Funding Sources of F.A.S (Farm Advisory Services) in EU Member States. (F.A.S Financing in Andalusia. Spain) Workshop on Agricultural Extension Services in the EU Kijev, Ukraine th Feb Carlos Norman Barea. Regional Government of Andalousia. Spain.

Article 12 of the Commission’s Proposal for a Regulation on financing, (Council Regulation (EC) No 73/2009) management and monitoring of the CAP, stipulates that the farm advisory system should cover at least: a) The statutory management requirements for good agricultural and environmental condition of land. b) The agricultural practices beneficial for the climate and the environment as proposed in Commissions proposals on rules for direct payments and rural development. c) The requirements or actions related to climate change mitigation and adaptation, biodiversity, protection of water, animal and plant disease notification and innovation at minimum, as laid down in Annex I to this Proposal for a Regulation. d) The sustainable development of the economic activity of the small farms as defined by the Member States and at least of the farms participating in the small farmers scheme referred to in the Proposal for a Regulation on support for rural development by the European Agricultural Fund for Rural Development (EFARD). e) The farm advisory system may also cover the sustainable development of the economic activity of holdings which are not small farms, according to national legislation.

Source: DG Agriculture and Rural Development Notes: 2011 = Budget; 2012 = Draft Budget; 2013 = EAGF subceiling for direct payments and market-related expenditure + pillar 2 in commitments. Rural development for 2013 includes UK voluntary modulation and Article 136 “unspent amounts”. As these cease to exist end 2013, the corresponding amounts are put back to direct aids as from 2014.

Distribution of Total Budget devoted to measures 114 and 115. Rural Development Programmes Farmers contributions may have co-funding by the EAFRD up to 20 % (measure 114). However, for many farmers this is not sufficient incentive to use the services widely. Spanish authorities request an increased EAFRD contribution, so it could be reduce the cost for farmers. The use of measure 115 is variable but implies lower contribution from EAFRD.

Total Budget devoted to Farm Advisory Services (measures 114 and 115 in the Rural Development Programmes, ) (Mill. Euros)

 Amount available for rural development in = million EUR/year  Allocation by Member State:  Based on objective critieria linked to policy objectives and past performance  Commission will make annual breakdown by Member State, by means of implementing act  0.25% of RD envelope ( million) available for technical assistance => 8.5 million/year => this amount covers also « Prize for local innovative cooperation projects » Rural Development This means a total amount of EUR billion for , of which EUR billion is foreseen for Direct Payments and market-related expenditure (Pillar 1) and EUR billion for Rural Development (Pillar 2) in 2011 prices. Yet, within the current economic and financial climate, these amounts within the MFF show continued strong support for an ambitious agricultural policy which represents 37.8% of the entire ceiling for the period

The Regulation n ° 1305/2013 maintains the possibility for Member States with regional programmes, to present a National Framework and a set of regional programmes, ensuring consistency between national and regional strategies. At the national level, between the decisions taken on the implementation of the CAP in Spain, the sectoral Conference on Agriculture and Rural development of 24 and 25 July 2013 agreed developing a National Framework that collect the common elements of the programmes of rural development in Spain, and that according to the regions constituted working group will be included to the following measures: 1. Agri-environment and climate. 2. Advisory services, management and replacement of agricultural holdings. 3. Organic farming. 4. Areas with natural limitations and other specific limitations; 5. Forestry measures. 6. Investments for the improvement of agricultural holdings. 7. Public infrastructure of irrigation. 8. Processing and marketing of agricultural products. 9. Installation of young farmers. 10. Innovation. 11. LEADER Strategy

(59.3. b)-all regions whose GDP per capita for the period was less than 75 of the average of the EU-25 during the reference period, but whose GDP per capita is higher than of GDP 75 half of the EU-27 Area (sq. km): Population (M Inhabitants): 8,39 M. Agricultural Area (sq km): ,6 Forest surface (sq km): ,1 Agriculture/Forestry Regional share of GDP (%): 4,80% CAP overall budget : ,2 M€ : ,26 M€ Rural Development budget : M€ (FEADER) M€ (Public expenditure) Rural Development budget : M€ (FEADER) M€ (Public expenditure)

The distribution of funds was carried out using economic, environmental and territorial indicators related to the three objectives of the rural development policy: competitiveness of agriculture, sustainable management of natural resources and action for the climate and balanced territorial development. The "hypothesis of integration" of the CAP reform was applied to the process for the allocation of funds for rural development among the Member States. Also ensured that no autonomous region receives less than 90 of their allocation in the period European Agricultural Fund for Rural Development (EAFRD) Andalucía Aragón Asturias, Principado de Balears, Illes Canarias Cantabria Castilla y León Castilla - La Mancha Cataluña Comunitat Valenciana Extremadura Galicia Madrid, Comunidad de Murcia, Región de Navarra, Comunidad Foral de País Vasco Rioja, La Programa nacional TOTAL ESPAÑA The five biggest RDP measures in budgetary terms (total public funding) are: # € 689 million allocated to Measure 4 – Investment in physical assets # € 413 million allocated to Measure 8 - Investment in forest area development and improvement of the viability of forests. # € 328 million allocated to Measure 10 – Agri-environment- climate # € 258 million allocated to Measure 19 – LEADER # € 201 million allocated to Measure 11 – Organic farming

Andalusia's RDP will fund actions under all six Rural Development priorities – with a particular emphasis on "Promoting the competitiveness of the agricultural and agro-industry sector" and "Restoring, preserving and enhancing ecosystems related to agriculture and forestry.".With six main priorities:

. FARM Advisory/Extension (FAE). TOTAL: 57 Average: 1531 km2/FAE.; 20 people/FAE.; CONCEPT STAFF EXPENSES CURRENT EXPENSES REVENUES The County Agricultural Offices (OCAs) were, from the opinion of some experts, potentially able to develop such a role as advisory services first, starting during the 80s, and could have been coordinating FAServices later on, during the 90s and after EU regulations related to the compulsory implementation of FAS. However, the daily evolution and the legal framework (within the regions) have shown that duplication and overlap of functions among OCAs and the FAS organizations were growing.

Since 2000, the development and maturity of the agricultural support and services industry can be seen to have given rise to sectoral diversification and the creation of a Local Production System or “cluster”. This agricultural cooperative cluster of Almería including auxiliary businesses of various legal forms and research centers. The agricultural co-operative sector in Almería has received very few subsidies: As a percentage of agricultural subsidies over agricultural income, for 2005: Almería 1.4% as compared to Andalucía, 16.2 %; Spain, 18.2%; and the EU 17.1%. Under such conditions, its cooperative model may be viewed and evaluated based strictly on business efficiencies and its suitability as a business form.

Carlos Norman Barea. Regional Government of Andalousia. Spain. e- mail contact: