1. EU rural development policy – today and after 2013
Jean-Bernard Benhaiem
DG for Agriculture and Rural Development
European Commission

2. Contents A reminder about rural areas
Why have a rural development (RD) policy at EU level?
RD policy – structure, budget, achievements
Ongoing challenges for rural areas, Europe 2020 strategy
Objectives and priorities
Links with other funds, structure
Tools (measures) – key areas
Delivery

3. How “rural” is the EU?
Predominantly and significantly rural areas account for:
92% of area
53% of employment
45% of gross value creation

4. Land use in the EU
Agriculture and forestry account for 78 % of land use

5. Rural areas are extremely varied
Some rural regions in economic difficulties; others show good rates of growth / employment compared to urban areas
No “typical rural region” in terms of growth and employment: different types of “rurality” determined by the regional “mix of functions” rather than a single economic activity

6. Why have an RD policy at EU level?
A policy…
because rural areas face challenges which market forces alone will not solve
A common policy…
because challenges do not start / end at national boundaries (climate change!)
An EU policy…
to address the particular characteristics of the EU situation
With a focus on added value!

7. RD policy in the current period
The only integrated policy addressing all aspects of rural areas: economic, environmental, social
Clear objectives
Pre-defined measures to guarantee targeted outcome and EU value added
Delivery system: strategic approach, flexibility for MS
Monitoring and evaluating system

8. EAFRD: European Agricultural Fund for Rural Development
Rural development policy : themes and measures
LEADER axis (min. 5%): integrated, bottom up, innovative
Axis 1: Competitiveness (min. 10%):
Axis 2: Environment and land management (min.25%):
Axis 3: Diversification and quality of life (min.10%):
Farm modernisation
Processing
Infrastructure
Natural disaster aid
Training
Diversification
Tourism
- Micro-enterprises
- Village renewal
- Basic services
LFAs
Natura 2000
- Agri-environment
- Forestry measures
A reminder of the themes of RD policy in the current period, and some of its key measures….
EAFRD: European Agricultural Fund for Rural Development
National and Private Co-financing

9. The strategic approach, 2007-13
1. EU Strategic Guidelines establish the Community Priorities for the period
2. National Strategies reflect EU-priorities according to the situation in the Member State concerned
3. Establishment of national or regional programmes on the basis of SWOT analysis
4. Programme measures used by interested parties (farmers and others); results monitored continuously

10. Planned spending on RD policy, 2007-2013
EAFRD (EU funding): € 96 billion
Total public and private spending: € 232 billion

11. Division of spending between axes

12. What is the policy achieving? (1)
Axis 1: Monitoring indicators
Output indicator *
Target
Number of assisted young farmers (112)
18,400
37,659
189,000
Number of modernisation projects on farms (121)
46,780
105,800
615,000
Number of supported enterprises for adding value projects (123)
2,650
7,060
69,700
Number of farms participating in quality schemes (132)
37,700
128,750
393,000 20 10 17 33
* September 2010 data %

13. What is the policy achieving? (2)
Axis 2: Monitoring indicators
Output indicator *
Target
Less Favoured areas (ha) ( )
42,900,000
54,000,000
55,000,000
Number of hectares supported by the NATURA 2000 measure (213)
346,288
536,500
1,110,00
Number of hectares under agri-environment committed since 2007 (214)
18,150,000
28,640,000
50,400,000
Number of hectares of afforested agricultural land since 2007 (221)
56,000
72,500
608,000 98 48 57 12
* September 2010 data %

14. What is the policy achieving? (3)
Axis 3 and 4: Monitoring indicators
Output indicator *
Target
Number of micro-enterprises supported/created (312)
1,050
6,100
94,875
Number of new tourist actions (313)
1,510
3,700
44,000
Number of village renewals (322)
2,240
12,800
32,400
Number of projects financed by LAG (Axis 4)
1,280
8,760
170,000 7 9 40 5
* September 2010 data %

15. Key issues for after 2013 Ongoing challenges facing rural areas
Overarching goals of EU2020 – general policy context
Links with other EU policies
Structure
Measures
Delivery mechanisms

16. Ongoing challenges facing rural areas
Socio-economic
challenges
Environmental
challenges
Territorial
challenges
GHG emissions
Soil depletion
Water/air quality
Habitats and biodiversity
Vitality of rural areas
Diversity of EU agriculture
Income gaps
Price volatility, risk management
Under-developed rural regions
Food security, food safety
Synergies and co-ordination with: CAP first pillar, structural funds
Contribution to Europe 2020 strategy

17. Europe 2020 strategy
Smart growth - an economy based on knowledge and innovation:
R&D and innovation
Education, training and lifelong learning
Digital society
Sustainable growth - promoting a more resource efficient, greener and more competitive economy:
Competitiveness
Combating climate change
Clean and efficient energy
Inclusive growth - a high-employment economy delivering economic, social and territorial cohesion:
Employment
Skills
Fighting poverty
The Europe 2020 strategy is a major “pointer” for the future of RD policy. The policy MUST be clearly linked to the priorities of Europe 2020.

