MEMO/08/332

Brussels, 23 May 2008

Rural development Programmes of 3 regions of Spain:

Country profile for Spain

• Size: 504 411 km²
• Population: 44, 5 millions inhabitants (density: 88 inhabitants/ km²)
• GDP per capita: 19 480 € (average years 2000-2002; source: national strategy plan for rural development)
• Rural areas cover 91.3 % of the Spanish territory and about 31% of the population live in these areas. The Spanish situation is characterized by important territorial discrepancies, mainly between the interior and the coastal areas.
• Almost 0.95 million people are employed in 1 140 730 agricultural holdings (998 000 work units), with a high share of farms (68.4 %) managed by full time farmers. The average size of the agricultural holdings is 22.1 ha, with big farms mainly in the centre and south of the country, and on the other side relatively small farms in the North part of Spain. While 55% of the holdings use 5% of the agricultural land, the 8.7 % of the holdings occupy the 69.1 % of the agricultural land. The value of the output of Spanish agriculture amounts to about 26 billion € including forestry. Thereby the sector contributes about 3.32 % to the total gross value added produced in Spain (food industry: 16.5%)
• The diversity of natural resources and landscapes (wet in the North and dryer in the South) can also be seen as an important asset. 24.5% of the territory has been classified as Natura 2000 areas including forest areas, and the preservation of the endangered biodiversity is seen as a very important issue.

Chosen strategy corresponding to the profile

Due to its structure, Spain implements the rural development policy through 17 rural development programmes (RDP) established at regional level by the Autonomous Communities. A National Framework has been elaborated at the national level which includes certain elements common to all 17 regional programmes.

Budget for Rural Development for Spain

Total: € 13 814 062 684 (adding national aids: € 15 800 192 832) of which EAFRD^[1] support amounts to € 7 213 917 799 € (Convergence regions: € 4 943 643 740).

Rural Development Programme for the Autonomous Region of MADRID in Spain for 2007-2013:

Profile of Madrid:

Madrid is not a convergence region.

• The region has a total population of 5 804 829 inhabitants (2004). Its size is 802 792 ha and it has a population density of 723 inhabitants/ km².
• Madrid is a significantly urban region. Population density varies significantly from more than 5 117 inhabitants per km² in the Municipality of Madrid to less than 22 inhabitants per km² in Sierra Norte.

The GDP per inhabitant of the Region is 27 326 Euros is the highest of all Spanish regions (6 462 Euros more than the national average) Comparing with the European Union's average, in Madrid there are a higher percentage of young people and a lower percentage of people with more than 65 years of age. The oldest people live in the rural areas.

• The unemployment rate (2004) is 6%. There are 2 900 200 active people, representing 66% of the population.
• The agricultural sector contributes with 0.1%, the industry with 24.47% and the services with 75.43% to the GDP of the Region.
• The primary, secondary and tertiary sectors contribute, respectively, 1%, 22% and 77 % to the employment.
• Population of rural areas: 209 938 inhabitants (2005).
• Forest areas occupy 420 093 ha, 52.33% of the territory. 77% of this territory is private property.
• 39.77% of the territory is covered by the Natura 2000 network: this includes 32% of agricultural surface and 58% of the forestry surface.
• The average size of the agricultural holdings is 32.18 ha, much higher then the national average (22.1 ha).
• The level of education and training in the agricultural sector is low.
• Livestock production is the most productive agricultural sector in the Region, fallowed by the crop production (cereals and vegetables are the most significant).

The chosen strategy corresponding to the profile:

The overall objectives were chosen in accordance with the Community Strategic Guidelines (CSG), the National Strategy Plan and the Spanish National Framework.

The priorities and objectives can be summarised under four headings:

1) Competitiveness.

2) Sustainability and natural environment.

3) Improvement of the quality of life in rural areas.

4) Development of the local capacity and diversification.

The overall budget and share of EU funding (in EUR)

Main strengths and opportunities

The main strengths are: the easy commercialisation of agricultural products in the urban zones, the richness and extensive geographic coverage of high ecological value.

Among the main objectives are the improvement of the competitiveness of the agri-food sector, the maintaining of the agricultural activity and the promotion of sustainable agriculture.

Main weaknesses and threats

The main weaknesses are: threats of agricultural abandonment, environmental impact of intensive production, high age of agricultural holders, low levels of training and education, urbanization and industrial pressure on agricultural land, deficiencies in infrastructure and mechanisation of production.

