Dorota Metera

IUCN Programme Office for Central Europe

Rural Development Policy in the EU10

One Year of EU 25 – Nature Conservation Policy Experience Regarding the 2nd Pillar of the CAP

and Reform ProspectsBonn, 3-7 September 2005

Positive influences:

-  ensuring incomes for populations in rural areas

- preventing migration of rural populations to cities and ensuring sustainable rural development

-   preventing further land abandonment

- stimulating agri-environmental measures, especially organic farming

-    increasing the significance of certification (organic agriculture and forestry) and agricultural animal welfare.

 

Potential effects of CAP in New EU MS

Negative influences:

- intensification of agricultural production due to land consolidation, early retirement and support for young farmers;

- increased income encouraging farmers to purchase fertilizers (leading to worse water quality) and machinery (leading to soil damage)

Source: Study on the impact ... (BfN Skripten 100, 2004)

Oportunities:

-  RDP is providing instruments for compensatory payments for land owners or users of Natura 2000 sites,

- RDP is providing instruments for improoving environmental standards,

-Attractive packags and adequate administrative support for sufficient uptake of RDP measure (role of small farmers),

-The RDP are contributing to the sustainable development of Europe’s rural areas

 

Gaps and limitations of the Rural Development Plans of the CEE New Member States

Gaps and limitations:

- unsufficient stakeholders consultation on the planning of RDP and to little involvement of the civil society;

- mostly unlikely to be sufficient information for farmers about the possibilities and requirements of RDP measures, intensive promotion of direct payments,Source: Gaps and Limitations of the Rural Development Plans ..., IUCN, 2004)

Key features in selected countries of EU10

Latvia Lithuania Malta Poland

Average size of the farm (ha)

12 4 0,87 8

Number of farms

44 310 606 022 15 100 1 400 000

Total UAA (ha)

2 488 000 3 489 000 12 000 18 220 000

Different sources

Estonia

14%

18%

30%

6%

0%

22%

0%7%

2%

Latvia

9%

54%8%

0%

2%

18%

1%

1%

8%

Lithuania

20%

24%

10%4%

23%

13%

0%

1%5%

Poland

20%

27%

10%

3%

18%

7%

1%

1%

10%

Hungary

11%

41%

11%

23%

3%

0%

5%

5%

3%

Czech

45%

49%

1%0%

3%

0%1%

0%

1%

Slovakia

19%

47%

3%1%

5%

1%

1%

15%

0%

15%

30%

18%

3%

13%

9%

7%2%1% Shift-back to the 1st pillar

Less Favoured Areas

Agri-Environmental Prog.

Afforestation of farmland

Early retirement of framers

Meeting EU standards

Semi-subsistence farming

Setting up producer groups

Technical asistance

Rural Development Plan 2004-2006Latvia, Lithuania, Malta, Poland

Rual Development Plan

0

500

1000

1500

2000

2500

country

mil

lio

n E

2004 123,38 133,4 0,00 1949,30

2005 137,50 145,7 0,00 2162,50

2006 149,25 155,1 0,00 2347,00

Latvia Lithuania Malta Poland

Rural Development Plan total sum planned for 2004-2006

per ha UAALatvia, Lithuania, Malta, Poland

Rual Development Plan2004-2006

0

50

100

150

200

250

300

350

400

Latvia Lithuania Malta Poland

country

Eu

ro/h

ecta

re U

AA

Distribution of Rural Development funds in EU 7

1%

2%

3%

7%

9%

13%

18%

30%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Setting up producer groups

Technical asistance

Afforestation of farmland

Semi-subsistence farming

Meeting EU standards

Early retirement of framers

Agri-Environmental Prog.

