1. Opportunities for financing measures for sustainable management of the pastures and meadows in Bulgaria Sofia, June 2006 г.

2. Structure of the presentation 1.Basic principles and objectives of CAP 2.Cross compliance – basic elements 3.GAEC 4.Less favoured areas 5.Agri-environment payments 6.Natura 2000

3. Basic objectives of CAP To ensure stability of supplies of affordable and safe foods; To ensure a “fair” standard of living of agricultural producers; To protect the environment for the future generations; To preserve agricultural activity in all regions; To care about the welfare of the people in rural areas (not only of those who are involved in agricultural activity).

4. Basic objectives of CAP First pillar Measures for market assistance and income supporting (direct payments and market assistance) EAFRD Second pillar Rural development EAFRD

5. Basic principles of CAP – Medium-term changes Introducing payments separated from the quantity of the produce of 2005 Cross-compliance – subsidies are related to requirements for environment protection, humane attitude to animals and food safety; Obligatory management requirements and GAEC Modulation – decreasing of payments to large agricultural producers (funds from pillar 1 to pillar 2) Financial discipline – not to exceed the budget up to 2013 Revision of the CAP market policy for milk, cereals, rice, nuts, etc.

6. What is cross-compliance? Instrument for pillar 1 of CAP Binding direct payments with requirements for compliance with standards Objective: to implement and observe the European legislation and the compulsory standards related to: –Environment protection; –Natural resources and biodiversity; –Animal welfare and health care; –Requirements for maintaining lands in good agricultural and environmental condition.

7. Basic elements of cross compliance 1.Obligatory management requirements – require compliance with definite paragraphs of 19 EU directives, 16 of which are obligatory as from beginning 2006; 3 – as from beginning 2007 2.Conditions for maintaining lands in good agricultural and environmental condition – determined on national level

8. Minimum requirements for maintaining land in good agricultural and environmental condition (GAEC) All agricultural producers receiving direct payments in EU Member States and applying the Single Agricultural Payment Scheme per hectare (SAPS) must observe a set of minimum management standards called good agricultural and environmental conditions (GAEC) Framework for development of GAEC standards is set out in Annex ІV of Regulation 1782/2003

9. ВъпросСтандарт Soil erosion to protect the soils by adequate measures minimum soil cover minimum management requirements reflecting the specific conditions of respective areas terrace preservation Organic matter in soils to preserve the organic matter level in the soils by adequate measures Standards for crop-rotation, where appropriate Mechanical Soil structure To maintain soil structure by definite measures Use of adequate technology and equipment Minimum processing level to ensure minimum level of processing to avoid loss of habitats  Maintenance of minimum animal units density or pasture density  Protection of permanent pastures  Protection of landscape characteristics  Avoidance the occurrence of undesirable vegetation on agricultural land

10. IssueStandard Organic matter in soils Stubble-field burning prohibited; Minimum processing level Agricultural lands must be used for growing agricultural crops or let lie fallow. Lie fallow lands must be periodically cultivated to eliminate undesirable vegetation. Agricultural lands and permanent lawns must be cleared from undesirable shrub vegetation.

11. Financing of pastures and meadows – pillar 1 Registration in IACS; To have the required minimum area; To observe the maintenance conditions in accordance with GAEK; To also observe the Obligatory management requirements after 2012.

12. Implementation of CAP in Bulgaria pillar 2 Rural Development Programme 2007 – 2013 г. Aid to rural areas development will be provided by RDP 2007-2013 measures, which are thematically grouped in the following priority axes: Axis 1 - “Improvement of the competitive power of the agriculture and forestry sector”; Axis 2 - “Preservation of the natural resources and environment in rural areas”; Axis 3 - “Standard of living in rural areas and diversification of rural economy”; Axis 4 - “Leader”.

