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EU Rural Development Regulation
No 1698/2005 and its forestry relevant
             measures
        Budapest 21-22 September 2006
                            Tamas Szedlak
                          European Commission
         Directorate General Agriculture and Rural Development
         Unit F6. Bioenergy, biomass, forestry and climate change
Forestry in the
                   EU
 Forests and other wooded
  land cover 166 million ha,
  (43,2% of land area) from
  which forests cover 145
  million ha, (37,8%)




        CEPF RD Conference 21-22 September 2006   2
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CEPF RD Conference 21-22 September 2006
                                                        L l
                                               Lu Lith atv y
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                                                                         Forest % of land area




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   3
Forest ownership

 Public forest represents 40% of forest area
  and private forests: 60% with about 15
  million forest owners.
 The average size of EU state-owned forest
  holdings is about 1 000 ha,
 Community forests:~ 300 ha
 Private forest holdings have an average size
  of 13 ha. (many < 5 ha)


CEPF RD Conference 21-22 September 2006    4
EU Rural Development Policy
                   Agenda 2000


                   CR (EC) No 1257/1999


                   CR (EC) No
                    1698/2005

 CEPF RD Conference 21-22 September 2006   5
CR (EC) No 1257/1999
  Afforestation of agricultural land (Art. 31)
  Investments to improve the multifunctional
   role of forests (Art. 30)
  Improvement of the forest protection values
   (Art. 32)
  Vocational training (Art.9)
 Budget: 4.8 Billion €
  Afforestation: 2.4 billion €
  Other forestry measure: 2.4 billion €

CEPF RD Conference 21-22 September 2006           6
Rural Development Regulation
2007-2013
          CR (EC) No 1698/2005
Three core objectives:
• Improving the competitiveness of the farm and
  forestry sector through support for restructuring,
  development and innovation
• Improving the environment and the countryside
  through support for land management
• Improving the quality of life in rural areas and
  encouraging diversification of economic activity
 CEPF RD Conference 21-22 September 2006               7
Axis 1: Improving competitiveness of the
forestry sector

    Investments
    Infrastructure
    Vocational training
    Advisory services
    Innovation (new products, biomass for
     energy)

    CEPF RD Conference 21-22 September 2006   8
Axis 1: Forestry measures
Measures aimed at improving human potential
 through:
 Vocational training and information actions for persons
 engaged in the agricultural and forestry sectors
       Not normal education
 Use by farmers and forest holders of advisory services
       To improve performance
       Level of support: 80% of the cost up to 1,500€ per advisory
       service
 Setting up of farm management, farm relief and farm advisory
 services, as well as of forestry advisory services
       Main conditions: enlarged to include forestry advisory services
       Level of support: No limit, but digressive over max. 5 years
       from setting up
    CEPF RD Conference 21-22 September 2006                          9
Axis 1: Forestry measures
Measures aimed at restructuring physical potential through:

  Improving the economic value of forests
      - based on management plan
      - for forests owned by private owners/municipalities or their associations
      - aid intensity 60 % (natural handicap, N 2000), 85 % (OR),50%
      - investments at forest holding level, may include harvesting equipment
      - no support for restocking

  Adding value to primary agricultural and forestry production
      - In the case of forestry, support only for micro-enterprises
       (<10 staff, max. 2 mio € turnover)
      - aid intensity 50 % (convergence),75/65 %(OR/Aegean), 40 %
      - investments related to the use of wood as a raw material is limited to all
      working operations prior to industrial processing

  Improving and developing infrastructure related to the
  development and adaptation agriculture and forestry
      - i.a. access to forest land, energy supply
       CEPF RD Conference 21-22 September 2006                                10
Axis 1: New measure
introduced to promote innovation:

 Cooperation for development of new products,
  processes and technologies in the agriculture and
  food sector and in the forestry sector
 Between primary producers in agriculture and
  forestry, the processing industry and/or third
  parties
     – preparatory operations, such as design, product, process or
       technology development and tests and tangible and/or
       intangible investments related to the cooperation, before the
       use of the newly developed products, processes and
       technologies for commercial purposes.

