Institute of Agricultural Economics and Information CAP as a suport for young farmer Czech experience The project has received funding from the European Union.

Czech agriculture – basic information 2 2 groups of farms - private (including family) farms cultivate 26 % of agriculture land, with an average area of 29 ha - companies and cooperatives cultivate 74 % of agriculture land, with an average area of 1006 ha Average area of Czech farm – 89 ha -resp. 241 ha according to FADN Average area of EU 25 farm – 33 ha Share of organic farms in Czech Republic 10 % (mostly on grassland)

The structure of worker in agriculture and national economy 3

Support negotiated under the EU accesion treaty 2004 – 25% of EU 15 direct payment 2007 – 40% of EU 15 direct payment 2008 – 2013: every year + 10% till 100% of EU 15 Possibility of Top-Ups: + 30% from national resources, max. up to 100% of EU 15 4

Direct payment 5 Nataional resources EU fund

Support of young farmers till 2007 Decline of the direct support to young (starting) farmers after Czech access to EU : 350 mil. Kč : 80 mil. Kč In 2007 – 2009 were supported within the measure more than 900 young farmers, even the lower alocation (i.e. 23% of financial support of the previous period) Allocation 8,21 mil. Euro in 2010 – possibility to support about 200 new young farmers 6

Condition of support to young farmers EAFRD axis I – I.3.2 Setting up of young farmers (code of measure: 112) Single support (i.e CZK) Support to start agriculture business for the first time for farmers below 40 years Necessary to have business plan – investment subsidy Sustainability 5 years – liability to provide minimum economic criteria Often completed with the measure I.3.3. Early retirement from farming (code of measure: 113) 7

Other supports to young farmers Higher support rates and preferences in investment measures: 121 – Modernisation of Agricultural Holdings +10 percentage points (50% in Non-LFA and 60% in LFA) 124 – Development of new products +10 percentage points (50% in Non-LFA and 60% in LFA)

Young Agrarian Society of the Czech Republic (SMA) Mission To advocate and support needs and interests of young farmers and young people living in the country Participation in EU organisations (CEJA, CERYC, ECYF4H) Members must have less than 40 years of age Established in 1999 NGO 9

SMA Activities Educational and information activities Policy and lobbying activities Consultancy activities Social activities Foreign activities / cooperation, exchange of experience Number of members in: 2001 – cca 150 members 2003 – cca 250 members Till 2006 – cca 500 members 10

SMA recommendation for future Investments oriented to standards of cross compliance (especially investments in animal welfare, nitrate directive); Target to cut-down of administration load; Full decoupling; Restructuring of production; farmers orientation on market; Small farm orientation on diversification, agrotourism, bioenergy etc. and hobby farming; Large farm orientation on high productivity of production (incl. some kind of environmental services); 11

Our recommendation Higher preferences (points) in the evaluation of the application for support according to the certificated education training activities (i.e.workshops on the farms abroad, further education, the best practice). Higher preferences (suplement of wage) points in evaluation of the administrator according to the practical experience (i.e. practical visit on the farm). Further and stonger support of cooperation among the farmers, locals and institutions. The stable rules and longer time for implementation of new changes. 12

Thanks for your attention Institute of Agricultural Economics and Information 13