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“Local identity product systems”: instruments in the future EU’s rural

development policy

Chiara DellapasquaEuropean Commission

DG for Agriculture and Rural Development Unit G.1 Consistency of rural development

"Local Identity Product (LIP) – sustainable support systems for communities in Europe”Latvia, 15-18 February 2012

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1. The EU’s rural development policy: a new framework

2. Focus: the EU’s rural development policy approach to foster food chain organisation

and local development

3. Overview of key measures and networking

1. The EU’s rural development policy:

a new framework

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• Single framework for CSF funds - simplification and harmonisation of rules – Common Strategic Framework and Partnership Contract

– Performance review based on milestones and ex ante conditionalities

• 6 priorities for rural development translating EU2020

• 3 cross-cutting themes: Innovation, Environment, Climate Change

• Reinforced strategic approach to programming– Quantified targets at programme level linked to priorities

– Streamlined tool-kit of measures to be combined in relevant packages to address priorities and achieve targets

– Possibility of thematic sub-programmes

• European Innovation Partnership ‘Agricultural productivity and sustainability’

Rural development: what’s new?

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Rural development in a new framework

Common Strategic Framework (CSF) – covering the EAFRD, ESF, Cohesion Fund and EMFF, and reflecting EU2020 through common

thematic objectives to be addressed by key actions for each of the funds

Partnership Contract – national document outlining the intended use of the funds in the pursuit of EU2020 objectives

Rural development policy: EAFRD

Other CSF funds(ERDF, ESF, CF, EMFF)

Rural Development Programme(s)

Europe 2020 strategy

Promoting social inclusion,

poverty reduction and economic development in rural areas

Enhancingcompetitivenessof all types of

agriculture and farm viability

Promotingfood chain

organisation and risk

management in agriculture

Restoring, preserving and

enhancing ecosystems

dependent on agriculture and

forestry

Promoting resource efficiency and

supporting the shift towards a low carbon and climate resilient

economy in agriculture, food

and forestry sectors

Fosteringknowledge

transfer and Innovation in agriculture,forestry and rural areas

Pri

ori

tie

s

Innovation, Environment and Climate Change as cross-cutting themes

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The single Regulation for CSF funds

To simplify and harmonise policy delivery of complementary funds to the benefit of administrations and applicants

To optimise synergies, effectiveness and efficiency - while allowing sufficient flexibility for each policy to fulfil its own mission

• Common set of basic rules for all CSF funds:

– Common elements of strategic planning and programming• Common thematic objectives derived from the EU 2020 and translated

into the Union priorities specific to each Fund• Common Strategic Framework and Partnership Contracts

– Common provisions on ex ante conditionalities and performance review

– Harmonisation of rules, to the extent possible, concerning monitoring, reporting and evaluation, implementation and control requirements

• Eligibility rules, financial instruments, community led local development (Leader)

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The Common Strategic Framework (CSF)

• EU strategic document: replaces Community strategic guidelines for rural development

• Ensures a concentrated action and coordination of the CSF funds to translate the EU2020 objectives and targets into key actions

• Establishes:

– thematic objective the key actions

– key territorial challenges for urban, rural, coastal areas

– cross-cutting principles (non discrimination, sustainable development)

– how the funds complement each other to meet EU 2020

– mechanisms to ensure coherence and consistency with economic policies of the Union.

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Partnership contract (PC)

• National document prepared by the Member State with the involvement of partners and approved by the Commission following assessment and dialogue with the Member State

• Sets out the Member State's strategy, priorities and arrangements for using the CSF Funds in an effective and efficient way: – alignment with EU2020 strategy (e.g. analysis of development needs, results

and indicative financial allocations per Fund)

– integrated approach to territorial development (urban/rural) and specific needs or areas or groups affected by poverty or exclusion

– effective implementation (including partnership)

– efficient implementation, including administrative capacity and reduction of administrative burden for beneficiaries

• Contains milestones and targets established in programmes for the performance framework

• Contains a summary of the assessment of the fulfilment of ex ante conditionalities and actions to be taken where these are not fulfilled

