Rural development policy after 2013 in the EU and in Hungary – challenges, strategy, tools

Made by Szilvia BenczeDepartment of Rural Development

Ministry of Rural Developmentszilvia.bencze@vm.gov.hu

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Contents

1. Issues concerning rural development

2. CAP post 2013

3. Concept for Hungarian National Rural Strategy

4. National Rural Strategy in the context of the new CAP

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EU rural development policy – today and after 2013

Why have an RD policy at EU level?

A policy…• because rural areas face challenges which market forces alone will not solve

A common policy…• because challenges do not start / end at national boundaries (climate

change!)

An EU policy…• to address the particular characteristics of the EU situation

With a focus on added value!

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EU rural development policy – today and after 2013

Rural areas are extremely varied

Some rural regions in economic difficulties; others show good rates of growth / employment compared to urban areas

No “typical rural region” in terms of growth and employment: different types of “rurality” determined by the regional “mix of functions” rather than a single economic activity

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Significant rural poverty at the Eastern boundaries of EU

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EU rural development policy – today and after 2013

RD policy in the current period

• The only integrated policy addressing all aspects of rural areas: economic,

environmental, social

• Clear objectives

• Pre-defined measures to guarantee targeted outcome and EU value added

• Delivery system: strategic approach, flexibility for MS

• Monitoring and evaluating system

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Key issues for after 2013

• Ongoing challenges facing rural areas

• Overarching goals of EU2020 – general policy context

• Links with other EU policies

• Structure

• Measures

• Delivery mechanisms

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Ongoing challenges facing rural areas

Socio-economicchallenges

Environmentalchallenges

Territorialchallenges

• Income gaps

• Price volatility, risk management

• Under-developed rural regions

• GHG emissions

• Soil depletion

• Water/air quality

• Habitats and biodiversity

• Vitality of rural areas

• Diversity of EU agriculture

Synergies and co-ordination with: CAP first pillar, structural funds

Contribution to Europe 2020 strategy

Food security, food safety

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Europe 2020 and RD policy: clear common ground!

Rural development

SMART growth:• Supporting innovation and

skills, green technologies and uptake of research

• Providing incentives for social innovation

INCLUSIVE growth:• Unlocking local potential,

diversifying rural economies and developing local markets and jobs

• Opening up alternative opportunities to accompany agricultural restructuring

SUSTAINABLE growth:• Increasing resource efficiency and the provision of public goods

• Reducing GHG emissions, enhancing carbon sequestration and developing bio-energy

• Ensuring sustainable land management and addressing biodiversity loss

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CAP post 2013 – new focus

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Goals of the CAP post 2013

1. Viable food production

2. Sustainable management of natural resources

3. Balanced territorial development

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Possible scenarios for the CAP reform

1. Conservative – (enhanced status quo, current CAP with gradual adjustments)

2. Prudent - (balanced reform of the CAP)

3. Radical - (rural development and agri-environmental focus)

Agricultural policy shall support competitiveness or the social and environmental protection function of the rural areas?

EUNRDS

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Objectives and priorities for RD policy - overview

Competitivenessof agriculture

Sustainable management of

natural resources

Balanced territorial development

Long-term strategic objectives

Interpreted in the light of Europe 2020:

smart, sustainable, inclusive growth

Operational priorities with:

•areas of intervention

•improved target indicators

All MS / regions must address these in their RD programmes

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Getting our priorities right (1)

1. Knowledge transfer in agriculture and forestry

• (Cross-cutting priority)

• Human capital and smart networking in agriculture & forestry

• Innovation, knowledge base in agriculture & forestry

• Strengthening links between agriculture & forestry / research & development

2. Competitiveness of agriculture, farm viability

• Restructuring of farms facing major structural problems

• Generational renewal in agricultural sector

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Getting our priorities right (2)

3. Food chain organisation, risk management in agriculture• Integrating primary producers into food chain• Supporting farm risk management

4. Preserving & enhancing ecosystems dependent on agriculture & forestryWith regard to: • biodiversity / landscapes • water management• soil management• carbon sequestration

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Getting our priorities right (3)5. Resource efficiency & transition to low-carbon economy in agri-food and

forestry sectors

• With a focus on water & energy

• Production of (feedstocks for) renewable energy in ag & forestry

• Cutting nitrous oxide & methane emissions from agriculture

6. Realising jobs potential & development of rural areas

• Diversification & job creation

• Social inclusion & poverty reduction

• Local development in rural areas

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How should the elements fit together?

