1. “Local identity product systems”: instruments in the future EU’s rural development policy
"Local Identity Product (LIP) – sustainable support systems for communities in Europe”
Latvia, February 2012
Chiara Dellapasqua
European Commission
DG for Agriculture and Rural Development
Unit G.1 Consistency of rural development

2. 1. The EU’s rural development policy: a new framework
Focus: the EU’s rural development policy approach to foster food chain organisation
and local development
3. Overview of key measures and networking 2 2

3. The EU’s rural development policy:
a new framework

4. Rural development: what’s new?
Single framework for CSF funds - simplification and harmonisation of rules
Common Strategic Framework and Partnership Contract
Performance review based on milestones and ex ante conditionalities
6 priorities for rural development translating EU2020
3 cross-cutting themes: Innovation, Environment, Climate Change
Reinforced strategic approach to programming
Quantified targets at programme level linked to priorities
Streamlined tool-kit of measures to be combined in relevant packages to address priorities and achieve targets
Possibility of thematic sub-programmes
European Innovation Partnership ‘Agricultural productivity and sustainability’ 4

5. Rural development in a new framework
Europe 2020 strategy
Common Strategic Framework (CSF)
– covering the EAFRD, ESF, Cohesion Fund and EMFF, and reflecting EU2020 through common
thematic objectives to be addressed by key actions for each of the funds
Partnership Contract
– national document outlining the intended use of the funds in the pursuit of EU2020 objectives
Rural development
policy: EAFRD
Other CSF funds
(ERDF, ESF, CF, EMFF)
Innovation, Environment and Climate Change as cross-cutting themes
Promoting social
inclusion,
poverty reduction
and economic
development
in rural areas
Enhancing
competitiveness
of all types of
agriculture
and farm viability
Promoting
food chain
organisation
and risk
management
in agriculture
Restoring,
preserving and
enhancing
ecosystems
dependent on
agriculture and
forestry
Promoting resource
efficiency and
supporting the shift
towards a low carbon
and climate resilient
economy in
agriculture, food
and forestry sectors
Fostering
knowledge
transfer and
Innovation in
agriculture,
forestry and
rural areas
Priorities
Rural Development Programme(s) 5 5

6. The single Regulation for CSF funds
To simplify and harmonise policy delivery of complementary funds to the benefit of administrations and applicants
To optimise synergies, effectiveness and efficiency - while allowing sufficient flexibility for each policy to fulfil its own mission
Common set of basic rules for all CSF funds:
Common elements of strategic planning and programming
Common thematic objectives derived from the EU and translated into the Union priorities specific to each Fund
Common Strategic Framework and Partnership Contracts
Common provisions on ex ante conditionalities and performance review
Harmonisation of rules, to the extent possible, concerning monitoring, reporting and evaluation, implementation and control requirements
Eligibility rules, financial instruments, community led local development (Leader)

7. The Common Strategic Framework (CSF)
EU strategic document: replaces Community strategic guidelines for rural development
Ensures a concentrated action and coordination of the CSF funds to translate the EU2020 objectives and targets into key actions
Establishes:
thematic objective the key actions
key territorial challenges for urban, rural, coastal areas
cross-cutting principles (non discrimination, sustainable development)
how the funds complement each other to meet EU 2020
mechanisms to ensure coherence and consistency with economic policies of the Union.

8. Partnership contract (PC)
National document prepared by the Member State with the involvement of partners and approved by the Commission following assessment and dialogue with the Member State
Sets out the Member State's strategy, priorities and arrangements for using the CSF Funds in an effective and efficient way:
alignment with EU2020 strategy (e.g. analysis of development needs, results and indicative financial allocations per Fund)
integrated approach to territorial development (urban/rural) and specific needs or areas or groups affected by poverty or exclusion
effective implementation (including partnership)
efficient implementation, including administrative capacity and reduction of administrative burden for beneficiaries
Contains milestones and targets established in programmes for the performance framework
Contains a summary of the assessment of the fulfilment of ex ante conditionalities and actions to be taken where these are not fulfilled

