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    Policy framework for implementation of

    agri-environmental schemesVyara Stefanova

    25 November 2010, Probistip, Macedonia

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    Agrienvironmental payments

    Agri-environmental payments ... should ... encouragefarmers and other land managers to serve society asa whole by introducing or continuing to apply

    agricultural production methods compatible withthe protection and improvement of theenvironment, the landscape and its features,natural resources, the soil and genetic diversity.....

    In accordance with the polluter-pays principle thesepayments should cover only those commitmentsgoing beyond the relevant mandatory standards.

    (Council Regulation 1698/2005, Preamble paragraph 35)

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    History ofAgri-Environment Policy

    in the EU1985: optional for Member States, specialschemes for sensitive areas

    1992: MacSharry Reforms - compulsory

    accompanying measure1999: Agenda 2000/ The Rural Development

    Regulation - compulsory RDR measure toprotect environment and improve countryside,according to need

    2005: EAFRD - Axis 2, delivery of biodiversitytargets, Natura 2000, WaterFrameworkDirective, Climate

    2008: Increased emphasis within EAFRD on

    new challenges as a result of the CAP HealthCheck.

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    Current legislation forAgr-

    environmental schemes

    Set out in Articles 39 & 40, Council

    Regulation 1698/2005 (European Agricultural

    Fund for Rural Development EAFRD) Article 39: Agri-Environment Payments area

    payments

    Article 40: Non-Productive Investments

    capital works

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    Axis 2: Improving the environment and

    countryside Resources to contribute to 3 EU-level priority areas:

    Biodiversity, high nature value farming and forestrysystems and traditional agricultural landscapes

    Water

    Climate change

    Must integrate objectives and help achieve:

    Implementation of the Natura 2000 network

    Commitment to reverse biodiversity decline by 2010

    Meeting the objectives of the WaterFrameworkDirective

    Kyoto protocol obligations.

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    Current AE requirements

    Voluntary agreements to farmers and other landmanagers

    Site specific management requirements

    Agreements between 5 7 years Annual payments for actions that go beyond the

    regulatory baseline Area payments - payments based on actual expenditure, income

    foregone, and where necessary, transaction costs

    Non-productive investments - non-remunerative investmentrelated to agri-environmental objectives, to enhance the publicamenity value of Natura 2000 sites or other high nature valueareas.

    Minimum expenditure on Axis 2 = 25%

    National co-financing required Im ortance of monitorin and evaluation..

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    Support for Agri-environment Policies and Programming in Serbia

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    Different implementation approaches

    across EU-27

    Member States have the freedom to design agri-environment schemes according tonational/regional priorities. They differ in three

    key ways: Expenditure

    Focus: Broad and shallow vs narrow and deep (maintenance;

    enhancement; restoration and creation)

    Environmental objectives (biodiversity, landscape, resourceprotection)

    Farm type (livestock, arable etc)

    Geographic coverage: geographically delimited and/orwhole territory

    .

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    Negative Incentives

    (Enforcement of the Polluter PaysPrinciple)

    Positive Incentives

    (Agri-environment Payments)

    Environmental

    Improvement

    Environmental Target

    Reference Level

    Profitable Farming

    Provision of Environmental Benefits Versus AvoidingHarmful Effects

    Free-of charge Provision of

    environmental benefits

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    The reference level

    Baseline above which public payments are justified

    - comprises:

    EU legislation National legislation

    Cross-compliance (Pillar 1 and Axis 2 of Pillar 2)

    Statutory Management Requirements (SMRs)

    Standards of Good Agricultural and EnvironmentalCondition (GAEC)

    .

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    Good Agricultural and Environmental

    Condition (GA

    EC) GAEC - intended to form a baseline level of

    environmental protection, alongside the SMRs.

    MS discretion in implementation - should take

    account of soil and climatic condition, farmingsystems, land use and crop rotation

    GAEC standards may be used to: re-enforce existing national legislation:

    introduce additional requirements

    ..Policies and .

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    GAEC Standards

    .

