ha of forest land possible to operate only if the land improvement systems are functioning Most of the land improvement systems built more than 30 years ago Average land improvement system ha, covers land of different owners 144 land improvement cooperatives

Investment need in land improvement

Preparations for the programming period

Preparations of RDP Started preparations in the spring 2011 Have finalized situation analysis for new RDP Have started ex ante evaluation June 2012 – objectives of the CSF funds to be approved by Government September 2012 – financial tables to be approved by the Government December 2012 – draft Partnership Contract and RDP to be submitted for preliminary approval to Government

Preparations of RDP (2) Steering committee has been formed: - background for Estonian positions - input to Partnership Contract - coordination and approval of the RDP different organizations (including land improvement association) involved in the Steering committee 5 sessions so far – discussions on situation analysis and objectives of the RDP

Objectives of RDP Strengthening and developing the linkages between producer, processor, advisor and scientist by implementing innovation and research results in advisory services and production process and by promoting knowledge transfer Increasing competitiveness and resource efficiency of agricultural sector, which is targeted at sustainable food production Creating conditions for sustainable age structure in agricultural sector Strengthening market position of enterprises engaged in producing and processing of agricultural products and improving horizontal and vertical cooperation in producing, processing and marketing of agricultural products

Objectives of RDP (2) Guaranteeing agricultural land use, which is purposeful, retains soil fertility, environmentally-friendly and takes into account regional specifities Preserving high nature value agriculture and forestry, biodiversity and traditional landscapes through promotion of favourable production methods Fostering diversification of agriculture and [rural enterprise], providing alternative employment opportunities for people disengaged from agriculture and promoting quality of life Promoting local initiative and targeting it to solutions based on local resources and potential in developing local living and enterprise environment

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