Supporting young famers through the CAP Mihail Dumitru DG Agriculture and Rural Development Agriculture and Rural Development
Outline 1. Overall context faced by young farmers 2. Barriers and opportunities for 2. Barriers and opportunities for young farmers 3. EU Policy response 4. Reflections for the future 2 2
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 3
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 of business • Specific aspects of setting up of the farm: inheritance and arrangements with previous owner • Considerable training needs 4
Opportunities • Farming is a way to secure employment • Lifestyle aspiration • Work ambitions • Social aspirations 5
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 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 6
Number of young farmers to be supported (2014-2020) YF to YF to be be supported supported at supported supported at at at EU EU level level 173,347 173,347 Source: European Commission 7
Public expenditure allocated to Focus Area 2B (2014/2020) EU 6.9 Billion Source: European Commission 8
Farm and business support (Focus Area 2B) Budget committed by 31 January 2017 (in %) 25% 20% 15% 15% 10% 5% 0% 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 9
Policy response: Young Farmer Payment under 1 st 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 − 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 10
Young Farmer Payment under Pillar I Source: European Commission 1.23% of total Direct Payments in 2016, around EUR 513 million 11
Omnibus Simplifications • Start-up support under Rural Development − Simplification of conditions − Support − Support can can be be provided provided through through financial financial instruments • Young Farmer Payment: − Scheme's outreach increased to cover more land 12
Reflections for the future • Modernisation & simplification CAP • Cork 2.0 • Land market, access to new types of knowledge, innovation Your ideas are welcome! 13
Thank you for your attention 14 14
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