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Support of rural development in Support of rural development in

Germany from 2007-2013 with particular Germany from 2007-2013 with particular

focus on forestryfocus on forestry

Wolfgang ReimerWolfgang ReimerDirector of Structural Policy, Rural Development, Organic FarmingDirector of Structural Policy, Rural Development, Organic Farming

at the BMELVat the BMELV

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CONTENTSCONTENTS

I.I. The structure of the forestry sector in The structure of the forestry sector in

GermanyGermany

II.II. National implementation of the EAFRD National implementation of the EAFRD

RegulationRegulation

a) national strategya) national strategy

b) the joint task of improving agricultural b) the joint task of improving agricultural

structuresstructures

III.III. Prospects (timetable, finances)Prospects (timetable, finances)

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Land use in Germany Land use in Germany

54.8 % agriculture (17 million ha in total, approx. 12 million arable land (of which 60 % grain))

30 % forest (11 million ha, 35 % spruce, 31 % pine and larch, 34 % deciduous forest)

Agriculture - 350,000 enterprises

- average area per enterprise

west 32 ha / east 200 ha

- 15 % of the enterprises over 50 ha farm 70 % of the land

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Structure of the forestry sectorStructure of the forestry sector

47 % privately-owned forests29 % state-owned forest (Länder)4 % state-owned forest (Federal Government)

20 % municipal forest

Structure of forest ownershipApprox. 2 million forest owners share 5 million ha of forest; average size of enterprise between 0.7 and 14 ha, depending on Land.

ChallengesSmall-scale structure of forest ownership, but enormous concentration processes in the timber industry

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Strategic approachStrategic approach

The EU defines The EU defines Strategic GoalsStrategic Goals that will be implemented via that will be implemented via three planning levels:three planning levels:

The The involvement involvement of NGOs will be reinforced in the planning of NGOs will be reinforced in the planning procedureprocedure

Europe Nation Region

Strategic Guidelines

NationalStrategy Plan

(GAK as a framework regulation)

Regional Development Programmes

66

Central elements of the EAFRD RegulationCentral elements of the EAFRD Regulation

3 Priority axes3 Priority axes Minimum budgetsMinimum budgets

CompetitivenessCompetitiveness Land managementLand management Diversification Diversification and and LEADERLEADER as a cross-sectoral task as a cross-sectoral task

(10 %)(10 %)(25 %)(25 %)(10 %)(10 %)(5 %)(5 %)

Competitiveness Land management

Diversification

L E A D E R

New: One fund – One New: One fund – One programmeprogramme

77

■■ New:New:Forestry sector is accorded the same Forestry sector is accorded the same

status as the agricultural sectorstatus as the agricultural sector

Compensation of income losses under Compensation of income losses under NATURA 2000 and agri-environmental NATURA 2000 and agri-environmental measures in the forestry sector (as in measures in the forestry sector (as in the agricultural sector)the agricultural sector)

88

National StrategyNational Strategy- Elaboration by the Federal Government in consultation with the Länder

Joint Task Joint Task "Improvement of Agricultural Structures and Coastal Protection "Improvement of Agricultural Structures and Coastal Protection “ (GAK) constitutes a bracket for central measures of the “ (GAK) constitutes a bracket for central measures of the regional programmes as a national framework regulationregional programmes as a national framework regulation

- Federal Government/Länder consultation on thematic contents

Regional programmesRegional programmes- Elaboration and implementation by the Länder- Recourse to CAP measures and financing- Supplementary offer of specific measures: national cofinancing solely from Länder funds

Implementation in Implementation in GermanyGermany

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Assessment of the economic, social and ecological situation of Assessment of the economic, social and ecological situation of

rural areas in Germany and their potential for developmentrural areas in Germany and their potential for development Setting thematic and territorial priorities for each priority axis, Setting thematic and territorial priorities for each priority axis,

including the quantification of the main goalsincluding the quantification of the main goals Inclusion of indicators for the monitoring and evaluation of the Inclusion of indicators for the monitoring and evaluation of the

national strategynational strategy Allocation of the EU funds assigned to Germany among the Allocation of the EU funds assigned to Germany among the LänderLänder Integration of the GAK framework regulationIntegration of the GAK framework regulation Ensuring the coherence of support measures with other policies and Ensuring the coherence of support measures with other policies and

programmes at national and European levelprogrammes at national and European level Responsibility and decision-making bodies Responsibility and decision-making bodies Description of the coordination procedure between the Federal Description of the coordination procedure between the Federal

