Rural Development Program 20072013

1
Rural Development Program 2007-2013

• Aivis Reinholds
• Department of European Union State Aid Department
• Ministry of Agriculture

2
Rural Development 2007 - 2013
LEADER axis 2.5
Axis 3 The quality of life in rural areas and
diversification of the rural economy 20

• Axis 1
• Improving the competitiveness of the agricultural
  and forestery sector
• 50

Axis 2 Improving the environment and
countryside 30
Total1,04 billion EUR national
co-financing 1.36 billion EUR
3
Financial Plan of RDP 2007-2013 (public funding,
MEUR)
4
Axis 1 Improving the competitiveness of the
agricultural and forestry sector
5
RDP 2007-2013 by Rural Development Measures (Axis
1, MEUR)
6
Vocational training and information actions

• 1. Eligible activities
• Training
• Information actions.
• 2. Amount of support
• Up to 100 from the eligible costs

7
Setting up of young farmers

• 1. Eligible activities
• Initial establishment of an agricultural
  enterprise with the purpose of manufacturing
  agricultural produce.
• 2. Amount of support
• Support up to EUR 40 000. Aid intensity 80.

8
Early retirement

• 1. Eligible activities
• Early retirement of farmers and farm employees
• 2. Amount of support
• Calculated on the basis of the transferred
  agricultural land area (minimum 5 ha) and
  transferred cattle units. The minimum area
  transferred AL is eligible to retirement benefit
  support of EUR 2000 per year adding 20 EUR for
  every further ha transferred and 30 EUR per year
  for every transferred cattle unit. Maximum amount
  of support to a beneficiary is 6000 EUR per year
• Latest opinion is that we are not implementing
  the measure

9
Use of consultancy services intended for people
involved in agriculture and forestry

• 1. Eligible activities
• Helping farmers and forest owners to cover the
  expenses associated with consultancy services
  used to ensure compliance with the requirements
  set forth in Articles 4 and 5 and Annexes III and
  IV of Regulation (EC) No. 1782/2003.
• Improving general operation of relevant
  agricultural and forestry enterprises by means of
  consultancy service.
• 2. Amount of support
• The total compensation per beneficiary (or single
  enterprise) over the complete programming period
  may amount to 60, but shall not exceed 1000 EUR
  of the total consultancy expenditure.

10
Establishment of management, support and
consultancy services

• 1. Eligible activities
• A Support provided to the establishment of the
  Forest Owners Consultancy and Training Centre of
  the State Forest Service, as well as measures
  aimed at consultancy network development, which
  would enable forest owners to improve their
  professional knowledge and competences by making
  use of qualified consultancy services.
• 2. Amount of support
• Fixed amount the beneficiary of which is State
  Forestry Service. Support is provided no longer
  than 5 years after establishment of the Forestry
  Consultancy and Training Service Centre,
  gradually diminishing the amount.

11
Modernisation of agricultural holdings

• 1. Eligible activities
• Investments in supply and installation of new
  equipment, machinery, accessories, information
  technologies and software designed for the
  manufacture of agricultural produce
• New construction and reconstruction of industrial
  facilities for agricultural production, as well
  as supply of required construction materials
• 2. Amount of support
• Maximum eligible costs 600 000 EUR 1200000 EUR
  (depending upon the Activity and type of
  Beneficiary).
• Support intensity regarding eligible costs for
  purchase of equipment and technology up to 50000
  EUR - 40, but above 50000 EUR 25. Support
  intensity regarding eligible costs in
  construction - 40.

12
Improving economic value of forests

• 1. Eligible activities
• Investments into forests to increase their
  economic value
• Maintenance of young forest stands
• Replacement of inferior forest stands
• Replacement of underproductive forest stands with
  targeted productive young forest stands
• New machinery, instruments, accessories and/or
  equipment designed for maintenance of coppices.
• 2. Amount of support
• For coppice maintenance up to 100 EUR/ ha
  depending upon forest type. Replacement of
  inferior forest stands support amount for
  establishment - 500 EUR/ha, maintenance 140
  EUR/ha for 3 years.
• Replacement of underproductive forest stands with
  targeted productive coppices - 350 EUR/ha
  maintenance 140 EUR/ha for 3 years.
• Purchase of machinery, instruments, accessories
  and/or equipment designed for maintenance of
  coppices. The amount of eligible costs up to 10
  000 EUR (minimum size of project 1000 EUR,
  support intensity 50 ).
• Support rates for area dependent payments
  EUR/ha are indicative

