Working Paper Elements of strategic programming for the period

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1 EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR AGRICULTURE AND RURAL DEVELOPMENT Working Paper Elements of strategic programming for the period Working paper prepared in the context of the Seminar on Successful Programming EAFRD Brussels, 6th and 7th December 2012

2 Foreword: This working paper brings together the elements presented at the seminar "Successful programming EAFRD ", as a supporting tool for the iterative process of preparing rural development programmes for the next period. It is based on the Commission's proposal for a regulation of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)" (COM(2011) 627/3) and, where relevant, on the Commission proposal laying down common provisions on the European Regional Development Fund (ERDF), the European Social Fund (ESF), the Cohesion Fund (CF), the European Agricultural Fund for Rural Development (EAFRD) and the European Maritime and Fisheries Fund (EMFF) covered by the Common Strategic Framework (COM(2011) 615 final). Since both proposals mentioned above are currently under discussion with the European Parliament and the European Council, this working paper provides preliminary considerations on programming. Guidelines on programming can only be finalised after the formal approval of the relevant legal framework. The structure of this document mirrors the provisional structured approach of the new SFC 2014 system for the electronic submission of the programmes (art. 92 of the proposal by the Commission on EAFRD Regulation), which aims at simplifying as much as possible the handling of textual and numerical data and the assessment / analysis of the information and reporting, while limiting double encoding and the risks associated. It should be noted that the final guidance document on rural development programming will be complemented by a number of other guidance documents in relation to issues of relevance for programming. Cross references to those documents are included in the following chapters, where relevant. 2

3 TABLE OF CONTENTS TABLE OF CONTENTS INTRODUCTION General context Strategic programming General overview EX ANTE EVALUATION SWOT AND IDENTIFICATION OF NEEDS Scope Responsibilities Methodology Treatment of thematic sub-programmes DESCRIPTION OF THE STRATEGY General remarks on establishing the strategy Scope Intervention logic Multiple effects and synergies Budgetary allocation Additional focus areas Consistency and coherence Description of the strategy ASSESSMENT OF EX ANTE CONDITIONALITIES DESCRIPTION OF THE PERFORMANCE FRAMEWORK DESCRIPTION OF EACH OF THE MEASURES SELECTED General conditions Specific description by measure Transitional arrangements EVALUATION PLAN Initial establishment of the evaluation plan by the MA in the RDP Follow up in the Annual Implementation Report (AIR) FINANCING PLAN INDICATOR PLAN Indicator plan The specific case of Priority The specific case of measures addressing several environmental/climate objectives on the same hectares Overview by measure and focus area Secondary effects: identification of potential contributions of RD measures/sub-measures programmed under a given focus area to other focus areas / targets

4 10 ADDITIONAL NATIONAL FINANCING ELEMENTS NEEDED FOR STATE AID ASSESSMENT INFORMATION ON COMPLEMENTARITY PROGRAMME IMPLEMENTING ARRANGEMENTS ACTIONS TAKEN TO INVOLVE PARTNERS NATIONAL RURAL NETWORK ACTION PLAN ANNEX I: A BASIC INTERVENTION LOGIC: MATCHING MEASURES TO OBJECTIVES ANNEX II: PRELIMINARY OVERVIEW OF MANDATORY REQUIREMENTS FOR SPECIFIC MEASURES ANNEX III: EXAMPLES OF INTERVENTION LOGIC BY PRIORITY ANNEX IV: PRELIMINARY ELEMENTS OF PROGRAMMING AND TARGET SETTING ANNEX IV.1: DRAFT INDICATOR PLAN ANNEX IV.2: DRAFT IDENTIFICATION OF CONTRIBUTIONS TO OTHER FOCUS AREAS

5 0 INTRODUCTION 0.1 General context "Europe 2020, a strategy for smart, sustainable and inclusive growth" 1 sets the strategic views of the Union for the next programming period. It defines precise objectives and corresponding targets for the Union at the horizon All Union policies (including the CAP) are expected to contribute to Europe 2020 objectives and targets. To implement the Europe 2020 strategy, Member States have established "National Reform Programmes" (NRP), which - among others quantify national expected contributions to the corresponding targets for the Union identified by the Europe 2020 strategy. The progress in implementation of NRP is subject to peer review with annual updating of NRP during the European semester. The European Council can issue specific recommendations to the Member States to foster national reform processes. As regards in particular Cohesion Policy, Rural Development Policy and the Maritime and Fisheries Policy, the respective funds have been grouped under a "Common Strategic Framework" (CSF) which sets the strategic vision of the Union for the use of those funds in the next programming period. In particular, the CSF establishes 11 Thematic Objectives (TO), derived from the Europe 2020 objectives, to which the ERDF, ESF, CF, EAFRD and EMFF (the "CSF funds") are expected to contribute within the scope of their respective fields of action. The CSF represents the common strategic guidelines of the Union for all the CSF funds for the next programming period, thus replacing the separate set of strategic guidelines currently existing for each specific fund. Following the strategic orientations of the CSF and in consistency with their respective NRP, the Member States will develop national strategies covering all the CSF funds within so called "Partnership Contracts" (PC) to be negotiated with, and agreed by the Commission. In summary, the PC will have to define which relevant TO of the CSF will be targeted in each Member State through the CSF Funds and set the strategic national lines to do so. Similarly to the CSF, the PC will replace the specific National Strategy Plans currently applying, in separation, to each of the funds. The national strategies set in each PC will then be implemented through national or regional programmes. As basis for discussion with the Member States on the drafting of their PC, the Commission has prepared "Country Position Papers" (CPP) outlining, for each Member State, the Commission vision as regards prioritisation and concentration of resources in the Member State in question. In order to increase coordination between the CSF funds and harmonisation of their rules of implementation, common provisions for such funds have been proposed by the Commission within a "Common Provisions Regulation". The latter is complemented by fund-specific Regulations, which specify detailed provisions for each of the funds deriving from the specific characteristics and implementing mechanisms of the respective policies. 1 Communication from the Commission of 3 March Europe 2020 A strategy for smart, sustainable and inclusive growth [COM(2010) 2020 final Not published in the Official Journal 5

6 0.2 Strategic programming As in the current programming period, the strategic orientations established within the Union and national strategies will be implemented on the ground through programmes covering the different policies. In the case of rural development programmes, the overall approach taken by the Commission proposal follows a logic of continuity with respect to the current programming period. Accordingly, the Member States will have to set-up rural development strategies addressing the agricultural and forest sectors, as well as the development of rural areas in general, based on a thorough analysis of the territorial needs of the geographical area covered by the programmes. Such strategies will be implemented through rural development measures and other delivery mechanisms such as Community-Led Local Development and Financial Instruments. However, important adjustments are proposed in light of the new strategic framework. While these will be further detailed in the different sections of this document, the central novel elements of the Commission proposal can be summarised as it follows: An increased performance orientation for the EAFRD (together with all other CSF funds), based on macro-economic conditionality, ex-ante conditionalities and on a performance review system; A clearer policy framework for the rural development policy, based on the establishment of six Union priorities for the policy further detailed into a set of more operational "focus areas" as basis for programming; The establishment of three cross-cutting objectives which are high on the Union policy agenda (linked to innovation, care for the environment and climate change mitigation and adaptation), to be pursued horizontally through the rural development programmes; An increased flexibility as regards the use of rural development measures within programmes. Such measures are no longer rigidly attributed to specific "axes", but can be programmed in relation to several priorities and focus areas in a flexible manner, based on their expected contribution to those priorities and focus areas. This new approach to strategy building and architecture of rural development programmes is illustrated in the matrix contained in Annex I to this document. A reinforced result-orientation of the programmes through the abolishment of minimum financial allocation per axes, the setting of precise targets for the programmes and the reporting on such targets throughout the programming period, based on a rationalised common monitoring and evaluation system. General common provisions for the CSF funds on programming are included in Part III of the Commission proposal for a Common Provisions Regulation, while Part II of Commission proposal for a Rural Development Regulation sets out specific rules for rural development programmes. 6

