1 Rural development policy
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4 1 Legislative framework ......................................................................................................2
5 2. Rural development policy of the Region of Lombardy (RDP 2007-2013)..........................................2
6 2.1 Territorial intervention ............................................................................................3
7 2.2 The different axes...................................................................................................4
8 2.3 An integrated programme .........................................................................................5
9 2.4 Procedural aspects ..................................................................................................6
10 2.5 Financial aspects ....................................................................................................7
11 3. Protecting water resources and RDP ....................................................................................8
12 4. RDP and the Province of Milan’s Triennial Agricultural Plan .......................................................8
13 4.1 Boosting competitiveness of the main provincial production lines .........................................9
14 4.2 Enhancing the environment and rural space ................................................................. 10
15 4.3 Valorisation of quality agricultural production .............................................................. 10
16 5. European experience .................................................................................................... 11
17 5.1 Hungary ............................................................................................................. 11
18 5.2 Poland ............................................................................................................... 12
19 5.3 Romania ............................................................................................................. 12
20 5.4 Germany ............................................................................................................ 13
21 Glossary ....................................................................................................................... 14
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1 1 Legislative framework
2 On 20 September 2005 a European instrument to regulate rural development was issued by the European
3 Agricultural Fund on Rural Development (EAFRD), Regulation CEE n. 1698/2005.
4 The document lays down the provisions for rural development in the period 2007/2013 which member
5 States have subsequently adopted to drawn their own Rural development plans from it.
6 In Article 4 of the Regulations the objectives include the will to boost the competitiveness of rural and
7 forest development supporting such areas as improvement, development and innovation, as well as
8 making the most of environmental and natural space to improve the quality of life in rural areas and
9 promoting a diversification of economic activities.
10 Axis 1 of Reg. 1698/2005 focuses actions on the competitiveness of the agricultural and forestry sector. It
11 foresees direct support to improve farm enterprises, to promote knowledge and to strengthen human
12 resources; at the same time, many resources are employed to enhance physical capital, favouring a
13 modernisation of measures which serve to promote innovations.
14 Finally, measures to improve the quality of agricultural products are also foreseen.
15 Axis 2 of Reg. 1698/2005 offers measures that promote the environment and the countryside, foreseeing
16 measures of sustainable development in agriculture and forestry.
17 Article 39 of the Regulation illustrates a noteworthy fact; the article’s title refers to “Agro-environmental
18 payments”. By definition it recognizes the worth of the services that rural enterprises offer which are
19 consequently paid, and not subsidized.
20 Moreover, agroenvironmental payments can either go to farmers or to those managing a territory, as long
21 as they go towards the realization of environmental objectives; thus, recognition of environmental
22 services can even go to non-agricultural subjects.
23 Axis 3 of Reg. 1698/2005 encourages the improvement in the quality of life in rural areas and promotes
24 diversified economic activities. The need to foster activities of agricultural entrepreneurship, even in
25 some of the most difficult areas, which guarantee an adequate profit and thus avoid that the sector be
26 abandoned, is stated.
27 Goals for the development and the competitiveness of production consequently go in tandem with the
28 emerging concept of multiple functionality. The latter in turn must be vigorously supported to determine
29 a diversification of agricultural profit, often inadequate for the sector’s entrepreneurs. Rural territory
30 therefore seems destined to a dual function: if on the one hand it remains substantially a private good
31 destined to the production of commodities, on the other a good must be viewed as one that can be used
32 publicly for it enhances the landscape, the environment, culture, and historical aspects.
33 For the above reasons, Reg. 1698/2005 makes it increasingly probable to have traditional crops flanked by
34 new ways of managing the territory in which agricultural activities are complementary to other functions
35 that are concerned with promoting environmental and territorial services which benefit the community.
36
37 2. Rural development policy of the Region of Lombardy (RDP 2007-2013)
38 The European Union, on 19 September 2007, approved the new Region of Lombardy Rural development
39 policy, valid for the period of 2007-2013.
40 The new document on Rural development for the Region of Lombardy has granted 899.76 million Euros to
41 the agriculture and forestry sector, 93 million Euros more compared to the previous 2000-2006 period.
42 The new Rural development policy comprises of 4 axes defined as follows:
43
44 Axis 1: Improvement of competitiveness for the sector of agriculture and forestry
45 Axis 1 encourages improvement of rural enterprises so that human resources be enhanced by assuring
46 training and consulting activities, modernisation of enterprises, encouraging the creation and
47 development of enterprises, training and information for the diversification of rural economy and
48 setting strategies for the local development and for the integration of European Social Fund initiatives”.
49
2
1 Axis 2 - Improvement of the environment and of rural areas
2 Axis 2 focuses on “the sustainable development of agriculture and forestry which must be in harmony
3 with the protection of biodiversity, the landscape, and with developing renewable sources of energy.”
4 Axis 3 – The quality of life in rural areas and the diversification of rural economy
5 Axis 3 states that “aid to agriculture must increase in order to guarantee the preservation of rural
6 populations in disadvantages areas, to improve the quality of life, and to diversify rural economy to
7 create new occupations”.
8
9 Axis 4 – Implementation of the Leader approach
10
11 Axis 4 supports “the development of agriculture in local activities, to improve local governance, and to
12 build local employment and diversification”.
13 A first analysis of the RDP of 2007-2013 highlights that its present form must not neglect the issue of
14 competitiveness, multifunctionality and of the agriculture of services so that an agriculture model can be
15 finalized after 2013.