13
Increasing added value of agricultural produce

• 1. Eligible activities
• Investments for supply and installation of new
  equipment, machinery, information technologies
  and software designed for processing of
  agricultural produce
• New construction, reconstruction and
  rehabilitation of facilities designed for
  processing of agricultural produce
• Investments related to the environment protection
  and processing of production by-products that
  improve general operation of enterprise.
• 2. Amount of support
• Support intensity to micro-establishments, small
  and medium-size establishments - 40, rest of
  establishments 25.
• Total eligible project expenditure shall not
  exceed 3,000,000 EUR including costs not
  directly related to technological process of
  processing (primary processing) shall not exceed
  1200000 EUR.

14
Infrastructure for development and adaptation of
agriculture and forestry

• 1. Eligible activities
• Construction of amelioration systems,
  reconstruction and renovation of amelioration
  systems registered in the amelioration cadastre
  (on forest lands only reconstruction and
  renovation is eligible)
• Construction or rehabilitation of access roads to
  agricultural production facilities
• Construction or rehabilitation of service areas
  next to agricultural production facilities
• Construction/rehabilitation of water and power
  supply systems.
• 2. Amount of support
• Support intensity for municipality projects - 75
  , for A/S Latvijas valsts mei - 25, for
  other beneficiaries - 40 of eligible costs.
  For reconstruction and renovation of amelioration
  systems registered in the amelioration cadastre,
  the support intensity for any beneficiary is 75
  of eligible costs
• The total eligible project costs shall not exceed
  100000 EUR. In case, the project foresees the
  reconstruction or renovation of public
  amelioration system in co-operation with A/S
  Latvijas valsts mei and/or municipality, the
  amount of eligible costs shall not exceed 200 000
  EUR.

15
Support to restructuring of semi-subsistence
farms

• 1. Eligible activities
• Supply of equipment and machinery
• Construction, rehabilitation and renovation of
  buildings
• Supply of required construction materials
• Investments in permanent plantations.
• 2. Amount of support
• Maximum support total per single farm shall be
  1,500 EUR per year, and it shall be payable only
  for 5 successive years

16
Support to producer groups

• 1. Eligible activities
• Administrative and economic operation of producer
  groups providing for adaptation of manufacturing
  process and products to commercial requirements,
  joint marketing of merchandise, including
  preparation for sale, centralised sales, supply
  to wholesalers and elaboration of standard
  provisions with regard to industrial information
• 2. Amount of support
• Total support shall be determined based on a
  flat-rate considering the sales volume produced
  by specific producer group with regard to
  agricultural produce manufactured by the group
  members and not exceeding certain ceilings.
• In case that annual sales volume produced by
  specific producer group with regard to
  agricultural produce manufactured by the group
  members is lower than 1,000,000 EUR, the annual
  support payment shall be calculated by way of
  regression from 5 onwards.
• Should annual sales volume produced by specific
  producer group with regard to agricultural
  produce manufactured by the group members exceed
  1,000,000 EUR, annual regressive rate from 2.5
  onwards shall be applied to the share exceeding
  1,000,000 EUR.
• Total support per producer group shall not exceed
  the maximum of 100,000 EUR set for the 1st year
  and 50,000 EUR as set for the 5th year.

17
Axis 2 Improving the environment and countryside
18
RDP 2007-2013 by Rural Development Measures (Axis
2, MEUR)
19
Payments to farmers in areas with handicaps,
other than mountain areas

• 1. Eligible activities
• Agricultural activity on utilised agricultural
  land in less favoured areas
• 2. Amount of support
• The payment shall compensate additional expenses
  and foregone income suffered by agricultural
  producers due to unfavourable conditions for
  agricultural activity in the respective
  territory.

20
NATURA 2000 payments and Payments linked to
Directive 2000/60/ECC

• 1. Eligible activities
• annual compensation payment to offset
  restrictions of economic activity in utilized
  agricultural areas, which are subject to
  restrictions of economic activity with regard to
  implementation of Directives 79/409/EEC and
  92/43/EEC.
• 2. Amount of support
• A beneficiary is eligible to receive aid if
• 1) performs agricultural activity on eligible UAA
  of at least 1 ha consisting of plots not smaller
  than 0.3 ha
• 2) cross compliance of Articles 4 and 5 and
  Annexes III and IV of Regulation (EC) No.
  1782/2003, the minimum requirements for
  fertiliser and plant protection product use and
  other mandatory requirements specified in Annex 9
  of the Programme are complied with in the entire
  holding

21
Agri-environment

• The measure involves four sub-measures
• Developing of organic farming
• Introducing and promoting integrated
  horticulture
• Maintaining biodiversity in grasslands
• Stubble field in winter period.