The rural development programmes: key elements

• Analysis of the strengths, weaknesses, opportunities and strengths (SWOT) around the priorities for rural development and identification of the needs that have to be addressed

• Drawing up the strategy – reinforced strategic approach:– Setting quantified targets against the rural development priorities and

associated areas of intervention – Choosing relevant measures that can be combined into packages to achieve

the targets with a sound intervention logic– Allocating financial resources to the measures in a balanced and adequate way

to achieve the targets set – Integrating the cross-cutting themes of innovation, climate change and care for

the environment into the programme based on the needs identified– Possibility of designing thematic sub-programmes with higher support rates,

e.g. to address the needs of young farmers, small farmers, mountain areas, short supply chain

• Financial and indicator plans

2. Focus: the EU’s rural development policy approach

to foster food chain organisation

and local development

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Food chain as a priority area

Priority 3: Promoting food chain organisation and risk management in agriculture

a) better integrating primary producers into the food chain through quality schemes, promotion in local markets and short supply circuits, producer groups and inter-branch organisations

• Definition of short supply chain:

“a supply chain involving a limited number of economic operators, committed to co-operation, local economic development, and close geographical and social relations between producers and consumers.”

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What is “local”?• “Local” can have different meanings depending on the Member

State or region:

- Specific geographic area where both producers and consumers live

- Degree of trust and co-operation between the actors who are working together to create a more sustainable food system

- Decentralised models of governance, which encourage local empowerment, countering the power of the globalised food systems

Member States allowed flexibility to provide definitions

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Possibilities offered by programming instruments

• Thematic sub-programmes

•Combination of relevant measures based on a SWOT analysis and addressing specific local needs, e.g.:

–Co-operation

–Setting up of producer groups

–Quality schemes for agricultural products and foodstuffs

–Basic services and village renewal in rural areas

–Investments in physical assets

–Leader

• The CSF and the Partnership Contract as a framework to capitalise on complementarities and synergies with other EU funds and build a more focused local approach

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Thematic sub-programmes (TS)

• Member States may include within their rural development programmes thematic sub-programmes, contributing to the Union priorities for rural development

• Aimed to address specific needs identified, in particular in relation to:– (a) young farmers;– (b) small farms;– (c) mountain areas;– (d) short supply chains

• An indicative list of measures and types of operations of particular relevance to each thematic sub-programme is set out in the Annex to the rural development Regulation

• Support rates may be increased by 10% for operations supported in this framework concerning small farms and short supply chains

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Thematic sub-programmes (TS)

•Each thematic sub-programme shall include:

– a specific analysis of the situation in terms of SWOT and identification of the needs that have to be addressed by the TS;

– specific targets at TS level and a selection of measures, including an assessment of their expected contribution to achieve targets;

– a separate specific indicator plan, with planned outputs and expenditure.

Possibility of “Local Identity Product” thematic sub-programme

3. Overview of key measures

and networking

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• Continuity with respect to the present programming period, but:

– Reduced number of measures (grouping based on typology of

interventions) to simplify financial management

– Fine-tuning (eligibility conditions, scope, etc.) to address bottlenecks in

implementation

– New measures to cover emerging needs (e.g. risk-management tool to

address economic and environmental production risks, cooperation and

start-up toolkit for LEADER)

• Flexibility in the choice of measures within any priority to fully exploit

their possible synergetic effects towards the established targets

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Streamlined set of measures

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• Knowledge transfer and information actions

– Wide range of topics: legal expertise on hygiene regulations for direct sales, accountancy skills/bookkeeping and public procurement, innovative and more sustainable methods of production to better meet consumer expectations

– Workshops, coaching, demonstration activities, information

– Short-term farm exchange or visit schemes

• Advisory services, farm management and farm relief services

– Advice related to a wide range of agricultural, environmental and economic issues; drawing up of a business plan/ concept

• Quality schemes for agricultural products and foodstuffs

Rural development measures: a) Skills and concept development; quality promotion

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• Investment in physical assets

– On-farm investment in e.g. farm shops or facilities to prepare and store products, new and higher added value products, local infrastructure (including broadband), infrastructure for direct sales