18. Europe 2020 and RD policy: clear common ground!
INCLUSIVE growth:
Unlocking local potential, diversifying rural economies and developing local markets and jobs
Opening up alternative opportunities to accompany agricultural restructuring
SMART growth:
Supporting innovation and skills, green technologies and uptake of research
Providing incentives for social innovation
Rural development
SUSTAINABLE growth:
Increasing resource efficiency and the provision of public goods
Reducing GHG emissions, enhancing carbon sequestration and developing bio-energy
Ensuring sustainable land management and addressing biodiversity loss
This slide shows in BROAD TERMS how RD policy is / can be relevant to the priorities of Europe 2020 (the bullet points don’t actually refer to individual MEASURES) 18

19. Objectives and priorities for RD policy - overview
Long-term strategic objectives
Competitiveness
of agriculture
Sustainable management of natural resources
Balanced territorial development
Interpreted in the light of Europe 2020:
smart, sustainable, inclusive growth
Operational priorities with:
areas of intervention
improved target indicators
All MS / regions must address these in their RD programmes
N.B. Also to be mentioned: innovation, the environment and climate change are cross-cutting guiding themes.

20. Getting our priorities right (1)
1. Knowledge transfer in agriculture and forestry
(Cross-cutting priority)
Human capital and smart networking in agriculture & forestry
Innovation, knowledge base in agriculture & forestry
Strengthening links between agriculture & forestry / research & development
2. Competitiveness of agriculture, farm viability
Restructuring of farms facing major structural problems
Generational renewal in agricultural sector

21. Getting our priorities right (2)
3. Food chain organisation, risk management in agriculture
Integrating primary producers into food chain
Supporting farm risk management
4. Preserving & enhancing ecosystems dependent on agriculture & forestry
With regard to:
biodiversity / landscapes
water management
soil management
carbon sequestration

22. Getting our priorities right (3)
5. Resource efficiency & transition to low-carbon economy in agri-food and forestry sectors
With a focus on water & energy
Production of (feedstocks for) renewable energy in ag & forestry
Cutting nitrous oxide & methane emissions from agriculture
6. Realising jobs potential & development of rural areas
Diversification & job creation
Social inclusion & poverty reduction
Local development in rural areas

23. Links with other EU funds
Common Strategic Framework (CSF)
Sets out, co-ordinates funds’ contributions to Europe 2020
Provisions for territorial action (including Leader)
Joint national frameworks (“Partnership Contracts”?)
Frameworks to co-ordinate funds at national level
Should reflect CSF
Rules and procedures
Harmonise as far as possible

24. How should the elements fit together?
Common Strategic Framework (CSF) – reflecting Europe 2020
National frameworks – reflecting CSF
RD policy
Other EU policies (cohesion policy, fisheries)
RD programmes:
Objectives / priorities
Targets
Sets of measures

25. What measures will be needed?
Current measures
( )
Streamline
measure
menu
Adjust conditions,
scope
New measures?

26. Measures – some key areas (1)
Knowledge transfer
Vocational training, advisory services, demonstrations of new technologies
Co-operation: technological
Development / application of technology, techniques, products
Co-operation: economic
E.g. short supply chains, sharing of resources
Co-operation: environmental
Collective action for better results (e.g. larger areas, bigger projects)

27. Measures – some key areas (2)
Business development
Including young farmers
Risk management
New toolkit of measures

28. Delivery mechanisms: key elements
Strengthening strategic approach and ex-ante evaluation
Quantified target levels against common indicators (“target indicators”) for each of the priorities
Abolition of the axis system
Measures used more flexibly in combination 28 28

29. CAP after 2013 – timetable 2010 (n-4) 2011 (n-3) 2012 (n-2) 2013 (n-1)
Public consultation
Conference
Communi- cation on CAP after 2013
Publication of legal proposals
Negotiations begin with EP, Council
Negotiations with EP and
Council over
legal
proposals
Drafting of
programmes
Implementation of the
new policy

30. For further information
CAP Health Check
EU agriculture and CAP reform
EU rural development policy
Agricultural Policy Analysis and Perspectives

31. Thank you!