Less Favoured Areas

Shift back from second pillar of CAP to the first pillar in EU 7

14%

9%

20%

20%

0%

0%

19%

15%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Estonia

Latvia

Lithuania

Poland

Hungary

Czech

Slovakia

Total(CEE7)

Agri-environmental Programmes in EU 7

30%

8%

10%

10%

41%

49%

15%

18%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Estonia

Latvia

Lithuania

Poland

Hungary

Czech

Slovakia

Total(CEE7)

Less favourite areas in EU 7

18%

54%

24%

27%

11%

45%

47%

30%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Estonia

Latvia

Lithuania

Poland

Hungary

Czech

Slovakia

Total(CEE7)

Setting-up producers groups in EU 7

0%

1%

0%

1%

3%

1%

1%

1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Estonia

Latvia

Lithuania

Poland

Hungary

Czech

Slovakia

Total(CEE7)

Transfer of funds from Rural Development Plan

to SAPs 2004-2006Latvia, Lithuania, Malta, Poland

Transfer of funds

0,00

50,00

100,00

150,00

200,00

250,00

300,00

350,00

400,00

450,00

500,00

country

mil

lio

n E

uro

2004 18,28 36,83 0,00 485,10

2005 13,00 32,82 0,00 432,50

2006 6,50 26,72 0,00 351,90

Latvia Lithuania Malta Poland

Transfer of funds from Rural Development Plan

to SAPs 2004-2006 per ha UAA Latvia, Lithuania, Malta, Poland

Transfer of funds

2004-2006

0,00

20,00

40,00

60,00

80,00

100,00

Latvia Lithuania Malta Poland

country

Eu

ro/h

ec

tare

UA

A

Programmes in the non-investment area 2004-2006

Latvia, Lithuania, Malta, Poland

Programmes in the non-investment area2004-2006

0,00

20,00

40,00

60,00

80,00

100,00

120,00

140,00

160,00

180,00

200,00

220,00

mill

ion

Eu

ro

Malta 1,35 4,80 0,00 6,00 6,06 1,29 0,00 0,00 6,73 7,40

Latvia 2,87 25,26 8,27 221,98 67,06 0,00 30,98 0,00 0,00 0,00

Lithuania 0,00 49,76 103,74 117,52 56,14 4,74 24,40 21,43 96,36 0,00

Poland 45,60 627,90 1152,90 1758,20 438,10 61,10 677,30 183,20 1269,50 0,00

Producers Groups

Agri-Environment

Early retirement

Less-favoured areas

Meeting standards

Technical assistance

Support for semi-

subsistence

Afforestation of agricultural

land

Complementation of Direct Payments

Ad Hoc Measure

677,30627,90 1152,901758,20

438,10

1269,50

Programmes in the non-investment area 2004-2006 per ha UAA Latvia, Lithuania, Malta, Poland

Programmes in the non-investment area2004-2006

0,00

10,00

20,00

30,00

40,00

50,00

60,00

70,00

80,00

90,00

100,00

Eu

ro/h

ecta

re U

AA

Malta 11,25 40,01 0,00 50,00 50,53 10,71 0,00 0,00 56,04 61,67

Latvia 1,15 10,15 3,32 89,22 26,95 0,00 12,45 0,00 0,00 0,00

Lithuania 0,00 14,26 29,73 33,68 16,09 1,36 6,99 6,14 27,62 0,00

Poland 2,50 34,46 63,28 96,50 24,05 3,35 37,17 10,05 69,68 0,00

Producers Groups

Agri-Environment

Early retirement

Less-favoured areas

Meeting standards

Technical assistance

Support for semi-

subsistence

Afforestation of agricultural

land

Complementation of Direct Payments

Ad Hoc Measure

CAP in Poland: SAPs and RDP payments for farmers

SAP 2004 55% 100 Euro/ha

SAP 2005 60% 110 Euro/ha

SAP 2006 65% 120 Euro/ha

LFA mountains 80 Euro/ha

LFA lowland I 44 Euro/ha

LFA lowland II 66 Euro/ha

AEP 100 Euro/ha

LithuaniaGood Agriculture Conditions

(SAPs and RDP)•Min. 1 ha of agricultural land

•Arable land shall be planted with agriculture plants, green or black falow

•Medows and pastures used for grazing, hay shell be harvested once a year (15th July)

•Hay or green mass shell be removed from the field (1th August)

•Arable land, meadows, pastures, perennial grassland shell be free from trees and bushes

•Agriculture land shell be free fom remnant herbs

Conditions for LFA in Poland

•Min. UAA 1 ha

•The farm or a part of the farm localised in LFA

•The farmer is obliged to apply the conditions of Usual Good Agriculture Practice

•The farmer will continue farming practices for 5 years from first payment

•The farmer will apply limitations of use hormones, thyreostatic and beta-agonistic substances in animal feeding.

