Rural development programmes 2007-2014 approved by the EC

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Country profile GERMANY

  • Size: 357,000 km²
  • Population: 82.31 millions inhabitants (density: 231 inhabitants/ km²)
  • GDP per capita: € 23,702 (year 2003; source: national strategy plan for rural development)
  • Rural areas cover 80% of the German territory and about 40% of the population live in these areas. The German situation is characterized by important regional discrepancies such as population density, size of agricultural holdings, income and unemployment rate.
  • Globally speaking, more than 53 % of the total surface area of Germany is utilised as agricultural land (19.1 million ha), of which 9.4 million ha are classified as Less Favoured Areas, and 33% (11 million ha) is covered by forests (of which 47% are private owned).
  • Some 1.3 million people are employed in 400,000 farms (590,000 works units), with a high share of farms (53 %) managed by part time farmers. The average size of the agricultural holdings is 43 ha, with huge farms (mainly as legal entities) in the new Länder (East Germany) and also in the North-West of Germany, and on the other side relatively small farms in Southern Germany. The value of the output of German agriculture amounts to about € 43 billion and, including forestry (over € 3 billion) and fisheries and fish farming (approximately € 0.4 billion) to around € 47 billion. Thereby the sector contributes about 1 % to the total gross value added produced in Germany (food industry: 4.6%)
  • The population working in agriculture is however better educated and has a better productivity than the EU-27 average, and is also more engaged in other activities, but there is still an important need of targeted investments in agriculture.
  • The diversity of natural resources and landscapes (from the North- and Baltic seas to the Alps) can also be seen as an important asset. 13.5% of the territory has been classified as Natura 2000 areas, and the preservation of the endangered biodiversity is seen as a very important issue.
  • In rural areas, the unemployment rate is higher than the German average, and the population working in agriculture is decreasing. Therefore, together with the provision of basic services and preservation of the rural heritage, accent has to be put to diversification of economic activities and job creation. In this respect, the encouragement of tourism activities as well as the development of renewable energy sources are seen as bringing important potentialities.

Chosen strategy corresponding to the profile

 

Due to its federal structure, the Federal Republic of Germany implements the rural development policy through rural development programmes (RDP) established at the regional level of the Länder. In this respect, 14 regional programmes (Niedersachsen /Bremen and Berlin-Brandenburg present joint programmes), and a programme related to the national network have been submitted to the Commission's services.

 

Germany has also submitted a national framework which has been adopted by the European Commission by the beginning of September. The national framework contains a menu of measures and actions according to the EAFRD regulation, which can be taken on board by the regional programmes with a national financial incentive The Commission ´s approval of this document was a pre-condition for the approval of the German regional programmes.

 

Budget for Germany

 

Total: € 13,207,160,695, of which EAFRD[1] support amounts to € 8,112,517,055 € (Convergence regions: € 3,174,037,771)

 

Mecklenburg-Western Pomerania

 

Region profile

 

  • Size: 23,178 km². 1,7 million inhabitants; Mecklenburg-Western Pomerania is the region with the lowest population density in Germany (74 inhabitants/km2). More than half of the population (54.4%) live in highly rural areas, where the number of inhabitants is below 30/km².
  • The Land (region) Mecklenburg-Western Pomerania is one of the structurally weakest regions of Germany. The gross domestic product (GDP) of Mecklenburg-Western Pomerania of EUR 32.5 billion in 2006 corresponds to EUR 19,000 per inhabitant and is thus 5% below the average of the 'new' German Länder (former GDR) and about one-third below the level for Germany as a whole.
  • In 2006, the unemployment rate was 20.8%, which was about 1.4 percentage points higher than in 1999, and twice more than the German average. Within Mecklenburg-Western Pomerania, there are huge regional differences (14.9% - 27.6%) between rural districts and towns/cities. There is no significant difference between men and women. The employment rate for women compared with the German average is relatively high (75.3%).
  • In 1,357,000 hectares, or 58.5%, of the total area of Mecklenburg-Western Pomerania is agricultural land. 20 % of this is permanent pasture land.
  • The agricultural sector is divided into 2,850 full-time large-scale farms and a high number of 2,280 part-time farmers, who farm only 4.5% of the agricultural area. The average size of full-time farms is 452 hectares. As in the whole of Eastern Germany (former GDR) there is a high proportion of land tenure.
  • The farms in Mecklenburg-Vorpommern have the highest income in Germany (54,000 EUR) that is 20,000 EUR above the German average. The farms have the highest labour efficiency in Germany (40% above the German average). 100 ha are farmed by 1.3 persons.
  • In Mecklenburg-Western Pomerania, the food industry is a significant economic sector, with 166 businesses, 14,393 employees and annual revenues of more than 3.3 billion €. In the last 10 years, about 2,400 new jobs have been created in this sector. While the share of the food industry in total sales of the manufacturing sector in Mecklenburg-Western Pomerania is 34.5%, the national German average is just 9.1%. The food sector accounts for a significant share (about 27%) of the foreign trade of Mecklenburg-Western Pomerania.

