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Rural Development plan for the region of Molise (Italy)

European Commission - MEMO/08/102   20/02/2008

Other available languages: IT

MEMO/08/102

Brussels, 20 February 2008

Rural Development plan for the region of Molise (Italy)

Region profile

  • Size: 4,483 km². The territory is mainly mountainous (55.3 % of the total regional surface), while the remaining 44.7% is hilly.
  • 321,950 inhabitants; 81% of population is located in rural areas.
  • Unemployment rate of 10.1% is higher than the national average (7.7%).
  • Approximately 33,970 agricultural holdings manage 214,940 Hectares of utilised agricultural area, with an average size of 6.4 Ha of UAA (utilised agricultural area) utilised agricultural area per holding. A further 32.8% (145.3 thousand Ha) of the regional surface is covered by forests.
  • The cultivated land can roughly be split into three parts: 72% arable land, 18% permanent pastures, and 10% permanent crops.
  • In terms of economic dimension of holdings: 34.3% of holdings are below 1 ESU (European size unit), 68.9% less than 4 ESU, and only 0.2% above 100 ESU.
  • 76.9% of the regional surface is considered disadvantaged, with a net prevalence of the territory being mountainous.
  • One of the most important agricultural outputs of the region is represented by herbaceous crops (43.7%), especially cereal (22.5%), followed by potatoes and vegetables (9.8%), green fodder (7.1%), and industrial plants (4%). Another important sector is represented by the zootechnics sector (38.6%) where poultry farming is predominant, representing over 4/5 of regional meat production.

Chosen strategy corresponding to the profile

Within the framework of the priorities defined at Community and national level, the strategy of the rural development plan for Molise is centred on three general objectives:

  • improve the competitiveness of the agricultural and forestry sector;
  • develop the rural areas through the management of the territory;

- improve the quality of life in rural areas and promote the diversification of the economic activities.

  • These general objectives will be pursued according to the 4 Axes envisaged by Regulation (EC) 1698/2005, which are articulated in top priorities.

Budget and share of EU funding:

Axis
Total Public Expenditure (Euro)
Share of EAFRD[1] in Public expenditure in %
EAFRD Contribution (Euro)
Axis 1
85,939,773
44
37,813,500
Axis 2
65,942,045
44
29,014,500
Axis 3
27,502,136
44
12,100,940
LEADER
9,744,000
44
4,287,360
Technical assistance
5,849,318
44
2,573,700
Total
194,977,272
44
85,790,000

Overall aim of RD programme in the region

To strengthen the competitiveness, develop a sustainable use of natural resources and the global attractive in rural areas intervening on integration between the development of agricultural and forestry sector, environment, bio-energy, rural tourism and services.

Axis 1: budget allocation and main priorities:
Total funding: € 85.9 million - EAFRD co-financing rate 44%

EAFRD contribution: € 37.8 million - Financial weight of the axis: 44 %

Main priorities:

  • modernisation of agricultural holdings (30.5% of total expenditure for axis 1);
  • adding value to agriculture products (23%);
  • infrastructure (15.6%);
  • early retirement (9.8%)
  • setting up of young farmers (7%).

Axis 2: budget allocation and main priorities:
Total funding: € 65.9 million - EAFRD co-financing rate 44%

EAFRD contribution: € 29.01 million - Financial weight of the axis: 34%.

Main priorities:

  • agri-environment (35.6% of total public expenditure for axis 2);
  • LFA payments (23.5%);
  • first afforestation of agricultural land (26.5%);
  • first afforestation of non agricultural land (4.5%);
  • restoring forestry potential and introducing preventive actions (6.1%)

Axis 3 budget allocation and main priorities:
Total funding: € 27.5 million - EAFRD co-financing rate 44%

EAFRD contribution: € 12.1 million - EAFRD - Financial weight of the axis: 14%.

Main priorities:

  • diversification (35.6% of total public expenditure for axis 3);
  • basic services for the rural economy (20.7%);
  • village renewal and development (16.4%);
  • conservation and upgrading of rural heritage (13.8%);
  • business creation and development (13.5%).

Leader budget allocation:
Total funding: € 9.7 million - EAFRD co-financing rate 44%

EAFRD contribution: € 4.3 million - Financial weight of the axis: 5%.

Main priorities:

  • to strengthen the project design and project management abilities of local governance;
  • promote the local resources.

[1] EAFRD= European Agricultural Fund of Rural Development


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