This is the presentation to Environmental Pillar delegation to Brussels in October 2013 outlining the significant role the environment will play in the next round of Rural Development funding.

1. Rural Development Policy 2014‐2020
– what tools for the environment
Krzysztof Sulima
European Commission
DG Agriculture and Rural Development
Unit: Consistency of rural development
Agriculture
and Rural
Development
Monday 16 December 2013

2. Main elements of the reform
1. Ensuring better coordination and complementarity with the other ESI
Funds - establishing a common framework:
 Common Provisions Regulation and Partnership Agreement: ensuring
coordination, harmonisation and complementarity
2. Increasing effectiveness, efficiency and performance of the RD policy:
 Result-oriented: setting of quantified targets at programme level
 Streamlined system of monitoring and evaluation
3. Strengthening the strategic approach & integrated programming:
 Clear and structured policy priorities – away from 'axis' system
 Enhanced flexibility in the use and combination of measures to better
address specific territorial needs
4. Reinforcing complementarity with the CAP's Pillar 1:
1. Horizontal Regulation for financial management and controls
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3. Complementarity between ESIF
Viable food production
Pillar 1
Common
Agricultural
Policy
Sustainable management
of natural resources and
climate action
Territorial balance and
diversity of rural areas
Pillar 2:
EU's rural development
policy
6 Union priorities
Europe 2020
Strategy for
Smart,
Sustainable and
Inclusive Growth
European
Structural
and
Investment
Funds
11 Thematic Objectives
Agricultural research
Horizon
2020
European
Innovation
Partnership
Agricultural Productivity
and Sustainability
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4. Coordination and complementarity with ESI Funds
Common Provisions Regulation for ESI Funds
•
Covering the EAFRD, ERDF, ESF, CF, EMFF
•
Reflecting EU2020 through 11 common thematic objectives to be
addressed by key actions for each of the funds
Partnership Agreement
National document outlining the intended use of the funds in the pursuit of
EU2020 objectives
National or
Regional
Level
Rural Development Programme(s)
•
(Other funds' operational programmes)
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5. A reinforced strategic programming approach

Clear focus on policy priorities:
− 6 Union priorities for rural development
• Define the points of emphasis of the policy with respect to
the needs for intervention identified at the level of the Union
• Are broken down into operational focus areas to better
structure attribution of measures and planned interventions
− 3 cross-cutting objectives: Innovation, Environment, Climate
Change
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6. 6 Union priorities for rural development
1. Fostering knowledge transfer and innovation in agriculture, forestry, and rural areas
2. Enhancing farm viability and competitiveness of all types of agriculture in all regions and
promoting innovative farm technologies and sustainable management of forests
3. Promoting food chain organisation, including processing and marketing of
agricultural products, animal welfare and risk management in agriculture
4. Restoring, preserving and enhancing ecosystems related to agriculture and forestry
5. Promoting resource efficiency and supporting the shift towards a low carbon and
climate resilient economy in agriculture, food and forestry sectors
6. Promoting social inclusion, poverty reduction and economic development in rural areas
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7. Rural development priorities
1. Knowledge
transfer and
Innovation
3. Food chain
organisation, incl.
processing/marketing,
animal welfare and
risk management
4. Restoring,
preserving and
enhancing
ecosystems
5. Resource efficiency
and shift towards a
low carbon and
climate resilient
economy
6. Social inclusion,
poverty reduction
and economic
development
in rural areas
(a) innovation, cooperation, and the development of the knowledge base;
(b) links between agriculture, food production and forestry and research and
innovation;
(c) lifelong learning and vocational training.
(a) economic performance of all farms and farm restructuring and
modernisation, notably to increase market participation/orientation and
diversification;
(b) facilitating entry of adequately skilled farmers and generational renewal.
(a) integration of primary producers into the agri-food chain: quality schemes,
adding value, promotion in local markets and short supply circuits, producer
groups/ organisations;
(b) farm risk prevention and management.
(a) biodiversity, including in Natura 2000 areas, areas facing natural or other
specific constraints and high nature value farming, and the state of European
landscapes;
(b) water management, including fertiliser and pesticide management;
(c) prevention of soil erosion and soil management.
(a) efficiency in water use
(b) efficiency in energy use
(c) renewable sources of energy, by products, wastes and non-food raw
material for the bio-economy
(d) reduction of greenhouse gas and ammonia emissions
(e) carbon conservation and sequestration
(a) diversification, creation and development of small enterprises and job
creation
(b) local development in rural areas
(c) information and communication technologies (ICT) in rural areas
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Monday 16 December 2013
Cross-cutting
objectives
Innovation, Climate Change and
Environment
2. Farm viability,
competitiveness,
innovative farm
technologies,
sustainable forest
management
Focus areas