Usual Good Agriculture Practice

in Poland

•use of fertilizers and their storage•agricultural use of waste water •agriculture use of municipal sewage sludge          •use of pesticides and their storage•grassland management•order and cleanliness in the farm•protection of wildlife habitats•soil protection•water management

• 5% as usual by all Single Area Payments• First problem – warning• Second time this some problem – no

payment in current year• New problem – 7% reduction of payment

Control

LFA payments in the opinion of famers„easy” money for big farmers – they applied with pleasure:• one of the first instruments promoted very agressively

by the time of registration of farms for SAPs• simple condition of Usual Good Agriculture Practice

deriving from the existing law• but easy to fulfil by big farmers, who will use other

programs to improve for example manure storage as Sectoral Operational Programme (SOP)

• Low control level

„small money” for small farmers – they hesitated or applied and afterwards withdraw:

• definitely too small to take this instrument as a serious support of continuing the farming practices or to invest in manure storage, they will be not able to use money of other instruments (SOP)

• definitely too small to continue the farming practices in the mountains in conjunction with average small size of farms

Most important agri-environmental measuresLithuania Malta Poland

Sustainable agriculture

Organic Farming Scheme Promotion of organic farming

Organic agriculture

Landscape Stewardship Scheme

Restoration of terrace retaining rubble walls

Management of extensive meadows

Management of extensive pastures

Protection shore belts of surface water bodies in meadows and arable land and prevention of soil erosion

Protection of soil and water

Conservation of Maltese Holm Oak

Buffer zones

Rare Breeds Scheme Conservation of Maltese Ox species

Protection of local animal breeds

Agri-Environmental Programmes in Poland (Euro/ha)

sustainable farming 38

organic farming grassland 38

pastures on xer.grassland 89

xerothermic meadows 120

mountain meadows 138

organic orchards 400

Latvia

25853804

5102863

19179930

30236443

6849975

2283325

1826660

Investments in agricultural holdings

Setting up of young farmers

Improvement of processing and marketingof agricultural products

Promotion of adaptation of development ofrural areas

Forestry development

Development of local action (LEADER+type measure)

Training

Malta

3697,00

2303,00Investments in Agricultural Holdings

Improvements in Processing andMarketing

Poland

1320720292,00

175913419,00

20074497,00

54005305,00

465389417,00

10535219,00

140072592,00 8511450,00

4965773,00

107278138,00

90046666,00

21261018,00

12598707,00

18759722,0040766623,00

Investments in agricultural holdings

Support for Young Farmers

Vocational Training

Support for advisory system

Improvements in Processing andMarketingForests restoration

Land consolidation

Country side restoration and culturalheritageDiversification of agriculture production

Management of w ater ressources

Technical infrastructure for agriculture

LEADER+

Technical assistance programmemanagementInstitutional building

Information and promotion

Limitation of supportLithuania Malta Poland (AEP)

Beneficiaries of support for NATURA 2000 are not eligible for support under Landscape Stewardship scheme (AEP)

AEPSubmeasure: Restoration of rubble walls – upper limit 2000 Euro per 1 ha

1 – 50 ha 100%

Farmer granted for early retirement can not be granted for afforestation

Ad hoc payments –

14 500 Euro per AWU per holding

50 - 100 ha 50%

Meeting standards

25 000 Euro per holding 100- 300 ha 25 %

over 300 ha no support

Minimum size of support – 1ha Minimum size of support – 0,11 ha

Minimum size of support – 1 ha

For the future...• Review of goals of Rural Development and

financial instruments of RDP (WTO, expectations of the tax payers, monitoring of environmental and social effects)

• Better planning and coordination (in time, territory and goals) of all instruments of RDP

• More information for farmers and better advisory work of extension service

• Subsidiarity - better consultation on the lowest level – not only with leaders (government, parliament, parties, local administration, farmers unions), but also on the community level

Thank you for your attention!dorota.metera@iucn.org

www.iucn-ce.org