CEPF RD Conference 21-22 September 2006                                11
Axis 2 : Improving the environment and the
countryside
      Forestry land:
       first afforestation*;
       first establishment of agro-forestry systems,
       Natura 2000 areas;
       forest-environment;
       restoring forestry potential and introducing
         prevention actions;
       support for non-productive investments
           *an agri-environment commitment may be converted into a commitment
               for first afforestation of agricultural land
              MS shall designate the areas eligible for afforestation
      CEPF RD Conference 21-22 September 2006                             12
Axis 2: Land management/environment
First afforestation

Aid intensity for establishment costs:
- 70% outside handicap areas
- 80% in handicap areas and 85% in the outermost regions
    "establishment costs" shall include the cost for the plantation material, the
    cost of the plantation and the cost directly linked to and necessary for the
    plantation,
    "fast-growing species for short–term cultivation“: rotation time less than 15
    years

Of agricultural land:

      + Annual premiums to cover loss of income to farmers (or associations
thereof) maximum 700 EUR/ha, or other natural persons or private-law
corporations maximum 150 EUR/ha, up to 15 years.
      CEPF RD Conference 21-22 September 2006                                  13
Axis 2: Forestry – new measure
    First establishment of agroforestry systems on agricultural
    land

         Main conditions:
    Support granted to create systems combining extensive agriculture and
    forestry on the same land.
    Christmas trees and fast-growing species are excluded from support.
      – Member States, taking account of local conditions, forestry species
         and the need to ensure continuation of the agricultural use of the land,
         shall determine the maximum number of trees planted per hectare.

        Aid intensity, for establishment costs only:
    - 70% outside handicap areas
    - 80% in handicap areas and 85% in the outermost regions

          CEPF RD Conference 21-22 September 2006                            14
Axis 2: Forestry – current art. 32 (1), 1st indent
   NATURA 2000 payments:
          Main conditions:
     The measure becomes Natura 2000-specific. Support covers
     cost incurred and income foregone resulting from the
     restrictions of the use of the forestland due to Natura 2000.
          Levels of support: Minimum 40€/ha, maximum
     200€/ha
   Forest-environment payments:
           Main conditions:
      The measure becomes more environment-specific, similar to
      agri-environment. Support is granted for forest-environment
      commitments going beyond (national) mandatory standards,
      and running for 5 years (or another period where justified);
      support covers additional costs and income foregone
           Levels of support: Minimum 40€/ha, maximum
   CEPF RD Conference 21-22 September 2006                         15
      200€/ha
Axis 2:
                            Forestry
Restoring forestry production potential and
 introducing prevention actions:
 Main conditions: Preventive actions against fires
 shall concern forests under high-medium forest-fire
 risk according to the MS forest protection plans.
 Level of support: No limit
        examples: establishment of protective infrastructures
  such as forest paths, tracks, water supply points, fire breaks,
  cleared and felled areas, launching of operations to maintain
  fire breaks and cleared and felled areas; preventive forestry
  practices such as vegetation control, thinning, diversification of
  vegetation structure; setting-up or improvement of fixed forest
  fire monitoring facilities and communication equipment.

   CEPF RD Conference 21-22 September 2006                       16
Axis 2:
                         Forestry
Support for non-productive investments
 :
    Main conditions: "non-productive investments”
    shall mean investments that do not lead to any
    significant increase in the value or profitability of the
    agricultural or the forestry holding.
    Level of support: No limit
    New separate measure taking over part of the existing CR
    1257/1999 Art. 33(11th) and 30(1)(2nd) measures and
    complementing them with regard to the forest-environmental
    measure: grant of non-productive support is linked to the
    achievement of commitments undertaken under the forest-
    environmental measure, or in order to enhance the public
    amenity value of the area concerned.
CEPF RD Conference 21-22 September 2006                     17
Axis 3 : Diversification, quality of life
 Diversification of the rural economy:
  diversification to non-agricultural activities; support for micro-
  enterprises; encouragement of tourism activities*
     *-small-scale infrastructure such as information centres and the
        signposting of tourist sites;
      -recreational- infrastructure such as the offering access to natural areas,
        and small-capacity accommodation,
     -the development and/or marketing of tourism services relating to rural
        tourism
 Improvement of the quality of life:
  basic services for the economy and rural population; village renewal;
  conservation and upgrading of the rural heritage (natural and
  cultural)
 Training and capacity building

