Rural Development Programme of the Republic of Slovenia 2007 - 2013 20.07.2007 TABLE OF CONTENTS 1 2 TITLE OF THE RURAL DEVELOPMENT PLAN______________________________ 7 MEMBER STATE ________________________________________________________ 8 2.1 Geographical coverage of the plan ______________________________________ 8 2.2 Areas covered by the “Convergence” Objective ___________________________ 8 3 ANALYSIS OF THE SITUATION IN THE LIGHT OF STRENGTHS AND WEAKNESSES, STRATEGY CHOSEN TO TACKLE THEM AND EX ANTE EVALUATION _______________________________________________________________ 9 3.1 Analysis of the situation in the light of strengths and weaknesses _____________ 9 3.1.1 Overall socio-economic features _________________________________________ 9 3.1.2 Agriculture, food industry and forestry characteristics _______________________ 22 3.1.3 State of the environment ______________________________________________ 32 3.1.4 Rural areas and the quality of life in the rural areas__________________________ 46 3.1.5 LEADER __________________________________________________________ 53 3.2 Strategy chosen to cover strengths and weaknesses________________________ 56 3.3 Ex ante evaluation ___________________________________________________ 59 3.4 Impacts from previous programming period and other information _________ 68 3.4.1 Pre-accession instruments _____________________________________________ 69 3.4.2 RDP 2004-2006 _____________________________________________________ 71 3.4.3 SPD_______________________________________________________________ 74 4 RATIONALE OF PRIORITIES CHOSEN WITH REGARD TO COMMUNITY STRATEGIC GUIDELINES, NATIONAL STRATEGY PLAN AND ANTICIPATED IMPACT OF EX ANTE EVALUATION _________________________________________ 77 4.1 Rationale of the RDP 2007-2013 priorities chosen with regard to the Community Strategic Guidelines and the National Strategy Plan_____________________________ 77 4.2 Anticipated impact from the ex-ante evaluation with regard to the priorities chosen 83 5 INFORMATION ON AXES AND MEASURES PROPOSED UNDER EACH AXIS AND THE DESCRIPTION THEREOF_______________________________________________ 86 5.1 General requirements ________________________________________________ 88 5.2 Requirements on all or certain measures ________________________________ 90 5.3 Information necessary for axes and measures ____________________________ 93 5.3.1 Axis 1: Improving the competitiveness of the agricultural and forestry sector _____ 93 5.3.2 Axis 2: Improving the environment and the countryside_____________________ 126 5.3.3 Axis 3: Quality of life in the countryside and diversification or rural economy ___ 248 5.3.4 Axis 4: Implementation of the LEADER approach _________________________ 260 6 FINANCIAL PLAN _____________________________________________________ 268 6.1 Annual contribution by EAFRD ______________________________________ 268 6.2 Financial plan by axes_______________________________________________ 268 7 FRAMEWORK ALLOCATION BY RURAL DEVELOPMENT MEASURE _______ 269 8 DDITIONAL NATIONAL FINANCING AT DISTINCTION OF MEASURES CONCERNED, AS LAID DOWN BY REGULATION 1698/2005 ____________________ 270 9 ELEMENTS REQUIRED FOR THE ASSESSMENT IN THE LIGHT OF 2 COMPETITIVENESS RULES AND AID SCHEME APPROVED PURSUANT TO ARTICLES 87, 88 AND 89 OF THE TREATY, APPLIED FOR THE PROGRAMME IMPLEMENTATION _______________________________________________________ 271 10 INFORMATION ON COMPLEMENTARITY WITH MEASURES FINANCED BY OTHER INSTRUMENTS UNDER THE COMMON AGRICULTURAL POLICY, COHESION POLICY AND COMMUNITY AID FOR FISHERIES __________________ 272 10.1 Complementarity with Community activities, policies and priorities ________ 272 10.2 Complementarity of RDP 2007-2013 with Cohesion Policy ________________ 276 10.3 Demarcation from fisheries development instruments ____________________ 279 10.4 Complementarity of RDP 2007-2013 with other policies and instruments ____ 280 11 DESIGNATION OF COMPETENT AUTHORITIES AND BODIES RESPONSIBLE 283 11.1 Managing Authority ________________________________________________ 283 11.2 Paying Agency _____________________________________________________ 285 11.3 Certification body __________________________________________________ 287 11.4 Description of the management structure and financial flow for payments to final beneficiaries _____________________________________________________________ 287 11.5 Monitoring system__________________________________________________ 