Chosen strategy corresponding to the profile:

 

  • The overall objectives were chosen in accordance with the Community Strategic Guidelines (CSG) and the National Strategy Plan and are:
  • Strengthening the competitiveness of the agricultural and forestry sector;
  • Sustainable use of natural resources and landscape conservation, conservation and development of attractive and vigorous rural areas, in order to enhance the image as tourism and health region.

 

Overall aim of RD programme in country:

 

Increasing the economic power, creating of jobs and growth

 

Axis 1 budget allocation and main priorities:

 

  • EAFRD: EUR 234,965,400 (27 % of programme total)
  • Total public funding: EUR 313,287,200 (27 % of programme total)

 

Main priorities:

 

  • Creation of a competitive agriculture and forestry, reestablishment of farm in the animal sector in order to raise the labour intensity and creation of added value.
  • Improvement of the infrastructure for agriculture and forestry,

 

Axis 2 budget allocation and main priorities:

 

  • EAFRD: EUR 220,834,400 (25 % of programme total)
  • Total public funding: EUR 276,043,000 (24 % of programme total)

Main priorities:

 

  • Protection of natural resources,
  • sustainable development,

Axis 3 budget allocation and main priorities:

 

  • EAFRD: EUR 362,098,200 ( 41 % of programme total)
  • Total public funding: EUR 482,797,600 (42 % of programme total)

Main priorities

 

  • Development of tourism potentials,
  • Improvement of the quality of live in the rural area,
  • Improvement of the environment

 

Leader budget allocation:

 

  • EAFRD: EUR 57,035,533 (6,5 % of programme total)
  • Total public funding: EUR 71,294,416 (6 % of programme total)

SCHLESWIG-HOLSTEIN 

Region profile:

 

  • Schleswig-Holstein is located in north-western Germany, with an area of 15.799 km2, making it the second smallest state (Land) in the Federal Republic of Germany;
  • 2.8 million inhabitants are residing in Schleswig-Holstein's 1.124 municipalities, of which 92 % in the defined rural area; with 179 inhabitants/km² the population density is significantly lower than in Germany (average 231/km²)
  • The settlement structure is characterised by a large number of small municipalities. A municipality in this region numbers about 2,500 inhabitants on average (in Germany as a whole, the average is over 6,000 inhabitants).
  • Schleswig-Holstein’s economic structure is mainly characterised by the services sector: this sector generated 76% of the value added (2004) and therefore much more than on an average in the West-German Länder (69.8%).
  • Tourism is of outstanding significance to the regional economy. Tourist activities are mainly concentrated on the coastal areas of the North and Baltic Sea.
  • A further economic sector of a particularly distinct nature in Schleswig-Holstein is electricity generation from regenerative sources.
  • Unemployment rate is at 11.8 % (Germany 11.7; NSP data for 2005);
  • A total of almost 80 % of the surface of Schleswig-Holstein is used for agricultural and forestry purposes, of which about 1 million hectares are used by agriculture.
  • 40 % of agricultural area is classified as in Less Favoured Areas (German average: 49%)
  • With a forest area of only 10 % (German average 31 %), Schleswig-Holstein is one of the least densely forested states in the Federal Republic of Germany;
  • Agriculture and forestry contribute to 1.9 % of the state's macroeconomic gross value added (German national average 1.1 %).
  • Around 17 664 agricultural holdings are still active (data 2005) compared to around 22 000 in 1995
  • The average farm size has increased steadily, with an average of 55.5 ha of agricultural area per holding, the average size is significantly higher the federal average of 43 ha;
  • The food industry in Schleswig-Holstein is characterised by mostly small and medium-sized enterprises. Only the dairy industry features large enterprises.