7 Three main steps of programming: 1. General SWOT of the programme area: Competitiveness of the agri-food sector Environment and climate Socio-economic situation of rural areas 2. Detailed needs assessment: By priority and focus area 3. Strategic response: Choice of relevant priorities / focus areas Target setting Planning of measures, outputs, financial resources 0.3 General overview The following chart provides an overall and broad vision of the Europe 2020 architecture and the specific role of the CAP in this respect. The main instruments to implement the CAP in the period remain the first pillar (market measures, direct payments) and the second pillar (rural development policy), the latter in coordination with the other programming policies under the CSF. The table below provides an overview of the links between the focus areas of the EU's rural development policy and the thematic objectives under the CSF. Links between focus areas and thematic objectives: Priority 1: Fostering knowledge transfer and innovation in agriculture, forestry, and rural areas (a) Fostering innovation and the knowledge 1. Strengthening research, technological base in rural areas development, innovation (b) Strengthening the links between agriculture 1. Strengthening research, technological and forestry and research and innovation development, innovation 7

8 (c) Fostering lifelong learning and vocational 10. Education, skills and lifelong learning training in the agricultural and forestry sectors Priority 2: Enhancing competitiveness of all types of agriculture and enhancing farm viability (a) Facilitating restructuring of farms facing 3. Enhancing the competitiveness of SMEs, the major structural problems, notably farms with a agricultural sector and fisheries and low degree of market participation, marketoriented farms in particular sectors and farms aquaculture in need of agricultural diversification (b) Facilitating generational renewal in the 3. Enhancing the competitiveness of SMEs, the agricultural sector agricultural sector and fisheries and aquaculture Priority 3: Promoting food chain organisation and risk management in agriculture (a) Better integrating primary producers into the food chain through quality schemes, promotion in local markets and short supply circuits, producer groups and inter-branch organisations 3. Enhancing the competitiveness of SMEs, the agricultural sector and fisheries and aquaculture (b) Supporting farm risk management 3. Enhancing the competitiveness of SMEs, the agricultural sector and fisheries and aquaculture Priority 4: Restoring, preserving and enhancing ecosystems dependent on agriculture and forestry (a) Restoring and preserving biodiversity, 5. Promoting climate change adaptation, risk including in Natura 2000 areas and high nature prevention and management 2 value farming, and the state of European landscapes (b) Improving water management 5. Promoting climate change adaptation, risk prevention and management (c) Improving soil management 5. Promoting climate change adaptation, risk prevention and management Priority 5: Promoting resource efficiency and supporting the shift towards a low carbon and climate resilient economy in agriculture, food and forestry sectors (a) Increasing efficiency in water use by 6. Protecting the environment and promoting agriculture resource efficiency (b) Increasing efficiency in energy use in 4. Supporting the shift towards a low-carbon agriculture and food processing economy in all sectors (c) Facilitating the supply and use of renewable 4. Supporting the shift towards a low-carbon sources of energy, of by-products, wastes, economy in all sectors residues and other non-food raw material for purposes of the bio-economy (d) Reducing nitrous oxide and methane 4. Supporting the shift towards a low-carbon emissions from agriculture economy in all sectors (e) Fostering carbon sequestration in 4. Supporting the shift towards a low-carbon agriculture and forestry economy in all sectors Priority 6: Promoting social inclusion poverty reduction and economic development in rural areas (a) Facilitating diversification, creation of new 8. Promoting employment and supporting small enterprises and job creation labour mobility 2 In the Commission Staff Working Document "Elements for a Common Strategic Framework 2014 to 2020" (SWD(2012) 61), operations under focus area 4(a) have been linked to thematic objective 6. Protecting the environment and promoting resource efficiency. However, considering their considerable contribution to climate change objectives, it is now proposed to establish a primary link to thematic objective 5. Promoting climate change adaptation, risk prevention and management. 8

9 (b) Fostering local development in rural areas (c) Enhancing accessibility to, use and quality of information and communication technologies (ICT) in rural areas 9. Promoting social inclusion and combating poverty 2. Enhancing access to and use and quality of information and communication technologies 9

10 1 EX ANTE EVALUATION Ex ante evaluation as referred to in the Common Provisions Regulation for the CSF funds. Ex ante evaluation is a fundamental step to deliver quality programmes and concerns the process of developing a policy before its implementation. It provides an assessment of whether development issues have been diagnosed correctly and should identify any gaps; whether the strategy and objectives proposed are relevant to national and regional needs; whether the approach proposed is coherent, and consistent with Community policies and guidelines; whether the assumptions concerning expected results and impacts are realistic and in line with the resources available. This process should enable successive drafts of the programme to be refined and improved so that it is more likely to achieve its objectives in a cost-effective manner. Moreover, ex ante evaluation sets the corner stone for subsequent monitoring and evaluation activities, by ensuring that all necessary information is available and that the system is adequate to provide the data needed to assess the programme s results and impacts. This prepares the ground for reliable monitoring and evaluation throughout the programming period, which contributes to successful programme steering and demonstration of the programme s achievements. The ex ante evaluation, incorporating the Strategic Environmental Assessment 3, shall be submitted to the Commission at the same time as the programme. The full report should be presented as an Annex to the programme, whilst the RDP text itself should include a chapter describing how the recommendations from the ex ante evaluators have been taken into account in the programme development process. 4 [Comprehensive draft guidelines for the ex ante evaluation of RDPs are available on the European Evaluation Network for Rural Development's website ( This chapter of the rural development programme should contain two sections: 1. Description of the process: Description of the process, including timing of main events, intermediate reports, etc. 3 SEA Directive 2001/42/EC 4 The envelop for "Technical Assistance" for the period can be used to support the ex-ante evaluation of the next programming period