289 12 MONITORING AND EVALUATION SYSTEMS AND ENVISAGED FORMATION OF THE MONITORING COMMITTEE ________________________________________ 291 12.1 Monitoring and evaluation systems ____________________________________ 291 12.2 Envisaged formation of the Monitoring Committee ______________________ 294 13 PROVISIONS FOR ENSURING PUBLIC INFORMATION ON THE PROGRAMME 295 13.1 Envisaged measures for informing potential beneficiaries, professional organisations, economic, social and environmental partners, bodies involved in promoting equality between men and women and non-governmental organisations of the possibilities offered by the Programme and the rules for obtaining financial resources under the Programme_____________________________________________________ 296 13.2 Envisaged measures for informing beneficiaries on Community contribution_ 298 13.3 Measures for information of general public on Community role in programmes and their results__________________________________________________________ 298 14 THE DESIGNATION OF THE PARTNERS CONSULTED AND THE RESULTS OF THE CONSULTATION______________________________________________________ 300 14.1 Designation of consultation partners___________________________________ 300 14.2 The results of the consultation ________________________________________ 305 15 EQUALITY BETWEEN MEN AND WOMEN AND NON-DISCRIMINATION __ 320 16 THECHNICAL ASSISTANCE __________________________________________ 322 16.1 Description of drawing up, running, monitoring and evaluation of information and control activities and aid programmes financed under Technical assistance ____ 322 16.2 National rural network ______________________________________________ 322 3 ABBREVIATIONS AND SYMBOLS AAS AE AH AIS and accordingly AMTS ARSAMRD ARSE ASH ASM CAEP CAFS CAG CAP CBI/FBI CC CCIS c.c. CCDVR CO2 DG AGRI DOPPS DPC e.g. EAFRD EAGGF EC ECom EEC EIA EISA EAA EAF EFF ESF ESU ETA EU EUR, € EUR/SIT EUROSTAT FAO FIFG GAO GDP GEM GERK GMO GOLSGRP GVA ha HDI i.e. IACS ICT IFP IH INFO point ISPA IT Agricultural Advisory Service Agri-environmental Agricultural holding Agricultural Institute of Slovenia And accordingly Association of Municipalities and Towns of Slovenia Agency of the Republic of Slovenia for Agricultural Markets and Rural Development Agency of the RS for Environment Areas affected by specific handicaps Association of Slovene municipalities Common Agri-Environmental Programme Chamber of Agriculture and Forestry of Slovenia Coastal action group Common Agriculture Policy Common Bird Index/ Farmland Bird Index Chamber of Craft Chamber of Commerce and Industry of Slovenia Cadastral community The Comprehensive Countryside Development and Village Renovation Programme Carbon dioxide Directorate-General for Agriculture and Rural Development DOPPS – BirdLife Slovenia Development Programme for the Countryside For example European Agricultural Fund for Rural Development European Agricultural Guidance and Guarantee Fund European Community European Commission European Economic Community Environmental Impact Assessment European Initiative for Sustainable Development in Agriculture Economic accounts for agriculture Economic accounts for forestry European Fisheries Fund European Social Fund European Size Unit Maintenance of extensive grassland European Union Euro Exchange rate (Euro/Slovenian tolar) Statistical Office of the European Communities Food and Agriculture Organisation Financial Instrument for Fisheries Guidance Gross agricultural output Gross domestic product Global Entrepreneurship Monitoring Graphical unit of use of KMG Genetically modified organisms Government Office for Local Self-Government and Regional Policy Gross value added Hectare Human development index That is Integrated Administration and Control System Information and communication technology Integrated fruit production Integrated horticulture Information point Instrument for Structural Policies for Pre-Accession Information technology 4 IVP JRC k kg km KMG-MID kt eq Ktoe LAG LEADER LFA LFS LPA LU m MA MAr MAFF MAS MC ME MES MESP MF milliard Mio. MLFSA mm MP NGO No. NPEP NSPRD NSRF NUTS OECD OF OJ L OJ RS OP PARS PDO PE PGI PHARE PMWU PPP RDA RDAg RDP 2004-2006 RDP 2007-2013 RS RSE SAPARD SCA SDS SFI SIFP SIT SLO SMEs so called Integrated vine production Joint Research Centre Kilo Kilogram Kilometre Agricultural holding registration code Kilo tonne equivalent Unit representing equivalent for 