Editing Common Agricultural Policy (section)

== Rural development policy (structural policy, Pillar II) ==

Since 2000, the second pillar of the CAP, the EU [[rural development]] policy has been in effect, financed since 2007 from the [[European Agricultural Fund for Rural Development]], one of the five [[European Structural and Investment Funds]]. This policy aims to promote the economic, social and environmental development of the countryside. Its budget, 11% of the total EU budget, has been allocated along three axes.<ref>{{cite web |url=http://ec.europa.eu/budget/budget_detail/current_year_en.htm |title=The current year: 2010 |publisher=European Commission |access-date=23 April 2011 |archive-url=https://web.archive.org/web/20100815112106/http://ec.europa.eu/budget/budget_detail/current_year_en.htm |archive-date=15 August 2010 |url-status=dead}}</ref> The first axis focuses on improving the competitiveness of the farm and forestry sector through support for restructuring, development and innovation. The second one concerns the improvement of the environment and the countryside through support for land management as well as helping to fight [[climate change]]. Such projects could for example concern preserving water quality, [[sustainable land management]], planting trees to prevent erosion and floods. The third axis concerns improving the quality of life in rural areas and encouraging diversification of economic activity. The policy also provided support to the [[Leader rural development methodology]], under which Local Action Groups designed and carried out local development strategies for their area. Member States distribute second-pillar funds through actions of national and regional rural development programmes.

[[Rural development]], the second pillar of CAP, is a vitally important policy area in the European Union. It works to improve aspects of the economic, [[Biophysical environment|environmental]] and social situation of the EU's rural areas. Rural regions cover 57% of the EU territory and 24% of the [[Demographics of the European Union|EU population]]. Together with intermediate regions they comprise 91% of the EU territory and 59% of the total EU population. Across the EU, the [[dimension]]s of the rural-urban territorial vary – from countries with an explicitly defined rural character (such as Ireland, Sweden, Finland, etc.) to [[EU Member states|Member States]] that tend to be more urbanised (such as the [[Benelux countries]], Malta).<ref>{{Cite journal|last=Gallardo-Cobos|first=Rosa|date=December 2010|title=Rural development in the European Union: the concept and the policy|url=http://www.scielo.org.co/scielo.php?script=sci_abstract&pid=S0120-99652010000300014&lng=en&nrm=iso&tlng=en|journal=Agronomía Colombiana|volume=28|issue=3|pages=464–470|issn=0120-9965|access-date=14 January 2021|archive-date=20 December 2021|archive-url=https://web.archive.org/web/20211220201430/http://www.scielo.org.co/scielo.php?script=sci_abstract&pid=S0120-99652010000300014&lng=en&nrm=iso&tlng=en|url-status=live}}</ref>

The policy works essentially through [[Rural Development Programme|seven-year rural development programmes (RDPs)]] – which operate at either national or regional level. These are funded from the [[Budget of the European Union|EU budget]], national/regional budgets and private sources. Rural Development policy targets rural areas as a whole, with a focus on ensuring the [[Competition (companies)|competitiveness]] of farms and forestry, delivering sustainable management of natural resources and climate action as well as create growth and jobs in rural areas.<ref>{{Cite web|title=European Union {{!}} Agricultural Policy Monitoring and Evaluation 2020 {{!}} OECD iLibrary|url=https://www.oecd-ilibrary.org/sites/796abe17-en/index.html?itemId=/content/component/796abe17-en|access-date=2021-01-14|website=oecd-ilibrary.org|language=en|archive-date=20 December 2021|archive-url=https://web.archive.org/web/20211220201432/https://www.oecd-ilibrary.org/sites/796abe17-en/index.html?itemId=%2Fcontent%2Fcomponent%2F796abe17-en|url-status=live}}</ref>