    Issue Compulsory Standards Optional Standards

    Soil Erosion Minimum soil cover

    Minimum land management

    reflecting site specific conditions

    Retain terraces

    Soil Organic Matter Arable stubble management Standards for crop rotations

    Soil Structure Appropriate machinery use

    Ensure a minimum level

    of maintenance & avoid

    the deterioration of

    habitats

    Retention of landscape features

    Avoiding the encroachment of

    unwanted vegetation on agricultural

    land

    Protection of permanent pasture

    Minimum livestock stocking rates

    and/or appropriate regimes

    Prohibition of grubbing up olive

    trees

    Maintenance of olive groves &

    vines in good vegetative condition

    Protection &

    management ofwater

    Establishment of buffer strips along

    water courses

    Compliance with authorisation

    procedures for irrigation water

    Source: Annex III, Council Regulation 73/2009

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    IPA

    RDA

    E Legal basis

    Article 12 (2) of Council Regulation (EC) No

    1085/2006 on establishing an Instrument for

    Pre- Accession Assistance (IPA) Article 177 of Regulation (EC) No 718/2007

    on implementing Council Regulation (EC)

    1085/2006 establishing an instrument for pre-

    accession assistance (IPA)

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    Objectives contribution to the preparation of the Candidate

    Country for the future implementation of agri-environmental/animal welfare measures under MS

    assistance application of agricultural production methods

    compatible with the protection and improvement ofthe environment, the landscape and its features,natural resources, the soil and genetic diversity

    adaptation of high standards of animal welfare byproviding support for farmers who undertake to adoptstandards of animal husbandry going beyondrelevant mandatory standards

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    Beneficiaries

    Farmers and other land managers who

    undertake commitments for five years can be

    beneficiaries of the measure. Definition of farmer to be developed by a

    Candidate Country and described in IPARD

    Program.

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    Pilot measures Measures at pilot level, targeted on limited number of areas, geographically well-

    defined with identified environmental objectives,

    develop practical experience with measures implementation at both theadministrative and farm level,

    rules set out in the Council Regulation 1698/2005 and in the CommissionRegulation 1974/2006 can be applied

    Experimental nature of the pilot measure

    do not replicate measures that the country already has experience with

    Restricted number of intervention areas and individual projects covering chosenpriorities

    help in implementation of Community policies

    raise awareness among a large group of potential beneficiaries

    the pilot dimension of measures not linked to a territorial factor (e.g. organicfarming), can be based on the limitation of potential beneficiaries e.g. developingonly an organic scheme for fruit and vegetables

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    Commitments Voluntary agri-environmental actions, going beyond mandatory

    standards

    Commitments in line with the priorities described in IPARD

    Program Number of the selected commitments appropriate to country

    needs as well as implementing capacity of the administration

    Commitments advised on the basis of diagnosis

    Examples of commitments: organic farming, diversification ofcrop rotation, actions to conserve soil, actions to maintain

    agricultural habitats, management of pastures, birds protection

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    Mandatory standards for agri-

    environmental measures Set of standards legally binding identified by a Candidate Country as

    well as described in IPARD program

    Easily verifiable as well as manageable by the competent nationalauthority

    To be respected by farmers as entry condition for a commitment Mandatory standards in agri- environmental commitments can refer to

    the ones applicable in Member States

    standards relating to soil erosion, organic matter, soil structure andminimum level of maintenance, protection and management ofwater

    standards in the area of public, animal and plant health;

    environment; animal welfare minimum requirements for fertiliser and plant protection product use

    other mandatory standards established by national legislation

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    Payments

    Payments granted annually to beneficiaries who makeon a voluntary basis commitment going beyond

    mandatory standards Level of support determined by Candidate Country

    based on a calculation

    Maximum level of support defined by Annex toRegulation 1698/2005

    Annual crops: 600 EUR/hectare

    Specialised perennial crops: 900 EUR/hectare

    Other land uses: 450 EUR/hectare

    Local breeds in danger of being lost: 200 EUR/livestock unit

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    Calculation

    The reference point for calculating a level of support

    is the relevant mandatory standard referring to the

    commitment- a baseline

    The general principle of a calculation is a comparison

    between a baseline and a commitment

    The difference (additional costs and income forgone)

    is compensated under this measure

    Methodology to calculate the level of support to be

    described in IPARD program.

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    Steps towards designing the measure

    Setting priorities on the basis of the strategy including analysis of thesituation in terms of strengths, weaknesses, opportunities and threats

    Consultation with environmental stakeholders, NGOs, public authoritiesand other bodies to identify environmental problems in Candidate

    Countries Identification of pilot zones with defined environmental problems

    Design measures on the basis of identified environmental priorities onthe selected pilot areas as well as relation with agricultural activities

    Identification of mandatory standards in Candidate Countries followedby preparation of the legislation (if necessary)

    Establishment of contacts with scientific institutes to prepare

    calculations of premium under measures Design implementing and controlling structures within the

    administration

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