1000 tonnes of oil Local action group Liaison Entre Actions de Développement de l'Economie Rurale (EC initiative supporting rural communities in improving the quality of life and economic welfare in their local areas) Less favoured areas Labour force survey Maintaining utilised and settled landscape in protection areas Livestock unit Meter Managing Authority Mountain Areas Ministry of Agriculture, Forestry and Food Municipalities Association of Slovenia Ministry of Culture Ministry of Economy Ministry of Education and Sport Ministry of Environment and Spatial Planning Ministry of Finance Milliard Million Ministry of Labour, Family and Social Affairs Millimetre Mountain pasture Non-governmental organisation Number National Programme on Environmental Protection National Strategy Plan of the Rural Development of RS National Strategic Reference Framework Nomenclature of Territorial Statistical Units – system of region classification Organisation for Economic Co-operation and Development Organic farming EU Official Journal – L series (Legislation) Official Journal of the Republic of Slovenia Operational Programme Phytosanitary Administration of RS Protected designation of origin Private entrepreneur Protected geographical indication One of three pre-accession instruments financed by the EU Productive man-work unit Plant protection product Research and development activity Regional Development Agency Rural Development Programme of the Republic of Slovenia 2004-2006 Rural Development Programme of the Republic of Slovenia 2007-2013 Republic of Slovenia Renewable sources of energy Special Action for Pre-accession Measures for Agriculture and Rural Development Statistical Classification of Activities Strategy for the Development of Slovenia Slovenia Forest Institute Slovenian integrated fruit production Slovenian tolar Slovenia Small and medium sized enterprises so called 5 SO2 SORS SPA SPD SRDA STAR Committee SWOT t TAIEX TSG UAA UMAR UNEP WCMC WB WPA WTT Sulphur dioxide Statistical Office of the Republic of Slovenia Special Protection Area Single programming document Sustainable rearing of domestic animals Committee on Agricultural Structures and Rural Development Strengths, Weaknesses, Opportunities, Threats Tonne Technical Assistance and Information Exchange Office Traditional Speciality Guaranteed Utilised agricultural area Institute of Macroeconomic Analysis and Development United Nations Environment Programme - World Conservation Monitoring Centre Water bodies Water protection areas Wine and Tourism Trails 6 1 TITLE OF THE RURAL DEVELOPMENT PLAN Document title: Rural Development Programme of the RS 2007-2013 (hereafter referred to as RDP 2007-2013). The RDP was drawn up in accordance with Regulation 1698/20051, Regulation 1290/20052, Regulation 1974/20063, Regulation 1320/20064, Regulation 1975/20065, Regulation 1848/20066 and Council Decision 2006/144/EC7. 1 Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the EAFRD (OJ L 277, 21.10.2005, p. 1–40) 2 Council Regulation (EC) No 1290/2005 of 21 June 2005 on the financing of the common agricultural policy (OJ L 209, 11.8.2005, p. 1–25) 3 Commission Regulation (EC) No 1974/2006 of 15 December 2006 laying down detailed rules for the application of Council Regulation (EC) No 1698/2005 on support for rural development by the EAFRD (OJ L 368, 23.12.2006, p. 15– 73) 4 Commission Regulation (EC) No 1320/2006 of 5 September 2006 laying down rules for the transition to the rural development support provided for in Council Regulation (EC) No 1698/2005 (OJ L 243, 6.9.2006, p. 6–19) 5 Commission Regulation (EC) No 1975/2006 of 7 December 2006 laying down detailed rules for the implementation of Council Regulation (EC) No 1698/2005, as regards the implementation of control procedures as well as crosscompliance in respect of rural development support measures (OJ L 368, 23.12.2006, p. 74–84) 6 Commission Regulation (EC) No 1848/2006 of 14 December 2006 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the common agricultural policy and the organisation of an information system in this field and repealing Council Regulation (EEC) No 595/91 (OJ L 355, 15.12.2006, p. 56–62) 7 2006/144/EC: Council Decision of 20 February 2006 on Community strategic guidelines for rural development (programming period 2007 to 2013) (OJ L 55, 25.2.2006, p. 20–29) 7 2 2.1 MEMBER STATE Geographical coverage of the plan The RDP 2007-2013 is a uniform implementing document of the rural development policy applying to the whole territory of the RS. 2.2 Areas covered by the “Convergence” Objective At the NUTS 2 level Slovenia is a single region and thus wholly eligible for funding under the Convergence Objective. 