       CEPF RD Conference 21-22 September 2006                                 18
Axis 4 : Leader
 Implementation of local development strategies
  through a Leader approach to contribute to the
  achievement of the objectives of one or several of
  the three other axes
 Inter-territorial and trans-national cooperation
  between LAGs
 Capacity building and functioning of LAGs


 CEPF RD Conference 21-22 September 2006               19
Programme balance
 Axis 1: Competitiveness at least 10% of EU
  programme funding
 Axis 2: Land management at least 25% (10%
  in French Overseas Departments)
 Axis 3: Wider rural development at least 10%
 Axis 4: LEADER at least 5% (but counts for
  the other axes)


CEPF RD Conference 21-22 September 2006     20
Community cofinancing rates
    At the level of the axis as share of total
     eligible public expenditure
    For axis 1 and 3 a maximum cofinancing
     rate of 50% (75% in Convergence
     regions)
    For axis 2 and 4 a maximum cofinancing
     rate of 55% (80% in Convergence
     regions)
    For all axes 85% in outermost regions
CEPF RD Conference 21-22 September 2006       21
Programming steps
1. Community strategic guidelines setting out the EU
   priorities for the period 2007-2013


2. National strategy plans translating the EU priorities to
   the member state situation and ensuring
   complementarity with Cohesion policy


3. National or regional rural development programmes
   articulating the four axes
  CEPF RD Conference 21-22 September 2006                22
Reporting based on a common framework
     for monitoring and evaluation
 Annual progress reports at programme level

 National summary reports on progress in implementation of the
  national strategy: 2010 – 2012 - 2014

 Commission summary report to the Council and the EP on the
  progress in implementation of the EU strategy and priorities:
                   2011 – 2013 – 2015

 Ongoing evaluation: ex-ante (programme)
                           ongoing activities (annual progress report)
                           mid-term (2010) } specific reports
                           ex-post (2014)
   CEPF RD Conference 21-22 September 2006                               23
Thank you for your attention!




CEPF RD Conference 21-22 September 2006   24

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EU Rural Development Regulation No 1698/2005 and its forestry relevant measures, Tamas Szedlak

