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LEADER under IPARD and post accession RDPAnna NOWAK, European Commission, Directorate General for Agruculture

and Rural Development

Challenges and opportunities for LAGs in Croatia

13 July 2012

2

Main points:

• IPARD – main measures

• Leader – main featured, history and results

• Challenges in the post accession period

• Leader under IPARD

• Best practices from MS LAGs - video

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IPARD

Axis 1 - Improving Market Efficiency and Implementing Community Standards

M 101 Investments in agricultural holdings to restructure and upgrade to the EU standards

For agricultural holdings (farmers, crafts, private entities)

Sectors: milk, beef, pig, poultry and eggs, fruit and vegetable

NEW investment: tractors and renewable energy !

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IPARD measures

Axis 1 - Improving Market Efficiency and Implementing Community Standards

M 103 Investments in processing and marketing of agriculture and fishery products to restructure and upgrade to the EU standards

For micro, small and medium processing enterprises (craft, company or cooperative)

Sectors: milk and dairy, meat, fishery, fruit and vegetable, wine and olive oil sector

New investment : renewable energy, new equipment in wine and olive oil sectors

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IPARD measures

Axis 2- Preparatory actions for implementation of the agri-environmental measures and Leader

M 201Preparation for implementation of actions relating to environment and the countryside – AE measures

M 202 Preparation and implementation of local rural development strategies - Leader

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IPARD measures

Axis 3 - Development of the Rural Economy

M 301 Improvement and development of rural infrastructure

For small municipalities with up to 10.000 inhabitants

Sectors: sewerage system and waste water treatment, local unclassified roads, heating plants, fire prevention passage

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IPARD measures

Axis 3 - Development of the Rural Economy

M 302 Development and diversification of rural economic activities

Micro enterprises (natural or legal persons, in VAT system)

Sectors: rural tourism, crafts, direct marketing, services (i.e. kindergartens, IT centres), on farm processing, freshwater aquaculture, renewable energy. New: hairdresser salons and homes for elderly.

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The main concept of the Leader approach

LEADER: Liens Entre Actions de Developpement de l’Economie Rurale = Linkages between development actions regarding the rural economy

Given the diversity of rural areas, development strategies are more effective and efficient if …

• decided and implemented at local level by local actors;• accompanied by clear and transparent procedures;• the support of the relevant public administrations;• and necessary technical assistance for the transfer of good

practice

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The 7 key features of Leader

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Local Action Groups(composition and role)

• Public-private partnership

At decision making level the economic and social partners as well as other representatives of the civil society, such as farmers, rural women, young people and their associations must make up at least 50 % of the local partnership.

• The partnership must be representative for the area.

• The partners must be locally based.

• The groups draw up an integrated local development strategy for their territory and are responsible for implementing it.

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The Local Action Group

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Evolution of the Leader approach

The Community Initiatives:• Leader I (1991-93) – experiment: result of criticism to the individual

project approach in the Structural Policy• Leader II (1994-99) - laboratory: limited to disadvantaged rural areas,

innovation, pilot actions, introduction of transnational cooperation• Leader+ (2000-06) - maturity phase: eligibility of the whole rural

territory; reinforced role of networks and transnational cooperation• (Leader+ type measure for new Member States 2004-2006)

„Mainstreamed Leader“ 2007-13:• Leader axis – not any longer specific programmes; methodological

approach to mainstream RD programming

Leader approach as basis for community-led local development in the CSF-Funds 2014-20:

• Possibility for Leader territories to implement „multi-funded“ strategies

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Rural Development Policy 2007-2013: Architecture

Rural Development

2007-2013

« LEADER Axis » (min. 5% of the EAFRD budget)

Axis 1 Competi -tiveness

Axis 2 Environment

+ Land

Management

Axis 3 Economic

Diver. +

Quality of Life

Single set of programming, financing, monitoring, auditing rules

Single Rural Development Fund (EAFRD)

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LAG selection in EU:2.331 selected LAGs

338

264243

223

191

112 106 96 86 81 8163 56 53 51 43 36 36 33 31 29 26 25 16

5 4 30

50

100

150

200

250

300

350

400

PL ES DE FR IT CZ UK HU AT SE RO FI DK PT LT GR LV IE SI NL SK EE BE BG LU CY MT

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Leader 2007-2013:

• EU average population of LAG areas: around 50.000 inhabitants

• EU average surface: around 1.780 km2

Average of population per LAG

50347

65822

3233829911

54141

18922

76800

56862

472265653159193

75969

278892528125193

60839

113294

49932

76879

20711

3846443114

50420

0

20000

40000

60000

80000

100000

120000

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Rural development in a new framework 2014-2020