16 What emerges seems to be an intent, on the one hand, to intensify the “competitiveness” of enterprises,
17 encouraging their technological advancement, the quality of products, the building of production
18 relations; and on the other hand, “multifunctional” enterprises must be encouraged towards a short
19 production, niche production, services for the community, and restoring the territorial equilibrium.
20
21 The Programme constantly addresses the enhancement of production capacity finalized to boost
22 agricultural profit which is considered to come from both the production of traditional goods and from the
23 more innovative production of services, with greater focus on modernisation, innovation, quality and
24 sustainable environmental development.
25 The RDP also underscores that “the aim is to give Lombard enterprises the opportunity to choose the
26 most suited type and potential of enterprise, providing them with the tools and knowledge to enable
27 them to position themselves on different markets in relation to their different dynamics. Thus to steer
28 Lombard enterprises in choosing which of the two categories to position themselves in.”
29 If, in multifunctionality, farming enterprises with less entrepreneurial capacity seek new forms of
30 income, the “competitive” enterprises will be able to choose to look at both “competitiveness” and
31 “territorial service”, elements that must be viewed as and not in conflict with the enterprise’s future.
32 Thus, if on the one hand themes of competitiveness are emphasised, concentrating on bettering the
33 entrepreneurial capacity of our farmers, on the other, special attention must also go to themes like the
34 quality of the product, multifunctionality, rural tourism, limiting environmental impact, all in line with
35 the current RDP prescriptions to protect and improve the rural environment.
36 An integral examination of the documentation available to date identifies some salient elements that
37 concern the farm enterprises in the Province of Milan.
38 Herein it must be noted that exclusive reference has been made to the Programme and its attachments,
39 not to the circulars issued for the different measures.
40 2.1 Territorial intervention
41 The Region of Lombardy has programmed the rural planning of its territory based specifically on socio-
42 economic characteristics. Its different territories were identified to establish the resources that must be
43 allocated to support the productive sectors that characterize them.
44 According to nationally adopted procedures, all the measures in the current RDP are feasible if the
45 specific zoning established in the European Commission criteria is put into practice.
46 Area A) Poli urban areas (PU) include the capital of the province, large metropolitan areas, and highly
47 populated areas with little territorial extension of agriculture.
48 Area B) Intensive and specialized rural areas (ISRA) that correspond to the lowlands in the southern,
49 central-eastern part of the region, and to the hills around the city of Brescia. This type identifies the
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1 parts of the regional territory in which agricultural activities play a significant economic, occupational
2 and social role.
3 Area C) Intermediate rural areas (IRA), comprising the large mountainous and hilly parts of Lombardy in
4 the province of Pavia and Mantova.
5 Area D) rural areas with development problems (RADP) located in the north, in the province of Sondrio and
6 in the south in the mountainous regions of Pavia, more marginal areas compared to the central economic-
7 production axis.
8 The measures of Axis 1 on “Competitiveness” and of Axis 2 on “the Environment and Rural Areas” are
9 eligible throughout the entire regional territory with possible limitations for single measures in terms of
10 priorities and expiry.
11 The measures in Axis 3 of “Improvement of the quality of life” and of Axis 4 – the Leader approach, are
12 applicable prevalently in rural areas with development problems and in intermediate rural areas. These
13 areas possess characteristics of a weak local socio-economic system and of potential development that
14 can be coherent with the Leader approach.
15 In the implementation of the European Commission’s identification criteria, the entire Province of
16 Milan has been defined as Area A) Urban area. Because of its classification the farm enterprises on the
17 territory can access the measures of the Programme, and the others that are listed.
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19 2.2 The different axes
20 As with the previous programme, the current RDP distinguishes different axes of intervention, each having
21 specific goals. The Axes of intervention are now 4, instead of 3.
22 Axis 1: Improvement of competitiveness in the sector of agriculture and forestry
23 Axis 1 should directly contribute to encourage entrepreneurial capacity and to develop human resources.
24 The goals can be achieved with training and consulting activities, the modernisation of enterprises,
25 supporting the creation and development of enterprises, training and information on how to diversify
26 rural economy.
27
28 THE OBJECTIVES OF AXIS 1
29 structural adjustment
30 promoting young entrepreneurs
31 developing infrastructures for enterprises in mountain areas
32 adapting irrigation infrastructures and protecting the territory
33 promoting product and processing innovations
34 encouraging associated management
35 emphasising quality in production
36 developing an integrated production line
37 rationalizing irrigation
38
39 Axis 2 – Improving the environment and countryside
40 Axis 2 should directly contribute to develop sustainable agriculture and forestry, to harmoniously protect
41 and enhance biodiversity, landscape and to develop renewable energy resources.
42
43
44 THE OBJECTIVES OF AXIS 2
45 implementing agri-environmental measures in disadvantaged areas
46 creating natural treatment systems
47 creating green belts and natural treatment systems to protect the environment and the
48 landscape
49 promoting and boosting the production of wood biomass in lowlands
50 disseminating low environmental impact farming practices
51 Attention is currently focused on environmental, social and economic sustainability of the zootechnical
52 system, with specific reference to actions to fight potential nitrate pollution.
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2 Axis 3 – The quality of life in rural areas and diversification of rural economy
3 Axis 3 should directly contribute to improve economic perspectives to offer steady work in disadvantaged
4 areas with the aim of maintaining and increasing the profits of the agriculture sector.
