ToTCOOP+i O3 o4 unit-7_final_version_en

ToTCOOP+i PROJECT
Unit 7 : Management of
Agricultural Policy
1
STRATEGIC PARTNERSHIP FOR INNOVATING THE TRAINING OF TRAINERS
OF THE EUROPEAN AGRI-FOOD COOPERATIVES

Index
1. Agricultural policy
2. National Rural Development policy
3. EU & National legislation for Agri-
food cooperatives
4. National rural non-governmental
organisations
5. Role of agri-food cooperatives
2

Activity I: Agricultural Policy
4
Trainings for Co-op members selected
in the Board of Directors
2017

Agricultural policy 
Common Agricultural Policy (CAP)
5

Year 1957: The Treaty of Rome
 Establishment of the
European Econmic Community
• Provision of
affordable food
for EU citizens
• Fair standart of
living for farmers

Year1962: The Common
Agricultural Policy is
born
 Good prices for
farmers
 Shops are full of
food
 First objective –
food security
7

The crisis years: the 1970s
 Structural
adjustment of farm
sector
 Legislation for farm
modernisation
 Assistance to
farmers working in
difficult conditions
 Penalty payments
for over-production
in the dairy sector

The crisis years: the 1980s
9
 Decision about structural changes
 Quota System applied to milk
 Introduction of budget stabilisers

Year 1992: «MacSharry
reform»
 Product support
 Producer
support
 Direct aid
payments to
farmers
 Aims:
◦ To improve the
competitiveness of
EU agriculture
◦ To stabilise the
agricultural markets
◦ To diversify the
production
◦ Environment
protection
◦ To stabilise the EU
budget expenditure
10

Agenda 2000
 More focus on
economic, social
and cultural
development
• Raising competitiveness
of agricultural product
markets
• Stabilization of
agricultural incomes
• Environmental measures
• Raising the food quality
and safety level
• Developing the vitality of
rural areas

Year 2003: The Reform
 Aimed to enhance the competitiveness of
the farm sector
 Market-oriented and sustainable
agriculture
 Srenghtening of rural development policy

Reform 2013: ten key points
1. Better targeted income support
2. Tools to address crisis management
3. A ‘Green’ payment
4. Additional investment in research and
innovation
5. A more competitive and balanced food
chain
6. Encouraging agri-environmental initiatives
7. Facilitating the establishment of young
farmers
8. Stimulating rural employment and
entrepreneurship
9. Better addressing fragile areas
10. A simpler and more efficient CAP 13

The CAP post-2013: From
challenges to reform objectives
14

CAP Pillars
Irish Co-operative Organisation Society
(ICOS) 17

Irish Co-operative Organisation Society
(ICOS) 18

The path of CAP expenditure by
calendar year (in current prices)

Expenditure in total EU
Expenditure (2011 constant prices)
20

External Policy – It’s effect on your
business……CAP
21

Reform making process till 2013
22

European Commission
24
• Initiates ALL Legislation
• 28 Commissioners in 28
departments with around
27,000 officials
• Phil Hogan European
Commissioner for Agriculture
and Rural Development since
November 2014
• More than 2000 laws affecting
our business have been initiated
here

• 28 Member States take turns to chair the Council
for a period of six months.
• Council amends and adopts legislation usually in
co-decision with the Parliament
• Agri Ministerial Council Meets Every month
European Council
25

European
Parliament
26
• Role: Directly-elected EU body with legislative,
supervisory, and budgetary responsibilities
• Members: 751 MEPs (Members of the European
Parliament)
• President: Antonio Tajani
• Established in: 1952 as Common Assembly of the
European Coal and Steel Community, 1962 as
European Parliament, first direct elections in 1979
• Location: Strasbourg (France), Brussels (Belgium),
Luxembourg

Index
food cooperatives
organisations
28

Activity 2: National Rural
Development Programme
(RDP)
2017
30

Implementation of
Rural Development
Policy 2014-2020

CAP long term objectives: 2014-
2020
 Rural business development
 Sustainable management of natural
resources, and climate action
 Balanced
territorial
development
32

SUSTAINABLE
RURAL
DEVELOPMENT
33
3. Food chain
organisation
and risk
management
4. Restoring,
preserving,
and enhancing
ecosystems
5. Resource
efficiency and
climate
change
6. Diversification
and social
inclusion
2. Economic
viability and
competitiveness
1. Knowledge
transfer and
innovation
Union Strategic Priorities for
Rural Development
33

