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Rural development policy after 2013 in the EU and in Hungary – challenges, strategy, Rural development policy after 2013 in the EU and in Hungary – challenges, strategy, tools Made by Szilvia Bencze Department of Rural Development Ministry of Rural Development szilvia. [email protected] gov. hu

Contents 1. Issues concerning rural development 2. CAP post 2013 3. Concept for Hungarian 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 2

EU rural development policy – today and after 2013 Why have an RD policy 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! 3

Rural areas are extremely varied EU rural development policy – today and after 2013 Rural areas are extremely varied EU rural development policy – today and after 2013 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 4

Significant rural poverty at the Eastern boundaries of EU 5 Significant rural poverty at the Eastern boundaries of EU 5

EU rural development policy – today and after 2013 RD policy in the current 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 6

Key issues for after 2013 • Ongoing challenges facing rural areas • Overarching goals Key issues for after 2013 • Ongoing challenges facing rural areas • Overarching goals of EU 2020 – general policy context • Links with other EU policies • Structure • Measures • Delivery mechanisms 7

Ongoing challenges facing rural areas Socio-economic challenges Environmental challenges Territorial challenges • Income gaps Ongoing challenges facing rural areas Socio-economic challenges Environmental challenges Territorial challenges • Income gaps • GHG emissions • Vitality of rural areas • Price volatility, risk management • Soil depletion • Diversity of EU agriculture • Under-developed rural regions • Habitats and biodiversity • Water/air quality Food security, food safety Synergies and co-ordination with: CAP first pillar, structural funds Contribution to Europe 2020 strategy 8

Europe 2020 and RD policy: clear common ground! SMART growth: INCLUSIVE growth: • Supporting Europe 2020 and RD policy: clear common ground! SMART growth: INCLUSIVE growth: • Supporting innovation and skills, green technologies and uptake of research • Unlocking local potential, diversifying rural economies and developing local markets and jobs • Providing incentives for social innovation Rural development • 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 bioenergy • Ensuring sustainable land management and addressing biodiversity loss 9

CAP post 2013 – new focus Rural development Market measures 10 CAP post 2013 – new focus Rural development Market measures 10

Goals of the CAP post 2013 1. Viable food production 2. Sustainable management of Goals of the CAP post 2013 1. Viable food production 2. Sustainable management of natural resources 3. Balanced territorial development 11

Possible scenarios for the CAP reform 1. Conservative – (enhanced status quo, current CAP 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) EU NRDS Agricultural policy shall support competitiveness or the social and environmental protection function of the rural areas? 12

Objectives and priorities for RD policy - overview Long-term strategic objectives Competitiveness of agriculture Objectives and priorities for RD policy - overview Long-term strategic objectives Competitiveness of agriculture Sustainable management of natural resources Balanced territorial development 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 14

Getting our priorities right (1) 1. Knowledge transfer in agriculture and forestry • (Cross-cutting 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 15

Getting our priorities right (2) 3. Food chain organisation, risk management in agriculture • 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 & forestry With regard to: • biodiversity / landscapes • water management • soil management • carbon sequestration 16

Getting our priorities right (3) 5. Resource efficiency & transition to low-carbon economy in 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 17

How should the elements fit together? Common Strategic Framework (CSF) – reflecting Europe 2020 How should the elements fit together? Common Strategic Framework (CSF) – reflecting Europe 2020 National frameworks – reflecting CSF RD policy Other EU policies (cohesion policy, fisheries) RD programmes: Objectives / priorities Targets Sets of measures 18

What measures will be needed? Current measures (2007 -2013) Streamline measure menu Adjust conditions, What measures will be needed? Current measures (2007 -2013) Streamline measure menu Adjust conditions, scope New measures? 19 19

Measures – some key areas (1) Knowledge transfer • Vocational training, advisory services, demonstrations 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) 20

Measures – some key areas (2) Business development • Including young farmers Risk management 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 21

Delivery mechanisms: key elements • Strengthening strategic approach and ex-ante evaluation • Quantified target 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 22

CAP after 2013 – timetable Public consultation Conference Communication on CAP after 2013 2011 CAP after 2013 – timetable Public consultation Conference Communication on CAP after 2013 2011 (n-3) Publication of legal proposals Negotiations begin with EP, Council 2012 (n-2) 2013 (n-1) Negotiations with EP and Council over legal proposals Drafting of programmes 2014 (n) Implementation of the new policy 2010 (n-4) 23