9. The rural development programmes: key elements
Analysis of the strengths, weaknesses, opportunities and strengths (SWOT) around the priorities for rural development and identification of the needs that have to be addressed
Drawing up the strategy – reinforced strategic approach:
Setting quantified targets against the rural development priorities and associated areas of intervention
Choosing relevant measures that can be combined into packages to achieve the targets with a sound intervention logic
Allocating financial resources to the measures in a balanced and adequate way to achieve the targets set
Integrating the cross-cutting themes of innovation, climate change and care for the environment into the programme based on the needs identified
Possibility of designing thematic sub-programmes with higher support rates, e.g. to address the needs of young farmers, small farmers, mountain areas, short supply chain
Financial and indicator plans

10. 2. Focus: the EU’s rural development policy approach
to foster food chain organisation
and local development

11. Food chain as a priority area
Priority 3: Promoting food chain organisation and risk management in agriculture
better integrating primary producers into the food chain through quality schemes, promotion in local markets and short supply circuits, producer groups and inter-branch organisations
Definition of short supply chain:
“a supply chain involving a limited number of economic operators, committed to co-operation, local economic development, and close geographical and social relations between producers and consumers.” 11

12.  Member States allowed flexibility to provide definitions
What is “local”?
“Local” can have different meanings depending on the Member State or region:
Specific geographic area where both producers and consumers live
Degree of trust and co-operation between the actors who are working together to create a more sustainable food system
Decentralised models of governance, which encourage local empowerment, countering the power of the globalised food systems
 Member States allowed flexibility to provide definitions 12

13. Possibilities offered by programming instruments
Thematic sub-programmes
Combination of relevant measures based on a SWOT analysis and addressing specific local needs, e.g.:
Co-operation
Setting up of producer groups
Quality schemes for agricultural products and foodstuffs
Basic services and village renewal in rural areas
Investments in physical assets
Leader
The CSF and the Partnership Contract as a framework to capitalise on complementarities and synergies with other EU funds and build a more focused local approach

14. Thematic sub-programmes (TS)
Member States may include within their rural development programmes thematic sub-programmes, contributing to the Union priorities for rural development
Aimed to address specific needs identified, in particular in relation to:
(a) young farmers;
(b) small farms;
(c) mountain areas;
(d) short supply chains
An indicative list of measures and types of operations of particular relevance to each thematic sub-programme is set out in the Annex to the rural development Regulation
Support rates may be increased by 10% for operations supported in this framework concerning small farms and short supply chains
Based on the Segira study 14

15. Thematic sub-programmes (TS)
Each thematic sub-programme shall include:
a specific analysis of the situation in terms of SWOT and identification of the needs that have to be addressed by the TS;
specific targets at TS level and a selection of measures, including an assessment of their expected contribution to achieve targets;
a separate specific indicator plan, with planned outputs and expenditure.
 Possibility of “Local Identity Product” thematic sub-programme 15

16. 3. Overview of key measures
and networking

17. Streamlined set of measures
Continuity with respect to the present programming period, but:
Reduced number of measures (grouping based on typology of interventions) to simplify financial management
Fine-tuning (eligibility conditions, scope, etc.) to address bottlenecks in implementation
New measures to cover emerging needs (e.g. risk-management tool to address economic and environmental production risks, cooperation and start-up toolkit for LEADER)
Flexibility in the choice of measures within any priority to fully exploit their possible synergetic effects towards the established targets 17

18. Rural development measures:
a) Skills and concept development; quality promotion
Knowledge transfer and information actions
Wide range of topics: legal expertise on hygiene regulations for direct sales, accountancy skills/bookkeeping and public procurement, innovative and more sustainable methods of production to better meet consumer expectations
Workshops, coaching, demonstration activities, information
Short-term farm exchange or visit schemes
Advisory services, farm management and farm relief services
Advice related to a wide range of agricultural, environmental and economic issues; drawing up of a business plan/ concept
Quality schemes for agricultural products and foodstuffs 18