2014 – 2020 EAFRD funding / MS (€ million)*
BE 648
BG 2 367
CZ 2 306
DK 919
DE 9 446
EE 823
IE 2 191
EL 4 718
ES 8 297
FR 11 385
HR 2 026
IT 10 444
CY 132
LV 1076
LT 1 613
LU 101
HU 3 431
MT 97
NL 765
AT 3 938
PL 8 698
PT 4 058
RO 8 128
SI 838
SK 1 560
FL 2 380
SE 1 764
UK 5 200
EU 99 586**
*"Envelopes in place after entry into force on 23rd May 2015 of COMMISSION DELEGATED REGULATION (EU) No 2015/791 amending Annex I to Regulation (EU) No 1305/2013 of the
European Parliament and of the Council on support for rural development by the European agricultural Fund for Rural Development"
** includes EU level technical assistance (239 mil. EUR)

Food chain organisation, animal
welfare, risk management
Farm viability competitiveness,
sustainable forest management
Ecosystems in agriculture and forestry
Resource efficiency, low carbon
and climate resilience
Social inclusion, poverty reduction,
economic development
18FocusAreas
Knowledge Transfer and Innovation
(cross cutting)
Share of funds per RD
priority

New measures for better covering
the needs, e.g.:
36
 Cooperation (art. 35) – new ways of working
together adapted to meet the requirements of
the knowledge economy: widened scope , wider
range of beneficiaries, horizontal and vertical co-
operation amongst actors
 Risk management (art. 36) – insurances (protect
crops, plants, animals) , income stabilisation tools,
setting up mutual funds.

Envisaged timeline for the adoption
of the 2014-2020 RDPs
37

Latvian Rural Development
Programme
38

Examples of expected
achievements:
 to create cooperation opportunities between farmers and
researchers
 nearly 4.5 % of farmers will receive investment support to
modernise and restructure their farms and specific
measures are also foreseen to attract more young farmers
into the sector
 facilitate the development of around 10 producers groups
by involving at least 115 farms, etc.
Programme
2014 - 2020
39

policy
 2007-2013  2014-2020
40
CAP Pillar II - provides
funding for competitiveness,
environmental and natural
resources protection
Agricultural and forestry sector, promotion
of competitiveness,
Restructuring, development and innovation
Environment and Rural Landscape -
agricultural land, natural resources,
sustainable use of environment-friendly
production methods
Rural quality of life and diversification of
economy - to develop business in rural areas,
improve rural infrastructure
LEADER - Supporting local action groups
LV funding available for 2007-2013
= 1,054 billion.EUR
promote the transfer of knowledge in
the field of agriculture and forestry
increase the competitiveness and
economic viability of farms
contribute to the food supply chain
organization and risk management
protect ecosystems dependent on
agriculture and forestry
promote resource efficiency and a shift
towards a low-carbon
promote job creation, poverty
alleviation and rural development
potential
LV funding available for 2014-
2020 = 969 mio EUR

Major tasks for the period
2014-2020:
Latvia Rise in income gained from an effective production,
increasing a ratio of products with higher added value
and market-oriented production
 Support to small and medium farms (cooperation,
education, niche products, jobs outside agriculture)
 Each ha of land and forest, as well as Latvia’s waters
are used in creation of value
 Latvia’s rural areas managed by family farms, which are
able to earn and provide for their families
 Development of science and increase in the level of
education in sectors
41

 Lack of knowledge about environment
protection, management and marketing
 High share of semi-subsistence farms –
56,5%
 Low soil fertility and natural and specific
constraints
 Underdeveloped supply
chains and cooperation
among enterprises
Key challanges: Latvia
42

Planned expenditure per priority
43

 M01 – Knowledge
 M02 - Advisory services
 M04 – Investments
 M06 - Farm and business development
 M08 - Forest
 M09 - Producer groups / organisations
 M16 - Cooperation
 M19 - LEADER and CLLD
RDP Meassuers for agri - food
cooperatives
44