13. MEASURES, WHICH WILL BE IMPLEMENTED IMMEDIATELY AFTER THE OFFICIAL APPROVAL OF RDP 2007-2013 BY THE EUROPEAN COMMISSION Pillar 2 AXIS 2 – PRESERVATION OF THE ENVIRONMENT AND RURAL NATURE (Sustained management of lands and forests) 211 - Payments for natural limitations of farmers in mountain regions 212 - Payments for natural limitations of farmers in regions other than mountainous 214 – Agri-environmental payments 223 - Initial afforestation of non-arable land 226 - Restoration of the forestry potential and implementation of preventive measures

14. Proposal for a budget on the priority axes of Regulation 1698/2005 (million EUR) Priority axis % of the total budget* % of the budget on the three axes EU fundsNational Total (ЕU+ national) Axis 1 40% 42% 985.45246.36 1,231.81 Axis 2 26% 27% 640.54140.61 781.15 Axis 3 30% 31% 739.09184.77 923.86 Axis 4** 2.5% 61.5915.40 76.99 Technical assistance 4% 98.5524.64 123.18 Mярка „National payments in addition to direct payments” 145.47 36.37 181.84 *Total budget without additional payments but with technical aid; ** Funds according to Axis 4 (Leader) included in the budgets according to axes 1, 2 and 3

15. Financing of pastures and meadows – pillar 2 (RDP) Measure “Payments for unfavoured regions” Registration in IACS; To fall within the scope of mountainous or “other “ unfavoured regions; To meet the requirement for minimum area (minimum 0.5 ha for mountainous and min. 1 ha for “other” for 5 years) Where the agricultural lands represent common land or pastures, to breed grazing animals in accordance with the requirements for density of bred animals Observance of GAEC

16. SUSTAINABLE LAND MANAGEMENT Measure “Payments to farmers in mountainous unfavoured regions” Mountainous regions – definition criteria Land of minimum altitude of 700 m. Lands of average terrain declivity min. 11.3° (20%) Lands of average altitude between 500 and 700 m in combination with average terrain declivity min. 8.53° (15%) Lands or groups of lands neighbouring mountainous lands where minimum 75% of the land limit borders mountainous lands shall be homogenised. Compensatory payments – Farms of 1 to 50 ha – EUR 100/ha 50 to 100 ha – EUR 40/ha over 100 ha – EUR 0

17. SUSTAINABLE LAND MANAGEMENT Measure „Payments to farmers in regions with natural defects other than mountainous regions” Other unfavoured regions - Low productivity agricultural lands on the territory with average weighted category index of 6 to 10. - Regions with specific limitations are lands bordering the outer border of the European Union. Compensatory payments Farms of 1 to 100 ha – EUR 50/ha 100-200 ha – EUR 20/ha over 200 ha – EUR 0

19. SUSTAINABLE LAND MANAGEMENT Measures “Payments according to Natura 2000” Scope Protected zones for birds cover 11.3% of the territory of Bulgaria. Protected zones according to the natural habitats directive cover 13.4% of the territory of Bulgaria.

20. Measures “Payments according to Natura 2000” Objectives Measures NATURA 2000 shall compensate farmers for missed income and expenses incurred relating to the execution of due legal limitations in accordance with the land-use regime of their lands (Law on Biological Diversity), which are part of the European environmental network. This is aimed at attaining maintenance or recovery of species and natural habitats referred to in Annexes 1 and 2 of the Law on Biological Diversity.