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7 OBJECTIVES OF AXIS 3
8 developing rural tourism and small enterprises
9 enhancing territorial appeal
10 encouraging tourist offer
11 multifunctionality and diversification of agricultural enterprises
12 Developing the use of potential energy on the territory
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14 Axis 4 –The implementation of the Leader approach
15 Axis 4 in disadvantaged areas only, should directly contribute to the integration of agricultural activities in
16 local development, to improve the efficacy and efficiency of local governance, and to build local capacity
17 to create jobs and diversification.
18
19 2.3 An integrated programme
20 Compared to the previous programme, the Measures for the RDP of 2007-2013 privilege a less casual and
21 opportunistic approach of enterprise intervention. There is a renew interest for integrated actions, on
22 complex initiatives elaborated in single enterprises or pertaining to vaster production programmes.
23 Reference is made to the new available instruments called the Enterprise Plan, the Package of Measures,
24 Coordinated Projects.
25 The Enterprise Plan
26 The Enterprise Plan is a document conceived to develop agricultural activities. It must describe the
27 economic and financial situation of the enterprise, its management, and the essential specific elements
28 that make up its activities, as well as the strategies and objectives it pursues to achieve its goals.
29 Since the Enterprise Plan lays out the agricultural activities, it must, by obligation, contain Measures on
30 the competitiveness of the farm enterprise. Reference must be made to the Measure on “Promoting young
31 farmers” and the Measure on “the Modernisation of farm enterprises”.
32
33 Elements of the Enterprise Plan
34 - the initial position of the farm enterprise
35 - the essential stages and the specific objectives to develop the farm enterprise’s activities;
36 - details on investments, training, consulting or any other action required to develop the farm
37 enterprise’s activities;
38 - a possible incentivation request that is dependent on other RDP measures related to the “young
39 farmers package”.
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42 The Package of Measures
43 The RDP intentionally makes young farmers one of its core priorities; the measure dedicated to
44 “Promoting young farmers” is identified as a “Young farmer’s package”, that is a “Package of Measures”
45 that embodies, in a single document, different aid measures to support the investments required to
46 promote, consolidate and develop young entrepreneurship.
47 The Packages of Measures foresees that farm enterprises adhere to different Measures contained in the
48 RDP which are based on an overall enterprise development strategy; the beneficiary can then advance a
49 single request containing diversified aspects of interest for the enterprise, subordinated to several
50 obligatory Measures that enable the attainment of the joint goals.
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1 The Packages of Measures must include the obligatory compilation of an Enterprise Plan stating clearly
2 the enterprise’s strategic objectives and the different measures it intends to gain access to in order to
3 pursue the goals.
4
5 Coordinated Projects
6 A coordinated project is an initiative of common interest which several subjects that interact in a specific
7 area, and are potential beneficiaries of the RDP, undertake.
8 A coordinated project must be coherent with the RDP’s strategic plan, with the Provinces three year
9 Agricultural Plan, and must develop areas and/or production lines that the RDP and local territorial
10 vocation consider key priorities.
11 Whether reference is made to area projects or to production lines projects, the wide ranging programmes
12 include the integration of different public and private subjects, its goal being to respond to economic,
13 social and territorial interests of the local agricultural system.
14 The implementation of a Coordinated Project occurs by means of a specific agreement which is endorsed
15 by the participating subjects. Therein, the management, the role and the commitments taken on by each
16 participating subject as well as forecasting the benefits the farm enterprises will have.
17 The prerequisites of the Coordinated Project
18 - it must involve farm enterprises that obtain the financing foreseen by the RDP for investments that
19 are aligned with the objectives set out by the Coordinated Project;
20 - it must clearly illustrate the foreseen socio-economic and territorial benefits;
21 - it must be aligned with the RDP objectives identified in different intervention Axes;
22 - it must have involve and integrate the objectives of several axes of the RDP
23
24 2.4 Procedural aspects
25 Under the procedural profile, the Rural development policy provides access to financing which is regulated
26 by operative documents which set out and clarify the rules that apply to each measure.
27 Reference must include:
28 Circulars containing the technical and administrative prescriptions.
29 Every Measure in the RDP has prescriptive documents. Its compilation is issued on each occasion by the
30 Region of Lombardy. It provides information on the regulations that govern the procurement of financing.
31 There is reference to the administrative characteristics of the applicant; to defining the commitment; on
32 the financial aspects the Measure is based on; and on determining the list of priorities to obtain the
33 grants, etc.
34 Rules state that the Region of Lombardy must emit a circular for each Measure foreseen by the RDP, valid
35 until 2013; rules are thus defined and unless blatant uncertainties appear, there will be no changes until
36 2013.
37 Call for bids
38 According to previously consolidated practice in the field of RDP, the Region will autonomously tender
39 bids to finance each Measure; consequently each Measure will have its own call for bid, independent from
40 other RDP Measures.
41 Contrary to past RDP experience of 2000-2006, even the bids for Measures that pay for surface (for
42 instance agroenvironmental and forestry measures) will have, until 2013, only one permanent bid for
43 tender. Every year, however, in preset periods, the Provinces, that is the bodies heading the practice, will
44 assign points and distribute funds to the applicants who were candidates at that time.
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1 Manual on the Procedures, Inspections and Sanctions
2 The Manual on procedures, inspections and sanctions is a fundamental document that must accompany
3 any circular. The document is a guarantee of the commitment that each beneficiary has taken to assure
4 that the public grant for the RDP is well spent.
5 Prearranged by the Region of Lombardy’s Regional Paying Organism (RPO), it contains the non- technical
6 rules, thus strictly the rules of procedure which all beneficiaries must observe in the period of obligation
7 because they obtained the funds.
