THE CURRENT AND FUTURE CAP AND GENERAL INDUSTRY OUTLOOK

							The New Rural Development
Programme for England:
An Overview




Carl Atkin
Head of Land & Business Research
Bidwells
Rural Development: Context

 Rural Development was introduced as the
  “second pillar” of the CAP under the Agenda
  2000 CAP Reforms

 Implemented in England as the England Rural
  Development Programme (ERDP)

 “Scheme Led” approach – Rural Development
  Service (RDS) the Lead Agency
Old ERDP: 2000 to 2006
 Socio-Economic Schemes
    Rural Enterprise Scheme (RES)
    Processing and Marketing Grant Scheme (PMG)
    Vocational Training Scheme (VTS)
    Energy Crops Scheme (ECS)
 Agri-Environment Type Schemes
    Countryside Stewardship and Environmentally
     Sensitive Areas (replaced in 2005 by Environmental
     Stewardship)
    Woodland Grant Scheme and Farm Woodland
     Premium Scheme
    Hill Farm Allowance
European Guidelines for Rural
Development
 Identify the areas where the use of EU support for
  rural development creates the most value added
  at EU level;
 Make the link with the main EU priorities (Lisbon
  and Goteborg);
 Ensure consistency with other EU policies, in
  particular cohesion and environment;
 Accompany the implementation of the new
  market orientated CAP and the necessary
  restructuring it will entail in the old and new
  Member States
EAFRD

New central fund for the first time working to six
principles:

   –   Improving the competitiveness of the agricultural and
       forestry sectors
   –   Improving the environment and the countryside
   –   Improving the quality of life in rural areas and
       encouraging diversification
   –   Building Local Capacity for Employment and
       Diversification
   –   Translating priorities into programmes
   –   Complementarity between Community Instruments
 UK share of budget €1.909 bn (or £1.3 bn)
  which represents just 2.46% of the EU 25
  budget

 This compares to €13 billion for Poland and €8
  billion for Germany and Italy
New RDPE 2007 – 2013

 Axis 1 – Improving the competitiveness of the
  farming and forestry sector (min 10% of funds)

 Axis 2 – Improving the environment and the
  countryside (min 25% of funds)

 Axis 3 – Improving rural quality of life and
  diversifying the rural economy (min 10% of
  funds)

 Axis 4 – Leader – an “approach” (min 5% of
  funds)
Why the delay?

 Funding problems with new RDPE; UK share of
  the core funding very low

 Political game playing in Brussels over Voluntary
  Modulation – essential if UK were to have any
  decent new programme

 Potentially more complicated delivery
  arrangements given the Modernising Rural
  Delivery Agenda
So How Much Money is there?
(England)

 Core Funding (EAFRD)                     £749 million

 Old Voluntary Modulation                 £101 million
 New Voluntary Modulation               £1,455 million

 Co-Financing of EAFRD & State Aids       £850 million
 Co-Financing of Voluntary Modulation     £832 million

   TOTAL                                 £3,987 million
and how is it being spent. . . .

 Axis 1 – about £298 million (including £47
  million for an Energy Crops Scheme and £249
  million delivered by the RDAs)

 Axis 2 – about £3.28 billion including £2.9 billion
  for environmental stewardship

 Axis 3 – about £348 million largely delivered by
  the RDAs

 Convergence funding – £55 million for Cornwall
R.I.P. - RES / PMG / VTS

 Project based schemes will not be replaced

 Each RDA will hold a “pot” of money and use a
  mixture of open application, invitation to tender
  and commissioned projects

 Aim is to achieve their regional objectives for
  RDPE which will be more closely aligned to other
  regional strategies
So why not replace the old
schemes?

 Mid-term evaluation of the ERDP was critical of
  the cost of administration of the old programme

 Desire to simplify and mainstream rural funding as
  part of the wider socio-economic agenda
   - Too many schemes
   - Too many delivery bodies
   - Move to more strategic outcomes
The New RDPE:
What does it mean practically?
 Energy Crops Scheme managed by Natural
  England
 Environmental Stewardship managed by
  Natural England
 England Woodland Grant Scheme managed by
  the Forestry Commission
 Hill Farm Allowance managed by the Rural
  Payments Agency
 Socio-Economic Funding managed by the
  RDAs (Axis 1,3 and Leader)