Common Strategic Framework (CSF) – covering the EAFRD, ERDF, ESF, Cohesion Fund and EMFF, and reflecting EU2020 through common

thematic objectives to be addressed by key actions for each of the funds

Partnership Contract – national document outlining the intended use of the funds in the pursuit of EU2020 objectives

Rural development policy: EAFRD

Other CSF funds(ERDF, ESF, CF, EMFF)

Rural Development Programme(s)

Europe 2020 strategy

Promoting social inclusion,

poverty reduction and economic development in rural areas

Enhancingcompetitivenessof all types of

agriculture and farm viability

Promotingfood chain

organisation and risk

management in agriculture

Restoring, preserving and

enhancing ecosystems

dependent on agriculture and

forestry

Promoting resource efficiency and

supporting the shift towards a low carbon and climate resilient

economy in agriculture, food

and forestry sectors

Fosteringknowledge

transfer and Innovation in agriculture,forestry and rural areas

Pri

ori

tie

s

Innovation, Environment and Climate Change as cross-cutting objectives

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Community-led local development – CLLDLeader approach for all funds:

• Europe 2020 strategy: Territorial development on sub-regional level as a cross-cutting issue for inclusive growth

• Common Provisions Regulation: common approach to support CLLD under the EU Funds:

EAFRD – European Agricultural Funds for Rural Development EMFF – European Marine and Fishery Funds ERDF – European Regional Development Fund ESF – European Social Fund ECF – European Cohesion Funds

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Leader in the new programming

LAGs – shall design and implement LDSs Preparatory support:• “Leader start-up kit” – capacity building actions for groups who did not

implement Leader in 2007-2013 and support small pilot projects• Capacity building, training and networking to prepare and implement a LDS

Cooperation activities• Inter-territorial or transnational co-operation projects (within one MS, within

several MSs and with third countries)- separate selection) • Preparatory technical support for cooperation projects

Running costs and animation• Costs linked to the management of the implementation of LDS • Costs to cover actions to inform about LDS and project development tasks

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Challenges under the new programming

Option for the delivery at MS level:

• Strategy with mono-fund approach or multi-fund approach( coordinated intervention of several Funds)

Options for the delivery at LAG level• Defining the LDS scope – much broader approach• Defining the area which the strategy will cover• whether to design a multi- or a mono-fund LDS after assessing the risks

and challenges• In the case of multi-fund:

• Choice of the Funds to be included in that strategy;• if the Lead Fund option is opened, which Fund should be the

Lead Fund

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Challenges under the new programming

• Multi-funded strategies are more complex to design and implement – experience required

• Broader LAGs partnership (many issues, many sectors)• Risk of dominancy of the most powerful interest• Possibility of integration of new areas (i.e. bigger towns)• But still possibility to implement Leader only in rural

areas.

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IPARD

• IPARD Programme until the end of 2013

• New Rural Development Programme 2014-2020

• Contracting under IPARD – only until beginning of the post accession Rural Development Programme (2015 ?)

• Payments under IPARD possible until 2016 (N+3 rule)

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Leader in IPARD

• How? Through sub-measures : 202.1. Acquisition of skills, animating the inhabitants of LAG

territories (for registered and selected LAGs)

202.2. Implementation of local development strategies (for

registered and selected LAGs)

And TA for potential LAGs (implemented by the MA)

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Leader in IPARD

LAGs main responsibilities and tasks :

To establish and register a LAG (as association)

To develop a Local Development Strategy

To promote/inform/animate local population

To apply to the Call for proposal

To recommend a project to the Agency

To manage activities of a LAG

To request financial support for LAG’s operation

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Leader in IPARD

Leader – eligibility criteria

Officially register (as association)

Cover coherent territory (5.000-150.000 inhabitants, including towns

up to 25.000)

Management body: public-private group (at least 50% members

from civil, social and business sector) and min 20% from the local

authorities. Age diversity and Gender equality (min 30 % women)

LDS based on Leader Ordinance

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Leader in pre- and post accession RDP

• New approach – mono or multi funds strategies

• LAGs selected under IPARD have to submit a new LDS with much broader approach

• Much broader approach: more measures : from 6 in IPARD to 26 in a new RDP = more sectors = more projects, but also projects not only from RDP

• Bigger focus on networking and cooperation

• Cooperation also with partners from non rural areas, financed from other funds

• Some procedural differences at LAGs and the ministerial level (projects selection, projects payments), possibilities of advance payments

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Thank you and good luck!

Leader ordinance: http://mps.hr/ipard

http://enrd.ec.europa.eu