How to Spend Billions: Designing and Implementing the Rural Development Regulation RDR in the EU and in Scotland

1. �How to Spend Billions: Designing and Implementing the Rural Development Regulation (RDR) in the EU and in Scotland' Ken Thomson University of Aberdeen Institute for Rural Research Seminar 3 December 2008

2. 2 Triggers for this seminar A new EU RDR and RDPs for 2007-2013: �91bn EU + �70bn nat. + �65bn priv. = �226bn total (�450/hd) Current implementation of RDR/RDP in Scotland: �1.6bn EU: �territorial cohesion?�; rural employment study 2006 CAP �Health Check�; 2009 EU budget review for 2013 Scottish reviews/reports, e.g. Shucksmith Committee on Crofting, OECD �Rural Policy: Scotland�, RSE �Hills and Islands�, SAC �Retreat from the Hills�, SG Rural Land Use Studies (forthcoming), Climate Change Bill, etc. EU FP7 research project: RuDI: �Assessing the impact of Rural Development Policies (incl. Leader)�: www.rudi-europe.net

3. 3 EU Rural Areas

4. 4 EU �Rural Development� 1960s-1980s 1960s (EC-6): Agriculture Fund �Guidance�: for farm development (esp. capital investment) and farm restructuring 1970s (UK accession to EC-9): farm aids (annual payments plus extra grants) in Less Favoured Areas (despite �common market�) Structural (mainly new Regional) Fund(s): roads, etc. 1980s (budget crises, envtl. concerns, EU-12): voluntary agri-environmental schemes 1988: Structural Funds reformed and doubled

5. 5 EU �Rural Development� � 1990s WTO Uruguay Round MacSharry CAP reform: lower farm price support but direct payments to farmers plus �accompanying measures� for RD: agri-envt. schemes, early retirement, EU Commissioner and D-G for Agric. �and RD� LEADER: �bottom-up� RD (from structural funds) 1996 Cork conference on RD

6. 6 EU �Rural Development� � 2000s EU to enlarge into New Member States (NMSs) in Central Europe; WTO Doha Round to start CAP Pillar 1: farm market and income support still lower farm price support more (and more �decoupled�) direct payments plus voluntary �modulation� of funds to RD (but UK only!) CAP Pillar 2: rural development a Rural Devt. Reg. (RDR) with 9 measures for RD Programmes (RDPs), with complex funding Structural Funds: macro infrastructure, LEADER+ SAPARD: agric. & RD pre-accession aid for NMSs

7. 7 EU �Rural Development� - 2003 Pillar 1 (subject to �financial discipline�): lower farm support prices (but still border tariffs) income support as Single Payments (SPs) subject to (weak, mainly agri-envtl.) �cross-compliance� compulsory modulation (5% of SFPs over �5K) to: Pillar 2: national/regional RDPs 2000-2006 NMSs: gradual Pillar 1 SPs 2004/07->13; more generous Pillar 2 and �cohesion� payments

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9. 9 EU �Rural Development� - now New fund (EAFRD) and new Reg. (1698/2005) Three/Four RD �Priority Axes� (min. exp. %s): Axis 1: competitive agric. & forestry (10%) Axis 2: environment and countryside (land management) (25%) Axis 3: rural �quality of life� & diversification (10%) Axis 4: �mainstreaming� of LEADER approach (5%) New national/regional RDPs subject to EU guidelines and National Strategy Plans

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12. 12 Scotland: at last!

13. 13 The Scottish Rural Development Programme/Plan (SRDP) 2007-2013 designed late 2005 to mid-2007, approved spring 2008 �1.6 billion over 2007-2013 (~75% Scottish funding) �outcome-focused�: competitiveness; water quality; climate change; biodiversity/landscapes; communities Broader: i.e. rural, not just agriculture 11 Regional Proposal Assessment Committees (RPACs) and LEADER Local Action Groups (LAGs) a �one-stop shop� (to SGRPID/SNH/FCS case officer) online applications only (for Rural Priorities)

14. 14 Financing the SRDP

15. 15 SRDP measures delivered through:(*semi-continued; �s = awards Jun-Nov. 2008, total �147m) *Less Favoured Area Support Scheme (�61m) *LEADER LAGs (�38.5m) *Rural Development Contracts � Rural Priorities (competitive; replaces Rural Stewardship Scheme) (�28m to 350 applicants) *Food Processing etc. Grant Scheme (�11m) *Rural Development Contracts � Land Manager Options (�4.5 million to 4,000) *Crofting Counties Agricultural Grant Scheme (�3m) *Forestry Commission Challenge Funds (�1.3m) Skills Development Scheme (new) (�43K)

16. 16 Rural Priorities: Application Process Statement of Intent (SoI) to Case Officer Feedback: amber or red Proposal and Outcome Plan (for Reg. Priorities) RPAC Assessment, via 14-criteria scoring by C.O. Contract Claims/Inspections Payments (first in Sept. 2009?), Penalties, Recoveries

17. 17 SRDP Jargon About 50 webpages �Rural Development Contracts - Rural Priorities � integrated funding mechanism�?! (up to) 9 forms to complete Grampian RPAC: 3 Axes, 9 Theme Priorities, 32 Priorities (e.g. with up to 6 �Codes�), plus �Options�?

18. 18 Grampian RPAC Regional Priorities

19. 19 RuDI WP2: Analysis of RDP Design Priorities/Objectives: in light of: existing strategies, EU Guidelines, National Plan �needs�, power bases, previous commitments, etc. Institutions: ministries, agencies, organisations, individuals: an �Institutional map� of links in design Processes: drafting, participation, consultation (public, intra-govt.; real or apparent; etc.), checks/approvals Scope: how far beyond agriculture (and food)? � mostly Axes 3 (QoL/diversification) and 4 (LEADER)? Relationship to other funding and policies for/in rural areas, e.g. SFs, forestry, housing, transport? Implementation considerations? Monitoring and evaluation (CMEF)?, e.g. indicators

20. 20 The Future? - Issues Should there be an EU/Scottish policy for �rural development�, and/or different/separate policies for: farming, competitiveness, regions, environment, social groups, energy, etc.? If an RDP, how does this fit with other EU and national policies (e.g. housing, communities)? � objectives, design, implementation? If a CAP RDP, how to link with Pillar 1?

21. 21 The Future? - EU The CAP Health Check: more modulation to bring ~�1.2 bn/year (cf. �91bn) more to Pillar 2 for climate change, renewables, water management, biodiversity (but also for dairy!) Budget Review 2009 (for post-2013): fewer funds for CAP Pillar 1 and/or Pillar 2? shift (most of?) Pillar 2 to other Funds, e.g. Regional, Social, (new) Environment? Cohesion Fund for �territorial� policy (NMSs only)?

22. 22 The Future? - Scotland Implementation of current RDP: a �success�? No more funding: few modulation changes A reformed LFA system for upland farming: �active farming�? �High Nature Value� areas? Final loss of transitional structural funding for Highlands & Islands New priorities, e.g. climate change, renewables

23. Websites ec.europa.eu/agriculture/rurdev ec.europa.eu/agriculture/rurdev/eval/index_en.htm www.scotland.gov.uk/Topics/Rural/SRDP www.scotland.gov.uk/Topics/Rural/SRDP/RuralPriorities/GrampianandMoray www.rudi-europe.net 23