Transcript 111012_CAP2020_Greenteam_EN_final

Young farmers in the 2014 – 2020
programming period
CEJA, 27/2/2013
Josefine Loriz-Hoffmann
DG Agriculture and Rural Development
European Commission
Agriculture
and Rural
Development
Where are we with the CAP reform process?
12 October 2011
Commission legal proposals on the CAP
21 January 2013
COMAGRI adopted its mandate
Trialogues
Spring 2013
July 2013
Agreement between legislators
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Young farmers
Pillar I and its relation to Pillar II
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Support for young farmers in the CAP first pillar
Cross compliance
• Streamlined – Climate change
Coupled support
• Wide range of sectors
• Up to 5% or 10% of DP
envelope, to be decided
by MS
Natural constraint support
• For areas with natural
constraints
• Up to 5% of the DP envelope
Small Farmer Scheme
• Simplification of claims
and controls
Young Farmer Scheme (Council – optional, EP- obligatory)
• Up to 2% of DP envelope
• < 40 years
• For 5 years
• Commencing activity
• Lump sum payment to
be determined by MS
under conditions
‘Green’ Payment
• Crop diversification
• Permanent grassland
• Ecological focus area
• Entrance in 2014
• 30% of the DP envelope
• Up to 10% of the DP
envelope
Basic Payment Scheme
• National or regional flat
rate per eligible hectare
• Regions and criteria to be
chosen by MS
• New entitlements in 2014
• Definition of agricultural activity
• Definition of active farmer
OR
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Young farmers in pillars I and II
Pillar I
Pillar II
Obligatory/optional component of direct
payment
An optional RD measure (business
development)
Up to 2% of DP envelope
No ringfencing of the budget
Less than 40 years old at the time of
application
Less than 40 years old at the time of
application
No further requirements
Occupational skills + business plan
Farmers setting up for the first time or
having set up in the past five years
Farmers setting up for the first time
Payment over maximum 5 years, minus the
years between having set up and the
application
Flat rate with at least two instalments over
maximum 5 years. Last instalment
conditioned by fulfilling the business plan
Annual payment (part of DP) – payments
calculation in Article 36 of DP draft
Regulation
Maximum EUR 70,000
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Young farmers - definitions
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Pillar I: natural persons who are
setting up for the first time an
agricultural holding as head of the
holding, or who have already set
up such a holding during the five
years preceding the first
submission of an application to the
basic payment scheme as referred
in Article 73(1) of the Horizontal
Regulation, and who are less than
40 years of age at the moment of
submitting the application.
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Pillar II: farmer who is less than 40
years of age at the moment of
submitting the application,
possesses adequate occupational
skills and competence and is
setting up for the first time in an
agricultural holding as head of the
holding.
Young farmers
Pillar II
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Beyond 2013: an outlook for young farmers
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Young farmers can contribute the most to fostering innovation and
resource-efficiency to achieve the EU2020 objectives.
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Young farmers have access to all support instruments, i.e. those
specifically designed for them and those which can be tailored to
their specific, local needs.
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Promising approaches – to bundle and combine measures for
young farmers with a strategic and flexible approach in relation to
the rural development priorities. Also cooperation and collective
approaches are encouraged.
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Thematic sub-programmes
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Member States may include within their rural development
programmes thematic sub-programmes, contributing to the Union
priorities for rural development
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Aimed to address specific needs identified, in particular in relation to:
(a) young farmers;
(b) small farms;
(c) mountain areas;
(d) short supply chains
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An indicative list of measures and types of operations of particular
relevance to each thematic sub-programme is set out in the Annex to
the rural development Regulation
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Indicative list of measures and operations of particular
relevance to a YF thematic sub-programme
• Business start-up aid for young farmers setting up for the first
time in an agricultural holding
• Investments in physical assets
• Knowledge transfer and information actions
• Advisory services, farm management and farm relief services
• Co-operation
• Investments in non-agricultural activities
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Other targeting tools alongside sub-programmes
•
Selection criteria: in some MS priority to farms, e.g.
 whose business plan combines the setting up measure with
other RD measures (e.g. farm investment)
 where the holder is a young woman or young migrant
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Higher aid intensities (up to +20% than standard rates) for YF
setting up within the measure for investments in physical assets
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Article 20: Specific support for YF (1)
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Business start-up aid for young farmers
– Conditional on submission of a business plan whose
implementation has to start within 6 months from the date of
the decision granting the aid
– YF whose starting size is to be defined by MS, but significantly
higher than the upper threshold applied to small farms
development (also supported under art. 20)
 Delegated acts to cover:
 Conditions under which a legal person may be considered a 'young farmer',
including setting of a grace period for the acquisition of occupational skills
 Minimum content of the business plan
 Criteria to be used by Member States for setting the thresholds applying to
young farmers and small farms
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Article 20: Specific support for YF
•
Aid rates:
– Max 70.000 per young farmer
– Amount of support shall also take into account the socioeconomic situation
– Flat rate payment, which may be paid in at least two
instalments over a period of maximum 5 years
– Instalments may be degressive
– Payment of the last instalment conditional upon the correct
implementation of the business plan
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Financial instruments
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•
•
•
What is it?
• A possibility for Member States to use EAFRD funding in a
different form than grants for supporting viable investment
decision, facilitating in this way the access to financing for
businesses targeted by the RDPs
Types of instruments
• Loans, Guarantees, Equity, etc.
Implementation mode – Decision to be taken by MA
Value added associated with FIs
• Better access to capital and financial resources
• Efficient use of funds - a pool of funds can be re-used several
times and reach more beneficiaries
• Possibility to combine financial instrument with grants
• Leverage effect
• Increasing the sustainability of the business environment –
support provided before investment to start
• Higher impact of public (incl. EAFRD) resources
For further information
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The CAP after 2013
http://ec.europa.eu/agriculture/cap-post-2013/index_en.htm
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Commission Communication ‘The CAP towards 2020’
http://ec.europa.eu/agriculture/cap-post-2013/communication/index_en.htm
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EIP
http://ec.europa.eu/agriculture/eip/index_en.htmhtm
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Legal proposals
http://ec.europa.eu/agriculture/cap-post-2013/legal-proposals/index_en.htm
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Thank you for your attention!
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