Chosen strategy corresponding to the profile:

 

In accordance with the EU Strategic Guidelines and the National Strategy Plan of the Federal Republic of Germany, the aim of this programme is to

 

  • Contribute to securing jobs and to the creation of new jobs,
  • While taking into consideration environmental aspects,
  • Through an improvement of competitiveness and value adding in agriculture, forestry and the rural environment.
  • A sustainable integrated development of the rural environment is targeted, in line with local goals and requirements, while contributing to levelling existing differences in the development of the different parts of Schleswig-Holstein. Agriculture and forestry have a key function, based on their diverse functions within the framework of socio-economic development and full activation of growth and development potential in the rural environments.

 Overall aim of RD programme in country

 

  • Improvement of competitiveness and value adding in agriculture, forestry and the rural environment,
  • Contributing to securing jobs and to the creation of new jobs, take into consideration environmental aspects.

Axis 1 budget allocation and main priorities:

 

  • EAFRD: EUR 71,549,274 (30.1 % of programme total)
  • Total public funding: EUR 143,098,548 (31.4 % of programme total)

Main priorities:

 

  • emphasis put on the modernisation of agricultural holdings (more than 21 % of public expenditure) and
  • support for investments in restoring agricultural potential damaged by natural disasters and appropriate prevention actions (around 50 % of public expenditure).

Axis 2 budget allocation and main priorities:

 

  • EAFRD: EUR 73,461,980 (30.9 % of programme total)
  • Total public funding: EUR 133,567,236 (29.3 % of programme total)
  • Main priorities under this axis are the agri-environmental measures with a broad variety of sub-measures. More than 80 % of the axis funding is reserved for these measures. The compensation allowance for Less Favoured Areas make up for around 5 % of the axis funding whereas payments for Natura-2000 amounts for about 6%.

Axes 3 budget allocation and main priorities:

 

  • EAFRD: EUR 59,789,659 (25.2 % of programme total)
  • Total public funding: EUR 119,579,318 (26.2 % of programme total)
  • The dominating priority under this axis is 'Conservation and upgrading of the rural heritage' with more than half of the axis funding. Of particular importance is the measure basic services for the economy and rural population (around 21 % of axis funding).

Leader budget allocation:

 

  • EAFRD: EUR 31,500,00 (13.3 % of programme total)
  • Total public funding: EUR 57,272,727 (12.6 % of programme total)
  • Support for selected integrated strategies according to the Leader principles. The measure shall contribute to the accomplishment of the objectives of axis 3. From 2009 on some measures of axis 3 will exclusively be implemented in axis 4.

SAXONY-ANHALT

 

Region profile

 

  • Total area about 20450 km² with 2.48 Mill inhabitants, situated in the middle east of the Federal Republic of Germany and surrounded by 4 other Länder; no direct border with another Member State or a third country.
  • Convergence region with the region of Halle as phasing out.
  • More than 80 % of the areas are used for the purpose of agriculture (57%) and forestry (24); further 2 % is water area.
  • 4.950 agricultural holdings farm on 1.000.800 ha (86 %) for food production and another 163.400 ha (14 %) is kept as permanent grassland.
  • Natura2000 regions count some 11,5 % of the total territory (231.936 ha). 265 “Fauna and Flora” habitats areas (including 11 special forest habitats) and 32 “Bird Protection” areas
  • With 20.409 €, GDP per capita has reached some 73% of the German average and 78% of the EU average.
  • Unemployment rate is more than 20%, the rate of young people under 25 years is even worse with 23.4%.
  • Rural areas:
  • The RDP covers the whole territory with the exception of the cities Magdeburg and Halle (average of 121 inhabitants per qm2). But eligibility of EAFRD support is on rural areas defined through strong area demarcations (Natura2000, Bird habitats etc) or demarcation via the number of inhabitants in villages, max 10.000 in axis 3 and max 7.500 in axis 4.
  • Covers about 75 % of the whole territory of ST with some 53% - ca.1.3 Mill- of the population.
  • Further improvement necessary for non-agricultural employment opportunities in the industry, in the handicraft and the services sector, commerce and tourism as well as smaller schools, children gardens and cultural establishments.
  • Qualitative and quantitative tourist development has been improved since 1990. With tourism now contributing about 5% to the GDP, this trend should be further improved.