8 Reference is made, for example, to cases of transferring the obligation for which the funding was
9 obtained to another beneficiary, on the conditions that abandoning the commitments can have if the
10 beneficiary perceives the impossibility of reaching its natural expiry (agro-environmental or agroforestry
11 commitments range from 10 to 15 years), and to an enterprise’s succession in management etc.
12 Moreover the Manual sets out the way inspections are to be conducted by appointed bodies to monitor, at
13 various moments, the enterprises which enjoyed the benefit of financing, and define, when necessary, the
14 penalty if the commitment is not carried out adequately compared to the money obtained.
15 Finally, based on inspection results and on how severe the violations are, the Manual immediately
16 establishes and announces the sanctions that await the negligent beneficiary.
17
18 2.5 Financial aspects
19 To support European Rural Development new funding contribution called EAFRD (European Agricultural
20 Fund for Rural Development) was introduced. It covers approximately 44.5% of the overall financial
21 allocation amounting to 899.76 million Euros for the period of 2007-2013; the remainder comprises the
22 resources made available by the State and the Region of Lombardy.
23 The distribution of planned investments by the Region of Lombardy has allotted most of the resources for
24 measures improving the environment and natural spaces (Axis 2: 51.65% of the resources), whereas the
25 measures directed to competitiveness and development of farm enterprises (Axis 1: 32.42% of the
26 resources), allotting less contribution compared to the previous period.
27 Measures aimed at improving the quality of life in rural areas and for the diversification of rural economy
28 are part of a more limited portfolio (Axis 3: 8.95% of the resources), and measures for Leader projects will
29 have an even smaller portfolio (Axis 4: 4% of the funds available).
30 It is worth noting that Axis 1 foresees aid both for investments related to production as for investments
31 related to processing, but both cases are down compared to the previous 2000-2006 period, this is
32 especially true for investments for processing.
33 It must be highlighted that Axis 1, which obtained a significant amount of the funds for infrastructural
34 measures, seems nonetheless insufficient considering the dimension of the estimated request.
35 Agri-environmental measures continue to be the priority area in which the largest amount of resources are
36 invested, with 49.07% destined to Axis 2, follow by 25.87% of the funds for agri-forestry measures.
37 This occurs because of the driving force of the previous programmes, but especially sue to their ample
38 diffusion making once again the financial measures in the Programme with the greatest contribution.
39
40 Different forms of contribution
41 contribution into capital accounts, with possible advance payment
42 contribution into interest bearing accounts for which opening a mortgage for an investment
43 by a farm entrepreneur foresees the collection of aid on the payment of internet
44 a system of guarantees for farm entrepreneurs opening a mortgage to support an investment
45 foresees the possibility of offering a guarantee on the money perceived by the RDP (only in
46 the case of contribution on interest account)
47 revolving fund for the concession of loans to establish, by launching or expanding, an
48 enterprise.
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1 3. Protecting water resources and RDP
2 It is a generally known fact that agriculture in the Padana area uses a notable quantity of water to irrigate
3 the land which is subsequently returned to the environment and to the territory.
4 Of late however, there has been a net shrink in the water resources available due to the growing
5 competition in agriculture and other human activities which require mounting amounts of water for the
6 civil and industrial sector, due to climate changes, the needs to maintain a minimal vital flow of water
7 courses, and the tourist-recreational use water.
8 Thus, and in summer months in particular there can often of more or less significant water shortages that
9 frequently imply a greater burden on the bodies managing water, with a consequent damage to crops and
10 an overall drop in farming profit.
11 The time has therefore come, even at our latitudes, to take problem water, as a limited resource, at
12 heart in order to carefully plan its management. Therefore, all socio-economic sectors must learn to
13 manage water including the agricultural sector which must learn to use water efficiently, to valorise its
14 economic and ecological functions, and to protect the environment.
15 If a campaign is to be undertaken to inform and educate on the finite resource of water, and the need to
16 consume or minimise its consumption to avoid wasting, farmers must then be educated to save water. This
17 implies implementing specific management conduct in the enterprise, as for example using techniques
18 which consume less, or choosing crops and agricultural practices that require less water.
19 The Regional Regulation 2/2006 on this theme is worth noting. It regulates the use of superficial and
20 underground water. In fact, the concession for irrigation, in art. 6 states that the entity requested must
21 be proportionate to the effective need of production. Hence the effective water needed must "base itself
22 on the extent of surface that needs to be irrigated, the type of crop, even rotational, grown, on the
23 average consumption and on the methods of irrigation adopted”.
24 On the other hand, the RDP seems to perceive such needs and in its preamble states that “the irrigation
25 system in Lombardy, with regard to its efficiency in its irrigation network, to irrigation techniques, and
26 to a move towards less demanding crops, must be improved significantly ”.
27 A second consideration which links agricultural activities to the use of water involves the problems on
28 water quality which the resource water is subject to; the RDP introduction underscores the way “the
29 environmental pressure agricultural activities have on the water system is evident primarily from the
30 traces of nitrates and pesticides in superficial and underground water systems”.
31 The impact on waters caused by agricultural activities is an issue of topical interest which is closely
32 related to nitrate leaching: on the province’s territory the problem depends not only on the quantity of
33 nitrate fertilizers used on the land, but also on the territorial make-up of the soil, on climatic conditions,
34 on the content of nitrates in the water, on the way cultures are arranged, and on the techniques adopted
35 to grow crops, etc.