21. Measures “Payments according to Natura 2000” Beneficiaries Agricultural producers (natural persons or legal entities), registered in the Integrated Administration and Control System (IACS) who own, rent or lease for a minimum of 5 years lands or forests included in NATURA 2000 Agricultural and forest farmers who maintain natural habitats and species and have submitted applications to the Settlement Agency for payment of compensations;

22. Measures “Payments according to Natura 2000” Requirements to beneficiaries To observe the conditions for maintaining lands in good agricultural and environmental condition (GAEC) To observe the limitations for land-use as laid down in orders for declaring and/or plans for management of protected zones;

23. Measures “Payments according to Natura 2000 for agricultural lands” Model activities and limitations for which compensations will be paid Elimination of undesirable vegetation (invasive species: juniper in mountain pastures/meadows; shrubs in lowland regions) after end July, i.е. maintenance of meadows and pastures in good agricultural and environmental condition; Recovery of deserted meadows and pastures (by moderate grazing or mowing) ; Ban on the use of fertilizers (and pesticides) or resowing; Moderate grazing later in the season (after mid August) in humid areas; Stepwise mowing of humid meadows / leaving unmown sections or strips; Mowing from centre to periphery at slow speed; Preservation of traditional orchards (with natural cover amongst trees, preservation of traditional fruit-tree varieties, preservation of old and low productivity trees) – lesser grey shrike, grey woodpecker, etc.;

24. Measures “Payments according to Natura 2000 for agricultural lands” Model activities and limitations for which compensations will be paid Manual elimination of weeds and use of manure from biological farms; Placing къщички за птици for European rollers (Coracias garrulus); Leaving small (4х4 m) uncultivated pieces of land with natural vegetation amidst winter crops (2 to 5 m 2 per hectare) – valid for intensive agriculture areas where hibernating geese feed; Preservation of stubble-fields for the winter in spring crop fields; Leaving permanent (min. 2 m wide) uncultivated strips on the edges of arable lands (not to be ploughed, treated with chemicals, mown after the season, not to be used for moving agricultural equipment and machines); Limitation of human access to areas of birds of prey nesting (200-300 m) during the nesting period (March-July);

26. Minimum areas to participate in this measure The minimum area required to participate in this measure is 0.5 ha. The following exceptions from this requirement are allowed: –For sub-measure „Traditional orchard culture breeding” – 0.3 ha; –For activity „Biological plant-growing” – за култивирани mushrooms; cultures grown under glass; sowing and sapling material – 0.1 ha; –For activity “Biological bee-keeping” and measure “Traditional stock-breeding” (Preservation of extinction- threatened local breeds and mountainous stock-breeding) – no minimum size of land required.

27. Geographic coverage of the activities according to the agri-environmental measure Biological agriculture – on the territory of the whole country Management of agricultural lands of high natural value (HNV) – in areas defined as HNV regions Traditional growing of orchard cultures – on the territory of the whole country where there are old (over 25 years) orchards Protection of local breeds threatened by extinction – on the territory of the whole country Traditional practices of seasonal pasture of animals (Pastoralism) – on the territory of the national parks “Pirin” and “Central Balkan Mountains” Decrease of the nitrate contamination – with priority in nitrate- vulnerable areas Control on soil erosion – with priority in erosion threatened areas Agri-environmental activities in places of Natura 2000 – in places falling within the ecological network of Natura 2000

28. Amounts of compensatory payments for separate activities Biological agriculture: –Field cultures incl. fodder cultures: EUR 155/ha –Meadows and pastures: EUR 101/hа –Perennial plants, vineyards and oil-yielding rose: EUR 418/ha –Aromatic and medicinal plants: EUR 267/hа –Vegetables cultures incl. cultivated mushrooms and potatoes: EUR 357/hа –Sowing and planting material – 20% of he calculated compensatory payments for each group of cultures –Bee-keeping: EUR 15/bee family

29. Sub-measure 2: Management of lands of high natural value (HNV) Activities : HNV 1 – Restoration and maintenance of undergrazed grasslands of high natural value – EUR 131/hа HNV 2 – Restoration and maintenance of overgrazed areas of high natural value – EUR 155/hа Geographic coverage All semi-natural grasslands of high natural value and dependent on ongoing agricultural activity

