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Alternatives for land based payments in the EU Alternatives for land based payments in the EU Hvanneyri, 23-6-2011 Other non land based payments Conclusion Introduction Structure of the presentation Structure of the presentation Directorate General for Agriculture and Rural Development 2 EU Agricultural budget 2011 EU Agricultural budget 2011 – For RD: MS add approximately the same amount as co-financing Directorate General for Agriculture and Rural Development 3
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Alternatives for land based payments in the EUAlternatives for land based payments in the EU
Martin van Driel, European Commission
Directorate General for Agriculture and Rural DevelopmentUnit for Enlargement
Hvanneyri, 23-6-2011
Directorate General for Agriculture and Rural Development 2
Structure of the presentationStructure of the presentation
Introduction
Non land based payments in Pillar I - agricultural markets and income
Non land based payments in Pillar II – rural development
Other non land based payments
Conclusion
Directorate General for Agriculture and Rural Development 3
EU Agricultural budget 2011EU Agricultural budget 2011
Total budget: € 58 billion
Direct payments: € 40 billion Market management: € 3.5 billion Rural Development: €14.5 billion
– For RD: MS add approximately the same amount as co-financing
Directorate General for Agriculture and Rural Development 4
0%10%20%30%40%50%60%70%80%90%
100%
Den
emar
ken
Ned
erla
nd
Bel
gië
Fran
krijk
Grie
kenl
and
Dui
tsla
nd
Ver
enig
d K
onin
krijk
Spa
nje
Italië
Ierla
nd
Zwed
en
Luxe
mbu
rg
Finl
and
Cyp
rus
Hon
garij
e
Oos
tenr
ijk
Por
tuga
l
Tsje
chië
Pol
en
Lito
uwen
Slo
wak
ije
Slo
veni
ë
Est
land
Letla
nd
Bul
garij
e
Roe
men
ië
Mal
ta
% van de totale uitgaven
Eerste pijler Tweede pijler
Source: European Commission - DG Agriculture and Rural Development
Division CAP expenditure between two pillarsDivision CAP expenditure between two pillars (in 2009)(in 2009)
Directorate General for Agriculture and Rural Development 5
Share of direct payments and total subsidiesShare of direct payments and total subsidiesin agricultural factor income in agricultural factor income (2007-2009 average)(2007-2009 average)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
120%
Aus
tria
Bel
gium
Bul
garia
Cyp
rus
Cze
ch R
epub
lic
Den
mar
k
Est
onia
Finl
and
Fran
ce
Ger
man
y
Gre
ece
Hun
gary
Irela
nd
Italy
Latv
ia
Lith
uani
a
Luxe
mbo
urg
Mal
ta
Net
herla
nds
Pol
and
Por
tuga
l
Rom
ania
Slo
vaki
a
Slo
veni
a
Spa
in
Sw
eden
Uni
ted
Kin
gdom
EU
-27
EU
-15
EU
-12
Direct payments Total subsidies
Non land based payments in Pillar I - Non land based payments in Pillar I - agricultural market support and direct agricultural market support and direct
paymentspayments
Directorate General for Agriculture and Rural Development 7
11stst Pillar: market and income support Pillar: market and income support
Market support (Council Regulation 1234/2007)– Price support via public storage, private storage, production limitations, import tariffs,
export refunds, producer organisations, wine envelope, disturbance clause, …– Reference prices (≠ intervention price and ≠ guaranteed price!)
– Private storage: (mandatory) butter and (optional) white sugar, olive oil, beef pig meat, sheep meat
– Production limitations: milk, sugar, wine (until 2015), potato starch (until 2012)
reference price (euro/tonne) intervention period (months) quantitative limit (tonnes)wheat 101,31 7 3.000.000other cereals 101,31 7 0rice 150,00 4 0beef/veal 2224,00 12 unlimitedbutter 2463,90 6 30.000SMP 1698,00 6 109.000pigmeat 1509,39
Directorate General for Agriculture and Rural Development 8
11stst Pillar: market and income support Pillar: market and income support
Income support (Council Regulation 73/2009)– 90% of budget decoupled aid linked to eligible land– With the exception of ewe and goat premiums and suckler cow premium.
Ewe premium: 21 euro/animal Goat premium or sheep producing ewe: 16.8 euro/animal Supplementary premium 7 euro/animal
– in areas where this production constitutes a traditional activity or contributes significantly to the rural economy: to be determined by the MS.
Suckler cow premium: 200 euro/animal Supplementary premium of max 50 euro/animal
– Provided no discrimination between farmers in MS concerned.
