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Overview of Forestry Measures in Rural Development

Overview of Forestry Measures in Rural Development. J. Van de Velde EC – DG Environment B1. 1992-99 : Forestry Regulation N° 2080/92. OBJECTIVES To accompany the changes linked to the 1992 CAP reforms (Mc Sharry / set-aside) by offering forestry as an alternative to agricultural production

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Overview of Forestry Measures in Rural Development

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  1. Overview of Forestry Measures in Rural Development J. Van de Velde EC – DG Environment B1 DG Environment — Unit B1 Agriculture, Forests and Soil

  2. 1992-99 : Forestry Regulation N° 2080/92 • OBJECTIVES • To accompany the changes linked to the 1992 CAP reforms (Mc Sharry / set-aside) by offering forestry as an alternative to agricultural production • To contribute to an improvement in forest resources of the EU (forest products deficiency in 12 MS) • To contribute to forms of countryside management more compatible with environmental requirements • To counter greenhouse effect and sequester CO² DG Environment — Unit B1 Agriculture, Forests and Soil

  3. Forestry Regulation N° 2080/92 MAIN PRINCIPLES : • “Modulation” of the aid (broadleaves, conifers, fast growing trees) as integral part of scheme • Introduction of a maintenance premium over the first 5 years (according to the type of plantation ) • Opening the aid to a wider range of beneficiaries, but compensation to farmers most important in budget • Significant increase in the budget available and eligible actions compared to previous schemes DG Environment — Unit B1 Agriculture, Forests and Soil

  4. Forestry Regulation N° 2080/92 • Total cost for the EAGGF : 1 519 Mio € • (1992-1999) • Breakdown by species classes : Medium and long term broadleaves 56.8 % 562 142 ha Medium and long term conifers 32.1 % 317 467 ha Mixed plantations (broadleaves & con.) 7.1 % 70 175 ha Fast growing trees (Euc./Pop./Pinus) 4.0 % 39 464 ha Total planting 1992-99 approx. 1.000.000 ha DG Environment — Unit B1 Agriculture, Forests and Soil

  5. Forestry Regulation N° 2080/92 Afforestation by EU Member States (1993 -1999) DG Environment — Unit B1 Agriculture, Forests and Soil

  6. 2000-2006 : Rural Dev. Reg. 1257/99 • Agenda 2000 : • Creation of separate schemes for direct support (« pillar I ») and rural development (« pillar II ») • Principles of Rural Development policy : • - Multifunctional agriculture and forestry • - Multisectoral and integrated approach to rural economy • - SUBSIDIARITY : MS to draw up own RD programmes • RD = Most important vehicle for implementing EU Forestry Strategy (98) , new RDR with complete chapter (VIII) on Forestry measures DG Environment — Unit B1 Agriculture, Forests and Soil

  7. EU Common Agricultural Policy(Including the 2003 reform in yellow) CAP New standards Less fav. areas Agri-environment Early Retirement Forestry Investments Training Pig Poultry Fruit and veg. Common Market Organisations (1. pillar) Rural Development (2. pillar) Modulation 9 + 2 measures Farm advisory system Indirect support (intervention, export subsidies, import duties) Direct support (payments to farmers) Indirect support remains . RD Plans at national and regional level Decoupling: Single farm payment Cross compliance applies Milk Sugar DG Environment — Unit B1 Agriculture, Forests and Soil

  8. RD Regulation N° 1257/99 Chapter VIII : Possibilities for forestry support : • art. 30 : investments in forestry activities, support for SFM and planting of non-agro land • MS decide 40-50 % co-financing of real costs • art. 31 : plantings on agricultural land • planting costs 100 % supported • maintenance premium/ ha during 5 yrs. • compensation of income during 20 yrs (725 €/ha -185 €/ha) (public owners only planting costs) • art. 32 : ecological functions & firebreaks • condition for support : costs > income • MS fix payments 40-120 € /ha , based on real costs No detailed technical conditions but more general principles set the rules DG Environment — Unit B1 Agriculture, Forests and Soil

