The rural development policy : future skills needs in the agrifood

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The rural development policy 2007-2013: future skills needs in the agrifood sector Lisbon. 20 November 2006 Ester Hortet Tarroja. European Commission. DG Agriculture and rural development. Unit F.3

Outline Rural development policy 2007-2013: 3 objectives and 4 axes in the Rural development programmes (RDP). Community strategic guidelines RD measures Skill needs in agri-food-forestry sectors Human capital measures Axis 1: Human capital measures: more importance Vocational training (training measure in 2000-2006) Use of farm advisory services Axis 3: Training and information actions for diversification and improving the quality of life Timing: current preparation and negotiation of MS RDP 2

Rural development policy 2007-2013 New focus of the policy. 3 objectives Improving the competitiveness of the agriculture and forestry sector Improving the countryside and the environment by supporting land management Diversification of economic activities and improving the quality of life in rural areas 3

Rural Development Policy in the EU Overall architecture Rural Development 2007-2013 «LEADER Approach» Objective 1 Competi - tiveness Objective 2 Environment + Land Management Objective 3 Economic Diver. + Quality of Life Single set of programming, financing, monitoring, auditing rules Rural Development Fund 4

Rural Development policy 2007-2013 To each core objective corresponds a thematic axis in the rural development programme The three thematic axes are complemented by a «methodological» axis dedicated to the LEADER approach (LEADER axis) A minimum funding for each axis is required to ensure some overall balance in the programme (10% - 25% - 10% - 5% -2.5 for nms-) As building blocks for each thematic axis a range of predefined measures is available European and national RD network: exchanging information, including skills needs Strategic approach: Community strategic guidelines on rural development 5

Funding of the policy (EU Part) - Summary Financial framework 2007-2013: Bio => Original Proposal 88,75 => Final Compromise 69,75 + Funds raised through modulation 7,47 compulsory (EU-15) + Other transfers from Pillar 1 (teu-15 1,38 tobacco and cotton reform) Total 2007-2013 78,60 All amounts in 2004 prices 6

EU Strategic guidelines: the Common Priorities Objective 1 - the priorities of knowledge transfer, modernisation and innovation in the food chain and priority sectors for investment in physical and human capital. Objective 2 - three EU level priority areas: biodiversity and preservation of high nature value farming and forestry systems and traditional agricultural landscapes, water, and climate change. Objective 3 - the overarching priority of the creation of employment opportunities and conditions for growth in the fields of diversification and quality of life. LEADER - the priority of improving governance and mobilising the endogenous development potential of rural areas. 7

Programming steps 1. EU strategic guidelines setting out the EU priorities under the three core objectives 2. National strategy plans translating the EU priorities to the national situation and ensuring complementarity with other policies 3. Detailed national or regional rural development programmes 8

Rural development measures Axis 1: competitiveness of agriculture and forestry sector Measures aiming at improving human potential: vocational training/information; setting up of young farmers; early retirement; use of farm advisory systems, setting up of management, relief and advisory services.. Measures aiming at restructuring physical potential: investments to improve production, processing and marketing structures (and infrastructures),... Measures aiming at improving the quality of agricultural production and products: adaptation to new EU-standards; participation in food quality schemes; promotion for quality products Transitional measures for the new Member States (until 2013): semi-subsistence farms; setting up of producer groups 9

Rural development measures Axis 2: Land management Measures targeting the sustainable use of agricultural land: mountain areas and other areas with handicaps; Natura 2000 areas; agri-environment; animal welfare;... Measures targeting the sustainable use of forestry land: first afforestation; first establishment of agro-forestry systems; Natura 2000 areas; forest-environment; restoring forestry production potential and introducing prevention actions;... NB.: Agri-environment measures are compulsory for each programme 10

Rural development measures Axis 3: Diversification of the rural economy and quality of life in rural areas Measures aiming at the diversification of the rural economy: on farm diversification to non-agricultural activities; support for micro-enterprises; rural tourism Measures aiming at the improvement of the quality of life: Basic services; village renewal; conservation and upgrading of the rural heritage (natural and cultural) Training and capacity building 11

Skills relevant for the rural development policy Farming/Forestry: Organic farming, Quality of products, New outlets for agriculture and forestry: renewable energy materials, biofuels, processing capacity Improving the environmental performance Entrepreneurship/connection to the market, Food sector: innovation, new information technologies 12

Human capital and skills in agriculture/rural areas Human capital in agriculture: Only 17% of farmers in the EU-15 have a basic or full training in agriculture, ranging from 3% in Greece to 64% in The Netherlands. Human capital in rural areas: Continued decline in productivity growth in the EU rural areas (re-entry of less-skilled workers into employment) Skills and human capital are lower in rural areas than in urban areas (in urban areas, almost 20% have tertiary education; in rural areas only 15%). Tertiary education can lead to out-migration of skilled individuals from rural to urban areas for better employment opportunities 13

Rural development policy 2007-2013 Human capital measures in Axis 1: given more importance specially for farmers to adapt to market needs after reform of 1st pillar Training and information actions in Axis 3 (diversification and improving the quality of life) 14

Training and information actions in Axis 1 Training and information actions for: Broadening the scope of training to all adult persons dealing with agricultural, food and forestry issues Includes diffusion of scientific knowledge and innovative practices Activities to cover both the agricultural and forestry competitiveness and the land management and environment objectives The evolution and specialisation of agricultural and forestry require an appropriate level of technical and economic training, including expertise in new information technologies Awareness in the field of product quality Sustainable use of natural resources 15

Training measure 2000-2006 RDP All MS chose the measure except Estonia, Malta, Portugal (training through ESF) and Slovenia Limited funding: 0,7 of programmed expenditure in EU -15 (2000-2006) and 0,4% in EU-10 (2004-2006) Areas covered: management of farm, strategic training, marketing, agri-environment, diversification, information technologies Combination of training with other RD measures: setting up of young farmers (precondition), agri-environment, investments Organisation of the training: applying for courses on the market, calls for proposals setting up specific training courses Evaluation of the measure (MTE): relevant measure and better use should be made in combination with other RD measures 16

Training and information actions in Axis 3 Beneficiaries: economic actors operating in the fields covered by Axis 3 Training and information actions: Not including training which form part of normal education programmes or systems at secondary or higher levels Skills acquisition and animation: studies of the area concerned, measures to provide information about the are and the local development strategy, the trainig of staff involved in the preparation and implementation of a local develpoment strategy 17

Timing Member states and regions are working now in their rural development programmes and fine-tuning their training measure Training should be adapted to skills needs 18

Additional information Website Rural development http://ec.europa.eu/agriculture/rur/index_en. htm Leader + http://ec.europa.eu/agriculture/rur/leaderplus /index_en.htm Ester.Hortet@ec.europa.eu 19