Chosen strategy corresponding to the profile:

 

The strategy chosen is based on the principle of improving the living conditions in rural areas as well as the economic situation taking into account the objectives of conservation of nature and environmental protection. According to this principle and the SWOT analysis, the strategy was built on the European model of multifunctional agriculture and the objectives of the four axes of the Rural Development Regulation. The overall objectives were therefore chosen in accordance with the Community Strategic Guidelines (CSG) and the National Strategy Plan:

 

In budget terms, the RDP is very balanced over all three measures axes, but strong emphasis is given:

 

  • To the improvement of educational basis services (small schools and children garden), village renewal and development as well as the maintenance of rural heritage and the diversification of rural economy in axis 3 (33.5 %).
  • Further priority is given to flood prevention for agricultural potential, improvement of infrastructure as well as modernisation of agricultural holdings in axis 1 (29 %) and
  • To agri-environmental measures and compensation payments for restricted land use under Natura2000 in axis 2 (28 %).
  • The Leader approach (5.5 %) is open to all axes and for all RDP measures, but will be mainly implemented through axis 3 measures (4.5 % of axis 3 budget).

 

Due to the problem of low capital stock in agricultural holdings and related difficulties mostly by reticence of banks to participate in investments, Saxony-Anhalt will establish an 'Agriculture, Forestry and Food Investment Fund' as a revolving loan fund with special interest rates. This fund directly responds to such funding difficulties; it will be used for credits to agricultural enterprises for specified purposes, especially for innovative investments with important structural effects after the setting up of agricultural holdings as well as for new techniques and technologies.

 

Overall aim of RD programme in country

 

In budget terms, the RDP is very balanced over all three measures axes, but strong emphasis is given:

 

  • To the improvement of educational basis services (small schools and children garden), village renewal and development as well as the maintenance of rural heritage and the diversification of rural economy in axis 3 (33.5 %).
  • Further priority is given to flood prevention for agricultural potential, improvement of infrastructure as well as modernisation of agricultural holdings in axis 1 (29 %) and
  • To agri-environmental measures and compensation payments for restricted land use under Natura2000 in axis 2 (28 %).
  • The Leader approach (5.5 %) is open to all axes and for all RDP measures, but will be mainly implemented through axis 3 measures (4.5 % of axis 3 budget).

 

Axis 1 budget allocation and main priorities:

  • EAFRD: EUR 236,391,499 (29% of programme total)
  • Total public funding: 315,188,665 EUR

Main priorities:

 

  • Modernisation agri – holdings
  • Adding value to agri – products
  • Improvement of infrastructure
  • Prevention of flood disasters

Axis 2 budget allocation and main priorities:

 

  • EAFRD: EUR 229,503,002 (28 % of programme total)
  • Total public funding: EUR 286,878,753

Main priorities

 

  • compensation payments Natura2000
  • agri-environment payments

Axes 3 budget allocation and main priorities:

 

  • EAFRD: EUR 274.511.082 (33.5 % of programme total)
  • Total public funding: EUR 366.014.776

Main priorities

 

  • diversification of rural economy
  • basic services–renovation of small schools and children gardens
  • village renewal and development
  • preservation of rural heritage

Leader budget allocation:

 

  • EAFRD: EUR 44,376,072 (5.5 % of programme total)
  • Total public funding: EUR 55,470,090

 

Rural Development Plan for WALLONIA (BELGIUM)Region profile:

Size: 16,844 km².

 

  • 3.4 million inhabitants; half of them live in what are considered as rural areas.
  • Unemployment rate of 17% with a high share in the age group 15-24 years
  • In 2005, approximately 17,000 agricultural holdings managed 0.75 million hectares of cultivated land or 45% of the total Walloon surface. A further 32% of the surface is covered by forests.
  • The cultivated land can roughly be split into two parts: 57% are fodder crops, 38% arable crops.
  • Around 19% of all farms are managed on part-time basis.
  • Some 37% of the UAA is classified as less-favoured area. Natura 2000 sites cover some 13% of the total
  • Walloon territory; 30% of the forest area and 5% of the UAA is under Natura 2000 status.
  • The food sector is very diversified; its main components are bakery products, meat, drinks, dairy products and sugar. Organic farming only represents a minor share of the agriculture output (around 1%).

Chosen strategy corresponding to the profile

 

The overall objectives were chosen in accordance with the Community Strategic Guidelines (CSG) and the National Strategy Plan and are:

  • Towards a more competitive agriculture sector by responding to market fluctuations and society's expectations and by encouraging added value,
  • Reinforcing the complementarity between agriculture/forestry and environment and encouraging the multifunctionnality of agriculture activities,
  • Stimulating dynamic and lively rural areas and making them more attractive as places to live and to work,
  • Local capacity building for developing the endogenous development of rural areas.