  9. EAGGF Guarantee & Guidance expenditure by RD measures 2000-2006 (in % and million EUR) 1824 4 682 344 1 423 12 649 6 128 4807 3 760 13 480 Total € 49 billion DG Environment — Unit B1 Agriculture, Forests and Soil

  10. RD Regulation N° 1257/99 : uptake of forestry measures in EU 15 Chapter VIII-Forestry measures - EU contribution (EAGGF- guarantee + guidance) in Mio € - Total / afforestation DG Environment — Unit B1 Agriculture, Forests and Soil

  11. 2007-2013 : Rural Dev. Reg. 1698/2005 ”Agenda 2007” Rural Development 2007-2013 Combined Programming for all sectors Axis 2Environment+ Land Management (>25%) Axis 3 Diversif. Quality of Life (>15%) Axis 4« Leader » Axis 1 Competi-tiveness (>15%) Single set of programming, financing, monitoring, auditing rules Single Rural Development Fund DG Environment — Unit B1 Agriculture, Forests and Soil

  12. RD Regulation 1698/2005 What’s new : • Simplification > only 1 fund : EAFRD • Three priority axes : competitiveness land management diversification (+ axis 4 = LEADER small projects scheme) • Consultation & partnership approach (6) • Wider use of advisory services & more training • Community Strategy > National strategy • Designation of areas for measures by MS (50) • Agriculture & Forestry completely in parallel sets of measures ( no more links required ) DG Environment — Unit B1 Agriculture, Forests and Soil

  13. Justification of Forestry measures Treaty basis has changed over time : • Originally the basis was a strong link to CAP : > farm landscape structure / farmers as preferential beneficiaries in 2080/92 & 1257/99 ) • With new RDR 1698/2005, no more formal link to agriculture exists > ENV as Treaty basis • See considerants of new RDR • Argument to defend environmental added value when negociating with MS • Compare to new State Aid rules DG Environment — Unit B1 Agriculture, Forests and Soil

  14. AXIS 1 & 3 • AXIS 1: COMPETITIVENESS (20) • - vocational training (21) • - setting up young farmers (22) • - early retirement (23) • - use of advisory services (24) • - setting up advisory services (25) • - farm modernisation (26) • - improving economic value of forests (27) • - adding value to products • co-operation (28) • developing new products (29) • - infrastructure support (30) • AXIS 3: QUALITY OF LIFE/RURAL ECONOMY (52) • - diversification into non-ag activities • - micro-enterprises • - tourism activities • - basic services for economy • - village renewal • - conservation & rural heritage • - training • - skills acquisition & animation - > mainly agro-specific measures - > some forest specific measures DG Environment — Unit B1 Agriculture, Forests and Soil

  15. AXIS 2 : land management (36) • Agricultural land (36a) • support for mountain areas (i) • LFA support (ii) • Natura 2000 & Water FD payments (iii) • agri-environment (iv) • animal welfare (v) • non-productive investments (41) • Forest land (36b i-vii) • afforestation on agr. Land (43) • Agroforestry (44) • afforestation on non agri-land (45) • Natura 2000 (46) ( but no WFD ! ) • forest environment (47) • restoring forestry potential (48) • non-productive investments (49) > Agro & For. are now “at par” DG Environment — Unit B1 Agriculture, Forests and Soil

  16. What’s new for forestry ? • New • Establishment support for agro-forestry (axis 2) • creation and development of micro-enterprises (axis 1 • Changed • afforestation restricted to ‘first’ afforestation • broadened support measures for maintaining and improving environment to focus on Natura 2000 and forest environment payments • No more support for the establishment of associations • Reduction in support rate for afforestation costs and period of compensation of income DG Environment — Unit B1 Agriculture, Forests and Soil