Government /Government /LänderLänder/ economic and social partners/ economic and social partners Establishment of a national networkEstablishment of a national network Adoption and notificationAdoption and notification

National StrategyNational Strategy

1010

GAK priority areasGAK priority areas

1.1. Improvement of the production Improvement of the production

and marketing structuresand marketing structures

2.2. Measures for forestryMeasures for forestry

3.3. Coastal protection Coastal protection

4.4. Sustainable farmingSustainable farming

5.5. Improvement of rural structuresImprovement of rural structures

6.6. Other areasOther areas

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re. 2.re. 2. Basic principles for the support of forestry Basic principles for the support of forestry measuresmeasures

Recipients of benefits: Recipients of benefits: private owners of forest, municipal private owners of forest, municipal authorities authorities and forestry groupingsand forestry groupings

A. Support of initial afforestationA. Support of initial afforestationDepending on tree species composition, up to 85% for establishment of stands and tending of plantations; depending on land use and soil quality, income-loss premium of between 350 and 700 €/ha for up to 15 years for farmers and of up to 150 €/ha for non-farmers.

B. Support of semi-natural forest managementB. Support of semi-natural forest managementPreliminary work, conversion of monocultures, silvicultural measures in young stands, soil protection liming, structuring of semi-natural forest edges, insecticide-free forest protection, use of skidding horses. The rate of support amounts to between 50% and 90%, according to the respective measure.

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C. Support of forestry groupings (forstwirtschaftliche C. Support of forestry groupings (forstwirtschaftliche

Zusammenschlüsse - FWZ)Zusammenschlüsse - FWZ)Start-up investments, management - or alternatively – premium for mobilisation of timber resources) – state aid without involvement of EAFRD!-

D. Support of forest infrastructureD. Support of forest infrastructureWith regard to road construction, the rate of support amounts to up to 70 %, or up to 42% for enterprises of more than 1,000 ha. With regard to timber-conservation installations, there is a support rate of up to 30 %.

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re. C. Support of forestry groupings

Forestry groupings can be supported by means of a national aid under the Joint Task for the Improvement of Agriculture and Coastal Protection without the involvement of EAFRD: Under start-up investments, the following are eligible for

support: devices, machines agricultural buildings, lumbering sites and preparatory investigations, e.g. into logistics and marketing concepts. The support rate amounts to up to 40 %.

Management and counselling The support rate amounts to up to 60 % in the first four years, up to 50% in the following three years, and up to a maximum of 40,000 € per year for a further three years

- or alternatively – Premium for mobilising timber resources

a premium based on solid metres for independent timber marketing by forest groupings:

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a) Support of forestry groupings

Expenses for multi-enterprise timber marketing are eligible for support, of up to 2€ per solid metre of marketed timber

b) Coordination of supra-regional sale of forest products by forestry associations

Measures which serve the preparation, conclusion and fulfilment of framework contracts commissioned by members are eligible for support of up to 0.20 € per solid

metre.

The maximum per forestry grouping and year is [80,000 €].

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Efficiency criteria for forestry groupings:

The Länder have stipulated a minimum amount of

land in respect of start-up investments and

management, and a minimum marketing amount per

ha of membership area and year in respect of the

mobilisation premium. The aim is to continually

improve the competitiveness of the forestry

groupings, including in respect of the ongoing

concentration processes on the purchasing side.

The support of the forestry groupings is expected to be processed as so-called “De-minimis” aid within the meaning of Regulation (EC) No. 69/2001 (maximum of 200,000 € in three years).