36 The goals on improving water were covered at the Community level by the Framework Directive 2000/60,
37 enforced in Lombardy based on different norms, firstly on the Programme on the Protection and Use of
38 Water (PPUW).
39 The Programme’s strategic goals are those embodied by the Law at the national and regional level. The
40 first issue regards “maintaining or achieving a “good” level of environmental quality for significant
41 superficial and underground water bodies and in the places where such condition already exist, to attain
42 a “high” quality. Furthermore, by 2008, superficial bodies will have to qualify as “sufficient”.
43 4. RDP and the Province of Milan’s Triennial Agricultural Plan
44
45 The Triennial Agricultural Plan is the document that plans the territorial initiatives foreseen for the
46 agricultural sector for the three year period of 2007-2009. An important event for Milanese agriculture
47 since it offers the province the opportunity to assess, in-depth, the agricultural reality. It is also a time
48 in which the objectives of endowing it with the necessary instruments to maintain its role within the more
49 general Lombard and national farming framework become.
50 The 2007-2009 Triennial Agricultural Plan for the territory of the Province of Milan (TAP), approved in
51 September 2007, stems from the concerted effort of the Agricultural Sector of the Province of Milan, the
52 Professional Agricultural Organizations and all of the representatives of the agricultural world. It was
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1 inspired by the regulations introduced in 2005 by the Common Agricultural Policy (CAP) and by the laws of
2 the new Programme Rural development (RDP) of the Region of Lombardy for 2007-2013. The financing
3 measures contained therein as operative and management instruments were in fact drawn from the latter.
4 The new provincial Agricultural Plan, compared to past provincial programmes (of 2001-2003 and of 2004-
5 2006) that strove to modernise the sector with the introduction of new production methods, to affirm the
6 concept of multifunctionality of the farm enterprise, and to disseminate measures to protect the
7 environment and rural landscape, though it maintains the same principles, has more specific goals on
8 improving the already existing and consolidated ones on the territory of Milan.
9 In fact, this plan can be claimed to be devised to enhance and develop the overall agri-food system of
10 Milan, favouring “prime” local production as milk, rice, horticultural produce, flower and plants and to
11 consolidate the bond between the production, transformation and marketing phases of agricultural
12 products in a broader perspective of integrated production.
13 To grasp the current logic of the Provincial Plan, the predominant role of agriculture and zootechniques in
14 the Province of Milan must be highlighted as it supports provincial economy significantly, roughly standing
15 at 2%. The compartment is constituted by prevalently family run enterprises characterized by a
16 combination of tradition, quality and innovation that espouse great specialization with the ability to
17 valorise supplies of essential needs that are rooted in the territory within an international scope.
18 Promoting various kinds strategies in such a particular context proves fundamental and ought to include:
19 supporting, by introducing innovation and competitiveness, the viability of farm enterprises, encouraging
20 the consumption of typical local products, prompting alternative forms of commerce compared to large-
21 scale distributors that are economically gratifying for both the producer and the consumer, and creating a
22 solid alliance with the territory that stems from the interaction of the various figures involved in the
23 sector.
24 In particular, the objectives the Triennial Agricultural Plan has set itself for the future three years, with
25 explicit reference to new Rural Development Policy measures include:
26 to intensify the competitiveness of the main provincial production lines like milk, rice, floral
27 and plant breeding;
28 develop the environment and rural space;
29 improve the quality of rural life.
30
31 4.1 Boosting competitiveness of the main provincial production lines
32 Stepping up competitiveness in the agricultural sector with actions to optimize the performance of the
33 compartments regarded as the economic driving force of provincial economy like milk, rice, flower and
34 plant production is only possible if capital and human resources are optimized in tandem with intervention
35 schemes aimed at protecting the quality of production while guaranteeing to producers a secure and
36 profitable source of income.
37 In terms of the agri-food sector, it is important to assess if various production lines need to be enhanced
38 or improved by means of the consolidation of solid agreements and strategic alliances between the
39 agricultural domain and the processing and distribution sectors. This would greatly boost local production,
40 making it more competitive abroad and capable of withstanding the progressive liberalization of markets.
41 To that end, the Province of Milan believes it best to operate conscious of the many forces at play – the
42 economic, political, legislative, technological and socio-cultural – and to use the funding instruments the
43 new RDP has set aside for agriculture like the package of measures and the coordinated projects.
44 The new financial and strategic decisions embodied by the new provincial programme focus on the
45 amplest operative framework of Lombardy’s RDP and are currently the only chance for farmers to redeem
46 their situation.
47 In the new Common Agricultural Policy market scenario, characterized by a progressive liberalization of
48 international trade and by support that has shifted from production to income, the ability to dispose of
49 instruments that favour entrepreneurial development becomes an essential mean to improve the
50 competitiveness and survival of Milan’s farm enterprises.
51 Compared to the past, the Province of Milan is currently the Managing Body of South Milan’s Agricultural
52 Park and is thus endowed with a series of instruments to valorise the territory’s products. For example,
53 thanks to a regional initiative centred on promoting protected areas, the Agricultural Park in South Milan,
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1 which embraces a significant part of the Province’s farmland, can, as other regional parks, and owing to a
2 Decree n. 11302 of 11 October 2006, transfer its name and logo to enterprises and producers that, not
3 only have to comply with regulations on organic and integrated agriculture, but also have to collaborate
4 with the Park Body in the conservation and land management. The Park must deposit the trademark as a
5 collective trademark. This implies that the Park decides, based on well defined rules, on granting farmers
6 the concession to use the trademark according to specific juridical and technical-agronomic prerequisites.
