EUROPA

SUMMARY

During the 2007-2013 period, the main focus will be on the second pillar of the common agricultural policy (CAP): rural development. Rural development will be placed in a single financial and programming framework in order to improve the policy’s coherence, transparency and visibility.

Objectives and general rules on assistance

This Regulation lays down the general rules governing Community support for rural development, financed by the EAFRD, established by Regulation (EC) No 1290/2005. It also defines the aims of rural development and the framework governing it.

The Fund will contribute to improving:

• the competitiveness of agriculture and forestry;
• the environment and the countryside;
• the quality of life and the management of economic activity in rural areas.

The Fund complements national, regional and local actions. The Commission and the Member States are also to ensure that the Fund is consistent and compatible with other Community support measures.

Strategic approach

Taking into account the political priorities set at Community level, the Council establishes strategic guidelines for rural development to implement the defined priority headings. Each Member State then produces a national strategic plan. This includes its own priorities for action and those of the Fund, taking into account the strategic guidelines. The plan also sets out the specific objectives and levels of support from the Fund and other financial resources. These national strategic plans serve as a benchmark for Fund programming.

Implementing the national strategic plans is carried out through rural development programmes containing a package of measures grouped according to the headings defined in Title IV of the Regulation (improving the competitiveness of the agricultural and forestry sector, improving the environment and the countryside, the quality of life in rural areas and diversification of the rural economy, and the Leader approach). Each programme sets out a strategy covering a period from 1 January 2007 to 31 December 2013, which includes an analysis of the situation, defines the priorities chosen and the expected impact. It must also propose the measures required for each heading. Lastly, a financing schedule is drawn up to complete the programme.

Concerning the strategic follow-up, the Regulation provides for each Member State to submit a summary report, first in 2010 and subsequently every two years, setting out the progress made in implementing its strategy and objectives and their contribution to achieving the Community strategic guidelines defined by the Council. The Commission also has the task of presenting a report every two years summarising the main developments, trends and challenges connected with implementing the national strategic plans and the Community guidelines.

Improving the competitiveness of the agricultural and forestry sector

The idea is to provide aid for all measures aimed at enhancing human potential, physical capital and the quality of agricultural production.

Concerning human potential, the Regulation provides for support for:

• information and vocational training schemes in technical and economic matters;
• schemes promoting the establishment of young farmers (people under 40 years of age setting up for the first time as the head of a holding) and the structural adaptation of their holdings;
• early retirement for farmers deciding to cease activities with the aim of transferring their holding to other farmers, and agricultural workers who decide to definitively cease all agricultural activities. In general, beneficiaries must be at least 55 years old, but below the regular age of retirement in the Member State concerned;
• the use of advisory services by farmers and forest holders and the establishment of advisory services, farm relief and farm management support services. The use of these services should help assess and improve the performance of their holdings.

Concerning restructuring of physical potential, support will be available for:

• the modernisation of agricultural and forestry holdings and the improvement of their commercial performance by, for example, bringing in new technology;
• adding value to primary agricultural and forestry production. This means supporting investments aimed at enhancing the efficiency of the processing and marketing stages of primary production whilst simplifying the eligibility criteria for investment support compared to the criteria applicable at present;
• improving and developing infrastructure related to the development and adaptation of agriculture and forestry;
• restoring agricultural production potential damaged by natural disasters and introducing appropriate prevention schemes.

Regarding production and product quality, the aim is to:

• assist farmers in adapting to the demanding rules laid down in EU legislation, partly offsetting the additional costs or loss of revenue resulting from these new responsibilities;
• encourage farmers to participate in schemes that promote quality food and that give consumers assurances of the quality of a product or production method, providing added value to primary products and boosting trade opportunities;
• support producer groups in their information and promotion activities for products covered by food quality schemes.

Provisional measures are also planned for the new Member States, focusing on aid for semi-subsistence holdings under restructuring and aid for the establishment of producer groups. The support shall be granted in respect of applications approved by 31 December 2013.

