LITHUANIAN RURAL DEVELOPMENT PROGRAMME FOR Agnė Prakapienė Chief specialist of Division of Environment and Ecological farming Resource of Quality policy Department, Ministry of Agriculture, Lithuania 10 April 2013

2 GENERAL INFORMATION ABOUT LITHUANIA Population: 3 mill Ethnic composition: Lithuanians: 83.5%, Poles: 6.7%, Russians: 6.3%, Belorussians: 1.2%, other: 2.3%. There are 115 ethnicities in total in Lithuania Area: 65,3 thous. sq. km Largest cities according to the population (thous.): Vilnius (553,200), Kaunas (373,700), Klaipėda (191,600), Šiauliai (132,700), Panevėžys (118,800). Administrative division: 10 counties, 60 municipalities, 546 elderships. Language: Lithuanian Independence: declared: 16 February 1918 restored: 11 March 1990 Political system: Parliamentary democracy; Currency: Litas (3,45 LTL = 1 Euro) Membership: EU, NATO Lithuania joined NATO 29 March 2004, and on 1 May 2004 it became a member state of the EU.

3 NATURE OF LITHUANIA Seaboard: ~ 90 km. Forest area: 1972,2 thous. ha (covers 32,4 % of territory). Woodlands: cover 31,7 % of territory. Protected landscapes: cover 12 % of territory. Regional parks and nature reserves: covers 30 % of territory. There are: 722 rivers (21 of them are longer than 100 km); more than 3 th lakes (they cover up to 1.5 % of territory).

SCENERY OF LITHUANIA

5 5 INFORMATION ABOUT RURAL AREAS OF LITHUANIA 2006 (2011) Area of utilised agricultural land : 2790,6 (2805,9) thous. ha (it covers ~ 42,7 (43,0) % of all registered land. L ess-favoured area covers 50 % of the total utilized agricultural area in Lithuania ). Area of arable land: 1877,8 (2185,7) thous. ha (it covers 67,3 (77,9) % of utilised agricultural land and 28,8 (33,5) % of all registered land). Meadows and natural pastures: 876,3 (589,3) thous. ha (it covers 31,4 (21,0) % of utilised agricultural land and 13,4 (9,0) % of all registered land). Orchards and berry plantations: 35,2 (29,2) thous. ha (it covers 1,3 (1,0) % of utilised agricultural land and 0,5 (0,4) % of all registered land).

6 FARMS AND LAND AREA IN LITHUANIA CategoriesNumber of farms Land area, 1000 ha Of which an agricultural land, 1000 ha Average size of farm, ha Land area Agricultural land Period Total number of farms ,2 3085,6 2659,8 2764,3 12,6 8,5 11,6 7,6 Farmers’ and family farms * 2537,5 2622,6* 2300,5 2393,8* 11,0 13,2* 10,0 12,0* Agricultural companies, joint-stock, close joint-stock companies and other enterprises engaged in agricultural activity * 370,7 381,0* 359,3 370,1* 665,5 589,8* 645,1 572,9* * data only about farms larger than 1ha. Information source: The Department of Statistic (The Farm Structure Survey, 2007; Results of the agricultural census of the Republic of Lithuania 2010). Information source: The Department of Statistic (The Farm Structure Survey, 2007; Results of the agricultural census of the Republic of Lithuania 2010).

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8 Rural development policy : Measures « LEADER Axis » (5%): integrated, bottom/up, innovative Axis 1: Competitiveness 10%: Axis 2: Environment and Land Management (25%): Axis 3: Diversification and quality of life (10%): EAFRD: European Agricultural Fund for Rural Development - Farm modernisation - Processing - Infrastructure - Natural disaster aid - Training - Less favoured areas - Natura Agri-environment - Forestry measures - Diversification, tourism - Micro-enterprises - Village renewal - Basic services EU support for member states: measures of the RD policy