7 In accordance with the law in force, a trademark cannot just be limited to guaranteeing the origins of a
8 product, and in case of an enterprise, whose sole prerequisite is to be localized within the protected area,
9 since such a condition does not suffice to assign the trademark. As previously mentioned, the entry into
10 the trademark system on the part of enterprises therefore foresees not only organic production but also
11 integrated crops and low impact methods for traditional production, while compliance with company
12 regulations foresees extra legal actions to protect and improve the environment.
13 The differentiation channel in agricultural products must be explored together with territorial marketing
14 initiatives, that is the marketing and economic policies that enhance a company’s role as a profit
15 generating subject.
16 4.2 Enhancing the environment and rural space
17 Another point which the new provincial Agricultural Plan is stressing is the valorisation of the environment
18 and rural peri-urban areas which must be carried out by respecting a community’s needs. The province of
19 Milan’s particular territorial conformation sees different economic sectors sharing a relatively limited
20 space. This factor has contributed to the conclusion that environmental protection is fundamental,
21 starting with an appropriate use of farmland and forests and with the use of an alternative source of
22 energy, renewable energy, which respects the environment, and conceives the way space within a
23 territory is distributed.
24 To reach its preset goals, the new provincial programme draws inspiration from RDP regulations which
25 outline the specific measures that enterprises are to follow if they decide to produce in an
26 environmentally friendly way thus by investing in agro-energy, in forestry and in the recovery of peri-
27 urban areas located near inhabited centres.
28 Considering the geographic position of the Province of Milan, located in what is defined as a Poli Urban
29 area, with regard to the issue of environmental sustainability, “peri-urban agriculture” plays an important
30 role as an instrument for the requalification of agricultural spaces located around urban centres.
31 Protection of rural territory can be achieved with specific policies conceived to maintain a solid fabric
32 that connects the city to the countryside. Under the socio economic profile multifunctional enterprises
33 thus become pivotal to avoid urbanization processes and the disappearance of agricultural and
34 zootechnical production areas.
35
36 4.3 Valorisation of quality agricultural production
37 Milan’s territory boasts a number of products that can be regarded as typically local though the raw
38 materials they are made of is not particularly recognizable from the materials made abroad. This factor
39 makes them therefore liable to competition. Consider for instance, the agriculture in the Provincial parks,
40 the most important being the Agricultural Park in South Milan (APSM) with a concentration of farm
41 enterprises which, as located in urban, industrial, and countryside areas, have opted for low
42 environmental impact production methods like integrated and organic farming in order to guarantee the
43 preservation of rural landscape in peri-urban areas. Valorisation schemes are thus important for the
44 territory’s agricultural raw materials and to implement actions that enhance the exclusivity of local
45 production.
46 To such end, a “production line” approach that focuses on single products, or one that focuses on
47 “baskets of products” which acts on a set of food products can be adopted. Moreover, there is the option
48 of deciding to turn to the local market or to more extended ones, thus resorting to long distance
49 marketing systems (sales via correspondence, e-commerce, etc.).
50 Concerning agri-food, alongside the Province of Milan’s significant specialization of production, positioned
51 on a large scale supply market, there are a series of “minor”, niche lines of production which have also
52 proven economically valid and are important to promote local production. They are part of what can be
53 defined as “short production”, as the number of operators between the producer and consumer are a
10
1 maximum of 2-4. When the producer and consumer come in direct contact this is referred to as “direct
2 sale”. Both the above mentioned types of productions, which have eliminated intermediate phases and
3 therefore enable the products to be sold to consumers at a better price, give farm enterprises the chance
4 to improve their profit. The short production formula gives all enterprises, including the smaller ones, the
5 chance to survive and adapt to market demands.
6 Finally, to valorise agricultural food produce implies promoting biodiversity that is the environmental and
7 cultural differences in a territory which yield a great variety of distinct local products that can be
8 distinguished thanks to their origin, tradition and the uniqueness of the raw material. Focused on such a
9 perspective, and acting on the connection between biodiversity and territorial quality of products, the
10 Province of Milan strives to create new market opportunities.
11 5. European experience
12 5.1 Hungary
13 The practical execution of complex rural development policy between 2007 and 2013 happens in the
14 frame of the 3rd Provision Group of New Hungary Rural Development Program (ÚMVP), for which aim 200
15 billion Forint (800 Million €) is available. The goals of the Hungarian Ministry of Agriculture and Rural
16 Development is the enhancement of living conditions and the expansion of income- gaining activities of
17 the rural areas, preferring the latter, which is proven by the source allocation.
18 The key of the effective rural development is the support of appropriate projects (satisfying the local demands,
19 serving the local inhabitants), which mainly equals to the preservation of workplaces and the enhancement of working
20 possibilities, ensuring sustainability through this. On the other hand it is necessary to define the source absorption
21 capacity, and interfere, if necessary in the form of trainings, community- and capacity development.
22 The main aims of the “classic rural development section” of ÚMVP are as follows:
23 1. General economy- and enterprise development (workplace creation),
24 2. Developments with social aims (life quality enhancement)
25 3. Respective human resource- and capacity development (training, information)
26 The planned developments of the 3rd Provision Group are realized by 110 billion Forints (440 Million €)
27 funding, through the following provisions (Support fund in brackets):
28 1. Diversification to non- agricultural activity (30 Million €),
29 2. Supporting the establishment and development of micro-enterprises (340 million €),
30 3. Inspiring activities relating to tourism (66 million €).