Overall aim of the RD programme in Wallonia

 

  • Stimulating a dynamic and innovative agriculture sector,
  • encouraging sustainable production methods with a view to improving the environment,
  • improving the quality of life in rural areas and encouraging diversification of the rural economy,
  • local capacity building for more employment and diversification

 

Axis 1: Budget allocation and main priorities:

Total public funding: € 222,000,000 – EAFRD contribution: € 66,600,000 (30 % of programme total)

 

Main priorities: modernisation of agriculture holdings (43.2% of total public expenditure for axis 1), setting up of farms (35.6%), adding value to agriculture products (18.0%).

 

Axis 2: Budget allocation and main priorities:

Total public funding: € 188,114,000 – EAFRD contribution: € 94,057,000 (50 % of programme total)

 

Main priorities: agro environment measure (77.7% of total public expenditure for axis 2), LFA payments (17.5%), Natura 2000 payments (3.2%).

 

Axis 3: Budget allocation and main priorities:

Total public funding: € 37,133,194 – EAFRD contribution: € 18,566,597 (50 % of programme total)

 

Main priorities: creation of micro-enterprises (32.3% of total public expenditure for axis 3), conservation and upgrading of rural heritage (24.2%),diversification (16.0%), basic services for the rural economy (10.8%), promotion of tourism activities (8.1%), training and information (8.1%).

 

Leader budget allocation and priorities:

Total public funding: € 19,732,000 – EAFRD contribution: € 9,866,000 (50 % of programme total)

 

The Leader axis will be implemented using axis 1, 2 and 3 measures, focussed on maintaining and developing the attractiveness of rural areas.

 

ESTONIA´s Rural Development Plan
Country profile:

 

  • Size: 45,227 km² (of which 43,200 km² is land area), no mountain areas.
  • Agricultural land of 1.2 million hectares (arable land and natural grassland) covers around 30% of total Estonian surface. Forest land covers around 50% of the surface (40% of forest land is private).
  • 1,36 million inhabitants; 30.6% live in rural areas, 69.4 % is urban population.
  • Unemployment rate is less than 7%.
  • In 2005 there were approximately 27,700 agricultural holdings.
    75% of holdings are very small. Only 7000 enterprises receive most of their income from agricultural production and are called agricultural producers .
  • 50% of the total land area (and of UAA) is classified as less-favoured area (10% are specific less-favoured areas located on islands, coastlines, eastern border of Estonia).
  • The main components of food industry are dairy, beverages and meat. Despite rapid development of organic farming the organic processing is not developed and most of organic products are sold as conventional products.

 

Chosen strategy corresponding to the profile

 

The overall objectives were chosen in accordance with the Community Strategic Guidelines (CSG) and the National Strategy Plan:

 

  • Improving the competitiveness of the agriculture to such an extent that after the end of the programming period the farmers will manage in the conditions of reduced market support and direct payment;
  • Raising the long-term competitiveness of forestry to the level of ensuring the sustainable management of private forests;
  • Ensuring the stable status of the environment and guaranteeing agricultural land use in the regions where it is important for shaping traditional landscapes and for the preservation of high nature value areas;
  • Improvement of quality of life in rural areas and diversification of the rural economy;
  • Promoting local initiative, including formation of Leader-groups.

Overall aim of RD programme in country

 

To support the regionally balanced development of rural areas through the EU Common Agricultural Policy measures

 

Axis 1: budget allocation and main priorities:

Total public funding: € 347 610 068 - EAFRD contribution: € 260 707 551

Main priorities:

modernisation of agricultural holdings
adding value to agricultural and forestry products
infrastructure of agriculture and forest management.

 

Axes 2 budget allocation and main priorities:

Total public funding: € 334 460 344 – EAFRD contribution: € 267 568 275

Main priorities:

Agri-environmental support
Support for les-favoured areas
Natura 2000 support for agricultural land .