11 2. Overview of the recommendations of the ex ante evaluators and brief description of how they have been addressed (in a table format as per below). Table 1: Addressing recommendations of the ex ante evaluation 2 SWOT AND IDENTIFICATION OF NEEDS Analysis of the situation in terms of strengths, weaknesses, opportunities and threats ("SWOT"). The analysis should be structured around the Union priorities for rural development. Identification of the needs that have to be addressed in the geographical area covered by the programme. Specific needs concerning the environment, climate change mitigation and adaptation and innovation should be assessed across Union priorities for rural development, in view of identifying relevant responses in these three areas at the level of each priority. 2.1 Scope SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The analysis of these four aspects should be comprehensive and provide a holistic picture of the programming area, highlighting its main characteristics and specificities, and covering the whole territory, to enable strategic choices about priorities, objectives and measures to be made. Financial instruments should also be covered. The SWOT should be based on data from the common set of context indicators, plus appropriate programme-specific context indicators as well as more qualitative information. Strengths and weaknesses refer to the existing positive and negative attributes whereas the opportunities and threats relate to the future. Irrespective of whether particular measures are ultimately programmed, or whether any given priority / focus area is included, the SWOT analysis should cover elements related to all 6 priorities and all focus areas. It provides the background against which the interventions proposed can be checked to ensure that they are justified, relevant and adequate in terms of the optimal use of public funds. The SWOT analysis should enable 11

12 the most important needs that the RDP will address to be identified and also establishes the baseline which will be used for monitoring and evaluation of the programme. It should be ensured that the SWOT is consistent with that carried out for other CSF programmes, and the SEA, and that the needs assessment is complementary to that for other CSF programmes, as shown in the Partnership Agreement. The SWOT analysis and identification of needs are two distinct steps in the diagnostic process. The needs assessment following from the SWOT analysis should be structured around the priorities and focus areas and the three cross-cutting themes of environment, climate change mitigation and adaptation, and innovation (further elements on programming for innovation and the implementation of the EIP will be discussed in a dedicated document). Depending on the situation of the territory as described, it may be that specific significant needs do not emerge in relation to one or more focus areas. This should be indicated in the needs assessment, which should be sufficiently precise to support the prioritisation of the various needs in the formulation of the strategy. 2.2 Responsibilities The Managing Authority (MA) is responsible for preparing the SWOT analysis and the needs assessment, which should serve as a background for drawing strategic conclusions and programming RDP interventions. Stakeholders, e.g. other Ministry departments, agencies, institutes, etc., should be involved in the development of the SWOT analysis and needs assessment. The SWOT will be assessed by the ex ante evaluators, and revised to take account of their conclusions and recommendations. 2.3 Methodology The SWOT analysis should be developed on the basis of a quantitative and qualitative description of the initial situation, including all relevant territorial, sectoral, economic, social, structural or environmental trends, potentials and disparities, in order to provide an exhaustive picture of the programming area. The quantitative description should be built upon the common context indicators (which will be discussed in the framework of expert meetings) and appropriate programme-specific context indicators. Context indicators reflect the state of the economic, social or environmental situation of the territory, in which interventions of the RDP are implemented, e.g. GDP per capita, rate of unemployment, water quality. The quantitative analysis should be complemented by a qualitative assessment of the situation. MAs should take into account and feed into the analysis other relevant information, e.g. past performance and experiences, studies, past evaluation reports, sectoral analyses, etc., in order to provide a comprehensive picture of the situation of the territory. The SWOT analysis and needs assessment should be logically interlinked so that it can be seen that the needs chosen to be addressed by the RDP intervention are sufficiently and properly justified as the most important by the SWOT. In this context, the needs of particular stakeholder groups, people and territories should be differentiated and addressed. 12

13 2.4 Treatment of thematic sub-programmes The overall SWOT should provide the justification for any thematic sub-programmes included in the RDP. The list of themes mentioned in the Regulation is not exhaustive and MAs may decide to design sub-programmes around other thematic areas. It should be explained why the specific operations envisaged for the thematic subprogramme would bring forth better results than if they were delivered under the mainstream programme measures. Subsequently, specific SWOT, needs assessment, intervention logic, selection of measures, target-setting, planning of actions, allocation of resources and delivery mechanisms have to be established separately for each of the thematic sub-programmes introduced. Table 2(1): SWOT analysis covering the whole programming area Overall description [Text: X characters] Overall description (quantitative and qualitative) of the situation of the programming area concerned, based on programme-specific and common context indicators (to be developed). 13

14 Strengths: [Text: X characters] Weaknesses: [Text: X characters] Opportunities: [Text: X characters] Threats: [Text: X characters] Table 2(2): Identification of needs on the basis of the SWOT analysis in relation to each priority and focus area and cross-cutting objective Priority 1 Focus area 1A Focus area 1B Focus area 1C [Text: X characters] Priority 2 14

15 Focus area 2A Focus area 2B [Text: X characters] Priority 3 Focus area 3A Focus area 3B [Text: X characters] Priority 4 Focus area 4A Focus area 4B Focus area 4C [Text: X characters] Priority 5 Focus area 5A Focus area 5B Focus area 5C Focus area 5D Focus area 5E [Text: X characters] 15

16 Priority 6 Focus area 6A Focus area 6B Focus area 6C [Text: X characters] Specific needs concerning the environment, climate change mitigation and adaptation and innovation: [Text: X characters] 3 DESCRIPTION OF THE STRATEGY Appropriate targets for each of the focus areas of the Union priorities for rural development included in the programme, on the basis of common and programmespecific indicators. Relevant combinations of measures in relation to each of the focus areas of the Union priorities for rural development included in the programme, based on sound intervention logic supported by the ex ante evaluation and the SWOT analysis / needs identification. Allocation of financial resources to the measures of the programme, which should be justified and adequate to achieve the targets set. Adequately designed combinations of measures or thematic sub-programmes to address specific needs linked with specific conditions at regional or sub-regional level. Appropriate approach towards innovation with a view to achieving the objectives of the Union priorities for rural development, including the EIP for agricultural productivity and sustainability, towards the environment, including the specific needs of Natura 2000 areas, and towards climate change mitigation and adaptation. Appropriate action to simplify the implementation of the programme and measures to ensure the availability of sufficient advisory capacity. This section should include: 16

17 1. An intervention logic diagram for each priority included in the programme. 2. A summary table providing an overview of the strategy and associated targets and financial allocations (Table 3.1) 3. A textual part that describes concisely the strategy in qualitative terms (Paragraph 3.2) 3.1 General remarks on establishing the strategy Scope The strategy description shuld justify the choice, the combination and the prioritisation of rural development measures in the light of the results of the SWOT analysis and the needs identified, together with the financial allocations accorded to the interventions. It has to prioritise the various needs identified, and justify the prioritisation. Appropriate targets shall be set at this stage for each focus area. Following the analysis, it is not obligatory for MS/region to programme interventions under all 6 priorities or all 18 focus areas: however, sound justification for excluding any priority/focus area from the RDP must be provided. The strategy should also cover financial instruments Intervention logic The intervention logic at the basis of the strategy should provide an evidence based, systematic and reasoned description of the relation between individual actions/measures and the overall objectives of the intervention (see Annexes I and III for further explanation). It forms the basis for establishing the list of indicators that allows for measuring progress, efficiency and effectiveness of actions/measures in relation to their objectives. It is important to note that the combinations of measures included under each focus area in the intervention logic diagrams is neither prescriptive nor exhaustive, and it will be Member States' responsibility to establish the appropriate mix of measures to achieve their policy goals during their strategic programming. In fact, specific measures can be used in various ways to support the different focus areas and priorities. The examples given are meant to identify those measures which are considered to make a direct contribution or be the most relevant for implementing any given priority. Assumptions about the potential influence of external factors on the intended policy results should also be brought forward, e.g. policy shifts at national level, new economic trends, changes in competitiveness at national and regional level, etc Multiple effects and synergies It is clear that priorities and targets cannot be met through the use of one measure alone. Therefore, Member States and regions should set out a clear intervention logics illustrating how measures will work together. The programming system should take account of the fact that a given measure can contribute to more than one priority at a time. The multiple effects of interventions on different focus areas and priorities should be appraised as described in the Indicator Plan (see Annex IV.2) in order to fully capture the achievements of RDP interventions. In working out their strategy, Member States should apply an outcome-oriented approach and capitalise to the greatest extent on synergies between and within measures to maximise their contribution to policy objectives. It is important that different measures, although each having their own 17

