„Forestry support and early retirement in Poland

after one year of the implementation”

Conference„One Year of EU 25 – Nature Conservation Policy Experience

Regarding the 2nd Pillar of the CAP and Reform Prospects”

Bonn, September 5, 2005 r.

Bożenna Wójcik

Institute for Sustainable Development

Warsaw, Poland

The forestry support – what that’s mean in Poland in first programming period?

• The measure „afforestation” in Rural Development Plan for 2004-2006

• The measure „Restoring forestry production potential damaged by natural disaster and fire and introducing appropriate prevention instruments” in SOP „Restructuring and Modernisation of the Food Sector and Rural Development” 2004-2006

The afforestation measure in RDP for 2004-2006 for Poland (1)

RDP Priority B “Sustainable and multifunctional development with special regards to environmental issues”:

• Support for LFA• Agri-environmental schemes and animal

welfare• Afforestation• Meeting EU standards

The afforestation measure in RDP for 2004-2006 for Poland (2)

Financial support for afforestation within the RDP for 2004-2006:• All public expenditure 101.8 million Euro:

- EU contribution from EAGGF 81.4 million Euro- Polish budget contribution 20.4 million Euro

for 2004 - 26.5 million Euro for 2005 - 34.0 million Euro for 2006 - 41.3 million Euro

• Allocation for afforestation that is:2.8 % of total RDP allocation – the biggest measure budget

in the RDP3.8 % of allocation for 7 main measures of the Plan6.1 % of allocation for Priority B “Sustainable and

multifunctional development with special regards to environmental issues”

Objectives of the measure

• increase of the afforested land via afforestation of agricultural land of low agricultural use;

• conservation and consolidation of ecological stability of afforested areas via reduction of fragmentation of forest complexes and creation of ecological passages;

• increase of the forests’ participation in global carbon balance.

Area of implementation

• The whole country

• 45 thousand of hectares is expected to be afforested during the 2004-2006 period

Conditions (1)

• forest will be planted on agricultural land not owned by the State’s Treasury and classified in the records of agricultural land as arable land, permanent grassland or orchard;

• land designated for afforestation should be permanently farmed and, designated for afforestation in the local spatial management plan or in the commune qualifying and directions of spatial management study;

• the afforested area shall be of not less than 0.3 hectares in and have a minimum width of 20 meters; if the application for support is submitted by a group of farmers, the aggregate area designated for afforestation shall be of not less than 3 hectares in one plot;

Conditions (2)

• according to the regulations on the forest reproductive material, only local species of trees and bushes can be planted;

• in accordance to the Council Regulation 1257/1999, the agricultural classification of land and the regionalisation of forests and natural habitats should be taken into account when selecting the species to be planted, in order to adjust afforestation to local habitat conditions (see: Annex M);

• planting material must meet the quality requirements compliant with regulations on the forest seed material.

Conditions (3)

• In case of afforestation of the area of more than 20 hectares, the applicant shall conduct the environmental impact assessment.

The main base of afforestation

• The afforestation plan prepared and confirmed by the forestry inspector where the species of trees and all needed activities to maintenance future forest are listed;

• The excerpt from the local spatial management plan with the information on afforestation possibility or certificate, that destination of the agriculture plot for afforestation is not in opposite with the commune qualifying and directions of spatial management study;

Amount of Support

The level of support depends from configuration of the area (favourable or slopes above 12º) and of the type of trees (coniferous or broadleaved):

• Afforestation grant 914-1254 Euro/ha• 5-years maintenance premium

- without repellents 89-159 Euro/ha/year - with repellents 149-239 Euro/ha/year

• 20-years afforestation premium - for farmers (above 20% of income from agriculture) 298 Euro/ha/year - for landowners (above 80% of non-farming income) 78 Euro/ha/year

State of the implementation

Applications submitted:

• 2 061 in year 2004

• 4 251 in year 2005

The area declared to afforestation

• More then 7 thousand ha in 2004

• More then 2 times more in 2005

Problems which are recognise now (1)

Some areas which were afforested naturally way as a natural succession process (young natural forests have sometimes more then 20 years) are cuted now for new afforestation – to find possibility to get support from this measure. Why? – in spatial plans those areas mostly are still as a agricultural land and – there is not law base for forest inspectors to stop this activity.

The result is bed both – for biodiversity and for soil and groundwater protection.

In some places (about few of them we were informed) was recognise that not combination of native species was planted but traditional pine-trees monoculture or some alien species were on place.