8. Focussing on outcomes
 The intervention logic should clearly illustrate how measures work
together in a complementary manner:
− Measures can contribute to more than one priority/focus area at a time
− Added-value is created if any measure supports the intervention of the
others - the sum is more than the individual parts!
− Multiple effects of interventions on different focus areas and priorities
should be appraised
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9. Required minimum budgetary allocations

A minimum amount of the total EAFRD contribution to the RDP
shall be reserved:
− At least 30% for:
• Environment and climate related investments (Article 18)
• Forestry measures (Articles 22-27 and Article 35)
• Agri-environment-climate (Article 29)
• Organic farming (Article 30)
• Natura 2000 (Article 31)
• ANCs (Articles 32-33)
− At least 5% for Leader
Nota bene: These provisions shall not apply to the
outermost regions and the overseas territories
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10. Environment
Agri-environmentclimate
Knowledge transfer &
advisory services
Organic farming
Basic services &
village renewal
Natura 2000 payments
WFD payments
Forestry measures
Animal welfare
Ares facing natural or
other specific
constraints
Co - operation
Environment & climate
linked investments
Leader
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11. Key elements of strategic programming
 Ex-ante evaluation
 SWOT analysis and needs assessment in the programme area
 Strategic response:
− SWOT analysis and identification of needs
− Choice of relevant priorities/focus areas and approach towards
cross-cutting objectives
− Setting appropriate targets for each focus area selected
− Establishing and justifying the choice and combination of measures
in the light of the SWOT analysis
− Establishing financial allocations to measures/operations and
appropriate indicators
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12. Thematic sub-programmes (TSP)

Aimed to contribute to the achievement of RD priorities
−

overall SWOT should provide justification for any TSP
May, but not only, relate to:
(a) young farmers
(b) small farms
(c) mountain areas
(d) short supply chains
(da) women in rural areas
(db) climate change mitigation and adaptation and biodiversity

Support rates:
−
−

possibility of increase by 10 percentage under TSP for small farms, short supply
chains, climate change mitigation and adaptation and biodiversity
possibility of increase in the case of young farmers and mountain areas in
accordance with Annex I
Specific requirements for each TSP introduced:
−
−
Specific SWOT and needs assessment
Intervention logic, selection of measures, target-setting, allocation of resources,
specific reporting, delivery mechanisms
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13. RD policy: broad menu of measures
Knowledge transfer
Basic services & village
renewal
Payments to areas facing
constraints
Advisory services
Investments in forest area
development
Animal welfare
Quality schemes
Setting-up of producer
groups and organisations
Forest-environmental
payments
Investments in physical
assets
Agri-environment-climate
Co-operation
Restoring agricultural
production potential
Organic farming
Risk management
Farm and business
development
Natura 2000 and Water
Framework Directive
payments
Leader approach
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14. Agri-environment-climate (art. 29)

Why do we need this measure?
− To encourage land managers to apply land management farming
practices favourable to the environment and climate change
mitigation and adaptation
− To support environmentally positive changes to farming practices as
well as maintenance of the existing favourable practices

