1. EU Rural Development Regulation
No 1698/2005 and its forestry relevant
measures
Budapest 21-22 September 2006
Tamas Szedlak
European Commission
Directorate General Agriculture and Rural Development
Unit F6. Bioenergy, biomass, forestry and climate change

2. Forestry in the
EU
 Forests and other wooded
land cover 166 million ha,
(43,2% of land area) from
which forests cover 145
million ha, (37,8%)
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4. Forest ownership
 Public forest represents 40% of forest area
and private forests: 60% with about 15
million forest owners.
 The average size of EU state-owned forest
holdings is about 1 000 ha,
 Community forests:~ 300 ha
 Private forest holdings have an average size
of 13 ha. (many < 5 ha)
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5. EU Rural Development Policy
 Agenda 2000
 CR (EC) No 1257/1999
 CR (EC) No
1698/2005
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6. CR (EC) No 1257/1999
 Afforestation of agricultural land (Art. 31)
 Investments to improve the multifunctional
role of forests (Art. 30)
 Improvement of the forest protection values
(Art. 32)
 Vocational training (Art.9)
Budget: 4.8 Billion €
 Afforestation: 2.4 billion €
 Other forestry measure: 2.4 billion €
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7. Rural Development Regulation
2007-2013
CR (EC) No 1698/2005
Three core objectives:
• Improving the competitiveness of the farm and
forestry sector through support for restructuring,
development and innovation
• Improving the environment and the countryside
through support for land management
• Improving the quality of life in rural areas and
encouraging diversification of economic activity
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8. Axis 1: Improving competitiveness of the
forestry sector
 Investments
 Infrastructure
 Vocational training
 Advisory services
 Innovation (new products, biomass for
energy)
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9. Axis 1: Forestry measures
Measures aimed at improving human potential
through:
Vocational training and information actions for persons
engaged in the agricultural and forestry sectors
Not normal education
Use by farmers and forest holders of advisory services
To improve performance
Level of support: 80% of the cost up to 1,500€ per advisory
service
Setting up of farm management, farm relief and farm advisory
services, as well as of forestry advisory services
Main conditions: enlarged to include forestry advisory services
Level of support: No limit, but digressive over max. 5 years
from setting up
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10. Axis 1: Forestry measures
Measures aimed at restructuring physical potential through:
Improving the economic value of forests
- based on management plan
- for forests owned by private owners/municipalities or their associations
- aid intensity 60 % (natural handicap, N 2000), 85 % (OR),50%
- investments at forest holding level, may include harvesting equipment
- no support for restocking
Adding value to primary agricultural and forestry production
- In the case of forestry, support only for micro-enterprises
(<10 staff, max. 2 mio € turnover)
- aid intensity 50 % (convergence),75/65 %(OR/Aegean), 40 %
- investments related to the use of wood as a raw material is limited to all
working operations prior to industrial processing
Improving and developing infrastructure related to the
development and adaptation agriculture and forestry
- i.a. access to forest land, energy supply
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11. Axis 1: New measure
introduced to promote innovation:
 Cooperation for development of new products,
processes and technologies in the agriculture and
food sector and in the forestry sector
 Between primary producers in agriculture and
forestry, the processing industry and/or third
parties
– preparatory operations, such as design, product, process or
technology development and tests and tangible and/or
intangible investments related to the cooperation, before the
use of the newly developed products, processes and
technologies for commercial purposes.
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12. Axis 2 : Improving the environment and the
countryside
Forestry land:
 first afforestation*;
 first establishment of agro-forestry systems,
 Natura 2000 areas;
 forest-environment;
 restoring forestry potential and introducing
prevention actions;
 support for non-productive investments
*an agri-environment commitment may be converted into a commitment
for first afforestation of agricultural land
MS shall designate the areas eligible for afforestation
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13. Axis 2: Land management/environment
First afforestation
Aid intensity for establishment costs:
- 70% outside handicap areas
- 80% in handicap areas and 85% in the outermost regions
"establishment costs" shall include the cost for the plantation material, the
cost of the plantation and the cost directly linked to and necessary for the
plantation,
"fast-growing species for short–term cultivation“: rotation time less than 15
years
Of agricultural land:
+ Annual premiums to cover loss of income to farmers (or associations
thereof) maximum 700 EUR/ha, or other natural persons or private-law
corporations maximum 150 EUR/ha, up to 15 years.