=== Budget ===
Rural development policy is financed by three categories of funding:
* public money from the EU budget – i.e. from the [[European Agricultural Fund for Rural Development|EAFRD]]
* public money from national/regional budgets – depending on whether the programme is national or regional
* private money – in some cases, beneficiaries have to provide some funding themselves (from their own resources, a bank loan etc.)<ref>{{Cite web|title=Rural Development .:. Sustainable Development Knowledge Platform|url=https://sustainabledevelopment.un.org/index.php?page=view&nr=290&type=504&menu=139|access-date=2021-01-14|website=sustainabledevelopment.un.org}}</ref>

The expected total public spending (EU + national + regional) on rural development policy in the period between 2014 and 2020 is EUR 161&nbsp;billion.<ref>{{Cite web|url=http://ec.europa.eu/agriculture/rural-development-2014-2020/country-files/common/implementation-state-of-play_en.pdf|title=Rural development programmes by country &#124; European Commission|access-date=20 July 2015|archive-date=11 March 2015|archive-url=https://web.archive.org/web/20150311032235/http://ec.europa.eu/agriculture/rural-development-2014-2020/country-files/common/implementation-state-of-play_en.pdf|url-status=live}}</ref>

=== Rural development objectives and priorities 2014–2020 ===
The three objectives and overall purpose of the CAP include:
* fostering the competitiveness of agriculture;
* ensuring the sustainable management of natural resources, and climate action;
* achieving a balanced territorial development of rural economies and communities, including the creation and maintenance of employment.<ref>{{Cite journal|date=1 July 2015|title=The role of biomass and bioenergy in a future bioeconomy: Policies and facts|journal=Environmental Development|language=en|volume=15|pages=3–34|doi=10.1016/j.envdev.2015.03.006|issn=2211-4645|doi-access=free|last1=Scarlat|first1=Nicolae|last2=Dallemand|first2=Jean-François|last3=Monforti-Ferrario|first3=Fabio|last4=Nita|first4=Viorel|bibcode=2015EnvDe..15....3S }}</ref>

However, in practical terms RDPs are drawn up with reference to six more specific priorities, which are further divided into more detailed focus areas.<ref>{{cite web |url=http://enrd.ec.europa.eu/en/policy-in-action/cap-towards-2020/rdp-programming-2014-2020/policy-overview |title=Policy Overview 2014–2020 |website=[[European Network for Rural Development]] |url-status=dead |archive-url=https://web.archive.org/web/20150202062246/http://enrd.ec.europa.eu/en/policy-in-action/cap-towards-2020/rdp-programming-2014-2020/policy-overview |archive-date=2 February 2015}}</ref>

# Knowledge transfer & innovation in agriculture, forestry & rural areas
# Farm viability / competitiveness, sustainable management of forests
# [[Food chain]] organization, [[animal welfare]], risk management in agriculture
# [[Ecosystem]]s related to agriculture and forestry
# [[Resource efficiency]], low-carbon / climate-resilient economy
# [[Social inclusion]], [[poverty reduction]], [[economic development]]<ref>{{Cite web|title=Rural Development Schleswig-Holstein 2014–2020 {{!}} EuroAccess Macro-Regions|url=https://www.euro-access.eu/calls/rural_development_schleswig-holstein_2014-2020|access-date=2021-01-14|website=euro-access.eu|language=en|archive-date=17 January 2021|archive-url=https://web.archive.org/web/20210117234529/https://www.euro-access.eu/calls/rural_development_schleswig-holstein_2014-2020|url-status=live}}</ref>

=== National and regional rural development programs ===
There is a total of 118 Rural Development Programs(RDP) in the EU. In most Member States there is a national program which covers the entire territory but in some countries there are several programs, most often linked to regions: France (30), Spain(22), Italy(23), Germany(15), Portugal(3), United Kingdom(4), Belgium(2), Finland(2).<ref>{{Cite journal|last1=Underwood|first1=Evelyn|last2=Grace|first2=Miriam|date=17 August 2017|title=The use of biodiversity data in rural development programming|url=https://riojournal.com/article/20369/|journal=Research Ideas and Outcomes|language=en|volume=3|pages=e20369|doi=10.3897/rio.3.e20369|issn=2367-7163|doi-access=free|access-date=14 January 2021|archive-date=15 January 2021|archive-url=https://web.archive.org/web/20210115045625/https://riojournal.com/article/20369/|url-status=live}}</ref>