9 Axis and Objectives thereof AXIS I: Improving the competitiveness of the agricultural and forestry sector Objective: To improve environment and landscape through rational use of land resources and promotion of sustainable development of agriculture and forestry AXIS IV: Leader Tasks 1.1. Improvement of infrastructure of farms and forestry holdings; 1.2. Modernization, implementation of modern technologies and innovations, improvement of product quality and marketing; 1.3. Strengthening of human potential. Tasks 2.1. Encouragement of environmentally friendly farming practice; 2.2. Reduction of climate change; 2.3. Preservation of biodiversity and support of farming. Tasks 4.1. Encouragement of local initiative, partnership, cooperation; 4.2. Development of human resources in order to achieve successful development and implementation of the strategies of LAG as the outcome of education of communities Objective: To develop modern and competitive agri-food and forestry sectors AXIS II: Improving the environment and the countryside Objective: To promote rural development and develop community character through local initiatives and partnership AXIS III: The quality of life in rural areas and diversification of rural economy Tasks 3.1. Founding of alternative income sources and working places in rural areas; 3.2. Improvement of physical and social rural infrastructure. Objective: To improve the quality of life and increase the employment of rural population in rural areas Global objective for Rural Development Strategy of To ensure growth through improving competitiveness of agri-food and forestry sectors as well as creating possibilities for diversification of economic activities and improving the quality of life in rural areas, meanwhile enhancing the existing environmental, human and other values and reducing disparities between rural and urban areas as well as separate regions Funds: European Agricultural Fund for Rural development, European Regional Development Fund, European Social Fund, European Cohesion Fund

IMPLEMENTATION OF AXIS 2 PRIORITIES II.1.Environmentally friendly farming practices II.1.1. Agri-environmental measures: II Landscape management II Shore belts of surface water bodies II Rare Breeds II Soil liming (chalking) II Water bodies at risk II Organic farming II.1.1. Agri-environmental measures: II Landscape management II Shore belts of surface water bodies II Rare Breeds II Soil liming (chalking) II Water bodies at risk II Organic farming II.2.Mitigation of climate change II.3.Preservation of biodiversity and development of high nature value and traditional agrarian areas II.2.1. Afforestration II.2.2. Restoring forestry potential II.2.1. Afforestration II.2.2. Restoring forestry potential II.3.1. Natura 2000 territories II.3.2. Farming in LFA II.3.1. Natura 2000 territories II.3.2. Farming in LFA Overall objective Specific objectives Measures of RDP To improve the environment and landscape through rational use of land resources and promotion of sustainable development of agriculture and forestry Lisabon Strategy (to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion) – all measures of Axis 2 contributes to the implementation. Goteberg strategy (environmental dimension ): measures II.2.1., II.2.2, II

11 The amount of the EU’s support 1 milliard 766 mill. EUR + co-financing form the national budget 521 mill. EUR, TOTAL: 2 milliards 287mill. EUR DISTRIBUTION OF THE RESOURCES OF EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT AND OF THE NATIONAL BUDGET FOR 2007–2013

12 TOTAL FOR AXIS – 802,5 mill. EUR TOTAL FOR AXIS – 802,5 mill. EUR SUPPORT FOR MEASURES OF AXIS II FOR THE PERIOD OF

13 The following measures, which are undertaken by entities on a voluntary basis, are applied in Lithuania under the Rural Development programme : - Landscape stewardship scheme - Organic farming scheme - Rare Breeds scheme - Improving the status of water bodies at risk - Environmentally friendly fruits and vegetables cultivation system (started from 2012)

14 Objectives of agri-environmental measures under the Rural Development Programme: – to encourage the sustainable use of natural resources and soil – to preserve the biodiversity and stability of activity in ecosystems – to conserve natural slopes of water bodies – to preserve and duly maintain natural and semi-natural grasslands as well as use wetlands in a sustainable manner – to reduce the negative impact of agricultural activities on environment

Landscape stewardship scheme 15

16 Objectives of the Scheme: – to preserve the biodiversity through due maintenance of natural and semi-natural grasslands and wetlands – to continue or re-establish extensive farming systems in grasslands and wetlands – to reduce the intensity of farming in heavily exploited grasslands – protection of water bodies against pollution from agriculture

