Presentation_non land based payments_Iceland

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


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


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

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Italië

Ierla

nd

Zwed

en

Luxe

mbu

rg

Finl

and

Cyp

rus

Hon

garij

e

Oos

tenr

ijk

Por

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Pol

en

Lito

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Slo

wak

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Slo

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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)


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

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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


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



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.



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


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


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


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.


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


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!


Conclusion

Within a common framework, the EU Common Agricultural Policy is flexible enough to accommodate specific circumstances in Member States.


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

http://ec.europa.eu/agriculture/index_en.htm

http://ec.europa.eu/agriculture/capexplained/sustain/index_en.htm


Thank you for your attentionThank you for your attention

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Presentation_non land based payments_Iceland