8 3 3.1 ANALYSIS OF THE SITUATION IN THE LIGHT OF STRENGTHS AND WEAKNESSES, STRATEGY CHOSEN TO TACKLE THEM AND EX ANTE EVALUATION Analysis of the situation in the light of strengths and weaknesses 3.1.1 Overall socio-economic features With the total area of 20,273 km2 Slovenia is a rather small European country. To the North it borders Austria (length of the borderline 324 km), to the West Italy (235 km), to the Northeast Hungary (102 km) and to the South and Southeast Croatia (546 km), which is also the external EU border. Slovenian coast of the Adriatic Sea to the Southwest is 47 km long. Slovenia is positioned at the junction of different climatic and geomorphologic features as well as of different cultural influences of the Alpine, Mediterranean and Pannonian landscapes. The strategic position between the Alps and the most northern golf of the Mediterranean Sea represents one of the most important European transitions from Southeast Europe towards the West and from Central Europe towards the South. Slovenia is known for its great relief diversity, distinct cultural landscape, architecture and settlement heritage and rich and versatile natural systems. Nearly 90 percent of the territory lies at altitudes exceeding 300 m, while plain areas in the shape of contiguous valleys and basins represent only about 20 percent of the entire Slovenian territory (Annex 1, Figure 1). Consequently, the transitivity of the areas in the past was quite difficult as well as the settlement conditions and the establishment of economic activities. The relatively unfavourable yet vivid natural conditions have a direct impact on: the dispersed settlement and large number of small settlements; the specific structure of land use; the high level of natural and biological diversity; the cultural diversity; the rich surface and groundwater resources; the cultural landscape diversity. The administrative organisation of Slovenia is structured on two levels: national (state) and local. The basic unit of the local self-government is municipality (NUTS 5). At the beginning of the programming period 2007-2013 Slovenia shall have 210 municipalities. Slovenia is divided into 12 development regions at the NUTS 3 level. They have no additional administrative or regulatory function; they function for statistical purposes only and for the implementation of programming and granting of direct aids under the national regional policy. Slovenia is a Member State with an above-average rural areas share. Given the OECD8 criteria 67 percent of all Slovenian municipalities (NUTS 5), representing 77 percent of the entire national territory, are designated as rural areas, having 41 percent of the total population. At the NUTS 3 level eleven of twelve statistical regions are designated as rural and at the NUTS 2 level Slovenia is a single region and thus entirely defined as rural area. 8 For the purposes of the RDP 2007-2013 the RS applies the OECD methodology for the designation of rural areas. 9 Table 1: Classification of Slovenian rural areas by the OECD methodology at the NUTS 5 (municipalities) and NUTS 3 (statistical regions) level ALL MUNICIPALITIES RURAL MUNICIPALITIES* No. of Area No. of No. of Share Area Share No. of Share municipal. (km2) inhabit. municipal. (%) (km2) (%) inhabit. (%) Statistical region Predominantly rural* Spodnjeposavska 3 885 69,826 3 100.0 885 100.0 Notranjsko-kraška 6 1,456 51,032 6 100.0 1,456 100.0 Jugovzhodna Slov. 16 2,675 139,095 15 93.8 2,377 88.9 Koroška 12 1,041 73,839 9 75.0 893 85.8 Goriška 12 2,325 119,622 10 83.3 2,001 86.1 Significantly rural* Pomurska 26 1,337 122,717 16 61.5 944 70.6 Savinjska 32 2,384 256,752 22 68.8 1,723 72.3 Podravska 34 2,170 319,114 21 61.8 1,492 68.8 Osrednjeslovenska 25 2,555 496,675 13 52.0 1,616 63.2 Gorenjska 17 2,137 198,342 10 58.8 1,528 71.5 Obalno-kraška 7 1,044 105,029 4 57.1 660 63.2 Predominantly urban* Zasavska 3 264 45,547 0 0.0 0 0.0 SLOVENIA 193 20,273 1,997,590 129 66.8 15,575 76.8 * Municipalities with population density under 98 inhabitants per km2 ** OECD classification of areas in regard of population share living in rural municipalities: - Predominantly rural areas: more than 50 percent of