Directorate General for Agriculture and Rural Development 9
11stst Pillar: market and income support Pillar: market and income support
Specific support (Article 68 of 73/2009): Use max 10% of national ceiling for decoupled payments to
provide specific support:a.
i. Specific types of farming important for the environmentii. Improving qualityiii. Improving marketingiv. Animal welfarev. Agricultural activities with additional environmental benefits
b. To address disadvantagesc. Protect against land abandoningd. Crop, animal and plant insurancee. Mutual funds for animal and plant diseases en environmental accidents
3.5% of that may be ‘coupled’ support– Can be paid per head or other unit, including ha (land based)
Non land based payments in Pillar II – rural Non land based payments in Pillar II – rural developmentdevelopment
Rural development policy 2007-2013 (€ 96.2 billion):
Objectives and Priorities
« LEADER Axis » local development / governance (Min. 5%)
Axis 1:
Improving the competitiveness of the
agricultural and forestry sector
Axis 2:
Improving the environment
and the country side
Axis 3:
The quality of life in rural areas and
diversification of the rural economy
€ 34.4 billion*
Min. 10%
€ 18.1 billion
Min. 10%
€ 43.7 billion
Min. 25%
* Figures in parantheses are indicative expenditures per axis 2007-13 as programmed by all 27 Member States including expenditures for technical assisstance and DP Romania and Bulgaria
Directorate General for Agriculture and Rural Development 12
AXIS 1: competitiveness(non land based)
Measures aimed at promoting knowledge and imporving human potential through
– Vocational training and information actions– Setting up of young farmers– Early retirement– Use of advisory services– Setting up of farm advisory services
Measures aimed at restructuring and developing physical potential and promoting innovation through
– Modernisation of agricultural holdings– Improvement of the economic value of forests– Adding value to agricultural and forestry products– Cooperation for development of new products, processes and technologies– Infrastructure related to the development and adaptation of agriculture and forestry
Measures aiming to improve the quality of agricultural products– Meeting standards based on Community legislation– Participation of farmers in food quality schemes– Information and promotion activities
Directorate General for Agriculture and Rural Development 13
AXIS 2: environmentand the country side
(non land based in bold)
Measures targeting the sustainable use of agriculture land– Natural handicap payments in mountain areas and payments in other areas with
handicaps (including areas above 62nd parallel)– Natura 2000 payments and payments linked to water framework Directive– Agri-environment payments: Local breed in danger of being lost to farming
(max 200 euro/LU)– Animal welfare payments (max 500 euro/LU)– Non-productive investments
Measures targeting the sustainable use of forestry land– First afforestation of agricultural land– First establishments of agroforestry systems on agricultural land– First afforestation of non-agricultural land
• 70% to 85% of establishment costs– Natura 2000 payments – Forest environment payments– Restoring forestry potential and introducing prevention actions– Non- productive investments
Directorate General for Agriculture and Rural Development 14
Axis 3 quality of life and diversification
(non land based)
Measures to diversify the rural economy– Diversification into non-agricultural activities– Support for business creation and development– Encouragement of tourism activities
Measures to improve the quality of life in rural areas– Basic services for the economy and rural population– Conservation and upgrading of the rural heritage
Training, skills acquisition and animation– Training and information– Skills acquisition animation and implementation
Axis 4: – LEADER: local action groups and area based local development strategies.
Directorate General for Agriculture and Rural Development 15
The three 2007-2013 RD thematic axes in the MSThe three 2007-2013 RD thematic axes in the MS
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%A
ustri
a
Belg
ium
Bulg
aria
Cypr
us
Czec
h Re
publ
ic
Den
mar
k
Esto
nia
Finl
and
Fran
ce
Ger
man
y
Gre
ece
Hun
gary
Irel
and
Italy
Latv
ia
Lith
uani
a
Luxe
mbo
urg
Mal
ta
Net
herla
nds
Pola
nd
Port
ugal
Rom
ania
Slov
akia
Slov
enia
Spai
n
Swed
en
Uni
ted
Kin
gdom
EU-2
7
EU-1
5
EU-1
2
Axis 1: Competitiveness Axis 2: Environment and land management Axis 3: Quality of life and diversification
Source: European Commission – DG AGRI
Share of each axis of total EAFRD expenditure EU-27*
Axis 1: 35.8% Axis 2: 45.4% Axis 3: 18.8%
* Including funds allocated for Technical Aid and DP ROM
Other non land based paymentsOther non land based payments
Directorate General for Agriculture and Rural Development 17
Nordic aidNordic aid
National aid paid form national funds
Maximum aid allowed– For Finland max amount: 358 Million euro
Maximum average aid allowed– per LU (including pigs, poultry and horses– Per animal (reindeer) – Per m2 (greenhouses)– Per kg (milk, wild berries) or – Per ha
Maximum number of eligible production
Objective: to maintain agriculture in Nordic areas, not to increase production!
Directorate General for Agriculture and Rural Development 18
Conclusion
Within a common framework, the EU Common Agricultural Policy is flexible enough to accommodate specific circumstances in Member States.
Directorate General for Agriculture and Rural Development 19
The CAP in one clickThe CAP in one click
http://ec.europa.eu/agriculture/index_en.htm
http://ec.europa.eu/agriculture/capexplained/sustain/index_en.htm
Directorate General for Agriculture and Rural Development 20
Thank you for your attentionThank you for your attention