 

Axis 3: budget allocation and main priorities

Total public funding: € 118 919 233 – EAFRD contribution: € 89 189 425

60 % of axis for diversification of the rural economy

 

Leader budget allocation

 

Total public funding: € 85 759 063 - EAFRD: € 68 607 250

 

Rural Development Plan (2007-2013) for Greece

 

  • Country profile:
  • Size: 131,960 km²; 128,133 km² (97.1%) of the country are rural areas with the OECD definition (73.9% are predominantly rural and 23.2 % intermediate rural);
  • 10,934,000 inhabitants; 7,041,496 (64.4%) live in rural areas;
  • Unemployment rate of 9.7% is slightly higher than the EU average;
  • In 2003, approximately 824,460 agricultural holdings managed 3,967,770 Ha of cultivated land or 40.9% of the total surface excluding coastal zones. In addition to the agricultural land, 18.9% are forests and 37% natural areas, 2.3% drained areas and 0.9% lakes;
  • Natura 2000 areas cover 3,151,000 Ha (26.4%) out of which 447,948 (14.2%) Ha are agricultural land and 1,820,720 (57.8%) Ha private forest areas;
  • Agriculture contributes to 5.2% of the GDP, 22.9% to the exports and employs 12.6% of the total workforce.
  • Food industry contributes to 2.5% of the GDP, 16.9% to the exports and employs 3.2% of the total workforce;
  • 82.7% (3,281,345 Ha) of the total agricultural land is classified as less-favoured area (LFAs).

 

Chosen strategy corresponding to the profile

 

The overall objectives were chosen in accordance with the Community Strategic Guidelines (CSG) and the National Strategy Plan and are:

 

  • Strengthening the competitiveness of the primary and food industry sector by improving the infrastructure and the conditions in which the enterprises operate as well as the promotion of entrepreneurship. Solving the structural difficulties and restructuring the agricultural primary and secondary sectors will be of priority in this context;
  • Protection of the environment and enhancing biodiversity, sustainable use of natural resources and landscape conservation;
  • Improving the quality of life of the rural population and encouraging diversification of the rural economy mainly in the mountainous and less favoured areas.

Overall aim of the programme

 

  • Improving the competitiveness of the agricultural and agri-food sector,
  • Sustainable use of natural resources and landscape conservation,
  • Improving the quality of life of the rural population and encouraging diversification of the rural economy.

 

Axis 1: budget allocation and main priorities

Total public funding: € 2,254,921,209 – EAFRD contribution: € 1,598,153,220

In the context of strengthening the competitiveness of the primary sector, the priorities set involve the increase of productivity and competitiveness of the agricultural, forestry and agri-food sector, improvement of the age structure in the primary sector, reduction of regional disparities, alleviation of the problems resulting from the CAP reform and improvement of food quality.

 

Axis 2: budget allocation and main priorities

Total public funding: € 1,714,908,870 - EAFRD contribution: € 1,296,518,200

As regards the protection of the environment and the sustainable development of natural resources, the objectives include the preservation of biodiversity and the development of agricultural and forestry systems and traditional rural landscapes, rational management of water quantity and quality and the protection and sustainable management of soil.

 

Axis 3: budget allocation and main priorities

Total public funding: € 709,898,244 – EAFRD contribution: € 510,813,004

The proposed measures aim at reviving economic activity mainly in the mountainous and semi-mountainous regions via the support of entrepreneurship and diversification of rural economy, basic infrastructure provision, promotion of education and acquisition of skills, conservation and upgrading of the rural and cultural heritage and the improvement of information flow.

 

LEADER: budget allocation and main priorities

Total public funding: € 295,266,850 – EAFRD contribution: € 224,570,000

 

The measures will contribute to the reinforcement of the endogenous potential of the rural regions by promoting the cooperation and applying the bottom-up approach. The Leader actions can be implemented via Axis 1 (0,8%) and

 

Axis 2 (5,1%) of the programme. Entrepreneurship axed on innovation as well as diversification of the rural economy are the main themes of this axis.

 

Rural Development Plan for mainland PORTUGAL

 