Index
food cooperatives
organisations
46

Activity 3: EU and National
legislation for agri-food
cooperatives
2017
47

EU legislation for agri – food
cooperatives
 Treaty on the functioning of the European Union
 Council Regulation (EC) No 1435/2003 of 22 July 2003
on the Statute for a European Cooperative Society (SCE)
49

National legislation for agri – food
cooperatives
 National law of
cooperative societies
 Cabinet of Ministers
regulations No 77:
"Regulations on the
agricultural services
cooperatives and the
forestry services
cooperatives in
compliance assessment"
51

Regulations on the agricultural services
cooperatives and forestry services cooperatives in
compliance assessment
 Latvian Agricultural Cooperatives Association
(LACA) - responsible for compliance assessment
 Accordance with the legislation
and Statute for compliance
assessment
52

Compliance assesment of cooperatives
 An annual task
 Decision adoptet by the Commission
 Commission consist of 5 members
representing 4 institutions
53

 Agricultural products prodeuced by cooperative
members
 Minimum turnover between the cooperative and its
members at least 7000 euros
 Minimum turnover
between cooperative
and its members at least
75% of the total turnover
Criteria for compliance assessment for
cooperatives: I
54

 At least 25% of profit invested in development
 Agricultural goods and services is at least 75%
of turnover
 Urnover withh one member does not exceed 40 %
of total
 In the previous business year – at least one
general
members meeting
Criteria for compliance assessment for
cooperatives: II
55

 Get tax relief
 Can provide
applications for RDP
activities
 Are specific target
group in other national
regulations and have
better conditions in
national programmes
Compliance assessment of cooperatives:
Benefits
56

Index
food cooperatives
organisations
59

Activity 4: National rural non –
governmental organizations (NGO’s)
2017
61

What is Non-Governmental
Organization?
 NGO – any non-profit, voluntary citizens’ group
which is legally constituted, organized and
operated on a local, national or international
level
 NGO - citizen-based association thet operates
independently of government, usually to deliver
resources or serve some social or political
purpose
 Task – oriented and driven by people with a
common interest
62

History of NGO’s
 The term first
coined in 1945
 Created by United
Nations (UN)
 Any kind of private
organization –
independent from
government control
63

 The dynamic force of European
farmers and their cooperatives
 COPA - Committee of Professional Agricultural
Organisations created on 6 September 1958
 COGECA - General Committee for Agricultural
Cooperation in the European Union created on 24
September 1959
 Merged on 1 December 1962
66

COGECA
 Made up of 6
members
 Currently represents
interests of 40000
farmers
 Recognised as the
main representatice
body and
spokesman for
agricultural and
fisheries cooperative
sector 67

- lobby and a platform for inter-
cooperative relationships
 involved in shaping and further
developing all Community policies that
create important framework conditions
for cooperative enterprises
 fosters cooperation between cooperative
enterprises at European level
COGECA
68

Civil participation national and EU
level
69
National
rural NGO’s
Latvian
Agricultural
Cooperatives
Association
EU COPA-
COGECA

 National Rural NGO’s
 National Agricultural NGO’s:
◦ Latvian Agriculture Cooperatives Association
◦ Farmers Parliament
◦ Farmers’ Association
◦ Farmers' organizations Cooperation Council
◦ Young farmer club
◦ Latvian Association of Biological Agriculture
◦ Latvian Farmers Federation
National rural NGO’s
71

 Before 1990 – members of agricultural
cooperatives have common property – farmland.
They collectively manage it.
 After 1990 – new cooperation trend – agricultural
service cooperatives (serious development of this
cooperation form was starting after 2000).
 After 2012 – forestry service cooperatives.
Cooperation in Latvia
72

 Established in 2002
 Unites 50 members LACA – association
 Performs compliance assessments of
agricultural and
forestry cooperatives
 Member of COGECA
Latvian Agricultural Cooperatives
Association (LACA)
73

 Provision of actual information
 Consultations about cooperation and agriculture
 Representation of member’s interests in EU,
national and other institutions
 Organization of training courses, study trips,
conferences
 Public awareness about
cooperation and advantages
of cooperation in rural
economy
Main activities of Latvian Agricultural
Cooperatives Association (LACA)
74

Civil participation national
and EU level
75

Index
food cooperatives
organisations
77

“Role of agri - food cooperatives in civil
sociality political challenges – sustainable
development or short term planning”
2017
78

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