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Art. 28, 29 (machine-related support, Art. 28, 29 (machine-related support, investments, bioenergy)investments, bioenergy)

Art. 46, 47 (forestry-related environmental Art. 46, 47 (forestry-related environmental measures, e.g. deadwood, maintenance of measures, e.g. deadwood, maintenance of biotopes; Natura 2000 compensation)biotopes; Natura 2000 compensation)

Art. 48 (preventative protection against forest Art. 48 (preventative protection against forest fires e.g. forest-fire breaks, firefighting water fires e.g. forest-fire breaks, firefighting water points; emergency aid following natural points; emergency aid following natural events, e.g. aid for timber storage)events, e.g. aid for timber storage)

Measures which are supported by the Measures which are supported by the LänderLänder outside the Joint Task for the outside the Joint Task for the Improvement of Agricultural Structures and Improvement of Agricultural Structures and Coastal Protection:Coastal Protection:

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Rural development support in GermanyDistribution of EU funds and national funds in 2000-2004

(EAGGF + national co-financing from GAK/Länder funds + GAK funds for measures without EU financing = 13.6 billion euros

Improvement of market structures3%

Individual farm investment promotion

13%

Village renewal / - developmentDiversification

16 %

Compensatory allowance for less-favoured areas / FFH

12%Land consolidation/roads

11%

Forestry4%

Miscellaneous1%

Agri-environmental measures26%

Water management / coastal protection

14%

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Vote by the European Council in December Vote by the European Council in December

20052005

There is a total of almost 70 billion euro, expressed in There is a total of almost 70 billion euro, expressed in constant 2004 prices, available for the support period constant 2004 prices, available for the support period 2007 – 2013. This sum is available in 2007 – 2013. This sum is available in realreal terms, taking terms, taking into account an annual inflation rate of 2 %.into account an annual inflation rate of 2 %.

The Commission has shared the overall budget passed by The Commission has shared the overall budget passed by the European Council on 12 September 2006 between the the European Council on 12 September 2006 between the Member States. Germany will receive Member States. Germany will receive approximately 5.9 approximately 5.9 billion eurobillion euro for the new support period, expressed in for the new support period, expressed in constant 2004 pricesconstant 2004 prices. If the modulation funds, including . If the modulation funds, including tobacco, are also incorporated into the calculations, the tobacco, are also incorporated into the calculations, the figure rises to 7.2 billion euro. figure rises to 7.2 billion euro.

Financial frameworkFinancial framework

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In individual In individual Länder,Länder, the the decreasedecrease in in EU support EU support fundsfunds for the for the 2nd pillar of CAP2nd pillar of CAP amounts to up to amounts to up to 37 % or 23 % (including the modulation funds). 37 % or 23 % (including the modulation funds). Taking into account the indexation of 2 % per Taking into account the indexation of 2 % per year, there will be a year, there will be a nominal nominal amount of 8.1 amount of 8.1 billion euro in EU funds available for the 2nd pillar billion euro in EU funds available for the 2nd pillar for the support period 2007 – 2013, taking into for the support period 2007 – 2013, taking into account the existing modulation.account the existing modulation.

Accordingly, the decrease in EU funds in Germany Accordingly, the decrease in EU funds in Germany amounts to a nominal amount of approximately 12 amounts to a nominal amount of approximately 12 % in current prices and 23 % expressed in 2004 % in current prices and 23 % expressed in 2004 prices.prices.

Financial frameworkFinancial framework

2020

■■ Adoption of the implementing Adoption of the implementing

regulations in the STAR committee in regulations in the STAR committee in

September 2006 September 2006

(possibly problematic due to the state-aid (possibly problematic due to the state-aid

framework)framework)

■■ Adoption of the Adoption of the Strategic Guidelines Strategic Guidelines

of the Commission by the Council, of the Commission by the Council,

following the adoption of the following the adoption of the

implementing regulationsimplementing regulations

TimetableTimetable

2121

■■ Submission of the National Strategy in Submission of the National Strategy in

Brussels Brussels at the beginning of at the beginning of

September September

■■ At the same time, drawing up of the At the same time, drawing up of the

regional development regional development programmes and programmes and

submission to the COMsubmission to the COM

■■ By the end of 2006:By the end of 2006:

Approval of the regional development Approval of the regional development

programmesprogrammes

■■ From January 2007:From January 2007:

Implementation of the regional development Implementation of the regional development

programmesprogrammes

TimetableTimetable