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"A stronger Rural Development policy is vital for the future of our rural areas. This money helps the agricultural sector to diversify, but also finances crucial environmental projects and helps create jobs outside farming" said Mariann Fischer Boel, European Commissioner for Agriculture and Rural Development.
Chosen strategy in Wales:
The overall objectives chosen in accordance with the Community Strategic Guidelines (CSG) and the National Strategy Plan are:
- encouraging sustainable production methods with a view to improving the environment,
- improving the quality of life in rural areas and encouraging diversification of the rural economy,
- building capacity and innovation in rural areas.
Wales profile:
- Size: 2,078 million ha (20,000 km²); more than half of the country is mountainous; 80% of the total land surface is less favoured area which closely parallels the mountainous and upland areas.
- 2.9 million inhabitants; 960,000 live in the 82% of the country considered rural.
- Unemployment rate in rural Wales is 3.9%
- Approximately 20,000 farmers manage 1.6 million hectares of land. A further 286,000 hectares is covered by woodland.
- Overall employment directly associated with agriculture is estimated at 57,500.
- In 2003, agriculture contributed £418m to Welsh GVA, or 1.1% (including subsidies). If direct subsidies are excluded, agriculture’s contribution falls to less than 1.0%.
- 90% of farming is beef and sheep, the remaining 10% dairy and arable.
Overall budget and share of EU funding:
A financial aid of € 991.5 million of which € 376.7 million is EU financed has been allocated to the Rural Development Programme for Wales for the period 2007- 2013.
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Axis
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Total Public Expenditure (in €)
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Share of EAFRD* (in %)
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EAFRD Contribution (in €)
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Axis 1
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121,911,222
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57
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68,954,228
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Axis 2
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721,625,423
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31
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225,663,111
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Axis 3
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93,942,754
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56
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52,796,304
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LEADER
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46,632,354
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55
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25,647,795
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Technical assistance
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7,352,938
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50
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3,676,469
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Total
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991,464,691
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38
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376,737,907
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* EAFRD: European Agricultural Fund for Rural Development
Overall aim of the RDP Wales:
To promote sustainable rural development in a manner complementary to the other policies of the Community.
Axis 1 budget allocation and main priorities:
Total budget: € 121,911,222 - EAFRD contribution: € 68,954,228
Main priorities: vocational training and information actions, use of advisory services, adding value to agricultural and forestry products, co-operation for development of new products, processes and technologies in the agriculture and food sector and the forestry sector.
Axis 2 budget allocation and main priorities:
Total budget: € 721,625,423 - EAFRD contribution: € 225,663,111
Main priorities: LFA payments, Agri-environment payments, support for non-productive investments, first afforestation of agricultural land, first afforestation of non-agricultural land, support for non-productive investments (forestry).
Axes 3 budget allocation and main priorities:
Total budget: € 93,942,754 - EAFRD contribution: € 52,796,304
Main priorities: diversification into non-agricultural activities, support for the creation and development of micro-enterprises, encouragement of tourism activities, basic services for the economy and rural population, village renewal and development, conservation and upgrading of the rural heritage, training and information, skill acquisition, animation and implementation.
Leader budget allocation:
Total budget: € 46,632,354 – EAFRD contribution: € 25,647,795
The Leader axis will be implemented across all the other three axes, focussed on innovation.
See also: http://ec.europa.eu/agriculture/rurdev/index_en.htm
RDP general background:
As part of the fundamental reform of the Common Agricultural Policy (CAP), which started in 2003, rural development policy has also been reviewed. The European Commission conducted a thorough analysis of rural development (RD) policy, including an Extended Impact Assessment of future RD policy and made a proposal in July 2004. In September 2005, the Council adopted a reformed rural development policy for the period 2007-2013[1], which is characterized by "continuity and change".
It continues to provide a menu of measures from which the EU Member States can choose and for which they receive EC financial support in the context of integrated RD programmes. It changes the way these programmes are developed by fostering the strategic content and the sustainable development of rural areas. For that purpose future RD policy focuses on the three commonly agreed core policy areas (axes):
- Improving the competitiveness of agriculture and forestry
- Supporting land management and improving environment and
- Improving the quality of life and encouraging diversification of economic activities.
See also:
http://ec.europa.eu/agriculture/rurdev/index_en.htm
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