17 The Landscape Stewardship Scheme is composed of the following activities: 1. Management of natural and semi-natural meadows (98 EUR/ha) 2. Management of wetlands (229 EUR/ha (for other than farming land) and 168 EUR/ha (for farming land)) 3. Management of bank protective belts of water bodies in meadows (109 EUR/ha) 4. Protection of water bodies against pollution and soil erosion on the arable land (160 EUR/ha) 5. Stubbly field in winter season (145 EUR/ha) 6. Strips or plots of melliferous plants in arable land (62 EUR/ha) 7. Management of landscape elements in holdings (437 EUR/ha) 8. Management of reclamation ditches (100 EUR/ha /from 2012 for new beneficiaires150 EUR/ha)

18 ORGANIC FARMING Organic farming helps in harmonising the economic objectives of production activities led by economic entities and the environmental objectives (demands) of the public. Old farming traditions that used to spare environment are fostered by this style of farming, which also helps preserving the authentic agrarian landscape.

19 ELIGIBILITY CRITERIA AND REQUIREMENTS FOR SUPPORT IN ORGANIC FARMING: Crops have to be declared annually. Applicant has to participate in the organic farming scheme for at least 5 years. The organic produce has to be placed on the market.

20 AID INTENSITY (I) Support is granted for certified and declared areas, used for producing organic agricultural products: - for grain crops – EUR 215/ha; - for perennial grass – EUR 127/ha. 1)Payments will only be made available to stock-keepers certified under the requirements of Council Regulation (EEC) No. 2092/91 of 24 June 1991 on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs (as last amended and supplemented by Commission Regulation (EC) No. 2254/2004 of 27 December 2004) OL 2004 L 385, p. 20 and of the Rules for Organic Farming, for the area of perennial grass of a maximum of 3 ha per one livestock unit;

21 AID INTENSITY (II) 2) Seed growing holdings certified in accordance with the requirements of Council Regulation (EEC) No 2092/91 of 24 June 1991 and Commission Regulation (EEC) No 1452/ August 2003 and Organic farming regulations for parcels used for organic seed growing. - for vegetables, potatoes – EUR 440/ha; - for herbs – EUR 489/ha; - for berries and for gardens – EUR 516/ha. Payments are made for organic farming and farming in transition.

Number of organic farms and certified AREA SERIES M. (WITH FISH FARMS)

RARE BREEDS SCHEME The objective of this measure is to promote keeping and breeding of the old local endangered breeds of native domestic animals and birds. 23

Support is granted for rare Lithuanian breeds - for Žemaitukai horses –198 EUR per horse; - for Big Žemaitukai horses) –198 EUR per horse; - for Lithuanian Weighted horses –191 EUR per horse; - for Lithuanian Ash-Grey cattle) –180 EUR per cattle unit; - for Lithuanian White-Backed cattle –180 EUR per cattle unit; - for Lithuanian Rufous and Black and White cattle (local genotype)- EUR 180 per cattle unit; - for Lithuanian White pigs (old genotype) – 65 EUR per pig; - for Lithuanian Native (Wattle) pigs – 65 EUR for per pig; - for Lithuanian Coarse-wooled sheep –28 EUR per sheep; - for Lithuanian Blackhead sheep (old genotype) – 28 EUR per sheep; - for Chicken geese – 3 EUR per Chicken goose. 24

Support is granted for rare Lithuanian breeds - for Žemaitukai horses – 198 EUR per horse. 25

Support is granted for rare Lithuanian breeds - for Big Žemaitukai horses EUR per horse. 26

Support is granted for rare Lithuanian breeds - for Lithuanian Weighted horses EUR per horse. 27

Support is granted for rare Lithuanian breeds - for Lithuanian Ash-Grey cattle –180 EUR per cattle unit. 28

Support is granted for rare Lithuanian breeds - for Lithuanian White-Backed cattle EUR per cattle unit. 29

Support is granted for rare Lithuanian breeds - for Lithuanian Rufous and Black and White cattle (local genotype) – 180 EUR per cattle unit. 30

Support is granted for rare Lithuanian breeds - for Lithuanian White pigs (old genotype) - 65 EUR per pig. 31

Support is granted for rare Lithuanian breeds - for Lithuanian Native (Wattle) pigs - 65 EUR for per pig. 32

Support is granted for rare Lithuanian breeds - for Lithuanian Coarse-wooled sheep – EUR 28 per sheep. 33

Support is granted for rare Lithuanian breeds - for Lithuanian Blackhead sheep (old genotype) – EUR 28 per sheep. 34

