Supporting young famers through the CAP Mihail Dumitru DG - - PowerPoint PPT Presentation

Supporting young famers through the CAP

Agriculture and Rural Development

Mihail Dumitru DG Agriculture and Rural Development

Outline

• 1. Overall context faced by young

farmers

• 2. Barriers and opportunities for

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• 2. Barriers and opportunities for

young farmers

• 3. EU Policy response
• 4. Reflections for the future

Overall Context

• Fewer, bigger farms, offering limited opportunities for

younger farmers to set up

• Rapidly aging of population of farmers in the EU
• Rapidly aging of population of farmers in the EU
• Young farmers are generally well trained
• Young farmers have generally a higher innovation and

adaptation potential

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Obstacles

• Older farmers are reluctant to transfer their farm; others

continue as part time farmers

• Difficult access to land and finance
• High investments and low turn-over during the first years
• High investments and low turn-over during the first years
• f business
• Specific aspects of setting up of

the farm: inheritance and arrangements with previous owner

• Considerable training needs

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Opportunities

• Farming is a way to secure employment
• Lifestyle aspiration
• Work ambitions
• Social aspirations

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Policy Response: Rural Development

• Available measures:

− 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

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− Knowledge transfer and information actions, advisory services − Co-operation for developing new products, organising joint work processes, or sharing facilities − Operational groups of the EIP − Financial Instruments: specific products for young farmers

• Targeting young farmers is possible through specific selection criteria

and higher aid intensities for investments

Number of young farmers to be supported (2014-2020) YF to YF to be be supported supported at at

7 Source: European Commission

supported supported at at EU EU level level 173,347 173,347

Public expenditure allocated to Focus Area 2B (2014/2020)

EU 6.9 Billion

8 Source: European Commission

Farm and business support (Focus Area 2B) Budget committed by 31 January 2017 (in %)

15% 20% 25% 9 0% 5% 10% 15% GR LV BG HU LT ES BE SK UK SI PT FR RO HR AT LU SE PL IT FI CY CZ EE MT SL Source: European Commission

Policy response: Young Farmer Payment under 1st Pillar

• Eligible farmers:

− setting up for the first time an agricultural holding as head of the holding, or who have already set up such a holding during five years preceding the first application for the scheme

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− no more than 40 years of age in the year of the first application for the scheme − possessing appropriate skills and/or training requirements (defined by MS)

• Payment granted for a period of maximum five years
• Ceiling: up to 2 % of the direct payments' envelope

Young Farmer Payment under Pillar I

11 Source: European Commission

1.23% of total Direct Payments in 2016, around EUR 513 million

Omnibus Simplifications

• Start-up support under Rural Development

− Simplification of conditions − Support can be provided through financial

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− Support can be provided through financial instruments

• Young Farmer Payment:

− Scheme's outreach increased to cover more land

Reflections for the future

• Modernisation & simplification CAP

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• Cork 2.0
• Land market, access to new types of knowledge, innovation

Your ideas are welcome!

Thank you for your attention

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