  • Profile of mainland Portugal:
  • Size: 89 045 km² and a population density of 110 inhab/ Km2.
  • Rural areas cover 85.4% of the territory and have a small population density (40.9 inhab/Km2).
    81% of the territory is classified as less-favoured area and 21% of the territory is covered by Natura 2000 network
  • Agricultural, forest and natural areas occupy a significant part of the territory (48%, 27% and 20% respectively)
  • GDP per capita in mainland Portugal is 72.3% of the EU average
  • Unemployment rate of 6.8% is lower than EU average
  • High contribution of employment in agriculture (17% rural areas, 9% mainland Portugal).
    the average area of farm holdings is 10.8 ha, approximately half the EU average (20.4), and with a high degree of fragmentation (0.8 ha is the average PT area per block). However, there has been an increase in average size, at a rate similar to the EU average, largely due to the reduction in the number of holdings. At the same time, farm holdings have undertaken production specialisation. Farm holders in mainland Portugal tend to belong to the older age group.
  • Skill levels are quite low compared to EU average. The percentage of population between 25 and 64 years old with full secondary education is 25%. More than 60% of farmers only have basic education.
  • Over the last few years, there has been a significant increase in Gross Value Added (GVA) in the Food,
  • Beverages and Tobacco Industries (FBTI), which accounted in 2003 for 3.1% of the economy GVA. The FBTI structure in Portugal is rather similar to the EU average, although the EU has a higher percentage of larger enterprises, which could explain the differences in labour productivity (46% of the EU).
  • The strategic chains of flowers, fruit and vegetables, olive oil, wine, quality products and forestry have a high development potential.

Chosen strategy corresponding to the profile:

 

The overall objectives were chosen in accordance with the Community Strategic Guidelines (CSG) and the National Strategy Plan and are:

 

  • Improving the competitiveness of the agricultural and forestry sector,
  • Promoting the sustainability of the countryside and natural resources
  • Economic and social revitalisation of rural areas.
  • Strong emphasis is placed on competitiveness, selectivity and on chain approach. It is the main priority of the
  • Rural Development Programme, and improving the competitiveness of the agricultural and forestry sectors is the fundamental pillar on which the strategy is based. Therefore axis 1 is the most important axis in financial terms.

Overall aim of RD programme in country

 

  • promoting competitiveness of the agricultural and forestry sector,
  • sustainable management of the countryside,
  • dynamising rural areas.

Axis 1 budget allocation and main priorities:

Total public funding: € 2,080,953,274 – EAFRD contribution: € 1,559,364,977

Main priorities:

Promoting competitiveness
Focus on strategic chains (fruit and vegetables, flowers, olive oil, wine, forestry, quality products)
Improving efficiency of irrigation systems and development of new systems, in order to discourage and to replace the use of underground water
Promoting knowledge and capacity building
support for setting-up of young farmers

 

Axis 2 budget allocation and main priorities:

Total public funding: € 1,776,806,306 – EAFRD contribution: € 1,448,105,873

Main priorities under this axis are:

support for the maintenance of activities in less favoured and mountain regions
organic farming and integrated farming
Integrated Territorial Interventions in 8 Natura 2000 areas and 1 World Heritage site; combining agro-environmental and forest measures
Environmental valorisation of forestry areas

 

Axis 3 budget allocation:

Total public funding: € 6,686,632 – EAFRD contribution: € 5,067,150

The LEADER approach will manage this axis. The main priority under this axis is Conservation and upgrading of the rural heritage.

 

Leader budget allocation and main priorities:

Total public funding: € 452,934,03 – EAFRD contribution: € 360,606,500

 

Support for selected integrated strategies according to the Leader principles. The measure shall contribute to the accomplishment of the objectives of axis 3. The main priority is Quality of life/Diversification. Inter-territorial and trans-national cooperation is envisaged.

 

Rural development plan in SPAIN: NAVARRA 

  • Country profile for Spain
  • Size: 504 411 km²
  • Population: 44, 5 millions inhabitants (density: 88 inhabitants/ km²)
  • GDP per capita: 19 480 € (average years 2000-2002; source: national strategy plan for rural development)
  • Rural areas cover 91.3 % of the Spanish territory and about 31% of the population live in these areas. The
  • Spanish situation is characterized by important territorial discrepancies, mainly between the interior and the coastal areas.
  • Almost 0.95 million people are employed in 1.140.730 agricultural holdings (998 000 work units), with a high share of farms (68.4 %) managed by full time farmers. The average size of the agricultural holdings is 22.1 ha, with big farms mainly in the centre and south of the country, and on the other side relatively small farms in the
  • North part of Spain. While 55% of the holdings use 5% of the agricultural land, the 8.7 % of the holdings occupy the 69.1 % of the agricultural land. The value of the output of Spanish agriculture amounts to about 26 billion € including forestry. Thereby the sector contributes about 3.32 % to the total gross value added produced in Spain (food industry: 16.5%)
  • The diversity of natural resources and landscapes (wet in the North and dryer in the South) can also be seen as an important asset. 24.5% of the territory has been classified as Natura 2000 areas including forest areas, and the preservation of the endangered biodiversity is seen as a very important issue.