31 In addition, these aims are completed by the life quality enhancement, social goals of the rural area, for
32 which 60 billion (240 million €) Forints is available in the next years. This aim is done by the following
33 provisions:
34 1. Basic services for rural economy and inhabitants (120 million €)
35 2. Village renewal and development (79 million €)
36 3. Preservation and sustainable development of rural heritage, which includes two further sub-
37 provisions:
38 - Preservation of rural heritage (38 million €)
39 - Preparation of Natura 2000 sustainability plans (2.4 million €)
11
1 Obviously, one should mention throughout the designing of the project, that in several cases the lack of
2 the knowledge regarding to development strategies can prevent the effective use of funding. The
3 following provisions aim to solve this problem:
4 1. Training and information of economical performers respective to the area funded by the 3rd Provision
5 Group (27 million €)
6 2. Acquirement of skills and the stimulation of designing and realization of local development strategies
7 (47 million €)
8 5.2 Poland1
9 A key role for the new approach to regional policy in Poland had the European integration as well as
10 adopting the state support as the priority rule to strengthen the rights of the citizens.
11 The strategic aim for Poland is full integration with European Union in order to improve and modernize
12 economy, political and legal system, as well as to speed up the economy development and to reduce the
13 gap between Poland and other European countries.
14 Interregional differentiation in Poland is not large; nevertheless Polish voivodoships (especially in the
15 eastern Poland) are the weakest developed regional structures in the enlarged EU.
16 To address those needs Ministry of Regional Development of Poland prepared the National Development
17 Strategy (NDS) 2007-2015, which is the main strategic document that present guidelines for other
18 government and local strategies and programmes. The Strategy aims above all to enhance standards and
19 quality of life of Polish inhabitants and society. The priorities of NDS is to improve competitiveness and
20 innovativeness of the economy as well as condition of technical and social infrastructure, increase of
21 employment and enhancing its quality, building an integrated social community and its security,
22 development of rural areas and the improvement of territorial cohesion.
23 On the basis of NDS the National Cohesion Strategy (NCS), National Strategic Reference Framework, the
24 National Strategic Plan for Rural Development, the National Strategic Plan for Fisheries Development as
25 well as the operational programmes were prepared. Strategic goal of the NCS is to create conditions for
26 the improvement of competitiveness of the economy based on knowledge and entrepreneurship, ensuring
27 the increase of employment and the higher level of social, economic cohesion. The NCS will be
28 implemented through the following programmes:
29 • three operational programmes implemented at the national level
30 • 16 regional operational programmes implemented by the local governments of voivodships
31 • operational programme intended for supporting the poorest voivodships
32 • technical assistance operational programme
33 • European territorial co-operation programmes.
34 EU funds in the amount of 67.3 billions € will be allocated for individual operational programmes:
35 Regional Operational Programmes -16.6 billions €
36 Operational Programme Infrastructure and Environment – 27.9 billions €
37 Operational Programme Human Capital – 9.7 billions €
38 Operational Programme Innovate Economy - 8.3 billions €
39 Operational Programme Development of Eastern Poland – 2.3 billions €
40 Programmes of the European Territorial Cooperation Objective – 0.7 billion €
41 The Technical Assistance Operational Programme – 0.5 billion €.
42 5.3 Romania
43 The agriculture and rural development between 2007 and 2013 will happen according to the provision of
44 the National Program for Rural Development.
45 The rural development policy of Romania co-financed by the European Agricultural Fund for Rural
46 Development (EAFRD), representing pillar 2 of the Common Agricultural Policy (CAP), is designed to
47 accompany the support policy of pillar 1, providing a basic income support for farmers. The 2nd pillar
48 provides support to the development of the agriculture and forestry sectors, to preservation and
49 protection of land, nature and environment and to the improvement of the quality of life in rural areas.
1
http://www.mrr.gov.pl
12
1 The support available under the EAFRD represents the ambitions of implementing the core EU policies
2 including the re-launched Lisbon strategy and the Gothenburg declaration on sustainable development.
3
4 In order to implement the four axes of the program, a total number of 27 financing measures were
5 selected.
6 Up to 42.19% of the financial support of the EAFRD will be allotted to the Axe I in order to increasing the
7 competitiveness of the agriculture and forestry sectors.
8 Two measures will finance measures in order to improve the human resource:
9 - Improve the skills of the farmers and persons relating to the forestry sectors allowing a better
10 management of the agricultural holdings and forests;
11 - Supporting installation of young farmers.
12 Four other measures will finance investment measures in order to develop the “physical capital” and
13 promotion of innovation:
14 - Farms modernization;
15 - Increasing the economic value of forests;
16 - Increasing the added value of agricultural and forest products;
17 - Improving and developing the infrastructure for agriculture and forestation.
18 Up to 25% of the financial support will be allotted to the Axe II in order to improve the environment and
19 the rural areas through the sustainable use of agricultural and forestry land.
20 Three transitory measures for Romania will provide finance in order to:
21 - Support semi-subsistence agricultural farms;
22 - Support the producers grouping (association);
23 - Counselling and consulting services provided to farmers.
24 Other measures will finance the sustainable use of the agricultural land:
25 - Support for the disadvantaged mountain areas;
26 - Support for other disadvantaged areas;
27 - Agro-environmental payments.
28 Up to 26.31% of the financial support will finance measures under the Axe III in order to develop the
29 quality of life in rural areas and rural economy diversification.
30 - Develop new small economic activities aiming at increasing the employment;
31 - Stimulate the increasing of tourist activities in the rural area;
32 - Villages’ rehabilitation and development, improving services for the rural population and
33 economy, and valorisation of the rural heritage.
34 Up to 2, 5% of the financial support of the EAFRD will be allotted to start and operate local initiatives via
35 the Leader Axis (IV).