  • 1. EU Rural Development Regulation No 1698/2005 and its forestry relevant measures Budapest 21-22 September 2006 Tamas Szedlak European Commission Directorate General Agriculture and Rural Development Unit F6. Bioenergy, biomass, forestry and climate change
  • 2. Forestry in the EU  Forests and other wooded land cover 166 million ha, (43,2% of land area) from which forests cover 145 million ha, (37,8%) CEPF RD Conference 21-22 September 2006 2
  • 3. Au 0 10 20 30 40 50 60 70 80 C Be str ze lg ia ch C ium Re ypr u D pu s en bl i E sm a c to rk Fi nia n Fr l an G an d er c m e G an r H eec y un e Ir egar la y n Ita d CEPF RD Conference 21-22 September 2006 L l Lu Lith atv y xe u a i a m ni bo a N Forest % of land area et M urg he a rla lta P o nd Po lan s Sl rtug d o Country distribution S l va k a l ov i a U e ni Spnia te S a d we in Ki d ng en do m 3
  • 4. Forest ownership  Public forest represents 40% of forest area and private forests: 60% with about 15 million forest owners.  The average size of EU state-owned forest holdings is about 1 000 ha,  Community forests:~ 300 ha  Private forest holdings have an average size of 13 ha. (many < 5 ha) CEPF RD Conference 21-22 September 2006 4
  • 5. EU Rural Development Policy  Agenda 2000  CR (EC) No 1257/1999  CR (EC) No 1698/2005 CEPF RD Conference 21-22 September 2006 5
  • 6. CR (EC) No 1257/1999  Afforestation of agricultural land (Art. 31)  Investments to improve the multifunctional role of forests (Art. 30)  Improvement of the forest protection values (Art. 32)  Vocational training (Art.9) Budget: 4.8 Billion €  Afforestation: 2.4 billion €  Other forestry measure: 2.4 billion € CEPF RD Conference 21-22 September 2006 6
  • 7. Rural Development Regulation 2007-2013 CR (EC) No 1698/2005 Three core objectives: • Improving the competitiveness of the farm and forestry sector through support for restructuring, development and innovation • Improving the environment and the countryside through support for land management • Improving the quality of life in rural areas and encouraging diversification of economic activity CEPF RD Conference 21-22 September 2006 7
  • 8. Axis 1: Improving competitiveness of the forestry sector  Investments  Infrastructure  Vocational training  Advisory services  Innovation (new products, biomass for energy) CEPF RD Conference 21-22 September 2006 8
  • 9. Axis 1: Forestry measures Measures aimed at improving human potential through: Vocational training and information actions for persons engaged in the agricultural and forestry sectors Not normal education Use by farmers and forest holders of advisory services To improve performance Level of support: 80% of the cost up to 1,500€ per advisory service Setting up of farm management, farm relief and farm advisory services, as well as of forestry advisory services Main conditions: enlarged to include forestry advisory services Level of support: No limit, but digressive over max. 5 years from setting up CEPF RD Conference 21-22 September 2006 9
  • 10. Axis 1: Forestry measures Measures aimed at restructuring physical potential through: Improving the economic value of forests - based on management plan - for forests owned by private owners/municipalities or their associations - aid intensity 60 % (natural handicap, N 2000), 85 % (OR),50% - investments at forest holding level, may include harvesting equipment - no support for restocking Adding value to primary agricultural and forestry production - In the case of forestry, support only for micro-enterprises (<10 staff, max. 2 mio € turnover) - aid intensity 50 % (convergence),75/65 %(OR/Aegean), 40 % - investments related to the use of wood as a raw material is limited to all working operations prior to industrial processing Improving and developing infrastructure related to the development and adaptation agriculture and forestry - i.a. access to forest land, energy supply CEPF RD Conference 21-22 September 2006 10
  • 11. Axis 1: New measure introduced to promote innovation:  Cooperation for development of new products, processes and technologies in the agriculture and food sector and in the forestry sector  Between primary producers in agriculture and forestry, the processing industry and/or third parties – preparatory operations, such as design, product, process or technology development and tests and tangible and/or intangible investments related to the cooperation, before the use of the newly developed products, processes and technologies for commercial purposes. CEPF RD Conference 21-22 September 2006 11
  • 12. Axis 2 : Improving the environment and the countryside Forestry land:  first afforestation*;  first establishment of agro-forestry systems,  Natura 2000 areas;  forest-environment;  restoring forestry potential and introducing prevention actions;  support for non-productive investments *an agri-environment commitment may be converted into a commitment for first afforestation of agricultural land MS shall designate the areas eligible for afforestation CEPF RD Conference 21-22 September 2006 12
  • 13. Axis 2: Land management/environment First afforestation Aid intensity for establishment costs: - 70% outside handicap areas - 80% in handicap areas and 85% in the outermost regions "establishment costs" shall include the cost for the plantation material, the cost of the plantation and the cost directly linked to and necessary for the plantation, "fast-growing species for short–term cultivation“: rotation time less than 15 years Of agricultural land: + Annual premiums to cover loss of income to farmers (or associations thereof) maximum 700 EUR/ha, or other natural persons or private-law corporations maximum 150 EUR/ha, up to 15 years. CEPF RD Conference 21-22 September 2006 13