Axis 1 budget allocation and main priorities:

EAFRD: 29 995 670 EUR (43.12 % of the EAFRD contribution)

Total public funding: 99 985 567 EUR

• Main priorities under this Axis:
• Maintaining the agricultural activity
• Modernisation of the agri-food sector, promotion of quality

Axis 2 budget allocation and main priorities:

EAFRD: 20 445 000 EUR (29.39 % of EAFRD contribution)

Total public funding: 68 150 000 EUR

Main priorities under this axis are:

• Sustainable use of the agricultural land
• Sustainable use of the water
• Sustainable use of the forest land

Axis 3 budget allocation and main priorities:

EAFRD: 12 085 500 EUR (17.37 % EAFRD contribution)

Total public funding: 40 285 000 EUR

Main priorities under this axis are:

• Diversification of the rural economy
• Improvement in the quality of life in the rural areas.

LEADER budget allocation and main priorities:

EAFRD: 7 044 000 EUR (10.13 % of EAFRD contribution)

Total public funding: 23 480 000 EUR

Main priorities under this Axis:

• Promotion and improvement of quality rural tourism
• Protection of rural heritage

Rural Development Programme of Baleares:

Profile of the Baleares:

• Population: 1 030 650 inhabitants (2.3 % of the Spanish population).
• Size: 4 991 km² (0.94% of the Spanish surface) and a population density of 206 inhabitants/ Km²( 87 in the whole Spain) Considered rural: 29.6 %
• GDP per capita is 109 % of the Spanish average (Spain 97.6% of EU average).
• Unemployment rate of 7.5% (lower than the Spain average of 8.7%). Decreasing tendency of long-term unemployment, but still important for women (10.3%) and young people.
• Economic activity concentrated in tourism activities (services provide for 73.5% of employment and 83.2% of GAV). Agricultural activities provide only for 2.4 % of employment and 1.7% of GAV (data for 2005).
• Less Favoured Areas cover 41.7 % of the agricultural surface.
• Since 1999, the number of holdings has been steadily decreasing (from 19 788 to 13 557 or 31% less) and their size has increased: currently the average area per holding is 24.2 ha but only 15.2 ha of UAA, slightly below the Spanish average area (23.2 ha). About three quarters of the holdings (72%) have an area between 1 and 10 ha.
• Agriculture: cereals (non irrigated), fodder, olive and fruit trees. Irrigation is not important at all as water resources are very scarce.
• Livestock-farming: most holdings (69.7%) also produce animal products: poultry in 58% of the holdings; ovine in 29% and pigs in 25% of the holdings (environmental problems because effluent management).
• Forestry: 43.28% of the total surface (but only 34% with trees). Insignificant production. Environmentally oriented.
• Agri-food industry: agricultural products cannot compete with imported products (insularity disadvantage) and are, therefore oriented to high quality products (19 PDO). Otherwise, dried fodder, animal feed, preserved fruits, meat, wine, olive oil.
• The Agri-food industry is amongst the main industrial sub sectors of the region, and provides for 18% employment in the industrial activities (5 065 people) and for 1.7% of the region's GDP.

The main problems for the agricultural sector in the region come from its insularity. Insularity and double insularity (territory fragmented into several islands) lead to increased costs for inputs and to decrease in competition for output. In addition, the reduced size of the territory and the overwhelming influence of tourism in all activities also impose several and specific constraints.

Environment:

One of the more important environmental problems which affect the region is the process of deterioration of the soil as a result of erosion and desertification.

Natura 2000 network has been increasing over the last years from 170 000 in year

2 000 to 218 000 hectares currently. It covers 19.7% of the region territory, and represents 24.7% of the used agricultural surface and 18% of the forestry surface. The island of Menorca was declared by UNESCO as Biosphere Reserve.

The total surface of Declared Vulnerable Areas to pollution by nitrates reaches

27 534 ha, but new areas are in the process of declaration for a total of 52 000 ha more.

The agricultural surface protected by the agro-environmental measures (16 000 ha) represents about 10% of the Utilized Agricultural Area (UAA).

Chosen strategy corresponding to the profile:

The overall objectives were chosen in accordance with the Community Strategic Guidelines (CSG), the National Strategy Plan and the Spanish National Framework:

Therefore, the priorities and objectives of this RDP can be summarised under three headings:

1) Improving the competitiveness of the agricultural, forestry and agri-food sectors.

2) Improving the environment and the rural environment

3) Economic diversification and improvement of the quality of life in rural areas.

Budget and share of EU funding

Overall aim of the RD programme of Baleares

The improvement of the competitiveness of the agri-food sector, the promotion of sustainable agriculture and forestry and the searching of new opportunities in the rural areas.

Axis 1 budget allocation and main priorities:

EAFRD: EUR 26 477 500 (59% of the EAFRD contribution)

Total cost: EUR 75 650 000

Main priorities under this Axis:

• Adding value to agricultural and forestry products.
• Farm modernisation
• Setting of young farmers.