18 specific objectives, work in a complementary manner, supporting the interventions of others, so that added-value is created and the sum is more than the individual parts Budgetary allocation As regards the consistency of budgetary allocation with the intended policy outcomes, expenditures should be directed towards the needs and challenges identified: the objectives and/or sectors and territories that are more influential and/or hold a higher strategic value, and have been prioritized, should be weighted more highly in terms of resource allocation, while there should be consistency between the unit cost of actions envisaged and the proposed level of expenditure. The distribution of expenditures shall be assessed based on their capacity not only to respond to the specific elements emphasised in the diagnosis, but also to generate synergies. In this context, it is important to see the wider picture, taking into account other policy interventions and sources of support, particularly those from the CAP's Pillar I and other CSF funds Additional focus areas MAs have the possibility to introduce additional focus areas under any of the priorities only if a sound justification is provided that a particular issue/area is not covered by any other focus area provided for in the Regulation and is of fundamental importance to achieve a MS/region policy objective under a given rural development priority. In particular, it should be explained how the specific operations envisaged under the additional focus area would bring forth better results than if they would be delivered under the existing areas of intervention. In this case, a separate, specific target will have to be established for the additional focus area. On the other hand, it is not possible to introduce additional priorities alongside those provided for in the Regulation Consistency and coherence In developing the strategy, horizontal consistency and coherence should always be ensured between what is foreseen under the RDP, and what is planned under other CSF and sectoral programmes, policy instruments and strategies. Particular attention should be paid to interactions with the CAP's Pillar I and the strategy set out in the Partership Agreement. 18

19 Table 3(1): Overview of the strategy of the rural development programme (Draft template to illustrate the combination of measures by focus area, and the rationale justifying the combination. Measure selected would be indicated with an X (see also Annex I).) 18 measures/instruments art 15 knowledge transfer and information actions art 16 advisory services, farm management and farm relief services P2: enhancing farm competitiveness 2A: restructuring X 2B: generational renewal P3:promoting food chain organisation and risk management 3A: food chain integration 3B: risk management P4: restoring, preserving and enhancing ecosystems 4A: biodiversity 4B: water P5: promoting resource efficiency and the shift to a low carbon and climate resilient economy 4C: soil 5A: water efficiency 5B: energy efficiency 5C: renewable energy 5D: emissions reduction 5E: carbon sequestration P6: promoting social inclusion, poverty reduction and economic development in rural areas 6A: diversification 6B: local 6C: ICT development art 36 cooperation art 31 support from CSF Funds for local development (CLLD) art 18 investments in physical assets art 20 farm and business development art 21 basic services and village renewal in rural areas art 19 restoring agricultural production potential/prevention art 22 investments in forest area development and viability of forests art 17 quality schemes for agricultural products and foodstuffs art 28 setting up of producer groups art 37 risk management art 29 agri-environment-climate art 30 organic farming art 31 Natura 2000 and Water Framework Directive payments art 32 payments to areas facing natural or other specific constraints art 35 forest environment and climate services and forest conservation art 34 animal welfare Rationale for the combination of relevant measures selected in relation to the focus area (based on the intervention logic supported by the ex ante evaluation and the SWOT analysis) Text

20 3.2 Description of the strategy For each of the priorities, this section should contain a short description of the strategy, which should clearly define the objectives of the policy intervention and plausibly explain by which measures and activities they can be achieved. Moreover, it should promote positive reinforcement between its objectives and measures, while avoiding contradictions and gaps between them. A sound intervention logic should justify the combinations of measures for each of the focus areas and outline how the choice responds to the needs identified following the SWOT analysis. The selected needs to be addressed by the RDP intervention should be relevant and sufficiently justified by the SWOT analysis and baselines values of indicators. (It must be emphasized again here that no measure is priority-specific - it is up to Member States/Regions to decide which measures to use to serve a given priority). Below is an example of the intervention logic for Priority 3: Promoting food chain organisation and risk management in agriculture. Examples of intervention logics for the other priorities are provided in Annex II. It should be shown that the allocation of financial resources to the measures selected is justified and adequate, i.e. proportionate, to achieve the targets set at the level of focus areas. Specific issues to be addressed in this context (not necessarily in this order): A section should describe the approach taken, i.e. a summary of all relevant measures and interventions across the different priorities, towards the three cross-cutting objectives of innovation with a view to achieving the objectives of the Union priorities for rural 20

21 development, including if relevant the EIP for agricultural productivity and sustainability; the environment, including the specific needs of Natura 2000 areas; and climate change mitigation and adaptation. A section should describe what type of action is envisaged to simplify the implementation of the programme, especially in terms of putting in place effective and efficient delivery mechanisms, e.g. reducing the administrative burdens (both for administrative bodies and beneficiaries) attached to the application process, ensuring proportionality of legal requirements, etc. A section should illustrate which measures have been taken to ensure the availability of sufficient advisory capacity on the regulatory requirements and all aspects linked to sustainable management in agriculture and forestry, as well as climate action. A description should be provided of the structure of extension/advisory systems at the relevant geographical scale (national/regional), including their intended role under the scope of relevant rural development priorities. Advisory capacities are not only embodied in human resources but also in the organisational capacities of the support systems to identify, and to anticipate the demand, to tap sources of cutting-edge knowledge, and to gear the intervention to where it is most likely to generate added value. 4 ASSESSMENT OF EX ANTE CONDITIONALITIES Assessment of the ex ante conditionalities. 5 DESCRIPTION OF THE PERFORMANCE FRAMEWORK Description of the performance framework. Points 4 and 5 above are under policy discussion. If retained, they will be based on a common approach to be developed with the other CSF Funds. 21

22 6 DESCRIPTION OF EACH OF THE MEASURES SELECTED Description of each of the measures selected. This chapter should contain three sections: 1. General conditions 2. Specific description by measure 3. Transitional arrangements 6.1 General conditions [Description of conditions applying to more than one measure, e.g. definition of rural area, baselines, cross-compliance, intended use of financial instruments, intended use of advances, etc.] 6.2 Specific description by measure Measures should be balanced and flexible, i.e. neither too generic nor too specific, so that the targeted beneficiaries can actually be reached and the intended types of activities be triggered. The common elements that should be contained in the description of each measure are outlined below. As regards specific requirements for certain measures, reference should be made to Annex I of this document. Separate fiches on measure design and best practices will be provided separately, as well as guidelines on financial instruments. a. Legal basis [State the Regulation and the relevant articles and recitals thereof which form the legal basis for the measure.] b. Contribution to focus areas and cross-cutting objectives [State briefly: The focus area(s) to which the measure / operations will make a contribution according to the indicator plan - each focus area should be covered specifically and separately; Where relevant, the multiple and secondary effects of the measure / operations (qualitative description).] 22