Main features:
• to improve the implementation - a link to knowledge transfer and
information
• to multiply environmental/climate benefits - eligibility of individual
and joint beneficiaries & higher transaction costs for the latter
• to increase flexibility: annual extension of commitments after the
initial period & shorter contracts for post initial period
• one-off payments in the case of permanent changes to land use for
environmental conservation purposes
• maximum aid per Ha: € 600 (annual crops), € 900 (perennial crops),
€ 450 (other land uses) and € 200/LU (endangered local breeds)
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15. Agri-environmental types of operations/commitments and
their potential environmental benefits
Biodiversity and
habitats


Types of operations
diversification of rotations
maintenance of grassland
maintenance of extensive grasslands and grazing; low livestock
density
conversion of arable land to grassland
grass/buffer strips
fallow land/set-aside
ecological infrastructures (hedges and small plots)
Positive impact on
Water quality
Soil
quality
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reduced or zero tillage
organic farming
ensuring soil cover in arable cultures, especially in winter and during
critical periods
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establishment of riparian zones, wetlands
reduction of agricultural inputs
establishing proper nutrient balance, catch crops to avoid nitrogen
leaching
extensification of production
terraces in the areas concerned by steep slopes
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promotion of alternative methods of weeds and pests control

reduction of water use for irrigation and adaptation of irrigation
systems to the real needs of crops


appropriate mowing dates and methods
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Climate
change

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

16. Organic farming (art. 30)

Why do we need this measure?
− A separate measure to recognise the importance of organic
farming in contributing to various rural development priorities
− To support both conversion to and maintenance of organic
farming practices and to answer society's demand for the use of
such practices

Main features
• to multiply environmental/climate benefits - eligibility of individual
and joint beneficiaries & higher transaction costs for the latter
• to increase flexibility – duration of contracts linked to support for
conversions may correspond to the conversion period & contracts for
maintenance following commitments in the initial period can be
shorter (than 5-7 years)
• maximum aid: € 600 (annual crops), € 900 (perennial crops), € 450
(other land uses)
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Monday 16 December 2013

17. Natura 2000 & Water Framework Directive (art.
31)

Why do we need this measure?
− To contribute to the effective management of Natura 2000 sites
and river basins areas and to help ensuring the protection of
these sites
− To compensate eligible land managers for disadvantages in the
areas concerned resulting from the implementation of the
relevant law

Main features
• to simplify – combination of Natura 2000 in agriculture and forest in
one measure
• to multiply benefits and ensure better protection- eligibility of the
area extended to so called "stepping stones" & eligibility of
beneficiaries to cover other land managers (Natura 2000)
• to focus resources - support for WFD shall be linked to major land
use changes and/or major restriction in farming practices and cannot
cover all changes (including those of minor scope)
• maximum aid: € 500 in the initial period up to 5 years, € 200 as a
regular amount, € 50 as minimum for WFD only
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18. Baseline - greening

What is baseline?
− Baseline is a reference level above which payments under Art.
29, 30, 31, 34 and 35 can be granted i.e. commitments under
these Articles must be established at the higher level than the
requirements included in the baseline
− Such baseline ensures that RD payments are provided only for
interventions guaranteeing additional public goods when
compared to the benefits delivered by mandatory requirements

Greening and baseline:
• While greening is not an explicit part of the baseline for Art.29-31,
double funding must be avoided i.e. when calculating the payments
under these measures amounts necessary to exclude double funding
of the greening practices as defined in Pillar I shall be deducted.
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19. Knowledge transfer and information actions

Aim to feed the capacity to innovate by bringing farms and other rural
businesses more fully into the knowledge economy.