Support is granted for rare Lithuanian breeds - for Chicken geese – EUR 3 per Chicken goose. 35

36 IMPROVING THE STATUS OF WATER BODIES AT RISK

SCHEME FOR IMPROVING THE STATUS OF WATER BODIES AT RISK The objective of the scheme is to help achieve good status of water bodies that by especially big negative impact of farming - pollution of water with nutrients, organic substances - are at risk not to achieve good status till 2015 (as is required by Water Framework Directive 2000/60/EC and Water Law of Lithuania). 37

38 The scheme of improving the status of water bodies at risk is aimed at reducing the amounts of nitrogen and phosphorus in water bodies resulting from fertilization and soil erosion in adjacent fields. (Income foregone resulting from the conversion of arable land into a permanent pasture (meadow) – 118 EUR/ha.)

ENVIRONMENTALLY FRIENDLY FRUITS AND VEGETABLES CULTIVATION SYSTEM This program started from The aim of the system is to encourage farmers growing fruit and vegetables to introduce environmentally friendly production technologies and reduce environmental pollution. 39

The growing of fruits, vegetables and berries under this system is an important tool for improvement of environmental protection while allowing farming. Environment-friendly technologies help to retain and improve quality of soil, reduce water pollution, secure the stability of the eco-system and biodiversity. 40

41 ENVIRONMENTALLY FRIENDLY FRUITS AND VEGETABLES CULTIVATION SYSTEM AID INTENSITY Support is granted per hectare under this scheme: - for vegetables and potatoes – 316 EUR/ha; - for currants plantations – 336 EUR/ha; - for orchards and berry plantations – 344 EUR /ha.

Declared area, ha 214. Agri-environment payments , , , , , ,05 Landscape stewardship scheme , , , , , ,21 Management of shore protective belts of water bodies in meadows 016,726,8130,4821,3510,66 Protection of water bodies against pollution and soil erosion on the arable land 05,433,43 3,410 Management of natural and semi- natural meadows , , , , , ,17 Management of wetlands 732,67881, , , , ,93 Stubbly field in winter season , , , , ,81 Management of reclamation ditches 011,3730,3431,5625,6929,54 Strips or plots of melliferous plants in the arable land 03,886,948,844,220,96 Management of the holding landscape elements 01,008,960,6712,1619,14 Organic farming scheme , , , , , ,09 Scheme for improving the status of water bodies at risk 0475,89308,39383,68480,79664,58 Environmentally friendly fruits and vegetables cultivation system 2.801,17

PREPARATION FOR LITHUANIAN RURAL DEVELOPMENT PROGRAMME 2014–2020

44 Measure Agri-environment- climate

45 The measure Agri-environment- climate will consist of the following schemes or activities: - Management of natural and semi-natural meadows - Management of specific grasslands - Management of wetlands - Management of Stubble fields in winter season - Management of protection of water bodies against pollution and soil erosion on the arable land - Management of „Sink hole” - Management of reclamation ditches - Scheme for soil and water conservation - Scheme for improving the status of water bodies at risk. - Environmentally friendly cereal, fruits and vegetables cultivation system - Rare Breeds Scheme - Conservation of genetic resources in agriculture Scheme - Farm Management Plan Scheme

46 Support may be provided only for those liabilities which exceeded following basic requirements: - The cross-compliance requirements (statutory management requirements GAEC); - I pillar greening measures (crop rotation, ecological objectives for the area of permanent pasture) requirements; - mandatory requirements for fertilizer and plant protection product use and other relevant national law to establish mandatory requirements. Specific activity and specific requirements will be specified, in agreement with environmentalists.

ORGANIC FARMING In the new programming period will remain a priority for Organic Farming. The level of support will depend on organic farm direction and size. For example mixed farms certifying crop production and livestock keeping certified, could be encouraged intensive. This type of farms is a closed production cycle that organic farming is necessary. In addition, these farms create higher added value per unit of production than one direction farms. Gardening and horticulture organic farms would be the second priority. Development of organic horticulture and crop Lithuania conditions are right, but in the field of production quantities are small. 47

Thank you for Your kind attention! Ministry of Agriculture of Lithuania