23 c. Scope and type / level of support [Fill in the table with the relevant information required. Split the table into separate rows for each of the types of operation supported in case different sets of conditions apply, notably in relation to the different focus areas these activities are programmed for.] 23

24 [Draft template, to be adapted by measure, following the specifications contained in the measure fiches to be developed] Type of operation Focus area it contributes to Eligible costs Beneficiarie s Eligibility conditions Principles with regard to the setting of selection criteria Type of support Links to other legislation Aid intensity Cofinancing rate Type of operation 1 e.g. 2C e.g. investment, area-based payment, etc. e.g. "baseline" for measures that compensate for costs incurred / income foregone Type of operation 2 24

25 d. Additional information specific to the measure concerned [Requirements specific to the measure concerned] e. Indicators An overview of the planned output of the measure will be automatically generated from the indicator plan tables (format to be developed). Number of Planned output For type of operations 1 Number of For type of operations 2 For type of operations 3 f. Financial information These data will be automatically inputted into the overview financial tables. EAFRD contribution rate (%) EAFRD total amount expenditure Additional national financing (State aid) Total (measure level) g. Verifiability and controllability (legal reference: article 69) [State how verifiability and controllability of the measure / activities are ensured, including measure designation, which should be carried out in a way that does not create undue risk of error. Where relevant, this should be based on ex ante assessment and comparison to the relevant elements of the baseline.] h. Other important remarks [State any other information which is important for the sake of understanding and implementing the measure.]

26 6.3 Transitional arrangements Where relevant, this section shall include a table by measure and by year ( ) outlining transitional expenditure, together with a description of transitional conditions applicable, especially where measures are discontinued in the next programming period. 7 EVALUATION PLAN Evaluation plan, including demonstration of sufficient resources to address the identified evaluation needs. In relation to the evaluation plan, work should be organised as follows: 1. Initial establishment of the overall framework evaluation plan by the MA for inclusion in the RDP 2. Follow up in the Annual Implementation Reports (AIR) As stipulated in the Common Provisions Regulation for CSF Funds (Article 49(3) of [CSF]), at least once during the programming period, an evaluation shall assess how support from the CSF Funds has contributed to the objectives for each priority. The minimum requirements for the Evaluation Plan will be included in the implementing act, and more detailed guidance on the content of the Evaluation Plan, annual work programmes and their use will be produced by the Evaluation Helpdesk during Initial establishment of the evaluation plan by the MA in the RDP The evaluation plan established in the RDP should cover the elements listed below. It should be detailed enough to demonstrate that sufficient and appropriate activities are planned to ensure availability of the required evaluation results at the required time, and that adequate resources are allocated to these activities. Objectives and purpose of the Evaluation Plan; Governance issues (coordination with RDP implementation; management of evaluation; organisational structures such as an evaluation unit and/or a Steering Group; quality assurance of evaluations, simplification etc.); Evaluation topics and activities (main evaluation subjects to be covered, including planned work on development of methodology where required; assessment of result and impact indicator values and analysis of net effects; thematic issues, including subprogrammes; cross-cutting issues such as sustainable development, climate change; the National Rural Network; specific evaluation needs etc.); Data and information (data collection linked to objectives and indicators; IT systems; interfaces with monitoring data and other systems, ensuring availabiity of data in time for planned evaluations etc.) Timeline (outline schedule indicating successive planning of activities required in order to ensure availability of evaluation results at the required time, e.g. input needed for enhanced AIRs in 2017 and 2019, ex-post evaluation report); 26

27 Coordination (links to other evaluations, Pillar 1, CSF funds, research studies, etc.); Specific requirements for evaluation of LEADER (e.g. support for evaluation at the level of LAGs, guidance for LAGs to enable aggregate achievements to be demonstrated at RDP level); Communication (communication strategy to stakeholders and policy makers, mechanisms to follow-up on use of evaluation results); Resources (financial and human resources to be allocated to evaluation activities). 7.2 Follow up in the Annual Implementation Report (AIR) Each Annual Implementation Report should contain a chapter providing details on the implementation of the evaluation plan. This should be in two sections, one describing the evaluation activities undertaken during the reporting period, including any deviations from the planned activities, and the second presenting an outlook of the activities to be carried out in the following year. to acccomplish the relevant milestones set out in the Evaluation Plan, including methodologies and approaches to be used, intermediate steps, detailed time plans, contracts to be undertaken etc. For the years 2014, 2015 and 2016 (i.e. those years for which a prior AIR wil not be available), the outlook of evaluation activities should be drawn up by the Managing Authority. It should be presented to the Monitoring Committee which should issue an opinion on it. This two-stage approach is intended to ensure adequate and appropriate provision for evaluation activities, whilst maintaining flexibility for planning and detailed content to be adapted to changing circumstances and requirements without the need for RDP programme modification. The annual work programmes will serve as a management tool to steer the evaluation process throughout the programming cycle, and can be modified as necessary. 27

28 8 FINANCING PLAN Financing plan comprising: (i) a table setting out the total EAFRD contribution planned for each year. When applicable this table should indicate separately within the total EAFRD contribution the appropriations provided for the less developed regions and the funds transferred to the EAFRD from the direct payments envelope (capping). The planned annual EAFRD contribution shall be compatible with the Multi-annual Financial Framework. (ii) a table setting out, for each measure, for each type of operation with a specific EAFRD contribution rate and for technical assistance, the total Union contribution planned and the applicable EAFRD contribution rate. Where applicable, this table should indicate separately the EAFRD contribution rate for less developed regions and for other regions. [Draft templates - Adjustments in the financial tables below may be introduced, notably following the agreement on the Multiannual Financial Framework.]

29 Table 8(1): Annual contributions from the EAFRD (in EUR) Region Other Regions Less Developed Regions and OR&SAI Additional funds transferred from direct payments envelope (capping) Voluntary Adjustments (UK) Total Total Table 8(2): Financial plan by measure (in EUR total period ) 56 Category of region Measures Applying to all measures Applicable rate Rate applicable to financial instruments under MA responsibility Total Union contribution planned Total Public expenditure Less Developed & OR&SAI Knowledge transfer and information actions Business start-up aid for young farmers 5 Guidance on financial tracking of financial instruments will be provided later on. 6 An additional line on transitional measures may be needed in case of different co-financing rates. EN 29 EN

30 Setting up of producer groups Co-operation Community-Led Local Development Applying to all measures Knowledge transfer and information actions Other Regions Technical Assistance Business start-up aid for young farmers Setting up of producer groups Co-operation Community-Led Local Development Additional funds transferred from direct payments envelope (capping) Voluntary Adjustments (UK) Financial Instrument EU level (managed by EC) Total EN 30 EN

31 Table 8(3): Union Contribution planned by measure (in EUR total period ) (Reference: Horizontal Regulation) Measures Union contribution planned Measure Table 8(4): Discontinued measures Measures Union contribution planned Co-financing rate E.g. Early retirement Measure EN 31 EN