The role of the CAP Communication within the decision making process • First official The role of the CAP Communication within the decision 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 24

Main elements of the Presidency Conclusions Majority of the MSs accept and comfortable with Main 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 25

Main content elements of the Presidency Conclusions • Management/regulation of agriculture and rural development Main content elements of the Presidency Conclusions • Management/regulation of agriculture and rural development shall be strongly linked in the future too • Strong and two-pillar CAP is needed Pillar I • Greener • More equitable Pillar II • Increasing competitiveness • Promoting innovation • Counting with environmental protection and fight against climate change CAP needs to be further simplified (rationalising the interactions between farmers and authority) 26

Presidency conclusions with regard to rural development • • • Important policy, must remain Presidency conclusions with regard to rural development • • • 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 27

Concept for National Rural Strategy – 2020 Agricultural-, Food-, Environmental-, RURAL STRATEGY „For the Concept for National Rural Strategy – 2020 Agricultural-, Food-, Environmental-, RURAL STRATEGY „For the rise of the countryside and for sustainable agriculture” 28

Interdependence among environment, agriculture and the countryside Environmetnal endowments Farming method, intensity Environmental safety Interdependence among environment, agriculture and the countryside Environmetnal endowments Farming method, intensity Environmental safety Environmental quality Product quality Food safety Employment Social security Standard of living 29

Paradigm-shift • Rural policy instead of agricultural policy • Dominance of family farms instead Paradigm-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. 30

Strategic principles • • • Strong eco-socialist state Common goods and equitable distribution System Strategic principles • • • 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 31

Strategic objectives 1. 2. 3. 4. 5. 6. 7. 8. Retaining, increasing rural jobs Strategic objectives 1. 2. 3. 4. 5. 6. 7. 8. Retaining, increasing rural jobs Retaining rural population, stabilising demographic balance 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 husbandry Protecting drinking water systems, conserving water resources, soil, natural habitats and landscape, increasing environmental safety 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 32

Strategic areas and tasks 1. Protection of natural values, sustainable management of natural resources Strategic areas and tasks 1. Protection of natural values, sustainable management of natural resources and landscape 2. Rural environmental quality 3. Land policy 4. Sustainable agricultural structure and production policy 5. Increasing value-added, safe food supply, safe market 6. Development of local economy 7. Rural intellectual and physical infrastructure, viable rural settlements, local communities 33

Consistency between NRS objectives and the future CAP 1. Viable food production • Guaranteeing Consistency between NRS objectives and the future 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 husbandry 2. Sustainable management of natural resources • Protecting drinking water systems, conserving water resources, soil, natural habitats and landscape, increasing environmental safety 3. 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 34

Consistency between strategic areas and the future CAP 1. Viable food production • Land Consistency between strategic areas and the future CAP 1. Viable food production • Land policy • Sustainable agricultural structure and production policy • Increasing value-added, safe food supply, safe market 2. Sustainable management of natural resources • Protection of natural values, sustainable management of natural resources and landscape • Rural environmental quality 3. Balanced territorial development • Development of local economy • Rural intellectual and physical infrastructure, viable rural settlements, local communities 35

Strategic programmes in line with the CAP Viable food production • Programme of land Strategic programmes in line with the CAP Viable food production • Programme of land 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 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 36

Strategic programmes in line with the CAP Sustainable management of natural resources : • Strategic programmes in line with the CAP Sustainable management of natural resources : • 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 • 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 37

Strategic programmes in line with the CAP Balanced territorial development : • Local food Strategic programmes in line with the CAP Balanced territorial development : • 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 38

For further information • http: //www. kormany. hu/en/ministry-of-rural-development • CAP Health Check http: //ec. For further information • http: //www. kormany. hu/en/ministry-of-rural-development • CAP Health Check http: //ec. europa. eu/agriculture/healthcheck/index_en. htm • EU agriculture and CAP reform http: //ec. europa. eu/agriculture/index_en. htm • EU rural development policy 2007 -2013 http: //ec. europa. eu/agriculture/rurdev/index_en. htm • Agricultural Policy Analysis and Perspectives http: //ec. europa. eu/agriculture/analysis/perspec/index_en. htm 39

Szilvia Bencze Department of Rural Development Ministry of Rural Development szilvia. bencze@vm. gov. hu Szilvia Bencze Department of Rural Development Ministry of Rural Development szilvia. [email protected] gov. hu 40