Brussels, 20 September 2007
Rural development plans:
- Area: 2 586 km², 55% of which is taken up by agriculture and
34% by forests.
- Population: 443 000, with a density of
- Unemployment rate: 4.8%, but youth unemployment has recently become
sizeable; GDP/inhabitant: 220% of the average for the EU of 25.
- With almost 2 900 holdings, agriculture accounts for only 0.5% of GDP
and 1.3% of employment.
- Milk predominates in the agricultural economy (32% by value), ahead of beef
and veal (22.5%), wine (11%) and cereals (8%).
- 98% of the land is classified as being in a less-favoured agricultural area
and almost 94% of farmers subscribe to agri-environmental measures.
- Rural areas are attractive (as is demonstrated by population movements from
urban to surrounding areas): resulting in pressure on agricultural land
The Grand Duchy of Luxembourg's rural development strategy is characterised
by adhering to the European agricultural model, which is based on
multifunctional agriculture. This is reflected in the pursuit of the following
- to ensure the viability of agricultural holdings by modernising
installations and training farmers;
- to maintain agricultural activity and hence occupation of rural areas, and
orient farming practices towards a model which is compatible with the
- to take every opportunity to diversify the agricultural economy and improve
quality of life in rural areas.
Total EU contribution
Total public expenditure
EAFRD share of public expenditure
127 715 800
25 543 160
212 014 500
53 003 625
15 514 400
6 205 760
13 213 202
5 285 281
368 457 902
90 037 826
Objective for the country
The overall objective of the RDP is to contribute to harmonious occupation of
rural areas so that the various economic sectors present can coexist. This is
achieved inter alia by supporting the multifunctional family farm model:
reinforcing farmers' professional skills, modernising holdings to make each
sector more competitive, and encouraging farming practices to be oriented
towards models which are compatible with the environment. Of course, every
opportunity to diversify the rural economy will be taken and the people will
play an active part in the local strategies to develop the services which will
be provided for them.
Axis 1 budget allocation and priority objective
Budget: €127 715 800; EAFRD contribution:
€25 543 160.
Axis 1: The priority objectives for this axis are:
- Training and information: the aim is to strengthen human potential in
order to make holdings more competitive; practical measures will include setting
up a Skill Centre. Other measures aimed at consumers and schools are also
- Investment in individual holdings: it is a question of accompanying
the increase in the size of holdings and contributing towards improving farmers'
income by supporting investment which favours product quality and methods which
respect the environment and animal welfare; initiatives relating to creating or
saving energy resources will be encouraged.
- Young farmers: support will cover the acquisition of skills in
managing holdings and a premium for initial setting-up in view of the very
strong pressure on land prices.
- Agri-food sector: the emphasis will be on creating jobs and
encouraging quality processes and labelling, as well as disseminating
- Environmental protection, organic farming and helping to combat climate
change: support will be maintained for investment in the production of
national renewable energy forms and in organic farming.
- Improving the profitability of forest land: including training and
information initiatives, the measures will aim to enhance the value of timber as
a renewable resource.
Axis 2 budget allocation and priority
Budget: €212 014 500; EAFRD contribution:
€53 003 625.
Axis 2: The priority objectives for this axis are:
- Supporting agricultural activity in less-favoured areas: compensatory
allowances limit the difference between farmers' incomes and average salaries in
Luxembourg; they therefore help to maintain agricultural activity and hence land
- Agri-environmental measures: these fit in with the Göteborg and
Kyoto Agreements and will extend the 2000-06 agri-environmental measures,
adapting them, of course, to the new rules on eco-conditionality. A distinction
will be made between measures available to all Luxembourg farmers and measures
implemented in clearly-defined areas. The objective for the landscape
maintenance premium is that 100% of farmers subscribe to it. In addition, by
means of specialised premiums, the EAFRD will play a part in national policy
relating to biodiversity as well as in favour of area-based initiatives relating
to water protection. This category of aid will also include support for organic
Axis 3 budget allocation and priority objective
Budget: €15 514 400; EAFRD contribution:
€6 205 706.
Axis 3: The priority objectives for this axis are:
- to develop essential supply services, craft activities and tourist
activities for the rural economy and population;
- to maintain and improve conditions for women entering and re-entering the
job market, inter-alia by facilitating the provision of nursery day-care;
- to train, inform and provide a framework for people living in rural
- to help to set up and develop micro-enterprises;
- to promote the adoption and spread of ICT (information and communication
- to pursue the integrated development and revitalisation of villages;
- to develop the optimum use of resources and the supply and utilisation of
renewable energy sources;
- to train people working in forestry and to inform and raise awareness among
the public regarding forest's numerous functions.
Budget: €13 213 202; EAFRD contribution:
€5 285 281.
Following on from the experience gained with LEADER+, the priorities for this
axis will be to work on building up local capacity for employment and
diversification by developing local partnership capacity, defining local
strategies for rural development and implementing cooperation projects.