22
First Afforestation of Non- Agricultural land

• 1. Eligible activities
• Afforestation of non-agricultural land. Non-
  agricultural land shall be the land outside land
  parcels (areas which are included in land parcels
  are lands which conformed with good agricultural
  practice as of 30th of June 2003)
• Maintenance of and additional planting in
  self-established forest stands
• 2. Amount of support
• Specific criteria according to composition of
  stand to be afforested
• Beneficiaries land owners (natural persons and
  legal entities, municipalities)

23
NATURA 2000 Payments (to Forest Owners)

• 1. Eligible activities
• Compensation for restrictions imposed on economic
  activity in private forests and forest land,
  situated in NATURA 2000 territories
• 2. Amount of support
• 1) 60 EUR/ha without reference to the type of
  restriction of management activity. Such payment
  will be applied until the problem mentioned in
  background
• 2) Differentiated payment depending on type of
  management restriction. These payment amounts
  will be applied after the issue mentioned in
  background will be solved
• Beneficiaries Private owners of forest and
  forest land

24
Restoring Forestry Potential and Introducing
Prevention Actions

• Eligible activities
• 1) Restoration of forestry potential in the areas
  affected by fire and/or natural disasters
• 2) Introduction of forest fire-safety prevention
  measures
• 2. Amount of support
• 1) Differentiated support rates for regeneration
  under the activity Restoration of the forestry
  potential in the areas affected by fire and/or
  natural disasters
• 2) Under the activity Introduction of forest
  fire-safety and prevention measures the support
  is payable only to state authorities in the
  amount of 100 of the justified expenses of the
  project
• Beneficiaries Private forest land owners
  (natural persons and private legal entities) and
  municipalities shall qualify as beneficiaries
  under the measure Restoration of the industrial
  potential of forestry in the areas affected by
  fire and/or natural disasters
• State authorities shall qualify as beneficiaries
  under the measure Introduction of forest
  fire-safety and prevention measures

25
Axis 3 The quality of life in rural areas and
diversification of the rural economy
26
RDP 2007-2013 by Rural Development Measures (Axis
3, MEUR)
27
Support to creation and development of
enterprises

• 1. Eligible activities
• Creation of new and development of existing
  entes
• Facilitating production of fuel derived from
  agricultural and forestry produce
• 2. Amount of support
• Facilitating production of fuel derived from
  agricultural and forestry produce maximum
  amount of eligible costs 350000 EUR, support
  intensity 40.
• Support to development of enterprises maximum
  amount of eligible costs 100000 EUR, support
  intensity 40.
• Support to creation of new enterprises (only for
  physical persons) maximum amount of eligible
  costs EUR 50000 EUR), support intensity 40.

28
Production of energy from biomass which is of an
agricultural or forestry origin

• Activities
• Investments in the equipment and constructation
  of production units
• Territory
• Rural territory
• Beneficiaries
• Physical and legal persons who produce products
  of Annex 1 or approved agricultural co-operatives
  or their newly establihed enterprises
• Aid intensity
• Aid intensity is 40. Maximum eligible costs 6
  mio LVL

29
Key Services to Economy and Population

• 1. Eligible activities
• Reconstruction or rehabilitation of parish roads,
  streets and access roads
• Construction, rehabilitation, renovation and
  refurbishment of facilities designed as meeting
  points of local action groups, community centres,
  as well as similar (leisure, sports and cultural)
  facilities
• Territory improvement
• Construction, rehabilitation and renovation of
  power supply system utilising renewable energy
  sources.
• 2. Amount of support
• Amount of eligible costs up to 200 000 EUR,
  support intensity 75. Beneficiaries are local
  municipalities.