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14. Axis 2: Forestry – new measure
First establishment of agroforestry systems on agricultural
land
 Main conditions:
Support granted to create systems combining extensive agriculture and
forestry on the same land.
Christmas trees and fast-growing species are excluded from support.
– Member States, taking account of local conditions, forestry species
and the need to ensure continuation of the agricultural use of the land,
shall determine the maximum number of trees planted per hectare.
 Aid intensity, for establishment costs only:
- 70% outside handicap areas
- 80% in handicap areas and 85% in the outermost regions
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15. Axis 2: Forestry – current art. 32 (1), 1st indent
NATURA 2000 payments:
 Main conditions:
The measure becomes Natura 2000-specific. Support covers
cost incurred and income foregone resulting from the
restrictions of the use of the forestland due to Natura 2000.
 Levels of support: Minimum 40€/ha, maximum
200€/ha
Forest-environment payments:
 Main conditions:
The measure becomes more environment-specific, similar to
agri-environment. Support is granted for forest-environment
commitments going beyond (national) mandatory standards,
and running for 5 years (or another period where justified);
support covers additional costs and income foregone
 Levels of support: Minimum 40€/ha, maximum
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200€/ha

16. Axis 2:
Forestry
Restoring forestry production potential and
introducing prevention actions:
Main conditions: Preventive actions against fires
shall concern forests under high-medium forest-fire
risk according to the MS forest protection plans.
Level of support: No limit
examples: establishment of protective infrastructures
such as forest paths, tracks, water supply points, fire breaks,
cleared and felled areas, launching of operations to maintain
fire breaks and cleared and felled areas; preventive forestry
practices such as vegetation control, thinning, diversification of
vegetation structure; setting-up or improvement of fixed forest
fire monitoring facilities and communication equipment.
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17. Axis 2:
Forestry
Support for non-productive investments
:
Main conditions: "non-productive investments”
shall mean investments that do not lead to any
significant increase in the value or profitability of the
agricultural or the forestry holding.
Level of support: No limit
New separate measure taking over part of the existing CR
1257/1999 Art. 33(11th) and 30(1)(2nd) measures and
complementing them with regard to the forest-environmental
measure: grant of non-productive support is linked to the
achievement of commitments undertaken under the forest-
environmental measure, or in order to enhance the public
amenity value of the area concerned.
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18. Axis 3 : Diversification, quality of life
 Diversification of the rural economy:
diversification to non-agricultural activities; support for micro-
enterprises; encouragement of tourism activities*
*-small-scale infrastructure such as information centres and the
signposting of tourist sites;
-recreational- infrastructure such as the offering access to natural areas,
and small-capacity accommodation,
-the development and/or marketing of tourism services relating to rural
tourism
 Improvement of the quality of life:
basic services for the economy and rural population; village renewal;
conservation and upgrading of the rural heritage (natural and
cultural)
 Training and capacity building
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19. Axis 4 : Leader
 Implementation of local development strategies
through a Leader approach to contribute to the
achievement of the objectives of one or several of
the three other axes
 Inter-territorial and trans-national cooperation
between LAGs
 Capacity building and functioning of LAGs
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20. Programme balance
 Axis 1: Competitiveness at least 10% of EU
programme funding
 Axis 2: Land management at least 25% (10%
in French Overseas Departments)
 Axis 3: Wider rural development at least 10%
 Axis 4: LEADER at least 5% (but counts for
the other axes)
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21. Community cofinancing rates
 At the level of the axis as share of total
eligible public expenditure
 For axis 1 and 3 a maximum cofinancing
rate of 50% (75% in Convergence
regions)
 For axis 2 and 4 a maximum cofinancing
rate of 55% (80% in Convergence
regions)
 For all axes 85% in outermost regions
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22. Programming steps
1. Community strategic guidelines setting out the EU
priorities for the period 2007-2013
2. National strategy plans translating the EU priorities to
the member state situation and ensuring
complementarity with Cohesion policy
3. National or regional rural development programmes
articulating the four axes
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23. Reporting based on a common framework
for monitoring and evaluation
 Annual progress reports at programme level
 National summary reports on progress in implementation of the
national strategy: 2010 – 2012 - 2014
 Commission summary report to the Council and the EP on the
progress in implementation of the EU strategy and priorities:
2011 – 2013 – 2015
 Ongoing evaluation: ex-ante (programme)
ongoing activities (annual progress report)
mid-term (2010) } specific reports
ex-post (2014)
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24. Thank you for your attention!
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