Axis 2 budget allocation and main priorities:

EAFRD: EUR 13 597 562 (30.3% of EAFRD contribution)

Total cost: EUR 38 850 177

Main priorities under this axis are:

• Agro-environmental measures
• Non productive investments
• Restoring forestry potential and introducing prevention actions

Axis 3 budget allocation and main priorities:

EAFRD: EUR 0 (implemented through the Leader approach financed by axis 4 budget).

Total cost: EUR 0

The main priority is quality of live and diversification of the economy.

Leader budget allocation and main priorities:

EAFRD: EUR 4 799 235 (10.7% of EAFRD contribution)

Total cost: EUR 11 849 963

This Axis is devoted to the implementation of measures from Axis 3.

Main priorities under this Axis:

• Diversification of the economy
• Improving the quality of life in rural areas.

Rural Development Program of the Canary Islands 2007-2013

Profile of Canarias:

Canarias is a competitiveness (phasing-in) region.

• The region has a total population of 1 995 833 (4.4% of the population in Spain). Its size is 7 447 Km₂ (1.4% of the Spanish territory) and it has a population density of 268 inhabitants / km₂ (the national Spanish average is 88 inhabitants / km₂)
• Rural areas in Canarias occupy 67.07% of the regional territory. The population density varies significantly within the region, with higher densities in the Islands of Gran Canaria and Tenerife, and depopulation in the most rural areas.
• Population older than 65 years represents 12% of the total population
• In 2006, GDP per capita was 19 924 EUR (89% of the Spanish average)
• The unemployment rate is 11.68%, whereas the activity and employment rates are 61.02% and 53.90% respectively.
• The UAA covers 60 165 ha. Forest occupies 75% of the regional territory.
• The agriculture sector employs 2.54% of the active population and contributes with 1.4% to the Gross Value Added.
• There are 15 564 agricultural holdings, with an average 3.87 ha per holding.
• Agriculture in Canarias is specialized towards out-of-season tropical fruits and vegetables, mostly exported. Bananas is the most important production (25% of gross agricultural production), followed by tomatoes (14% of gross agricultural production) and flower cut (8% of gross agricultural production).
• The agri-food sector in Canarias occupies 15.2 thousand people and represents only 1.8% of the regional GAV.
• The Natura 2000 areas cover 46.45% of the territory. The Natura 2000 network includes 217 protected areas, of which 174 are Sites of Community Interest (SCI) and 43 are Special Protection Areas (SPA) for birds.
• 43% of the total area of Canarias faces serious soil erosion. Most of these soils are located in semi-arid or arid areas.
• 100% of the territory of Canarias is classified as less favoured areas.

The chosen strategy corresponding to the profile:

The overall objectives were chosen in accordance with the Community Strategic Guidelines (CSG), the National Strategy Plan and the Spanish National Framework.

Measures proposed are coherent with the objectives set and contribute to strengthen the competitiveness. Water management will be focused in water savings, keeping this policy coherent with the compliance of the Water Framework Directive.

The overall budget and share of EU funding (in EUR)

* EAFRD: European Agricultural Fund for Rural Development

**Axis 4 will be implement some measures of Axis 1 and Axis 3

Overall aim of the RD programme of Canarias

To contribute to the preservation and sustainable development of the rural areas in Canarias by improving agricultural competitiveness, developing the natural and environmental conditions, increasing the socio-economic interest of the rural areas and promoting local governance. The programme gives priority to investment measures, such as modernisation of agricultural holdings or adding value to agricultural products.

Axis 1 budget allocation and main priorities:

EAFRD: 72 907 245 EUR (47% of the EAFRD total)

Total public funding: 209 323 127 EUR

Main priorities under this axis:

• Modernisation of agricultural holdings
• Adding value to agricultural products
• Improvement of agricultural infrastructures

Axis 2 budget allocation and main priorities:

EAFRD: 46 434 340 EUR (30% of the EAFRD total)

Total public funding: 61 912 453 EUR

Main priorities under this axis:

• Restoring forestry potential and introducing prevention actions
• Agri-environment measures

Axis 3 budget allocation and main priorities:

EAFRD: 16 746 588 EUR (11% the EAFRD total)

Total public funding: 37 214 640 EUR

Main priorities under this axis:

• Conservation and upgrading of rural heritage
• Village renewal and development

Leader budget allocation:

EAFRD: 15 498 117 EUR (10 % of the EAFRD total)

Total public funding: 18 233 079 EUR

Main priorities under this axis are:

• Quality of life and diversification
• Competitiveness

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^[1] EAFRD: European Agricultural Fund for Rural Development