32 9 INDICATOR PLAN EN Indicator plan broken down into focus areas and measures comprising, for each of the Union priorities for rural development included in the programme, the indicators and the selected measures with planned outputs and planned expenditure, broken down between public and private. The following section provides a concise overview of the requirements in terms of indicator tables that have to be provided, drawing the attention to specific cases. More details on monitoring are available in Annex IV. 9.1 Indicator plan The indicator plan should be composed of a set of tables accompanying the strategy of the RDP, quantifying the targets for the period , as well as the main planned outputs and the planned expenditure for each focus area selected under the RDP. As a measure can be programmed under different focus areas, the indicator plan should show (and quantifies) the specific share of the measure programmed for a given focus area. As such, the indicator plan provides the planned distribution of resources (expenditure / physical outputs) by measure and by focus area, and in relation to the targets for To avoid over-complexity, thematic sub-programmes should preferably be programmed under a single focus area and result in the creation of an extra-line for any given subprogramme under the focus area it contributes to. The indicator plan will have to be revised at the time of RDP modifications in order to reflect the change in budget allocation, target setting, planned outputs and anticipated multiple or secondary effects The specific case of Priority 1 It has to be noted that Priority 1 (Fostering knowledge transfer and innovation) is a horizontal priority and needs to be tackled separately. As Knowledge Transfer and Innovation (KT&I) is a cross-cutting theme, and because innovation is at the same time difficult to capture with an indicator and to anticipate, the indicator plan would provide a summary of the measures programmed across the other focus areas which are most relevant for KT&I (namely "Knowledge transfer and information actions" (Article 15), "Advisory services, farm management and farm relief services" (Article 16) and "Cooperation" (Article 36)). The targets for the Priority 1 focus areas would be based on the planned outputs (/expenditure) of these KT&I measures programmed under the other focus areas The specific case of measures addressing several environmental/climate objectives on the same hectares Some environmental measures/sub-measures can be programmed to address more than one environmental issue on the same hectare (e.g. simultaneously water and soil qualities).. In these cases, the hectares covered by such schemes/measures can be counted against more than one target. 32

33 For the 3 focus areas of Priority 4, and 2 focus areas under Priority 5 (5d and 5e), individual targets would thus be set in terms of number of physical hectares on which an action is planned for biodiversity, water, soil, reducing nitrous oxide and emissions and carbon sequestration compared to the total number of hectares of agricultural land or forestry land, i.e. 3 targets for agricultural land and 3 targets for forestry land. As on the same physical hectare, actions for more than 1 issue can be programmed, the target for each focus area is set independently and the number of hectares cannot be added up across the relevant focus areas. Of course, such an approach must not be confused with financial accounting, where spending must be unambiguously identified per type of measure and hectare, and which, therefore, must be kept separately. In order to support the planning of outputs, the programme would contain a qualitative indication of the different environmental schemes and their use to achieve environmental objectives. During the life-time of the programme, the number of hectares per scheme would be monitored in order to allow for the actual counting of the number of hectares under each target. It is to be noted that the targets should always be expressed in physical hectares (where 2 contracts overlap on one hectare, only 1 hectare should be counted in the value of the output or the target). However, the same hectare can be counted against the "biodiversity" target and the "water management" target simultaneously, as explained above. 9.2 Overview by measure and focus area Based on the indicator plan, a consolidated table with planned outputs could be generated automatically, which will provide an overview of the measures programmed by focus area and show the total outputs and expenditure by measure. This table will also allow checking consistency between the total (public) expenditure by measure and financial plan. 9.3 Secondary effects: identification of potential contributions of RD measures/sub-measures programmed under a given focus area to other focus areas / targets While the indicator plan provides quantitative estimates (planned outputs, planned expenditure and targets for 2020) on the basis of the main expected effect of interventions, additional effects - alongside main ones - of rural development operations should also be reported on. For example, investments in irrigation could mainly contribute to Priority 2 (Farm viability), but make a positive impact under Priority 5 (Resource efficiency and climate). The difference between the case of measures addressing specifically several environmental/climate objectives on the same hectares, and the secondary effects of some measures is that, in the first case operations would be programmed / used to jointly address these issues (on an equal footing), while in the latter case it would be about identifying the other possible contributions of these operations in addition to the one they are programmed for (which would be generally difficult to quantify). EN 33

34 Therefore, the indicator plan should be complemented by another table showing, where relevant, the contribution of RD measures/sub-measures programmed under a given focus area to other focus areas. These potential contributions of interventions to other focus areas/targets would not have to be quantified (ex ante) in the programme, rather would be recorded by selecting a tick box for any additional cross-effect an intervention is expected to have. The ex-ante assessment of the secondary effects of rural development operations would have to be described in a qualitative way in the programme under the section on "measure description". Such a qualitative approach for secondary effects will prevent problems of doublecounting while, at the same time, show the multiple layers of policy results. This will be particularly useful for the cross-cutting objectives of innovation, climate change and environment. Once these effects are established, an overview table should show the target values as set out in the indicator plan (based on the interventions programmed for the related focus area) and the other interventions which are considered to make a contribution to these targets. EN 34

35 10 ADDITIONAL NATIONAL FINANCING Additional national financing per measure. Table 15(1): Additional national financing Measure Additional national financing in EUR, total period Knowledge transfer and information actions Investments in physical assets Farm and business development Leader 11 ELEMENTS NEEDED FOR STATE AID ASSESSMENT Elements needed for the appraisal under Competition provisions. List of non-agricultural state aid schemes to be used for the implementation of the programmes. Elements under points A and B for state aid rules and procedures must be valid over the entire life cycle of the programme and cover both the initial submission and subsequent changes thereof. A. For measures and operations falling within the scope of Article 42 of the Treaty, either: indicate whether support will be granted in respect of Commission Regulation (EC) No [ ] on de minimis support in the agriculture sector; or provide the registration number and the reference to the Commission exemption Regulation adopted on the basis of Council Regulation (EC) No [ ] under which the measure was introduced; or provide the case number and reference number under which the measure has been declared compatible with the Treaty by the Commission; or submit the relevant information sheet annexed to Commission Regulation (EC) No 794/2004 [ ] (standard notification forms). EN 35

36 B. For the measures pursuant to Articles 21, 22, 23, 24, 25, 26, 27, 35 of Regulation (EC) No [EAFRD Regulation] and operations under the measures pursuant to Articles 15, 16, 18, 20 and 36 of that Regulation which fall outside the scope of Article 42 of the Treaty, either: indicate whether support will be granted in respect of Commission Regulation (EC) No [ ] on de minimis support; or list the registration number and the reference to the Commission exemption Regulation adopted on the basis of Regulation (EC) No [ ] under which the measure was introduced; or provide the case number and reference number under which the measure has been declared compatible with the Treaty by the Commission; or indicate for what other reasons the aid scheme concerned shall constitute existing aid within the meaning of Article [ ] of Regulation (EC) No [ ] (Procedure fo notified aid) including existing aid measures within the meaning of the Accession Treaties. Table 16(1): State aid table Measure Name of the aid scheme Indication of the lawfulness of the scheme Duration of the scheme The State aid table shall be accompanied by a commitment from the Member State that any cases of application of the schemes enumerated in point B for which individual notifications are required under State aid rules or under conditions and commitments laid down in the respective State aid approval decision, will be notified individually pursuant to Article 88(3) of the Treaty. 12 INFORMATION ON COMPLEMENTARITY Information on the complementarity with measures financed by the other common agricultural policy instruments, through cohesion policy or by the EMFF. This section should contain the following elements: i. Appraisal of and means for the complementarity with: activities, policies and priorities of the Union, in particular with the objectives of cohesion policy and those of the EMFF; measures financed by other common agricultural policy instruments or other instruments in the sectors listed in Annex I to this Regulation; EN local development strategies implemented under Leader, activities envisaged 36

