1. Rural Development policy 2007 - 2013
and its regional linkages
John Lougheed
Directorate General for Agriculture and Rural Development
Brussels
12 July 2006

2. Plan of rural development session
Presentation:
EU rural development policy (objectives, measures)
Implementation system (Managing Authority, Paying Agency)
Coordination with the Structural Funds (demarcation lines, institutions)
Needs of Polish rural areas/agriculture
Discussion:
How to best meet the needs of Polish rural areas?
How to ensure coordination and policy synergy?

3. EU Rural Development Policy 2007-2013 measures
vocational training/information; mountain areas and other areas with handicaps; Natura 2000 areas; agri- environment; setting up of young farmers; restoring forestry production potential and introducing prevention actions; rural tourism; LEADER; first afforestation; early retirement; management, relief and advisory services; investments to improve production; processing and marketing structures (and infrastructures), basic services, adaptation to new EU-standards; participation in food quality schemes; conservation and upgrading of the rural heritage (natural and cultural); promotion for quality products; semi-subsistence farms; setting up of producer groups; animal welfare; technical assistance; first establishment of agro-forestry systems; Natura areas; forest-environment; on farm diversification to non- agricultural activities; support for micro-enterprises; village renewal; training and capacity building

4. Three core objectives:
EU Rural Development Policy
Three core objectives:
Improving the competitiveness of the farm and forestry sector through support for restructuring, modernisation/innovation and quality production
Enhancing the environment and the countryside through support for land management
Improving the quality of life in rural areas and promoting diversification of economic activity 4

5. EU Rural Development Policy 2007-2013: Foundations
« LEADER Axis »
Axis 1 Competi -tiveness
Axis 2 Environment + Land Management
Axis 3 Economic Diver. + Quality of Life
Single set of programming, financing, monitoring, auditing rules
Single Rural Development Fund 5

6. EU Rural Development Policy 2007-2013
Axis 1: Increasing Competitiveness
Measures aiming at improving human potential: vocational training/information; setting up of young farmers; early retirement; management, relief and advisory services, ...
Measures aiming at restructuring physical potential: investments to improve production, processing and marketing structures (and infrastructures), ...
Measures aiming at improving the quality of agricultural production and products: adaptation to new EU-standards; participation in food quality schemes; promotion for quality products
Transitional measures for the new Member States (until 2013): semi-subsistence farms; setting up of producer groups 6

7. EU Rural Development Policy 2007-2013
Axis 2: Environment/Land management
Measures targeting the sustainable use of agricultural land: mountain areas and other areas with handicaps; Natura areas; agri-environment; animal welfare; ...
Measures targeting the sustainable use of forestry land: first afforestation; first establishment of agro-forestry systems; Natura 2000 areas; forest-environment; restoring forestry production potential and introducing prevention actions; ...
NB.:
Agri-environment measures are compulsory for each programme 7

8. Rural Development Policy 2007-2013
Axis 3: Diversification of the rural economy and quality of life in rural areas
Measures aiming at the diversification of the rural economy: on farm diversification to non-agricultural activities; support for micro-enterprises; rural tourism
Measures aiming at the improvement of the quality of life: Basic services; village renewal; conservation and upgrading of the rural heritage (natural and cultural)
Training and capacity building 8

9. EU Rural Development Policy 2007-2013
“LEADER” Axis
Implementation of local development strategies through a LEADER approach to contribute to the achievement of the objectives of one or several of the three thematic axes
Inter-territorial and trans-national cooperation
Capacity building and working of local action groups 9

10. Community Guidelines to ensure maximum value added of the EU funds
EU Rural Development Policy
Community Guidelines to ensure maximum value added of the EU funds
Guideline 6: The synergy between structural, employment and rural development policies needs to be encouraged.

11. Coordination with the Structural Funds/EFF
Two stage approach: principles of demarcation lines in the National Strategic Plan (NSP) and the National Strategic Reference Framework (NSRF); details in the programmes (Art. 60 of Reg. 1698/2005)
Principles of the demarcation lines can cover: project scope, scale, location, type of beneficiary, etc.
Key areas of possible overlap: infrastructure, microenteprises, training, tourism, local development etc.
Coordination mechanisms to cover programming, implementation, evaluation, audit and control

12. FEADER implementation system
Key principles: clarity and separation of functions
Managing Authority
Paying Agency
Coordination Body
Certifying Body
Monitoring Committee
(mix of Structural Funds and the Common Agricultural Policy systems)

13. Functions of Managing Authority
Managing Authority is responsible for:
- selection of projects in line with the criteria set in the programmes
- conducting the Monitoring Committee and coordinating evaluations
- collecting monitoring information
- preparing annual reports
Managing Authority can delegate these tasks to other organisations but retains overall responsibility for their proper implementation

14. Paying Agency is responsible for:
Payment of Community contribution to beneficiaries and declaration of expenditure for the EU,
Controls (internal and on-the-spot)
Accounting of expenditure, recovery of sums unduly paid, and conformity declarations,
With the exception of payment of the Community contribution these tasks can be delegated but the Paying Agency retains the overall responsibility.

15. The needs of Polish agriculture and rural areas
Large rural population of 14.7 million
Low productivity of agriculture (4.5% of GDP but 17.5% of jobs)
Fragmented agricultural structures in need of modernisation
Important food industry, partly in need of investment
High biodiversity and extensive farming
Poor soils and soil erosion
Problems with rural labour market: high rural unemployment (1.14 mil.) and hidden (1-1.6 mil.) and many new entrants (1.3 mil.)
Poor infrastructure (4.5% households with sewage; 8% with internet)
Poor education levels: 43% of rural people only with primary eduction
Interest in local initiatives (LEADER)

16. Key questions for Poland
Polish rural needs go beyond FEADER programme and solutions to Polish rural problems lie beyond agriculture.
how to ensure that rural needs are met from EU programmes :
a) balance between agri-food sector, environment and broader rural development (in the FEADER);
b) ensuring a fair share for rural areas in actual funding given strong competition for funds (in the Structural Funds)?
2) How to define clear demarcation lines? (region specific?)
3) How to ensure proper coordination and synergies between the Structural Funds and FEADER? (role of regional authorities?, development centres?, linkages?)