population lives in rural municipalities - Significantly rural areas: 15 to 50 percent of population lives in rural municipalities - Predominantly urban areas: less than 15 percent of population lives in rural municipalities Source: SORS (Population census 2002), data processing KIS 69,826 100.0 51,032 100.0 97,661 70.2 51,020 69.1 77,127 64.5 60,321 103,818 117,445 108,787 65,351 23,436 49.2 40.4 36.8 21.9 32.9 22.3 0 825,824 0.0 41.3 DEMOGRAPHIC FEATURES With the population of 2 million (0.5 percent of the EU population) and the population density of 98 inhabitants per square kilometre Slovenia is relatively sparsely populated Member State. Characteristic for the population pattern are densely populated basins and valleys as almost 60 percent of the total population lives on less than 20 percent of the whole Slovenian territory. In the hilly Prealpine and Dinaric-Karst areas the population density is sparse, where small dispersed settlements with aging population prevail. Similar trends appear in the areas alongside the state borderline. With permanent population renewal the demographic trends in Slovenia show birth rate decline and slowing-down of mortality, which is also generally present in other EU countries. The share of births is decreasing, while the share of labour force as well as old population is increasing. At present this process is still slow due to the relatively great demographic losses during both world wars, thus in the old population share Slovenia is still behind the EU average. It could become critical as soon as in the next decade when numerous generations born after World War II shall 10 enter the old population contingent, whereas the children and labour force contingents shall start to decline (as a result of low birth rate after 1980s). Table 2: Population structure in Slovenia by age groups (%) and the number of women per 100 men 31.12. 2000 2001 2002 2003 2004 2005 0-14 years 15.7 15.4 15.0 14.6 14.4 14.1 15-24 years 14.5 14.2 14.0 13.8 13.4 13.1 25-49 years 38.4 38.4 38.3 38.2 38.0 38.0 50-64 years 17.2 17.5 18.0 18.4 18.8 19.2 65-79 years 11.8 12.0 12.1 12.2 12.3 12.4 80 + years 2.4 2.5 2.7 2.9 3.0 3.2 Number of women per 100 men 104.6 104.5 104.5 104.4 104.5 104.1 The gender structure of the population is similar to the majority of the European countries. The number of women is higher than the number of men, but the ratio is gradually narrowing down. The demographic structure of rural areas in Slovenia differs considerably from the general demographic pattern. This applies to the employment as well as the age structure. Due to the ageing population and simultaneous migration of young people from rural areas (brain-drain) the demographic structure is less favourable in predominately rural regions. The unfavourable age structure of rural areas is particularly evident in farm households. More than 50 percent of agricultural holding operators are over 55 years old. The share of operators under 45 years is only 19 percent (Table 2). The age structure of operators on larger farms is slightly better, but the age structure deterioration of operators of farms larger than 10 ha UAA was even severer as in all farms. In Slovenia, the average age of farm women is 50 years. Seven of ten farm women are older then 45 years. Thereof, two thirds have concluded or incomplete elementary education and one third have concluded secondary education. In 2005 women engaged in agriculture worked 42 hours weekly on average. In addition to this, women under 45 years raise 1.3 children. There are two types of migration flows in rural areas. In the rural areas near urban centres increased population density has been registered. The more marginal rural areas, however, are still being abandoned. Negative demographic and economic trends are therefore particularly evident in more rear and marginal rural areas. These areas also lack infrastructure equipment as one of the prerequisites of economic and social development. 