Poor crop prospects

    Rural Development


    Rural development is less significant in terms of expenditure than the direct payment scheme and implementation depends on the choices made by the individual devolved administrations from a menu of options.  However, this use of tax-payers money is in many ways more complex than the Pillar 1 expenditure since the number of objectives to be fulfilled is greater.  Thus some potential investments result in higher returns on investment for farmers than most Pillar 1 expenditure, some expenditure goes towards the supply of  public goods (such as environmental enhancement) and a small proportion is used for broader rural enhancement.  In addition, the English payment agencies further distort allocation because lack of resources means that it is easier to support single larger projects than smaller projects even if the benefit is less per payment made.

    Member States are required to maintain 25% of their Rural Development envelope on issues related to land management and reducing climate change.  The six main themes are:

    • Fostering knowledge transfer and innovation;
    • Enhancing competitiveness;
    • Promoting food chain organisation & risk management;
    • estoring, preserving & enhancing ecosystems;
    • Promoting resource efficiency & transition to low carbon economy;
    • Promoting social inclusion, poverty reduction and economic development in rural areas;
    • To meet the quantified targets set against these priorities (and taking into account their own specific needs), in their Rural Development programmes Member States / regions will design combinations of measures drawn from a streamlined menu.

    The Commission has been enabled to make small changes to the distribution of Rural Development national envelopes to take account of more objective criteria.

    The EU co-funding rates will be 85% in less developed regions, the outermost regions and the smaller Aegean islands, and 50% in other regions for most payments.  However, rates can be higher for innovation and knowledge transfer, cooperation, establishing producer groups, young farmer installation grants and LEADER projects.


    Key contacts

    Andrew Wraith

    Andrew Wraith

    Food & Farming

    Savills Lincoln

    +44 (0) 1522 508 973

    +44 (0) 1522 508 973