  17. Support levels : RD Reg. 1648/2005 Annex : • Axis 1 : • 80 % co-financing of advisory services , max. 1500 €/unit (24) & (25) • 50 % or more co-financing of investments (27) & (28) • Axis 2 : • lower levels of support for plantations (43/45) : • - co-financing 40 / 50 / 75 % (all types of land) • - maintenance 5 yrs. (agro benef.) • - compensation of income 500/150 €/ha, max. 15 yrs. (agro benef.) • agroforestry establishment costs, co-fin. 70-85 % (44) • “Natura 2000 payment” 40-200 €/ha (46) • “forest environment payment” 40-200 €/ha (47) • Support for “non-productive” investments (+ reduced eligibility for state forests , 44/46/47 excluded) • Axis 3 : “setup costs” covered , no co-fin % or max. specified DG Environment — Unit B1 Agriculture, Forests and Soil

  18. Plantations (43-44-45) • Afforestation of agricultural land • Establishment / maintenance / compensation • Public owners only establishment costs • Fast growing trees only estabishment ( see IR) • Avoid concentration on this (classical) measure • Agroforestry • Most interesting for MED zone (cork / fruit trees) • See IR on « local conditions » and spp. choice • Afforestation of non-agro land • Mostly non cultivated open land • Biodiv. Implications to be carefully screened , e.g. for wetlands / bogs / semi-natural grasslands (wet/dry) DG Environment — Unit B1 Agriculture, Forests and Soil

  19. Environment (46-47) • Forests & Natura 2000 payment • « Costs incurred » & « income foregone » to be specified • N2000 designations to be specified • N2000 management plans or equivalent • Forest Environment payment • No set of conditions comparable to CC in agro • « Relevant mandatory requirements » to be specified • « Additional costs » & « Income foregone » to be specified • 5-7 yrs. commtiment period is short for forestry For both measures , a reasoned explanation of the support levels chosen can be expected from MS DG Environment — Unit B1 Agriculture, Forests and Soil

  20. Additional (48-49) • Restoration & prevention • Replanting after windfall and forest fires • Potential for important ecological added value • Allows to avoid repetition of disasters • Possibly high demands of Med. Zone for fire prevention – balance with other measures ? • Non-productive investments • Can be linked to forest-environment , focussing on biodiversity • Mainly intended for public access, all owners eligible • Avoid concentration on infrastructure DG Environment — Unit B1 Agriculture, Forests and Soil

  21. Implementing Rules • Axis 1 rules • Advisory services : degressive support (16) • Investment support : art. 18&19 • Forest holding level • Avoid run on machinery • No support for industrial processing (« no downstream « ) • Axis 2 definitions : (29-30-31-32-33-34) • Forest & OWL definitions • Eligibility criteria for owners • Agroforestry • Restoration / prevention / non-productive • Designation of areas • Axis 3 : partnership criteria (36) DG Environment — Unit B1 Agriculture, Forests and Soil

  22. Challenges / Issues (I) • Lower Support for Afforestation (also env. Plantations) • Maximum public support for establishment costs capped at 50% (60% for LFAs and mountain regions), see annex 1 • Income foregone payments reduced to 15 years • No more support for owner co-operation or establishment of forestry associations Investment support restricted to micro businesses • No comprehensive set of rules for environmental conditionality on forestry support that compares to cross compliance DG Environment — Unit B1 Agriculture, Forests and Soil

  23. Challenges / Issues (II) • Consultation & partnership approach (6) • Eligibility for forestry measures (42.1) • All forest owners eligible : (43) , (45), (48) , (49) • Private & Municipal only : (44) , (46) , (47) • State forests not eligible : (44) , (46) , (47) • Designation of areas (50.1 / 50.6-7-8) • Applies to 34 b (i) , (iii) , (iv) , (vi) / (43-45-46-48) • Important planning measure to give owners security about what is / is not possible on their land DG Environment — Unit B1 Agriculture, Forests and Soil

  24. Cross compliance in forests? • Existing Annex III & IV approach of 1782/2003 for the agricultural sector applies in theory … to forests. • EU legislation : • - Habitats directive • - Birds Directive • - Water Framework Directive • - EIA / SEA • “Good Woodland Condition” or “ Good Forestry Practice” concept was refused by MS & AGRI • This means : • Less specific framework conditions than under Agenda 2000 • More decision power to Member States • Less direct prescriptions from Brussels DG Environment — Unit B1 Agriculture, Forests and Soil