11 ECONOMIC GROWTH Slovenia has successfully integrated into the European economic area. After three years of relatively meagre economic growth a renewed accelerated growth was registered in 2004 and 2005 (to 4.2 and 4.0 percent respectively). In the average of the period 2000-2005 the economic growth amounted to 3.4 percent and was above the EU-25 average. Considering the EU average, in 2004 Slovenia thus reached 79 percent of the GDP per capita in purchasing power and after 2005 it already exceeded 80 percent of the EU-25 average, after 2005 it has already exceeded 80 percent of this average (EUROSTAT, 2006). The GDP per capita in purchasing power comparison to other countries is shown in Table 3. Table 3: Gross domestic product per capita in purchasing power under purchasing power standards, volume index, EU-25 = 100 EU-15 Austria Belgium Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxemburg Malta Nederland Poland Portugal Slovakia Slovenia Spain Sweden United Kingdom 2000 110.0 125.8 116.7 80.9 64.9 126.2 42.1 114.3 113.6 111.9 72.9 54.0 126.3 113.3 35.4 38.0 222.4 78.7 124.3 46.8 80.5 47.5 72.9 92.3 119.0 112.0 Source: EUROSTAT, 2006 2001 109.6 122.1 117.2 82.8 65.8 124.9 44.7 115.5 113.9 110.0 73.2 56.9 128.5 112.0 37.1 40.2 214.6 74.6 127.0 46.1 79.9 48.5 73.9 93.2 115.2 113.1 2002 109.3 120.0 117.5 82.0 67.7 121.4 46.8 114.7 112.0 108.5 77.2 59.1 132.3 110.0 38.7 41.9 220.7 75.6 125.3 46.3 79.4 51.0 74.5 95.2 113.6 116.0 2003 109.0 120.3 117.9 79.8 68.3 120.8 50.3 112.6 111.6 108.1 80.9 60.1 133.7 107.6 40.8 45.2 232.7 73.7 124.7 46.9 72.7 51.9 75.9 97.4 115.6 116.4 2004 108.6 121.7 118.1 82.6 70.5 121.5 53.0 113.7 109.5 108.0 81.8 60.9 135.8 105.5 42.8 47.8 237.5 70.2 124.4 48.7 72.3 52.9 79.2 97.7 117.1 117.1 2005 108.3 122.5 117.5 83.3 73.8 124.2 60.1 113.3 108.8 109.3 82.0 61.4 137.5 102.6 47.2 52.1 247.5 69.5 124.2 49.8 71.2 55.0 80.6 98.6 114.5 116.5 The competitiveness of Slovenian economy has increased. The key competitiveness indicators show a continuation of graduate improvement in labour productivity and market shares as well as the fluctuation of the cost competitiveness. After a relatively high growth in the second half of 1990s (4.8 percent real average annual growth) the labour productivity growth is gradually becoming steady (3.1 percent in 2000-2005). Hence, due to the far lower labour productivity growth in the majority of the more developed EU Member States Slovenian shortcoming on the European average is decreasing. However, to reach the European average and the average of the more developed Member States more quickly, the present, relatively high, productivity growth should enhance even more in the future. Therefore, a more educated labour force and technologically advanced production is required. 12 Table 4: Selected indicators of the economic development in Slovenia Development indicators Population Employment (national accounts) Gross domestic product (GDP) Real GDP growth rate GDP per capita GDP per capita in purchasing power GDP per employee Value added per employee Inflation Labour productivity Measuring unit (000) (000) (Mio. EUR) (%) (EUR) EU-25 = 100 (EUR) (EUR) Annual average (%) Real LP growth (%) 2000 2001 2002 2003 2004 2005 1,990 894.8 1,992 898.9 1,996 912.5 1,997 910.5 1,997 913.5 2,001 916.2 20,974 22,099 23,673 24,876 26,257 27,626 4.1 2.7 3.5 2.7 4.4 4.0 10,543 11,094 11,866 12,461 13,103 13,677 72.9 73.9 74.5 75.9 79.2 80.6 23,440 24,585 25,944 27,322 28,743 30,153 20,320 21,403 22,482 23,727 25,021 26,277 8.9 8.4 7.5 5.6 3.6 2.5 3.3 2.2 3.8 2.9 3.9 3.7 Source: SORS, EUROSTAT The regional GDP distribution (2003) by activities shows that the disparities in the development between regions are considerable, whereas only two regions (Osrednjeslovenska and ObalnoKraška) have a higher GDP per capita than the national average. These two regions are more urbanised and have an above-average share of the service sector. Table 5: Regional gross domestic product (2003) Statistical region Spodnjeposavska Notranjsko-kraška Jugovzhodna Slovenija Koroška Goriška Pomurska Savinjska Podravska Osrednjeslovenska Gorenjska Obalno-kraška Zasavska SLOVENIA Area (OECD)* PRA PRA PRA PRA PRA SRA SRA SRA SRA SRA SRA PUA GDP per capita **GVA structure (%) EUR SLO=100 A and B C to F G to P 9,961 79.9 5.6 49.2 45.2 9,523 76.4 5.5 43.8 50.7 11,234 90.2 4.7 50.0 45.3 9,723 78.0 3.3 50.8 45.9 11,892 95.4 2.7 39.6 57.7 8,535 68.5 8.1 36.2 55.7 11,062 88.8 3.1 47.0 49.9 10,382 83.3 3.1 35.5 61.4 17,954 144.1 1.0 25.2 73.8 10,830 86.9 1.8 43.8 54.3 12,882 103.4 1.3 23.6 75.1 8,937 71.7 1.6 49.1 49.3 12,461 100.0 2.6 35.6 61.9 * PRA – predominantly rural areas; SRA – significantly rural areas; PUA – predominantly urban areas ** A + B Agriculture, hunting, forestry and fisheries, C + D Mining industry and processing activities, E electrical power and drinking water supply, F Construction industry, G Trade, repair of