  • 14. Axis 2: Forestry – new measure First establishment of agroforestry systems on agricultural land  Main conditions: Support granted to create systems combining extensive agriculture and forestry on the same land. Christmas trees and fast-growing species are excluded from support. – Member States, taking account of local conditions, forestry species and the need to ensure continuation of the agricultural use of the land, shall determine the maximum number of trees planted per hectare.  Aid intensity, for establishment costs only: - 70% outside handicap areas - 80% in handicap areas and 85% in the outermost regions CEPF RD Conference 21-22 September 2006 14
  • 15. Axis 2: Forestry – current art. 32 (1), 1st indent NATURA 2000 payments:  Main conditions: The measure becomes Natura 2000-specific. Support covers cost incurred and income foregone resulting from the restrictions of the use of the forestland due to Natura 2000.  Levels of support: Minimum 40€/ha, maximum 200€/ha Forest-environment payments:  Main conditions: The measure becomes more environment-specific, similar to agri-environment. Support is granted for forest-environment commitments going beyond (national) mandatory standards, and running for 5 years (or another period where justified); support covers additional costs and income foregone  Levels of support: Minimum 40€/ha, maximum CEPF RD Conference 21-22 September 2006 15 200€/ha
  • 16. Axis 2: Forestry Restoring forestry production potential and introducing prevention actions: Main conditions: Preventive actions against fires shall concern forests under high-medium forest-fire risk according to the MS forest protection plans. Level of support: No limit examples: establishment of protective infrastructures such as forest paths, tracks, water supply points, fire breaks, cleared and felled areas, launching of operations to maintain fire breaks and cleared and felled areas; preventive forestry practices such as vegetation control, thinning, diversification of vegetation structure; setting-up or improvement of fixed forest fire monitoring facilities and communication equipment. CEPF RD Conference 21-22 September 2006 16
  • 17. Axis 2: Forestry Support for non-productive investments : Main conditions: "non-productive investments” shall mean investments that do not lead to any significant increase in the value or profitability of the agricultural or the forestry holding. Level of support: No limit New separate measure taking over part of the existing CR 1257/1999 Art. 33(11th) and 30(1)(2nd) measures and complementing them with regard to the forest-environmental measure: grant of non-productive support is linked to the achievement of commitments undertaken under the forest- environmental measure, or in order to enhance the public amenity value of the area concerned. CEPF RD Conference 21-22 September 2006 17
  • 18. Axis 3 : Diversification, quality of life  Diversification of the rural economy: diversification to non-agricultural activities; support for micro- enterprises; encouragement of tourism activities* *-small-scale infrastructure such as information centres and the signposting of tourist sites; -recreational- infrastructure such as the offering access to natural areas, and small-capacity accommodation, -the development and/or marketing of tourism services relating to rural tourism  Improvement of the quality of life: basic services for the economy and rural population; village renewal; conservation and upgrading of the rural heritage (natural and cultural)  Training and capacity building CEPF RD Conference 21-22 September 2006 18
  • 19. Axis 4 : Leader  Implementation of local development strategies through a Leader approach to contribute to the achievement of the objectives of one or several of the three other axes  Inter-territorial and trans-national cooperation between LAGs  Capacity building and functioning of LAGs CEPF RD Conference 21-22 September 2006 19
  • 20. Programme balance  Axis 1: Competitiveness at least 10% of EU programme funding  Axis 2: Land management at least 25% (10% in French Overseas Departments)  Axis 3: Wider rural development at least 10%  Axis 4: LEADER at least 5% (but counts for the other axes) CEPF RD Conference 21-22 September 2006 20
  • 21. Community cofinancing rates  At the level of the axis as share of total eligible public expenditure  For axis 1 and 3 a maximum cofinancing rate of 50% (75% in Convergence regions)  For axis 2 and 4 a maximum cofinancing rate of 55% (80% in Convergence regions)  For all axes 85% in outermost regions CEPF RD Conference 21-22 September 2006 21
  • 22. Programming steps 1. Community strategic guidelines setting out the EU priorities for the period 2007-2013 2. National strategy plans translating the EU priorities to the member state situation and ensuring complementarity with Cohesion policy 3. National or regional rural development programmes articulating the four axes CEPF RD Conference 21-22 September 2006 22
  • 23. Reporting based on a common framework for monitoring and evaluation  Annual progress reports at programme level  National summary reports on progress in implementation of the national strategy: 2010 – 2012 - 2014  Commission summary report to the Council and the EP on the progress in implementation of the EU strategy and priorities: 2011 – 2013 – 2015  Ongoing evaluation: ex-ante (programme) ongoing activities (annual progress report) mid-term (2010) } specific reports ex-post (2014) CEPF RD Conference 21-22 September 2006 23
  • 24. Thank you for your attention! CEPF RD Conference 21-22 September 2006 24