“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, 15-18 February 2012 Chiara Dellapasqua European Commission DG for Agriculture and Rural Development Unit G.1 Consistency of rural development

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

The EU’s rural development policy: a new framework

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

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

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 2020 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)

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.

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

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

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

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

 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

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

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

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

3. Overview of key measures and networking

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

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

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

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

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

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

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

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

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

For further information CAP Health Check http://ec.europa.eu/agriculture/healthcheck/index_en.htm EU agriculture and CAP reform http://ec.europa.eu/agriculture/index_en.htm EU rural development policy 2007-2013 http://ec.europa.eu/agriculture/rurdev/index_en.htm Agricultural Policy Analysis and Perspectives http://ec.europa.eu/agriculture/analysis/perspec/index_en.htm

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