37 under the "Cooperation" measure referred to in Article 36, the "Basic services and village renewal in rural areas" measure referred to in Article 21, and other CSF funds. ii. Where relevant, information on the complementarity with other Union financial instruments. 13 PROGRAMME IMPLEMENTING ARRANGEMENTS Designation by the Member State of all relevant authorities and, for information, a summary description of the management and control structure. Description of the monitoring and evaluation procedures, as well as the composition of the Monitoring Committee. Provisions to ensure that the programme is publicised, including through the national rural network. Description of the approach laying down principles with regard to the setting of selection criteria for projects and local development strategies, which takes into account relevant targets. Description of the mechanisms to ensure coherence between activities related to local development. Further guidance is provided in the Commission Staff Working Document "The partnership principle in the implementation of the Common Strategic Framework Funds - elements for a European Code of Conduct on Partnership" available at _106_en.pdf This section should contain the following elements: i. The designation by the Member State of all authorities referred to in Article 72(2) and, for information, a summary description of the management and control structure. In particular, the information provided in this section should allow for the assessment of the adequacy of human resources and administrative capacity for management of the programme as requested under Article 48(3)(i) of Regulation [CSF]. ii. A paragraph should include: a. A section which shows the suitability of procedures for monitoring the programme, and for collecting the data necessary to carry out evaluations. The description should cover the system to record, maintain, manage and report the statistical information on the programme and its implementation towards the defined objectives and priorities, and for evaluation purposes. It should be demonstrated that the resources allocated are sufficient to respond to the identified needs and proposed activities. EN 37

38 b. A description of the arrangements to ensure effective, efficient and coordinated implementation of the EAFRD and actions to achieve a reduction of administrative burden for beneficiaries (Article 24 of [CSF]). c. The envisaged composition of the Monitoring Committee broken down by type of stakeholder to demonstrate it is representative and balanced, and additional information in relation to its work arrangements, e.g. whether it is foreseen to establish a Joint Committee for all CSF funds, or it will be fundspecific, etc. iii. Description of the communication plan and the elements included in the implementing Regulation: a. Actions foreseen to inform potential beneficiaries, professional organisations, the economic, social and environmental partners, bodies involved in promoting equality between men and women and the non-governmental organisations, of the possibilities offered by the programme and the rules for gaining access to programme funding; b. Actions foreseen to inform the beneficiaries of the Union contribution; c. Actions to inform the general public about the role played by the Community in the programmes and the results thereof. iv. The principles that will be applied to the establishment of selection criteria for projects and local development strategies should be clearly described, taking into account relevant targets. v. In relation to local development, where activities are programmed under the local development strategies, the "Cooperation" measure referred to in Article 36 and the "Basic services and village renewal in rural areas" measure referred to in Article 21, the mechanisms to ensure coherence should be described, including how synergies are exploited and potential overlaps avoided. vi. An ex ante assessment of the verifiability, controllability and error risk of the measures should be included in this part of the rural development programme. 14 ACTIONS TAKEN TO INVOLVE PARTNERS Designation of actions taken to involve partners and the results of the consultations. Information should cover: i. The designation of the partners consulted: List of the consulted competent regional, local authorities and other public authorities, the economic and social partners and any other appropriate body representing civil society, non-governmental organisations, including environmental organisations, and bodies responsible for promoting equality between men and women. EN 38

39 ii. The results of the consultation: Summary of the results of consultations including the dates of consultation and the time given to comment and contribute to the programme preparation; description of the extent to which the views and advice received have been taken into account, and proper justification in case they have not been taken on board. Should the Managing Authority consider it necessary, a separate Annex attached to the RDP can be devoted to this section. 15 NATIONAL RURAL NETWORK ACTION PLAN Where applicable, the main elements of the national rural network action plan and structure, and provisions for its management. This section should briefly describe: i. The main elements of the action plan of the national rural network; ii. iii. Provisions for its management; Budgetary allocation. Additional requirements will be applicable to Member States with regional programmes submitting a separate programme for national rural networks. Further guidance will be provided by the European Network for Rural Development (ENRD). 1. Ex ante evaluation Attachments to the programme EN 39

40 ANNEX I: A BASIC INTERVENTION LOGIC: MATCHING MEASURES TO OBJECTIVES The matrix below provides an indicative list of measures/instruments relevant to one or more Union priorities and is meant to illustrate the flexible programming of measures in function of the goals the RDP intervention should achieve. Measures have been grouped into main categories (plus Leader): human and social capital measures; measures supporting forms of physical investment; area-based measures; and a miscellaneous category. P2: enhancing farm competitiveness 2A: restructuring 2B: generational renewal P3:promoting food chain organisation and risk 3A: food chain integration 3B: risk management P4: restoring, preserving and enhancing ecosystems 4A: biodiversity 4B: water 4C: soil 5A: water efficiency P5: promoting resource efficiency and the shift to a low carbon and climate resilient economy 5B: energy efficiency 5C: renewable energy 5D: emissions reduction 5E: carbon sequestration P6: promoting social inclusion, poverty reduction and economic development in rural 6A: diversification 6B: local development art 15 knowledge transfer and information actions X X X X X X X X X X X X X X X art 16 advisory services, farm management and farm relie X X X X X X X X X X X X X X X 6C: ICT art 36 cooperation X X X X X X X X X X X X X X X art 31 (CPR) support from CSF Funds for local development (CLLD) X art 18 investments in physical assets X X X X X X X X X X X X art 20 farm and business development X X X X X art 21 basic services and village renewal in rural areas X X X X X art 19 restoring agricultural production potential/prevention X art 22 investments in forest area development and viability of forests X X X X X X art 17 quality schemes for agricultural products and foodstuffs X art 28 setting up of producer groups X art 37 risk management X art 29 agri-environment-climate X X X X X X art 30 organic farming X X X art 31 Natura 2000 and Water Framework Directive payments X X X art 32 payments to areas facing natural or other specific constraints X X X art 35 forest environment and climate services and forest conservation X X X art 34 animal welfare X 40