==== Designing rural development programs ====
A given RDP links the priorities of rural development policy to the situation on its territory via a [[SWOT analysis]]. 
The RDP then sets out a selection of measures drawn from the Rural Development Regulation to address the priorities in the appropriate way.

A measure is essentially a set of one types of activity, project, investment etc. which may be funded within a RDP to achieve the priorities of rural development policy.<ref>{{Cite web|date=26 October 2015|title=7 Major Rural Development Policies of India|url=https://www.yourarticlelibrary.com/india-2/rural-development/7-major-rural-development-policies-of-india/66724|access-date=2021-01-14|website=Your Article Library|language=en-US|archive-date=17 September 2017|archive-url=https://web.archive.org/web/20170917040227/http://www.yourarticlelibrary.com/india-2/rural-development/7-major-rural-development-policies-of-india/66724|url-status=live}}</ref>

For example, the measure Investments in physical assets as set out in the [[Rural development]] Regulation allows support for:
* Investments in farms to improve their performance;
* Investments in processing and marketing (i.e. not necessarily only for farmers);
* Investments in farm- or forest-level infrastructure; and
* Non-productive (i.e. primarily environmental) investments. Measure descriptions in the EU Rural Development Regulation give information of varying detail (according to the measure) about who is potentially eligible for support, what sorts of activity etc. can be supported, and whether there are limits on how much support may be offered.

MS follow the rules for a given measure but, within this framework, still enjoy considerable flexibility about how they use it. For example, a MS might choose to make the measure Investments in physical assets available in its RDP, but only with regard to environmental investments.<ref>{{CELEX|32013R1305|text=Regulation (EU) No 1305/2013 of the European Parliament and of the Council of 17 December 2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD) and repealing Council Regulation (EC) No 1698/2005}}</ref>

==== Use of targets ====
In explaining how it will use the various measures together to address the priorities / focus areas of rural development policy within its RDP, the MS / region set various targets against these.
The nature of the target varies according to the focus area. For example, against focus area 5A – Increasing efficiency in water use by agriculture – the standard target indicator is the percentage of the [[Irrigation]] area in the program area which is expected to switch to more efficient irrigation equipment as a result of rural development support.<ref>{{Cite web|last=PANEVA|first=Veneta|date=5 January 2017|title=Priority & Focus Area Summaries|url=https://enrd.ec.europa.eu/policy-in-action/rural-development-policy-figures/priority-focus-area-summaries_en|access-date=2021-01-14|website=The European Network for Rural Development (ENRD) – European Commission|language=en|archive-date=17 January 2021|archive-url=https://web.archive.org/web/20210117224536/https://enrd.ec.europa.eu/policy-in-action/rural-development-policy-figures/priority-focus-area-summaries_en|url-status=live}}</ref>

==== Development, approval and amendments ====
A MS / region draws up its RDP in close consultation with a wide range of interested parties, including bodies representing [[Civil society]].
The MS / region submits its RDP to the Commission for analysis. The Commission approves the RDP when satisfied concerning its legality and quality (usually after several months of detailed discussion with the MS concerned).