RD policy Other EU policies (cohesion policy, fisheries)

RD programmes:Objectives / priorities

TargetsSets of measures

Common Strategic Framework (CSF) – reflecting Europe 2020

National frameworks – reflecting CSF

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What measures will be needed?

Current measures(2007-2013)

Streamlinemeasure

menu

Adjust conditions,scope New measures?

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Measures – some key areas (1)

Knowledge transfer

• Vocational training, advisory services, demonstrations of new technologies

Co-operation: technological

• Development / application of technology, techniques, products

Co-operation: economic

• E.g. short supply chains, sharing of resources

Co-operation: environmental

• Collective action for better results (e.g. larger areas, bigger projects)

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Measures – some key areas (2)

Business development

• Including young farmers

Risk management

• New toolkit of measures

Leader

• Strengthen bottom-up and strategy

• Open up for joint action with other funds

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Delivery mechanisms: key elements

• Strengthening strategic approach and ex-ante evaluation

• Quantified target levels against common indicators (“target indicators”) for each of the priorities

• Abolition of the axis system

• Measures used: more flexibly in combination

• Harmonise rules with other funds

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CAP after 2013 – timetable

Publicconsultation

Conference

Communi- cation on CAP after 2013

2010 (n-4) 2011 (n-3) 2012 (n-2) 2013 (n-1) 2014 (n)

Impl

emen

tatio

n of

the

new

pol

icy

Publicationof legalproposals

Negotiationsbegin with EP, Council

Negotiationswith EP andCouncil overlegalproposals

Drafting ofprogrammes

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The role of the CAP Communication within the The role of the CAP Communication within the decision making processdecision making process

• First official statement from the Commission• Requires official response from the MSs

• It ensures great room for maneuvering in the main issues• Opportunity for arranging national standpoints

• Pronouncing Presidency Conclusions

• COM takes it into account when drafting the new subsidy regulations for the next budgetary period, expected for 2011 autumn

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Main elements of the Presidency ConclusionsMain elements of the Presidency Conclusions

Majority of the MSs accept and comfortable with the objectives defined by the COM

1.Viable food production:Improving the incomes and competitiveness of the agricultural sector, sufficient, safe, good quality food production for affordable prices;

2. Sustainable management of natural resources:Encouraging and paying for public goods produced by agriculture, efficient use of natural resources with respect to environmental protection requirements;

3. Balanced territorial development:Maintaining rural communities and jobs, promoting economic growth of rural areas throughout whole Europe

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Main content elements of the Presidency Main content elements of the Presidency ConclusionsConclusions

• Management/regulation of agriculture and rural development shall be strongly linked in the future too

• Strong and two-pillar CAP is needed

Pillar I Pillar II

CAP needs to be further simplified (rationalising the interactions between farmers and authority)

•Greener•More equitable

•Increasing competitiveness•Promoting innovation•Counting with environmental protection and fight against climate change

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Presidency conclusions with regard to rural Presidency conclusions with regard to rural developmentdevelopment

• Important policy, must remain robust;• Strong rural development policy is essential with regard to competitiveness and

sustainability important to strengthen synergy with related EU policies;• Pressure of generational replacement => young farmers and new entrants;• Infrastructure development, knowledge enhancement;• Improving direct sales, encouraging production for local market;• Agri-environmental management is successful, shall remain;• Innovation is a central element : CAP relies on it and fosters it at the same time;• Climate change: agriculture has a key role in mitigating the process and also in

adaptation;• Programming: the framework should not be more complicated, and MSs should

be allowed to flexibly apply the rules taking into account national characteristics;• Aiming at synergy: with the EU regional and cohesion policy

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Concept for National Rural Strategy – 2020

„For the rise of the countryside and for sustainable agriculture”

Agricultural-,Food-,

Environmental-,RURAL STRATEGY

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Interdependence among environment, agriculture and the countrysideInterdependence among environment, agriculture and the countryside

Environmetnal endowments

Farming method, intensity

Environmental quality Product quality

Standard of living

Environmental safety Food safety

Employment

Social security

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Paradigm-shiftParadigm-shift

• Rural policy instead of agricultural policy• Dominance of family farms instead of large scale farming• Landscape management instead of harmful monoculture

Agriculture shall be entitled to EU funds only if it undertakes environmental, social and employment (so-called eco-social)

tasks apart from production.