19. Rural development measures b) Investment and local infrastructure
Investment in physical assets
On-farm investment in e.g. farm shops or facilities to prepare and store products, new and higher added value products, local infrastructure (including broadband), infrastructure for direct sales
Higher support rates available for:
young farmers
collective investments / integrated projects
investments in areas facing natural constraints
investments in framework of European Innovation Partnership
Basic services and village renewal
Market places, local basic services such as educational facilities, training facilities, etc, that could be relevant to strengthen the value chain 19

20. Rural development measures: c) Developing farms and businesses
Farm and business development
Setting-up aid for:
Young Farmers
Non-agricultural activities in rural areas
Development of small farms
Investments in non-agricultural activities
Support for farm restructuring
What’s new?
Current support for semi-subsistence farms increased, extended to all "small" farms in EU (defined by Member States)
Support for further development of non-farm businesses in rural areas extended from micro- to small businesses
Restructuring aid to encourage small farmers to transfer farm 20

21. Rural development measures
d) Cooperation of different partners and facility sharing
Co-operation
Development of new products, practices, processes and technologies; pilot projects
Co-operation among small operators in organising joint work processes, sharing facilities and resources, e.g. co-operative shops and specialist retailers selling directly to consumers, box schemes, joint storage and distribution platforms along the supply chain
Horizontal and vertical co-operation between supply chain actors, e.g. local markets, run by groups of farmers or local traders; annual events, such as local food festivals
Local promotion activities related to short supply chains
Local development strategies outside the scope of Leader
Setting-up of producer groups
Support for SMEs in annual instalments for the first 5 years 21

22. Rural development measures
d) Cooperation of different partners and facility sharing
Prize for innovative, local cooperation
Awarded to cooperation projects involving at least two entities located in different Member States that realise an innovative, local concept
Leader: making it fit to better serve innovation and local governance
Valorisation of regional potential and landscape maintenance, including small-scale projects, collective marketing techniques, farmers’ markets
Leader approach strengthened across EU funds
Common provisions on community led local development
Considerable scope for ensuring that local partnerships are free to use these EU funds in a coordinated way
Selection committee for a ‘multi-fund’ local development strategy to decide whether to designate a "lead fund"
Preparatory support
“LEADER start-up kit” and support for small pilot projects
Capacity building, training and networking with a view to preparing and implementing a local development strategy 22

23. EIP on Agricultural Productivity and Sustainability
Aimed at promoting resource efficiency, building bridges between research and practice and generally encouraging innovation
Acts through operational groups responsible for innovative projects and is supported by a network
Operational groups: bringing together farmers, researchers, advisors, businesses and other actors concerned by innovation in the agricultural sector
The EAFRD contributes through:
Support for the EIP operational groups and the EIP Network
Other rural development measures, e.g. Co-operation, Investment in physical assets, Business development, Knowledge transfer and Farm Advisory Services
Following endorsement by Council and European Parliament, establishment of Steering Board during first trimester of 2012
EIP Network to be set-up in the second half of 2012
EIPs concept: Challenge-driven solutions that:
– provide EU value added
– pursue a cross-sectoral approach
– adapt and streamline innovation-related measures into a coherent framework
− foster communication among stakeholders and workable links between science and practice

24. Networking European network for rural development - aims to:
increase the involvement of stakeholders in policy implementation
improve the quality of rural development programmes
play a role in informing the broader public
European evaluation network for rural development – aims to:
facilitate the exchange of expertise/good practices on evaluation methodologies
develop evaluation methods and tools
provide support on evaluation processes, data collection and management
EIP network
to enable the networking of operational groups, advisory services and researchers

25. The reinforced roles of NRNs at all levels
Involvement of stakeholders in programme design
Support for monitoring
Provision of trainings
Collection of examples of projects
Studies and analysis
Support for LAGs and Cooperation
Exchange of practice among advisers / advisory services
Networking activities for innovation
Publicity / information aimed at beneficiaries and broader public
Support to process in selecting winner for prize for innovation

26. For further information
CAP Health Check
EU agriculture and CAP reform
EU rural development policy
Agricultural Policy Analysis and Perspectives

27. Thank you!