How the proposed new delivery model for the CAP will provide the ground for the further development of Smart Villages’ approaches? Beata Adamczyk European Commission, DG Agriculture and Rural Development F1 – Conception and consistency of rural development Brussels, 29 January 2019

The CAP Strategic Plans proposal 2

STATE OF PLAY Legal proposals for the CAP post 2020 adopted by the Commission on 1 June 2018; Ongoing discussions as part of the legislative procedure; Proposal provides for a date of application as of 1 January 2021. 3

CONTEXT The Communication on the Future Food and Farming: To sharpen the CAP responses to the challenges and opportunities; To modernise and simplify the CAP; To deliver more subsidiarity to Member States; To ensure a more resilient agricultural sector; To increase the environmental ambition of the CAP. 2021-2027 budget: €365 billion (CAP) €10 billion (Horizon Europe: food, agriculture, RD, bio-economy) 4

NEW DELIVERY MODEL CAP Strategic Plans: bringing together the two agricultural funds in a single strategic framework; A single set of common objectives for the whole CAP; Shift from compliance & rules towards results & performance; Basic rules & broad types of interventions at EU level; Subsidiarity: Member States will decide how to best meet the common objectives and respond to specific needs (identification of needs, selection of interventions, target setting, responsibility for the implementation, ‘partnership principle’); Common set of result indicators at EU level to assess the effectiveness of support used; Performance assessment. 5

CAP GENERAL OBJECTIVES To foster smart, resilient and diversified agricultural sector ensuring food security; To bolster environmental care and climate action; To strengthen the socio-economic fabric of rural areas. A cross-cutting objective: To modernise the sector by fostering and sharing knowledge, innovation and digitalisation in agriculture and rural areas and encouraging their uptake 6

INNOVATION, KNOWLEDGE AND DIGITISATION KNOWLEDGE AND INNOVATION Knowledge & innovation prominent place in the CAP delivery model; Modernization of CAP: Art. 102; A section in CAP Strategic Plans on how to stimulate and fund knowledge, innovation and digitalisation in agriculture and rural areas; €10bn from the Horizon Europe programme supporting research and innovation in food, agriculture, rural development and the bio-economy. DIGITISATION Strategy for the development of digital technologies in agriculture and rural areas; Encouraging the digitization of rural life, on farms (through precision farming techniques) and in the wider communities; Member States encouraged to use big data and new technologies for controls and monitoring ("area monitoring system", GSA, pre-fill of applications…). European Innovation Partnership (EIP) to stimulate the exchange of knowledge and innovation; Farm Advisory Services (FAS) to improve the sustainable management and performance of agricultural holdings and rural businesses, covering economic, environmental and social dimensions; Agricultural Knowledge and Innovation Systems (AKIS) to deliver up to date technological and scientific information developed by research and innovation. EIP FAS AKIS 7

COMMON CAP SPECIFIC OBJECTIVES competitiveness rebalancing power in food chain viable income & farm resilience climate change action 9 specific CAP OBJECTIVES 9 CAP specific objectives: Economic issues Environment and climate Consumers and rural areas sustainable resource management citizens’ concerns: food & health preservation of landscapes & biodiversity vibrant rural areas generational renewal 8

RURAL DEVELOPMENT 8 types of interventions € 78.8 billion Area-specific disadvantages resulting from certain mandatory requirements € 78.8 billion Knowledge exchange and information Payments for natural or other area-specific constraints Ring-fencing: 30% for interventions addressing the 3 environmental/ climate objectives 5% for LEADER 8 types of interventions Installation of young farmers and rural business start-up Environmental climate and other management commitments Option to transfer up to 15% of CAP allocations between the pillars Risk management Investments Co-operation 9

Support options for Smart Villages 10

SMART VILLAGES IN THE CAP PROPOSAL Recital 9: structural problems in rural areas (employment opportunities, skill shortages, underinvestment in connectivity, infrastructures and essential services, youth drain); Recital 44: provision of support for Smart Villages; Result Indicator: Digitizing the rural economy: Rural population covered by a supported Smart Villages strategy. 11

SMART VILLAGES IN THE FUTURE CAP Smart Villages will be defined by Member States in CAP Strategic Plans; Flexibility for using the concept in different national/regional/local contexts; Smart Villages can have different features under different circumstances; Support for a broad range of actions, including those implemented through LEADER; Possible combination of funding from public and private sources. 12

SUPPORT THROUGH THE CAP STRATEGIC PLAN SWOT analysis and assessment of needs; Member States will design relevant interventions and set targets; Contribution to one or more of the 9 CAP objectives; Several RD types of interventions: e. g. “smart villages intervention” under cooperation, knowledge exchange and information, investments; Possibly combined with other interventions such as broadband, digital solutions, LEADER, etc. 13

THE SMART VILLAGE APPROACH To be defined by Member States; Specific eligibility or selection criteria to be defined by Member States; Keep approach simple and build on existing structures, strategies, governance, civil society initiatives, partnerships; Ensure strategic, citizen-based participatory approach. 14

Next steps 15

NEXT STEPS – PREPARE FOR THE FUTURE Raise awareness for the inclusive potential of the Smart Villages concept European Network for Rural Development (ENRD) plays a crucial role in bringing stakeholders and policy-makers together. Share knowledge and experience Pilot project on Smart Eco-Social Villages; Upcoming preparatory action on smart rural areas in the 21st century. Find best ways of promoting and supporting Smart Villages in CAP Strategic Plans. 16

Thank you! 17