Improving the environment and the countryside

Regarding land management, the support is to contribute to sustainable development by encouraging farmers and forest holders to employ methods of land use compatible with the need to preserve the natural environment and landscape and protect and improve natural resources. The main aspects to take into account include biodiversity, the management of NATURA 2000 sites, water and soil protection and climate change mitigation. Against this backdrop, the Regulation provides, in particular, for support for mountain regions with natural handicaps and other disadvantaged areas (defined by the Member States on the basis of common objective criteria) and for agri-environmental payments, which should however only cover commitments that go beyond the corresponding obligatory standards. Assistance also covers support for investments without commercial return needed to comply with environmental commitments.

Quality of life in rural areas and diversification of the rural economy

Regarding the diversification of the rural economy, the Regulation contains measures on:

• diversification towards non-agricultural activities, support for the establishment and development of micro-businesses, promotion of tourism and the protection, development and management of the natural heritage that contributes to sustainable economic development;
• improving the quality of life in rural areas, with particular focus on renovating and developing villages and preserving and making the best use of the rural heritage;
• vocational training for economic operators in the above fields and another connected with acquiring skills and running activities in order to prepare and implement the local development strategy.

The Leader heading

The Leader approach consists of:

• a local development strategy designed to select the best development plans by local action groups representing public-private partnerships;
• implementing cooperation projects between areas involved;
• networking of local partnerships.

Implementation of programmes

Regarding technical assistance, a European rural development network will assist the Commission in implementing the policy, although each Member State must also establish a national rural network bringing together all organisations and administrations involved in rural development. At the initiative of the Member States, the Fund may finance, up to a ceiling of 4% of the total amount for each programme, measures concerning the preparation, management, monitoring, evaluation, publicising and control of programme assistance. 0.25% of the Fund’s resources are allocated to technical assistance managed by the Commission.

For the period 2007-2013, the amount of Community support to rural development, its annual breakdown and the minimum amount to be concentrated in regions eligible under the Convergence Objective * are determined by the Council. It acts by a qualified majority on a proposal from the Commission, in accordance with the financial perspective for the period 2007 to 2013 and the Interinstitutional Agreement on budgetary discipline and improvement of the budgetary procedure. Member States also take account of the amounts from modulation * in the programming. The Commission also makes sure that the total amount of allocations from the EAFRD and other Community Funds such as the European Regional Development Fund, the European Social Fund and the Cohesion Fund stay within specific economic parameters.

Under the principle of shared management between the Commission and the Member States, the Member States must appoint, for each rural development programme: a management authority, a paying agency and a certification body. They are also tasked with providing information and publicity on co-financed schemes. Each Member State must also set up a monitoring committee to ensure the programme is implemented effectively. In addition, the management authority for each programme must send an annual report to the Commission on the implementation of the programme.

In order to enhance the quality and effectiveness of implementation, the rural development policy and its programmes are evaluated in three stages. The first evaluation, carried out by the Member State, identifies and, in particular, assesses the medium and long-term needs, objectives and quality of the implementing measures. The second evaluation is carried out during implementation of the programme. It examines, in particular, the state of progress of the programme. In 2010, ongoing evaluation shall take the form of a separate mid-term evaluation report, proposing measures to improve the quality of programmes and their implementation. In 2015, evaluation takes the form of a separate ex-post evaluation report. These evaluations should aim to draw lessons for rural development policy by identifying the factors that have contributed to the success or failure of programme implementation, the socio-economic impact and the impact on Community priorities. Lastly, the Commission must compile a summary of these evaluations to be finalised by 31 December 2016 at the latest.

Background

In 2005 the Commission introduced a new legal framework for financing the common agricultural policy. Set up under Regulation (EC) No 1290/2005, this new legal framework provides for two new Funds: a European Agricultural Guarantee Fund (EAGF) and a European Agricultural Fund for Rural Development (EAFRD). Like the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund, the EAFRD contributes towards Community action in favour of the least developed regions (the ‘Convergence’ Objective).