36 This axe will finance measures in order to promote endogenous potential of rural territories, as well as to
37 enhance local governance in order to set-up integrated local development strategies and plans. Other
38 support of the Axe IV will finance inter-territorial and trans-national cooperation projects. The Local
39 Action Groups will be supported in order to build up their organizational capacity to manage the
40 development programs and animation activities as well.
41 5.4 Germany
42 The region of Brandenburg, owing to the EU’s Rural development policy funding scheme it obtained, could
43 implement its territorial management of crops grown organically and protect the biodiversity of natural
44 areas.
45 Brandenburg boasts a number of precious, relatively intact natural areas with a rich biodiversity. Starting
46 1990, fifteen protected areas have been established to assure natural habitat conservation and to
47 encourage the protection of biological diversity which characterises this region.
48 The activities that several NGOs conducted and the policy strategies adopted by parks and buffer zones
49 have led to the growth and development of organic agriculture and to a territorial management strategy
50 which has created a complex network that links the different protected areas. At the regional level, the
51 main crops in the protected areas and buffer zones include cereals, potatoes and legumes.
52 The main common objectives of ecological, social and economic nature include the conservation of
53 natural areas, the preservation of economic activities for the population so that new jobs are created at
54 the regional level in eco-compatible enterprises.
13
1 The Ecological Village called Brodowin is located in the Schorfheide-Chorin Biosphere Reserve, and is one
2 of the three reserves in Brandenburg. It has 1200 hectares of organic farmland dedicated to research and
3 ecologically friendly agriculture. The main crops are cereal, forage, vegetables, fruit and breeding of
4 cattle and dairy food production. The entire region of Brandenburg has conducted studies to explore the
5 way in which farmers can undertake activities that preserve nature and limit environmental damage
6 caused by their production. The work has also covered the effects of biological systems on birds and
7 Arthropoda. One such study highlighted a greater presence of larks (Alauda arvensis) and other birds that
8 feed on organic vegetable and herbaceous crops.
9
10 Glossary
11
12 Rural Areas of Specialized Intensive Agriculture (RASIA)
13 Are the territories identified by the RDP as areas in which agricultural activities take on a significant
14 economic, occupational and social role.
15
16 Intermediate Rural Areas (IRA)
17 Are the territories identified by the RDP that comprise most of the mountains and of Lombardy, and the
18 hills in the province of Pavia and Mantova.
19
20 Rural Areas with Development Problems (RADP)
21 Are the territories identified by the RDP which comprise the more marginal areas compared to the overall
22 economic-productive axis.
23
24 Axes
25 The definition of the priority areas of intervention in RDP which are subdivided in 4 main areas and
26 include:
27 Axis 1 – “The improvement of competitiveness of the agricultural and forestry sector”
28 Axis 2 – “The improvement of the environment and of rural space”
29 Axis 3 – “The quality of life in rural zones and the diversification of rural economy”
30 Axis 4 – “The implementation of the Leader approach”
31
32 Multifunctional enterprises
33 It is the ability of a farm enterprise to supply services to the community (as creating services for tourism
34 and leisure time, preserving the landscape, producing water purification systems, or establishing services
35 to mitigate infrastructures, producing bioenergy, creating systems that regulate water and hydro
36 geological stabilization).
37
38
39
40 EAFRD (European Fund for Agricultural and Rural Development)
41 The financial instrument which as of 1st January 2007 was activated to support Community rural
42 development policies; the fund comes from cross sections of the former European Agricultural Fund, the
43 Orientation and Guarantee funds, that serves to fully finance the new 2007-2013 rural development
44 policy.
45 A single financial instrument was thus activated for the rural development policy which can contribute,
46 with greater efficiency, to improve the competitiveness of the agriculture and forestry sectors.
47
48
49 A Package of Measures
50 Young farmers can take advantage of a number of measures contained in a single document which can
51 help support the investments required to launch, consolidate, and develop young entrepreneurship.
52
53 TAP (Triennial Agricultural Policy)
54 The document to programme territorial initiatives related to agriculture at the provincial level for the
55 three year period of 2007-2009; the document provides concrete measures to endow Milan’s agricultural
56 sector with the required instruments to maintain a leading role within Lombardy’s and the nation’s more
57 general agricultural framework.
58
14
1 Enterprise Plan
2 The document is conceived to develop agricultural activities. It must therefore describe the economic,
3 financial situation, and an enterprise’s management situation, the essential and specific elements that
4 make up its activities, business strategies and the objectives planned to achieve the scheme
5
6 Urban Poles (UP)
7 It is the territories identified by the zoning scheme of the RDP as zones of “high density in population and
8 small territorial extension of agriculture”.
9
10 Coordinated Projects
11 It is the initiatives of common interests that several subjects assume by interacting in a specific area as
12 potential beneficiaries of RDP measures; the programme includes a broad range of initiatives, of areas or
13 production lines, which by means of integration between public and private entities intend to respond to
14 economic, social and territorial interests of the local agricultural system.
15
16 RDP (Rural Development Policy)
17 Is the set of regulations issued to obtain aid for Rural Development by the European Union; consequently
18 the aid is directed to support the development of farming programmes and projects rather than
19 supporting agricultural income.
20 The regulations are articulated in specific measures and actions and, in Italy, are defined at the regional
21 level.
22
23 PPUW (Programme to protect the use of waters)
24 The document is one that exposes and plans the actions foreseen by the Region of Lombardy to reach its
25 objectives in protecting and improving waters.
26
27
15