New, unified measure whit stronger profile and broader scope:
− Training and skills acquisition actions
− Demonstration activities
− Farm and forestry exchange schemes and visits

Eligible cost are:
−
−
−



cost of organizing the operation
cost of participation
investment (for demonstration activities)
Aid intensity: maximum 100%
Co-financing rates between 80 and 90% of eligible public expenditure.
Funding is paid to the training provider (WTO green box rules)
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Monday 16 December 2013
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20. Advisory services

Purpose of the measure
− help farmers, young farmers, forest-holders, land managers and SMEs in
rural areas to use advisory services
• for better economic and environmental/climate-related performance
− promote the setting-up of farm management, farm relief, farm advisory
and forestry advisory services (including the Farm Advisory System)
− promote the training of advisors

Advice shall be linked to the Union priorities for RD. Maximum amount of
support is 1.500 € per "package" of advice; there is no limit in the use of the
advisory services; advice may be partly provided in groups; funding is paid to
the provider of advice (WTO green box rules).

Setting-up cost funding in a degressive way over 5 years; funding goes to
authority/body setting up the services.

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Training of advisors limited to 200.000€ per 3 years of training.
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21. Investments in physical assets (1)
4 types of investments:

To improve the overall performance and sustainability of the holding
•
Aid intensities ranging from 40% to 75% depending on the region
•
Possible higher rates for:
–
Young farmers
–
Collective investments / integrated projects
–
Investments in areas facing natural and other specific constraints
–
Investments linked to agri-environment-climate and organic measures
–
Investments in the framework of European Innovation Partnership

Processing/marketing and development of agricultural products
•
The output of the production process can be a non-agricultural product
•
Aid intensities ranging from 40% to 75% depending on the region
•
Possible higher rates for:
–
Collective investments/integrated projects
–
Investments in the framework of European Innovation Partnership

Infrastructure of agriculture and forestry
•
Access, land consolidation/improvement, energy and water supply and saving
•
Aid intensity up to 100%

Non-productive investments linked to agri-environment-climate objectives
•
Aid intensity up to 100%
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22. Investments in physical assets(2)
Young farmers setting up for the first time:
− Support can be given to comply with Union standards for a
maximum of 24 months from the date of setting up
All farmers:
− Support may be given for investments to comply with new EU
requirements for a maximum of 12 months from the date on
which they become mandatory for the holding
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23. Basic services and village renewal in rural areas

Stimulate growth and promote environmental and socio-economic
sustainability of rural areas, in particular through:
− development of local infrastructure (including broadband, renewable
energy and social infrastructure)
− development of basic services (including leisure, culture and access to
ICT)
− renewal of villages and activities aimed at the restoration and upgrading
of the cultural and natural heritage

Level of support: subject to general State Aid rules

Although no legal restrictions on the type of beneficiary, likely large
involvement of public bodies in implementing operations

Support extended to developing and updating plans for municipalities/villages

Infrastructure supported must be small-scale BUT possible derogation in case
of investments in renewable energy and broadband

New type of support: investments aimed at relocation of activities and
conversion of buildings in view of improving the quality of life or increasing
the environmental performance of the settlement
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24. Co-operation (1)

Purpose: to overcome disadvantages of fragmentation in rural areas…
…. by helping various entities work together with regard to:
− pilot projects / development of new products, practices, processes and
technologies in agri-food & forestry sectors
− short supply chains / local markets
− environment, climate, provision of biomass
− general economic co-operation, development of tourism services
− diversification of farming to various social functions
− non-Leader local development strategies
− drawing-up of forest management plans

Operators can be in different MS / regions

Support can be combined with support from other Union funds on same
territory
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25. Co-operation (2)

"Forms" of co-operation (types of group)
− operational groups of European Innovation Partnership
− clusters & networks
− other (various types of entity)

Eligible categories of cost:
− preparatory studies
− "animation"
− running costs "of the co-operation"
− other "direct costs" of specific projects in certain cases (investment
costs)

In certain circumstances, 2 possible approaches:
− Cover "co-operation" costs with art. 36, other costs with other
measures
− Provide all support through art. 36
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26. Animal welfare