30. HNV 1 – Restoration and maintenance of undergrazed grasslands of high natural value Requirements to management: To eliminate undesirable vegetation. Not to use mineral fertilizers and pesticides except those listed in Regulation2029/91 of the Council on biological production. Not to build new drainage systems. Not to allow breaking of grasslands. To conduct free pasture on meadows after last hay-making except for forest meadows. To maintain minimum and maximum density of animals – 0.5- 1.5 animal units per hа. To observe certain dates for pasture – the dates for flat and hilly areas will depend on climatic conditions; pasture in mountainous areas is usually between 30 May and 30 September/15 October. To use traditional hay-making methods – maximum two hay- makings per year in flat and hilly areas and one hay-making per year for mountainous areas. Hay-making to be carried out after 15 June in flat and hilly areas and during the period 30 June – 15 July in mountainous areas.

31. HNV 2 – Restoration and maintenance of overgrazed grasslands of high natural value Requirements to management: To resow with local mixtures – preferably with mixtures of local origin. Limitation on the use of manure – up to 50 kg N/ha. Not to use mineral fertilizers and pesticides except those listed in Regulation 2092/92 of the Council. Not to build new drainage systems, no breaking or processing of land. To conduct free pasture on meadows after last hay- making except for forest meadows. To maintain minimum and maximum density of animals – 0.5-1.5 animal units per hа. To observe certain dates for pasture – the dates for flat and hilly areas will depend on climatic conditions; pasture in mountainous areas is usually between 30 May and 30 September/15 October. To use traditional hay-making methods.

32. Amounts of compensatory payments for separate activities and requirements to management: Decrease of nitrate contamination – in the course of calculation Control on soil erosion –Zonal crop-rotation – EUR 32/hа –Creation of buffer strips – EUR 28/hа –Construction of drainage furrows – EUR 26/ha –Antierosion measures between lines of vines and plantations – EUR 103/hа –Transformation of arable lands into pastures – EUR 207/hа –Performance of amelioration measures in pastures – EUR 103/hа –Creation of ploughing terraces – EUR 205/hа

33. Amounts of compensation payments for separate activities Traditional growing of orchard cultures - EUR 131/ха. –In case of planting young saplings from sorts and species existing in the orchard – additional payment of EUR 15 per sapling Protection of local breeds threatened by extinction –Cattle – EUR 200/capita –Sheep and goat – EUR 25/capita –Pigs – EUR 61/capita –Horses – EUR 200/capita

34. Sub-measure: Traditional stock-breeding Ж 1: Protection of threatened local breeds Requirements to management : Support shall only be given for animals with Certificates of breed appurtenance or Tribe/Race Certificates issued by an approved breeding association. Observance of the breeding programme for the respective supported breed Keeping a log for the sales and purchases of supported animals in the farm Notification and receipt of a written permission from the respective breeding association prior to slaughtering or sale of any animal supported by payments according to this sub-measure Free-pasture breeding of pigs outside the places regulated for this purpose shall be prohibited

35. Endangered local breeds – Indicative list (currently to be supplemented) Bulgarian (grey) cattle Rhodope (Rhodope short-horn) cattle Karakachan sheep Copper-headed Shoumen sheep Dabene sheep Replyanska sheep Kalofer longhair goat Karakachan horse East-Balkan pig

36. Sub-measure 5: Traditional stock-breeding Ж 2: Traditional practices for seasonal pasture of animals (PASTORALISM) (Ж2) This sub-measure shall only be applied for pilot regions suitable for development of pasturalism where: there are large territories of deserted mountain pastures; there are bears and wolves attacking the animals there is an opportunity to sign pasture contracts between agricultural producers/shepherds and pasture owners, i.e. the national parks National parks Pirin and Central Balkan have been proposed as pilot regions. Agricultural producers must have permits for pasture in the high mountain pastures of the national parks. EUR 150/capita of cattle and horses EUR 20/capita of sheep and goat

37. For contacts: MAF, Department “Agroecology and Biological Agriculture”, Directorate “Development of Rural Areas” Tel. (02) 98511 652, 98511 403, 98511 408 Fax: (02) 980 38 54