  25. Forests in transition … 2007-2013 A very diverse set of interests … • Forest + woodland covering 165 M ha , still extending (500 000 ha/yr in EU 25 – plant. / NR = 50/50 ) • Forest expansion can be problematic (debate in several MS : landscape , natural habitats … ) • Energy Policy : White Paper/RES directives >biomass action plan > biofuel strategy • Forest policy will increasingly respond to broader issues (climate/water/biodiv./landscape) • Will importance as economic resource decline, and reliance on imported raw material rise, notwithstanding policy to expand the resource base since over 25 yrs. ? DG Environment — Unit B1 Agriculture, Forests and Soil

  26. What to avoid ? Environmental damage from forestry : • loss of undisturbed forest habitats • loss of semi-natural woodlands • decline of existing forest biodiversity • intensification of forest management • increasing uniformity of stand structures • unwise use of exotic species (fire/wind) • introduction of animals for hunting • large scale drainage (peat soils / wetlands) • acidification / eutrophication (plantations) - > see “DOBRIS +3 Report” (EEA - 1998) DG Environment — Unit B1 Agriculture, Forests and Soil

  27. What to look for ? • Forest products and public benefits : • timber as an enviromentally friendly material • non-wood products, responsible hunting , food • renewable energy from forest biomass • environmental forest services : • - habitats and species • - landscape • - soil and water protection • - flood management • - carbon sequestration • public access , recreation infrastructure DG Environment — Unit B1 Agriculture, Forests and Soil

  28. About EU forests • Major form of land use : Forest + wood- land cover = total UAA ( 165 M ha / 33 % cover ) • Actual forest estate is mostly semi-natural and sector has low ecological footprint but “Virgin” sites are very rare • Large variety of natural forest types and forest use, with many transitions and regional combinations (N/S – E/W) • Large variety in forest cover ( <10 to > 70 %) • See For. Strat. Report Staff WP COM(2005)84 DG Environment — Unit B1 Agriculture, Forests and Soil

  29. Forest « clusters » (I) « The Nordics «  • Austria, Finland, Sweden and the three Baltic states Estonia, Latvia and Lithuania : heavily forested and have substantial forest products industries based predominantly on coniferous forest and a high utilisation rate; “The South” • France, Greece, Italy, Spain, Portugal and Cyprus : Mediterranean woodland, managed primarily for protection and where fire is potentially a serious threat. France and Italy in particular also have large areas of temperate forest and mountain forests, including coppice areas, farm woodlots and community forests; utilisation rate of Med. Forests is generally low; DG Environment — Unit B1 Agriculture, Forests and Soil

  30. Forest « clusters » (II) “ Old and new classics “ • Belgium/Luxembourg, N. France and Germany have a mixed ownership structure and a wide range of semi-natural forest types with timber production being significant but forest output is generally below sustainable capacity; • Poland, the Czech Republic, Slovakia and Slovenia have coniferous, broadleaved and mixed forests which have mostly been subject to age class management with a stocking rate generally higher than in W. Europe, and the tree species generally closer to the natural habitats than in the EU 15. “ Man-made forests “ • Denmark, Ireland, the Netherlands, Hungary and UK have predominantly artificial forest, based on plantations, the objects of management have been widened in the last decade to encompass service values, leaving productive functions in the background; • SW France, N Spain and parts of Portugal have large areas of industrial wood plantations, mainly destined for pulping and a high utilisation rate. DG Environment — Unit B1 Agriculture, Forests and Soil

  31. About EU ENLARGEMENT • 25 % increase in forest area • 30 % increase in no. of forest holdings • 47 % increase in standing stock • large potential for employment in forest sector • increased self reliance for forest products • large increase in protected forest areas DG Environment — Unit B1 Agriculture, Forests and Soil

  32. Business as usual DG Environment — Unit B1 Agriculture, Forests and Soil

  33. No intervention DG Environment — Unit B1 Agriculture, Forests and Soil

  34. Wet Forests DG Environment — Unit B1 Agriculture, Forests and Soil

  35. Multifunctional DG Environment — Unit B1 Agriculture, Forests and Soil

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