Contributing to the improved quality of life of livestock
─ The EU support compensates for going beyond the compulsory
standards.
─ Compensation for additional cost or income foregone
(compensation for a part or all the costs incurred).
─ The maximum aid intensity is 500 € per livestock unit.
─ The commitments can be undertaken for a period of a
minimum of one year, which is renewable up to seven years.
─ Farmer must be identified as active farmer.
─ The higher animal welfare methods respond to a
consumer demand for products produced in a manner
closer to the natural needs of animals.
─ The EU supported animal commitments
should improve the condition of
livestock in clearly measurable and controllable manner.
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27. Forestry measures

Contributing to the sustainable management of forests.

Simplified support: One measure (article 22) covering
the following sub-measures:
-
Afforestation and creation of woodland
-
Establishment of agro-forestry systems
-
Prevention and restoration of damage to forests from forest fires and natural
disasters and catastrophic events
-
Investments improving the resilience and environmental value of forest ecosystems
-
Investments in forestry technologies and in processing, mobilising and marketing of
forest products
 This simplification allows beneficiaries to implement integrated projects with
increased added value.

Forest-environment payments for going beyond the mandatory
requirements.
-
Forest-environmental and climate services and forest conservation
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28. Forestry – more accessible and stronger EU support

New concept of beneficiaries
-

The main objective is to provide support to the person/entity managing
the forest.
New types of support
-Preventive actions against pests and diseases.
-Conservation and promotion of genetic resources.
-The use of grazing animals in prevention of forest fires.
-Mobilising of wood.
-Support for purchase of forestry machinery to provide forest management
services to a larger group of forest owners.

Forest Management Plan (FMP)
-Information from the FMP is requested for all forestry support. This information
is required from beneficiaries exceeding the size limit set by the Member State.
-Support is available under the Rural Development policy for a preparation of the
FMP.
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29. Forestry – payments

Payments:
- Establishment costs and maintenance support up to 100 %
(area-based or standard costs-based payments).
- Investment support is paid 40-70 % of the total costs.
- Forest, environmental, climate services and forest conservation
payments may be granted as a flat-rate or one-off payment for
going beyond the mandatory requirements.
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30. Tentative calendar for the NEW CAP
26 June 2013
Dec/Jan 2013/14
Jan/Feb 2014
April 2014
May 2014
1 January 2015
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31. Transitional rules (1)
Content
1.No new legal commitments after 2013 on:


early retirement
meeting standards
2.Possibility of extension of on-going commitments until end 2014:



Agri-environment
Animal welfare
Forest-environment
3.Use of current technical assistance to prepare the new period:



Ex-ante evaluation of new programs
Preparatory cost for local development strategies
Activities for a smooth transition
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32. Transitonal rules (2)
 New legal commitments can be allowed to be undertaken under old
rules (Reg. 1698/2005) until the adoption of new programmes:
−
−
−
−
−
LFA
Natura 2000 and WFD
Agri-environment
Animal welfare
Forest-environment measures
 Member States may continue undertaking commitments for these
measures even after they run out of financial resources of the current
period
 They may do so until the adoption of the new programme
Reason: Cover the possible gap for MS who have used up the current
financial resources but have no sufficiently stabilised programme on
time for the 15 of May 2014 deadline for applications.
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33. Transitonal rules (3)
 For LFA, Agri-environment, Natura 2000 and WFD, Animal welfare and
Forest-environment and for the 2 afforestation measures (only as
regards the annual premium):
 Expenditure after the end of 2015 or before that but after the current
financial resources have been used up, shall be eligible from the new
financial resources
 NB: Co-financing rates of the corresponding new measures apply
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34. Transitional rules (4)
 For Member States that start applying the new programmes in 2014,
the baseline for:
-Agri-environment-climate
-Organic farming
-Natura 2000 and WFD, and
-Animal welfare
 shall be the existing one in 2014.
Reason: New DP and HZ provisions will only enter into force in 2015.
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35. Thank you for
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