RDPs usually need to be amended several times during their seven-year life, to keep them as relevant, effective and efficient as possible – in light of changing circumstances and the findings of monitoring and evaluation. Program amendments which go beyond surface details require the Commission's approval.<ref>{{Cite web|title=Rural development|url=https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/rural-development_en|access-date=2021-01-14|website=European Commission – European Commission|language=en|archive-date=17 January 2021|archive-url=https://web.archive.org/web/20210117180441/https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/rural-development_en|url-status=live}}</ref>

==== Project selection ====
When a RDP has been drawn up and approved, it is advertised.
People, businesses etc. which would like to receive support for projects apply for it. Provided that they are eligible for the type of support in question (according to the RDP), they may be selected for support on the basis of objective selection criteria .
* Example: In a given RDP, a MS has decided to offer support for environmental investments in forests under the measure "Investments in forest area development". The measure as set out in the Rural Development Regulation allows a wide range of entities to be eligible for support. The MS decides to keep this broad approach in terms of eligibility, but to give priority to "private forest-holders". At the moment when projects are selected for support, therefore, extra selection "points" will be awarded to applications from private forest-holders. This approach would be announced in overview in the RDP itself, but worked out in detail in subsequent national implementing rules.{{citation needed|date=January 2021}}

==== Monitoring and evaluation ====
Monitoring is essentially about tracking how fast, and in what way, RDPs are being implemented – with reference to financial data and other indicators.
RDPs are monitored continuously. Within this process, program authorities must each send an annual [[implementation]] report for each program by 30 June every year, starting in 2016 and ending in 2024.
Evaluation involves rather deeper analysis (especially of effectiveness, efficiency and impact). The key stages are:
* Ex ante evaluation: Drawn up under the responsibility of the relevant program authority, this is submitted to the Commission at the same time as the program, and assesses the program's quality.
* Evaluation during the programming period (in enhanced Annual Implementation reports 2017 and 2019 in particular): MS arrange for this to be done on the basis of an evaluation plan. The Commission may also carry out evaluations if it wishes.
* Ex post evaluation: Drawn up under the responsibility of the relevant program authority, this is submitted to the Commission by the end of 2024.
* Synthesis of evaluations: Syntheses at Union level of the ex ante and ex post evaluations are undertaken under the responsibility of the Commission and completed by 31 December of the year following the submission of the relevant evaluations.
The monitoring and evaluation processes draw on a range of indicators concerning financial execution, outputs, results and impact.<ref>{{Cite web|last=Duquenoy|first=Sandrine|date=3 June 2019|title=RDP Monitoring data Summaries|url=https://enrd.ec.europa.eu/policy-in-action/rural-development-policy-figures/rdp-monitoring-data-summaries_en|access-date=2021-01-14|website=The European Network for Rural Development (ENRD) – European Commission|language=en}}</ref>

==== Ex ante conditionalities ====
Ex ante conditionalities (EACs) help to ensure that MS have set the right background conditions for spending funds effectively and efficiently through their program.
Some EACs are ''general'' in the sense that they apply to all of the [[European Structural and Investment Funds]] (ESIFs).
* Example: MS must have in place arrangements for applying EU public procurement law in the fields covered by the ESIF Funds. This is important because many program will allocate significant sums to projects covered by public procurement rules.
* Other EACS are fund-specific (they do not apply to all ESIF Funds). The EAFRD has its own EACs. 
* Example: MS must have set out standards for Good Agricultural and Environmental Condition (GAEC) in national law and must specify them in their RDPs. 
MS declare their fulfilment or non-fulfilment of EACs in their programs, and summaries it in their Partnership Agreement. The Commission checks this information.

When a MS does not meet some or all EACs, usually the MS is required to follow an action plan which allows it to meet the EAC by the end of 2016.

==== Performance reserve ====
6% of the EAFRD financial resources allocated to a given RDP are placed in a performance reserve, which is provisionally divided up between some or all of the rural development priorities.
After receipt of the 2019 annual implementation reports, the Commission checks which priorities have performed well{{dash}}i.e. against which priorities particular ''milestones'' (key targets) have been met.

Where the milestones of a given priority have been met, the sum from the performance reserve initially allocated to that priority is confirmed.
Where the milestones of a given priority have not been met, the sum initially allocated from the performance reserve is transferred to priorities whose milestones have been met. This approach is intended to focus minds more sharply on achieving results.