• Higher support rates available for: – young farmers

– collective investments / integrated projects

– investments in areas facing natural constraints

– investments in framework of European Innovation Partnership

• Basic services and village renewal

– Market places, local basic services such as educational facilities, training facilities, etc, that could be relevant to strengthen the value chain

Rural development measuresb) Investment and local infrastructure

2020

• Farm and business development

– Setting-up aid for:• Young Farmers • Non-agricultural activities in rural areas• Development of small farms

– Investments in non-agricultural activities

– Support for farm restructuring

What’s new?• Current support for semi-subsistence farms increased, extended to all

"small" farms in EU (defined by Member States)• Support for further development of non-farm businesses in rural areas

extended from micro- to small businesses• Restructuring aid to encourage small farmers to transfer farm

Rural development measures: c) Developing farms and businesses

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• Co-operation

– Development of new products, practices, processes and technologies; pilot projects

– Co-operation among small operators in organising joint work processes, sharing facilities and resources, e.g. co-operative shops and specialist retailers selling directly to consumers, box schemes, joint storage and distribution platforms along the supply chain

– Horizontal and vertical co-operation between supply chain actors, e.g. local markets, run by groups of farmers or local traders; annual events, such as local food festivals

– Local promotion activities related to short supply chains

– Local development strategies outside the scope of Leader

• Setting-up of producer groups

– Support for SMEs in annual instalments for the first 5 years

Rural development measuresd) Cooperation of different partners and facility sharing

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• Prize for innovative, local cooperation

– Awarded to cooperation projects involving at least two entities located in different Member States that realise an innovative, local concept

• Leader: making it fit to better serve innovation and local governance

Valorisation of regional potential and landscape maintenance, including small-scale projects, collective marketing techniques, farmers’ markets

– Leader approach strengthened across EU funds• Common provisions on community led local development

– Considerable scope for ensuring that local partnerships are free to use these EU funds in a coordinated way

• Selection committee for a ‘multi-fund’ local development strategy to decide whether to designate a "lead fund"

– Preparatory support • “LEADER start-up kit” and support for small pilot projects• Capacity building, training and networking with a view to preparing and

implementing a local development strategy

Rural development measuresd) Cooperation of different partners and facility sharing

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EIP on Agricultural Productivity and Sustainability

• Aimed at promoting resource efficiency, building bridges between research and practice and generally encouraging innovation

• Acts through operational groups responsible for innovative projects and is supported by a network– Operational groups: bringing together farmers, researchers, advisors,

businesses and other actors concerned by innovation in the agricultural sector

• The EAFRD contributes through: – Support for the EIP operational groups and the EIP Network – Other rural development measures, e.g. Co-operation, Investment in physical

assets, Business development, Knowledge transfer and Farm Advisory Services

• Following endorsement by Council and European Parliament, establishment of Steering Board during first trimester of 2012– EIP Network to be set-up in the second half of 2012

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Networking• European network for rural development - aims to:

– increase the involvement of stakeholders in policy implementation

– improve the quality of rural development programmes

– play a role in informing the broader public

• European evaluation network for rural development – aims to:

– facilitate the exchange of expertise/good practices on evaluation methodologies

– develop evaluation methods and tools

– provide support on evaluation processes, data collection and management

• EIP network

– to enable the networking of operational groups, advisory services and researchers

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The reinforced roles of NRNs

at all levels Involvement of stakeholders in programme design

Support for monitoring

Provision of trainings

Collection of examples of projects

Studies and analysis

Support for LAGs and Cooperation

Exchange of practice among advisers / advisory services

Networking activities for innovation

Publicity / information aimed at beneficiaries and broader public

Support to process in selecting winner for prize for innovation

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For further information

• CAP Health Check http://ec.europa.eu/agriculture/healthcheck/index_en.htm

• EU agriculture and CAP reformhttp://ec.europa.eu/agriculture/index_en.htm

• EU rural development policy 2007-2013http://ec.europa.eu/agriculture/rurdev/index_en.htm

• Agricultural Policy Analysis and Perspectiveshttp://ec.europa.eu/agriculture/analysis/perspec/index_en.htm

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Thank you!