TARU HAAPANIEMI DG AGRI, E.II.4 EUROPEAN COMMISSION Instrument for Pre-accession Assistance - Rural Development

2 IPA - Rural Development - Priorities and Measures 1.Priority: Sustainable adaptation of the agricultural sector Investments in farms to restructure and upgrade to the EU standards; Investments in processing and marketing of agriculture and fishery products to restructure and upgrade to the EU standards; Producer groups );Agri-environment and animal welfare schemes (at pilot level); 2. Priority: Sustainable development of rural areas Improving and developing rural infrastructure; Development and diversification of rural economic activities; Leader type measure (at pilot level); Training; Technical assistance (programme implementation)

3 IPA - Rural Development - Measures FARM INVESTMENTS:FARM INVESTMENTS: Objectives:Objectives: modernisation of farms adaptation to EU standards (hygiene, environment, animal welfare) Possible sectors:Possible sectors: priority for heavy acquis related investments: milk production, meat (cattle, sheep, goat, poultry) … acquis related: fruit and vegetables, …

4 IPA - Rural Development - Measures Examples for eligible expenditures: construction and renovation of buildings purchase of new agricultural machinery and equipment animal waste treatment facilities construction or upgrading of storage facilities construction or renovation of facilities for on-farm milk or meat processing

5 IPA - Rural Development - Measures INVESTMENTS IN PROCESSING AND MARKETING INVESTMENTS IN PROCESSING AND MARKETING Objectives: Objectives: increasing competitiveness of the sector adaptation to EU standards Possible sectors:Possible sectors: products listed in Annex I of the Treaty (+ fishery products) such as dairy products, meat, fish, fruit etc.… Priority for heavy acquis related investments Focus on small and medium enterprises

6 IPA - Rural Development - Measures Examples for eligible expenditures:Examples for eligible expenditures: construction and renovation of buildings investments to upgrade to EU standards e.g. investments in rendering plants, slaughterhouses machinery and equipment (including computer software) milk tanks and coolers storage facilities (including cold stores) container washing facilities

7 Respect of EU Standards  The investment has to comply with –EU standards when concluded  A holding/enterprise has to comply –with the national minimum standard at the time the decision for grant support is taken

8 IPA - CO-FINANCING PRINCIPLE Public aid up to 50% of total eligible costs of the investment

9 IPA - Rural Development – timing Croatia: IPARD programme approval by the EC and IPARD agency accreditation in 2007 Turkey: 2008? FYR of Macedonia: 2008? Potential CCs: depending on their CC status

10 Possible fields of cooperation between EU and IFIs/donors  Improving the access to credits for SME, farmers in rural areas  Sector analysis, in-depth analysis for the IPARD programme  Coordinated support for the preparation of IPARD e.g. WB Acquis cohesion project in Croatia  other areas of cooperation e.g. IPARD programme for Turkey