41 ANNEX II: PRELIMINARY OVERVIEW OF MANDATORY REQUIREMENTS FOR SPECIFIC MEASURES Article 15: Knowledge transfer and information actions Definition of appropriate capacities for staff qualifications and regular training to carry out this task; Specification of the minimum qualifications of bodies providing knowledge transfer services and duration and content of farm exchange schemes and farm visits. Article 16: Advisory services, farm management and farm relief services Definition of level of appropriate resources in the form of regularly trained and qualified staff and advisory experience and reliability with respect to the field of advise; Identification and detailed information for at least one element between 5 listed in point 4; Specification of the minimum qualifications of the authorities or bodies providing advice. Article 17: Quality schemes for agricultural products and foodstuffs Indication of eligible quality schemes for agricultural products, cotton or foodstuffs recognized at national level fulfilling the 4 specific criteria of Point 1 (b); Indication of eligible voluntary agricultural product certification schemes recognized by MS as meeting the Union best practice guidelines. Article 18: Investments in physical assets Description of the requirements as regard the improvement of the overall performance of the agricultural holdings; Definition of non productive investments; Definition of collective investments; Definition of integrated projects; Definition and identification of the eligible Natura 2000 and other eligible High Nature Value Areas; Definition of the size of investments eligible for farm restructuring; Indication of outputs under Article 1 (2) which are not covered by Annex I. Article 20: Farm and business development Definition of a small farmer scheme; Definition of upper and lower thresholds as foreseen in point 4 of the article, 2nd paragraph, in relation to points 1(a)(i) and 1(a)(iii); 41

42 Definition of setting up used by the Member State/region; Summary of the requirements of the business plan; Use of the possibility to combine different measures through the business plan giving access of the young farmer to these measures; Domains of diversification covered. Art. 21: Basic services and village reveal in rural areas Definition of small scale infrastructure (except for broadband and renewable energy); Criteria for complementarity with support under other Union instruments for infrastructure investments in rural areas under the derogation for broadband and renewable energy; Type of renewable energy infrastructure to be supported in accordance with the definition of types of renewable energy set in the Delegated Act in line with Article 21(4). Article 22: Investments in forest area development and improvement of the viability of forests Definition of a certain size of holdings for which support will be conditional on the submission of a forest management plan or equivalent instrument. Article 23: Afforestation and creation of woodlands Definition of the minimum environmental requirements referred to in paragraph 2. Article 24: Establishment of agro-forestry systems Specification of maximum number of trees to be planted per hectare and forest species admitted. Article 25: Prevention and restoration of damage to forest fires and natural disasters and catastrophic events Definition of the list of species of organisms harmful to plants which may cause a disaster ("where relevant"); Identification of forest areas classified as being at medium to high risk of forest fire according to the relevant forest protection plan; Definition of size of holding which makes support conditional on the submission of a forest management plan. Article 26: Investments improving the resilience and environmental value of forest ecosystems Definition of types of eligible investment and the environmental objectives which they will achieve. Article 28: Setting up of producer groups 42

43 Description of the official procedure for recognising the groups. Article 29: Agri-environment -climate Identification and definition of the baseline elements; Identification and definition of mandatory requirements legislation; established by national List of local breeds in danger of being lost to farming and for plant genetic resources under treat of genetic erosion. Article 30: Organic farming Identification, and definition of the baseline elements; Identification and definition of mandatory requirements established by national legislation. Article 31: Natura 2000 and WFD payments Identification and definition of the baseline elements; Identification of the restrictions / disadvantages based on which payments can be granted; For WFD: definition of major changes in type of land use and existence of the programmes of measures of the river basin management plans; The areas designated to implement Directives 79/409/EEC, 2009/147/EC and 92/43/EEC and the obligations for farmers resulting from the corresponding national/regional management provisions. Article 32: Payments of areas facing natural and other specific constraints Identification of threshold level of area per holding on the basis of which MS calculates degressivity of payments. Article 33: Designation of areas facing natural and other specific constraints Designation of areas facing natural or other specific constraints and fine-tuning exercise based on objective criteria for delimiting areas other than mountains to be eligible for payments under Article 32; Definition of specific constraints for ensuring further eligibility in cases where land management should be continued. Article 34: Animal welfare Definition and identification of the national requirements corresponding to the mandatory standards established pursuant to Chapter I of Title VI of reg. (EC) No HR/2012. Article 35: Forest-environmental and climate services and forest conservation 43

44 Definition of size of holding which makes support conditional on submission of forest management plan or equivalent instrument; Identification of relevant mandatory requirements established by the national forestry act or other relevant national legislation. Article 36: Co-operation Definition of "local" context in particular for promotion (for purposes of paragraph 2 (e). Where a business plan, or a forest management plan or equivalent, or development strategy is implemented, MS may grant the aid either as a global amount covering the costs of cooperation and the costs of the projects implemented or cover only the costs of the cooperation and use funds from other measures or other Union Funds for project implmentation; Specification of the characteristics of pilot projects, clusters, networks, short supply chains and local markets. Article 37: Risk management Mechnisms to ensure that no overcompensation takes place. Article 38: Crop, animal, and plant insurance Conditions for contracts to be eligible for support, to include at least: (i) particular risks insured against; (ii) particular economic losses covered; (iii) the premium paid, excluding taxes. Rules to be used for establishing the calculation of the destruction of the average annual production of a farmer. Article 39: Mutual funds for animal and plant diseases and environmental incidents Definition of transparent policy towards payments into and withdrawals from the fund; Definition of clear rules attributing responsibilities for any debts incurred; Definition of the rules for the constitution and management of the mutual funds (for granting of compensation payments to farmers), to include in particular: (a) the conditions for financing the mutual fund; (b) the outbreaks of adverse climatic events, animal or plant disease, pest infestation or environmental incidents which may give rise to compensation to be paid to farmers, including geographical scope where appropriate; (c) the criteria for assessing whether a given event shall give rise to the payment of compensation to farmers; (d) the methods for calculating of the additional costs which constitute economic losses; (e) the calculation of the administrative costs; 44

45 (f) rules to be used for establishing the calculation of the destruction of the average annual production of a farmer; (g) any limits to the costs that are eligible for a financial contribution; (h) a procedure for the accreditation of a given mutual fund under national law; (i) procedural rules; and (l) the compliance and clearance audits that the mutual fund shall be subjected to following its accreditation. Where the source of the financial compensation to be paid by the mutual fund is a commercial loan, minimum and maximum duration of the commercial loan. Article 40: Income stabilisation tool Definition of income in respect of the conditions set under article 40(1); Definition of transparent policy towards payments into and withdrawals from the fund; Definition of clear rules attributing responsibilities for any debts incurred; Definition of the rules for the constitution and management of the mutual funds (for granting of compensation payments to farmers), to include in particular: (a) the conditions for financing the mutual fund; (b) the calculation of the administrative costs; (c) rules to be used for establishing the calculation of income drop; (d) any limits to the costs that are eligible for a financial contribution; (e) a procedure for the accreditation of a given mutual fund under national law; (f) procedural rules; and (g) the compliance and clearance audits that the mutual fund shall be subjected to following its accreditation. Where the source of the financial compensation to be paid by the mutual fund is a commercial loan, minimum and maximum duration of the commercial loan. Article 42: LEADER local action groups Ref. to Regulation (EU) No CSF/2012. Article 44: LEADER co-operation activities Establishment of system of ongoing application for co-operation projects in cases where co-operation projects are not selected by the LAGs. 45

46 ANNEX III: EXAMPLES OF INTERVENTION LOGIC BY PRIORITY 46

47 47

48 48

GUIDANCE FICHE PERFORMANCE FRAMEWORK REVIEW AND RESERVE IN VERSION 1 9 APRIL 2013 RELEVANT PROVISIONS IN THE DRAFT LEGISLATION

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