motor vehicles, H Hotels and restaurants, I Traffic, storing and communications, J Financial intermediation, K Real estates, lease and business services, L Public administration, compulsory social security, M Education, N Health care and social security, O + P Other public, common and personal services; private households with employed staff. Source: SORS In relation to the EU Slovenia has a comparable economy structure regarding the economic operator size. According to the data on 2004 micro and small companies represent 98.4 percent, employ 43.4 percent of all employees in Slovenia and produce 38.9 percent of the total turnover9. An average Slovenian enterprise employs 6.4 persons, a micro company 1.9 and a small company 20.2 workers10. An enterprise in the EU as a whole as well as in the non-Member States employs 7 persons on average. In spite of the progress in the last year, Slovenia is still very low ranked in international comparisons as regards the business activity as well as the accessibility of financing resources. In 1999-2004 the number of enterprises in business sector increased only by 2.6 percent and the rate of 9 SORS: Statistical information No 291/4.11.2005 Rebernik, Miroslav, etc.: SLOVENSKI podjetniški observatorij. 2004. Del 1, nov. 2004 (Transl.: SLOVENIAN business observatory. 2004. Part 1, Nov. 2004). 10 13 early business activity declined from 4.6 percent in 2002 to 2.6 percent in 2004, but increased to 4.4 percent in 2005, which is, however, still the fourth lowest rate among the EU Member States. Additionally characteristic for Slovenia is also relatively high business mortality. The unfavourable business environment in Slovenia, as a result of the low level of the initial business activity and high level of emerging business mortality, has a negative impact on the weak economy of the initial phases of the business process. The shift from the group of emerging into new enterprises is comparatively among the least effective. However, the situation within the group of longer operating businesses has been improving. In new and established enterprises Slovenia is among the countries with the most favourable relation between the two groups. In 2005 positive shifts in shares of economically active population ware noted as the declining tendency of the early business activity from 2002-2004 was reversed. Evident is also an increased share of people entering business processes due to sensed business opportunity, which is positive in the light of the business stability and business process quality. Nevertheless, in 2005 the total initial business activity level was still lower than in 2002. The progress is evident in investments in research and development activity (R&D) as their share in the GDP increased to 1.61 percent in 2004 (in the year before 1.53 percent). Thus the lag on the EU average (1.90 percent of GDP) decreased to 0.29 percentage point, which is Slovenia’s lowest lag so far. Given the indicator value Slovenia is still in front of all new Member States as well as the Mediterranean countries (Greece, Italy, Portugal and Spain) and Ireland. The government sector share in the structure of financing resources amounts to 35.3 percent, whereby it is positive that the business sector has increased the expenditure on investments in R&D, which is compliant with development documents in this area. In the area of innovation and patent application Slovenia has made some progress. In the goods export structure the highest growth was registered in the share of medium and high technologically intensive products in the last years. Thus, with 55.9 percent of these products in the goods export structure Slovenia has come very close to the European average. It is also necessary to emphasise that the majority are medium technologically intensive products. The share of high technologically intensive products is increasing very slowly and is relatively low. LABOUR MARKET Slovenia is facing strong developmental disproportions in employment between individual economic activities. In spite of the intensified structural problems in some labour intensive industrial branches the employment rate in Slovenia has increased in the past years. The employment rate or the labour activity of the population aged 25-64 years has increased from 71 percent in 2000 to 73.5 percent in 2005 and 15-64 years from 62.8 percent to 66 percent. The employment rate of women is lower than the employment rate of men. However, it does exceed the 60 percent goal which was set by the Lisbon Strategy in 2000 and to be reached by the Member States by 2010. In the past two years the total employment rate in Slovenia is higher than the EU average, whereby the employment rate of women is slightly higher than the EU average (EU-25: 56.3 percent). 