Most forest districts have enough seedlings of needed trees but also are some which have not enough.

In some areas where the border of existing forest area is not simply – surroundings (2 or 3 sides) of lot of small farms plots that is the forest the limit of 0.3 ha for afforestation is probably to high.

Problems which are recognise now (2)

Problems which can be expected

• Some high nature value areas (within them Natura 2000 sites) can be affected by afforestation which can damage their habitats and species live conditions on the area because:– there is not nature conservation opinions – but most of the spatial plans not include Natura 2000 sites yet.

What we need?

• The environmental opinions from nature conservation point of view;

• Changes in law to stop some environmentally danger processes and to give some new opportunity to the farmers.

The areas of the forestry production restoration (within the agricultural SOP)

• 33 000 ha of the forests areas (within 15 forestry divisions) in Mazurian Lake District damaged by hurricane in 2002 – state forests

• and in other areas of the country if any natural disasters should occur there during programme implementation

The level of support

• Financial aid consists in the full reimbursement of 100% of eligible costs.

• EU contribution Up to 80% of total eligible costs.

The early retirement measure in RDP for 2004-2006 for Poland (1)

RDP Priority A „Increasing the economic effectiveness of agricultural holdings”:

• Early retirement

• Support for semi-subsistence farms

• Support to producer groups

The early retirement measure in RDP for 2004-2006 for Poland (2)

Financial support within the RDP for 2004-2006:• All public expenditure 640.5 million Euro:

- EU contribution from EAGGF 512.4 million Euro- Polish budget contribution 128.1 million Euro

for 2004 - 148.5 million Euro for 2005 - 213.5 million Euro for 2006 - 278.5 million Euro

• Allocation for early retirement that is:17.8 % of total RDP allocation – the biggest measure budget in

the RDP23.6 % of allocation for 7 main measures of the Plan61.5 % of allocation for Priority B “Sustainable and

multifunctional development with special regards to environmental issues”

Objectives of the measure

• Improvement of the farms spatial structure or productivity.

• Providing the income for farmers who decide to give up farming in the pre-retirement age.

• Lowering of the average age of farmers (acceleration of the generations’ replacement).

• Destination of agricultural land for non-agricultural purposes in case when farming cannot be conducted in economically satisfying conditions.

Area of implementation

• The whole country

Main conditions (1)A farmer is entitled to receive the early retirement payment:• is not less than 55 years old and not less than 6 months are

lacking to reach the full retirement age,• holds the agricultural farm of the area amounting to at least

1 ha of agricultural land,• has pursued farming activity on the agricultural holding for

not less than 10 years before applying for the early retirement payment and he or she has been then statutorily covered by the farmers. social insurance scheme for not less than 5 years,

• he has not any debts in paying the contributions to the farmers. social insurance,

• was a policy-holder of the farm,• has transferred his farm,• has given up any commercial agricultural activity.

Main conditions (2)

The farm need to be transferred to another farmer (or few other farmers) who:

• is younger than a transferee and is not a pensioner or retiree;

• have vocational skills to conduct farming activity,When agricultural land to be taken over as a whole by a

successor need to belong to the transferred farm. The successor need to meet the following criteria:

• is under 40 and is not a pensioner or retiree;• is holding the required vocational qualifications to

pursue farming activity,The farmer who want to be beneficent of then measure

shall commit to pursue agricultural activity for at least 5 years on the land taken over.

Amount of Support

• Maximum payment per beneficiary per year is not to exceed: - 6,316.14 Euro/year and - about 526 Euro/month

• The basic (minimum) early retirement per person was calculated as a 210% of the lowest country pension

State of the implementation

Much bigger interest about this measure then was expected!

Applications submitted:

• 30 735 from August 1, 2004

Problems which can be expected (1)

We can expect some environmental impacts: – the direct environmental impact is not expected, but – we can expect indirect impacts because of the potential increase of the intensity of management on farms which will be manage by younger farmers – more chemicals can be expected and possible loss of some important elements as a balks or some bushes and trees between plots because of making bigger plots too.

Problems which can be expected (2)

The very intensive and very early incentive of this instrument and big interest about this instrument what we see now maybe results in less interest about other instrument – some more environmentally friendly.

One of the main goals of the measure is possible to not be achieved in big scale – structure of farms system cannot be very much better because most of the farmers is giving farms to their successors – but from environmental point of view this is not bed.