30
Facilitating tourism

• 1. Eligible activities
• Reconstruction or renovation of existing tourist
  accommodations with maximum 20 beds.
• Construction, rehabilitation or renovation of
  catering facilities in existing tourist
  accommodations, supply of the required equipment
• New construction, rehabilitation or renovation of
  common (kitchen, refreshment room, toilet and
  shower) facilities in campsites and hostels,
  except for construction of baths or sauna.
• Diversification of tourism services
• Environment protection related investments in
  rural tourist accommodations, e.g. construction
  of wastewater treatment facilities and
  sedimentation wells, replacement of slate roof
  covering with that of environment-friendly
  material.
• 2. Amount of support
• Support intensity 30-50 , amount of eligible
  costs from 50000 to 100000 EUR.

31
Conservation and restoration of rural heritage
sites

• 1. Eligible activities
• renovation or refurbishment of museum buildings,
  as well as fencing and ancillary facilities
  adjacent to particular site to ensure sound
  operation of the museum
• restoration or manufacturing of authentic
  equipment, machinery, instruments, etc. designed
  for agricultural activities to arrange for
  exposition and/or adjustments required for
  operational exhibition
• Establishment of museum signs and panels,
  ensuring access to Internet service on the museum
  premises
• Arrangement and improvement of the site adjacent
  to museum facilities
• Renovation of vocational education and training
  institutions
• Etc.
• 2. Amount of support
• Amount of eligible costs up to 200 000 EUR,
  support intensity 75 (for public institutions up
  to 100).

32
Axis 4 Implementation of the LEADER approach
33
RDP 2007-2013 by Rural Development Measures (Axis
4, MEUR)
34
Improvement of competitiveness on local
development strategy implementation territories

• 1. Eligible activities
• described under measures 112,121,123 and 125 in
  Axis 1 of this programme if in the local
  development strategies the increase of
  competitiveness of these sectors are necessary
  for development of local territory
• it is also possible to implement other action
  types supporting the activities of the above
  mentioned Axis 1- measures and which are likely
  to promote and improve the competitiveness of the
  agricultural, forestry and processing sectors
• 2. Amount of support
• to be received within the framework of the
  measure is governed by Art. 64 of Council
  Regulation (EC) 1698/2005 as well as Commission
  Regulation (EC) No 1974/2006 Axis 1 measures
• Beneficiaries are described under the above
  measures under Axis 1.

35
Diversification of rural economy and improvement
of the quality of live on local development
strategy implementation territories

• 1. Eligible activities
• as described under measures 312 (311) 313, 321
  and 323 of Axis 3 of this programme as well as
  activities
• 1) Purchase of inventory, facilities and
  establishment of small-scale infrastructure
  (including construction and renovation) to ensure
  accessibility of different services for rural
  population, their quality and availability
• 2) Purchase of inventory, facilities and
  establishment of small-scale infrastructure
  (including construction and renovation) to
  diversify public social activities (including
  training and centres of interests, cultural,
  environmental protection, sports and other
  leisure activities)
• 3) other Axis 3 action-types the objectives of
  which are the promotion of quality of live by
  LEADER approach.
• 2. Amount of support
• eligible expenditure per a supported project
  shall not exceed 20 000 EUR

36
Inter-territorial and transnational cooperation

• 1. Eligible activities
• 1) Inter-territorial cooperation between local
  action groups at the national level
• 2) Transnational cooperation between local action
  groups in the European Union Member States and
  territories, where organisations implementing
  activities similar to the LEADER approach
  operate.
• 2. Amount of support
• Size of support and financing procedure is set
  following the procedure set by the Cabinet of
  Ministers
• Support intensity up to 100
• The following costs are eligible
• 1) First contact establishment costs (technical
  support to prepare the first visit and to project
  preparation, e.g., travel expenses, per diems),
• 2) Joint action implementation costs (e.g.,
  organisation of exhibitions, seminars, etc.),
• 3) Running costs of commonly established
  structures,
• 4) Support to animation activities,
• 5) Project publicity cost,
• 6) Overheads directly associated with project
  preparation and/or implementation and not
  exceeding 10 of total eligible costs

37
Running the local action group, acquiring skills
and animating the territory

• 1. Eligible activities
• 1) studies of the area concerned
• 2) measures providing information about the
  respective territory and the local development
  strategy
• 3) training for the LAG members involved in
  preparation and implementation of a local
  development strategy
• 4) promotional and experience sharing measures,
  training of local leaders
• 5) ensuring the operation of LAGs, administrative
  costs of local development strategies.
• 2. Amount of support
• Expenditure associated with ensuring the
  operation of LAGs within the framework of this
  measure may not exceed 20 of the total public
  expenditure of the local development strategy
  (Axis 4)

38
Thank you!
www.zm.gov.lv