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• Strong eco-socialist state• Common goods and equitable distribution• System approach• Building on local economy and network type cooperation• Involvement of local communities in development

Strategic principlesStrategic principles

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Strategic objectivesStrategic objectives1. Retaining, increasing rural jobs2. Retaining rural population, stabilising demographic balance3. Guaranteeing food safety and security, overcoming defencelessness4. Increasing viability of agri-food sector, improving our market position,

balancing the ratio between crop production and animal husbandry5. Protecting drinking water systems, conserving water resources, soil,

natural habitats and landscape, increasing environmental safety6. Energy supply relying also on local resources and systems, energy

security, overcoming defencelessness7. Improving rural quality of life, providing more a vidéki gazdaság több lábra

állítása8. Re-establishing the strong linkage between town and surrounding

countryside

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Strategic areas and tasksStrategic areas and tasks

1. Protection of natural values, sustainable management of natural resources and landscape

2. Rural environmental quality3. Land policy4. Sustainable agricultural structure and production policy5. Increasing value-added, safe food supply, safe market6. Development of local economy7. Rural intellectual and physical infrastructure, viable rural

settlements, local communities

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Consistency between NRS Consistency between NRS objectivesobjectives and the and the future CAPfuture CAP

1. Viable food production• Guaranteeing food safety and security, overcoming defencelessness• Increasing viability of agri-food sector, improving our market position, balancing

the ratio between crop production and animal husbandry2. Sustainable management of natural resources• Protecting drinking water systems, conserving water resources, soil, natural

habitats and landscape, increasing environmental safety3. Balanced territorial development• Retaining, increasing rural jobs• Retaining rural population, stabilising demographic balance• Energy supply relying also on local resources and systems, energy security,

overcoming defencelessness• Improving rural quality of life, providing more a vidéki gazdaság több lábra

állítása• Re-establishing the strong linkage between town and surrounding countryside

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Consistency between Consistency between strategic areas strategic areas and the future and the future CAPCAP

1. Viable food production• Land policy• Sustainable agricultural structure and production policy• Increasing value-added, safe food supply, safe market2. Sustainable management of natural resources• Protection of natural values, sustainable management of natural resources

and landscape• Rural environmental quality3. Balanced territorial development• Development of local economy• Rural intellectual and physical infrastructure, viable rural settlements, local

communities

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Strategic programmes Strategic programmes in line with the CAPin line with the CAP

• Programme of land and reparcelling• Programme of shifting land use, farming

method, landscape management• Ecological farming programme• Landscape management programme for

flood-basins• „Garden-Hungary” horticultural

programme• Animal husbandry improvement

programme• Gene and biological conservation

programme• Fishery programme• Wildlife management programme• Agricultural marketing, domestic and

external programme

Viable food production• Local, regional food processing programme• National and international food processing

programme• Controlled food chain programme• Conscious consumer and customer

programme• Hungarikum programme• Healthy mass catering programme• Local food processing, local market and food

supply programme• Local cooperatives, local money programmes• Education, training, environmental education• Adult learning and technical consultancy in

agriculture• Programme for infrastructure reconstruction

in R&D

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Strategic programmes Strategic programmes in line with the CAPin line with the CAP

• Soil conservation programme• Protection and reconstruction

of natural values, areas, ecosystem services

• Programme for protection of water resources and water quality

• Spatial water management programme

• Drinking water programme

Sustainable management of natural resources :• Structural change in land use,

landscape management programme

• Management programmes of protected and vulnerable natural areas (MTÉT, Natura )

• Native animal husbandry based on grass programme

• National forest programme• Education, training,

environmental education

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Strategic programmes Strategic programmes in line with the CAPin line with the CAP

• Local food processing, local market and food supply programme

•Social landprogramme, career model for young farmers• „Garden-Hungary” horticultural programme• Local, regional food processing programme• Conscious consumer and customer programme• Healthy mass catering programme

Balanced territorial development :

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For further information

•http://www.kormany.hu/en/ministry-of-rural-development•CAP Health Checkhttp://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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Szilvia BenczeDepartment of Rural Development

Ministry of Rural Developmentszilvia.bencze@vm.gov.hu