 

Chosen strategy corresponding to the profile

 

Due to its structure, Spain implements the rural development policy through 17 rural development programmes (RDP) established at regional level by the Autonomous Communities. A National Framework has been elaborated at the national level which includes certain elements common to all 17 regional programmes.

 

Budget for Rural Development for Spain

Total: € 13 814 062 684 (adding national aids: € 15 800 192 832) of which EAFRD[1] support amounts to € 7 213 917 799 € (Convergence regions: € 4 943 643 740).

 

Region: Navarra

Profile of Navarra:

 

  • Population: 593 472 inhabitants.
  • Size: 10 391 km² (2.7% of the Spanish surface) and a population density of 57.11 inhab/ Km2.
  • GDP per capita in Navarra is 125% of the EU average
  • Unemployment rate of 5.5% is lower than EU average
  • Rural areas cover 90% of the territory (252 out of the 272 municipalities) with a population of 260,963 inhabitants (43.97% of the region's population).
  • Agricultural, forest and natural areas occupy a significant part of the territory (47%, 32% and 20% respectively)
    33.64% of the agricultural surface is classified as less-favoured area
  • 24.30% of the territory is covered by the Natura 2000 network: this includes 19.60% of the agricultural surface and 34.65% of the forestry surface.
  • Low contribution of employment in agriculture (4.44% of the employment). Working Units have diminished by 3.21%, while productivity has increased by 23.92% since 2000. Productivity level in the agricultural sector is currently higher than the EU average.
  • The average area of farm holdings is 30.8 ha (10 ha higher than the EU average), but 45% of the farm holdings have less than 5 ha.
  • The level of education and training in the agricultural sector is low.
  • Within the total agricultural production, the fastest growing sectors are fruits, wine and olive oil. However, other relevant crops such as fodder plants, industrial plans and potatoes are seeing a dramatic decrease.
  • Navarra's agri-food industry is showing a positive trend: the number of companies has been constantly increasing at an annual rate of 1.58%. The size of the sector remains constant (at an average value of 10 workers per agri-food industry). This sector currently provides 17% of the employment of the Navarran industry. Both agri-food production and its gross added value have risen satisfactorily, with annual averages of 10.31% and 9.22% respectively.
  • Agri-food industry is growing as a key economic driver of the rural areas, as well as tourism.

Chosen strategy corresponding to the profile:

 

The overall objectives were chosen in accordance with the Community Strategic Guidelines (CSG), the National Strategy Plan and the Spanish National Framework:

 

Therefore, the priorities and objectives of this RDP can be summarised under four headings:

 

  • Competitiveness of the agri-food sector.
  • Sustainability and natural environment.
  • Diversification of the quality of life in rural areas.
  • Development of the local capacity and diversification.

Overall aim of the RD programme of Navarra

 

The improvement of the competitiveness of the agri-food sector, the promotion of sustainable agriculture and forestry and the searching of new opportunities in the rural areas.

 

Axis 1 budget allocation and main priorities:

Total public funding: € 219 671 380€ - EAFRD contribution: € 54 917 845

Main priorities under this Axis:

 

  • Promotion of knowledge and improvement in human potential.
  • Restructuring and development of the physical potential and promotion of innovation.

 

Axis 2 budget allocation and main priorities:

Total public funding: € 66 555 684 – EAFRD contribution: € 36 605 626 (

Main priorities under this axis are:

 

  • Sustainable use of the agricultural land
  • Sustainable use of the forest land

Axis 3 budget allocation and main priorities:

(6.86% of EAFRD contribution, 15.88% including Leader Axis).

Total public funding: EUR 15 405 330 – EAFRD contribution: € 7 702 665

Main priorities under this Axis are:

 

  • Diversification of the rural economy
  • Improvement in the quality of life in the rural areas.

 

Leader budget allocation and main priorities:

 

Total public funding: € 23 778 000 - EAFRD contribution: € 13 077 900

The Leader budged allocation is divided as follows: 10.23% for Axis 1, 12.28% for Axis 2 and 77.49% for Axis 3.

Main priorities under this Axis:

 

  • Contribution to the objectives of Axis 1, 2 and 3 through the rural development strategies and participation of economic and social actors.
  • Improvement in local governance and promotion of cooperation between the private and public sectors.
  • Mobilisation of the endogenous development potential of rural areas.

 

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