14 Table 6: Employment and unemployment rate in Slovenia (%) Indicator Employment rate (15-64 years) - Employment rate of men (15-64 years) - Employment rate of women (15-64 years) Employment rate (25-64 years) - Employment rate of men (25-64 years) - Employment rate of women (25-64 years) Unemployment rate - Unemployment rate of men - Unemployment rate of women Source: SORS, EUROSTAT (2006) 2000 62.8 67.2 58.4 71.0 75.3 66.5 6.7 6.5 7.0 2001 63.8 68.6 58.8 72.6 77.7 67.3 6.2 5.6 6.8 2002 63.4 68.2 58.6 73.0 77.9 67.9 6.3 5.9 6.8 2003 62.6 67.4 57.6 71.2 75.8 66.5 6.7 6.3 7.1 2004 65.3 70.0 60.5 73.6 77.8 69.2 6.3 5.8 6.8 2005 66.0 70.4 61.3 73.5 78.1 68.6 6.5 6.1 7.0 In the recent period the unemployment rate in Slovenia has gradually decreased. In 2005 the ILO unemployment rate was 6.5 percent, which is lower than the EU average (EU-25: 8.7 percent). However, the unemployment rate by regions deviates significantly from the national average. As long as by 2003 the employment rate in Slovenia was lower than the EU-15 average and in 2003 it was even lower than the EU-25 average. Only in 2004 the employment rate in Slovenia was higher than (both) EU averages and remained so in the second quarter 2005 as well. The employment of men in Slovenia is continually somewhat lower and the employment of women slightly higher than both EU averages. The employment of young people (15-24 years) as well of people over 55 years (Figure 1) in Slovenia is still lower than the EU average. The problematically low employment in the age group 55-64 years, with the Lisbon target of 50 percent by 2010, is slowly improving. In 2004 it increased to 29.0 percent (EU-25: 41.0 percent) and in 2005 to 30.5 percent11. The differences with young people arise as a result of a relatively high participation of young people in secondary in tertiary education programmes and a relatively higher unemployment rate of young people than the EU average. With older people these differences arise as a result of a high structural unemployment, which particularly affects older unemployed people. The lower employment rate in this age group is still affected by the relatively low retirement age. However, the average retirement age has also gradually increased – in 2005 it was 58 years and 10 months for old-age pension and 52 years and three months for disability pension (in 1995: 55 years and seven months and 47 years and 1 month respectively) – but it is still lower than the EU-25 average: 60.7 years. The lower employment rate of elder people is still affected by massive early retirement in the early 1990s. 11 According to an unofficial calculation by the Institute of macroeconomic analysis and development based on published survey data on labour force by the Statistical Office of RS for all four quarters of 2005. 15 Figure 1: Employment rate by age groups in Slovenia and the EU-25 for 2000 and 2005 In 2005 the ILO unemployment rate increased slightly and the decline of the registered unemployment rate was slowed down (Figure 2). In 1995-2000 the ILO unemployment rate ranged between 7 and 8 percent and has declined since 2001. In the second quarter 2005 it reached the lowest level (5.8 percent) since measured (from 1993), but has increased in the third and fourth quarter 2005, thus the average annual ILO unemployment rate in 2005 (6.5 percent) was higher than in 2004 (6.3 percent) (Table 7). The unemployment rate in 2005 was 6.1 percent for men and 7.1 percent for women. According to labour force survey results the number of unemployed persons, amounting to approximately 70,000 in 1995-2000 and declining to 62,000 by 2002, remains at 64,000 from 2003 onward. Such was also the average number of the ILO unemployed in the first three quarters 2005. In the fourth quarter the number increased again to 74,000. Thus, in 2005 the average ILO unemployment was at 67,000. 16 Table 7: Unemployment rate (%) EU-25 EU-15 EU-10 Austria Belgium Cyprus Czech Denmark Estonia Finland France Greece Ireland Italy Latvia Lithuania Luxemburg Hungary Malta Germany Netherlands Poland Portugal Slovenia Slovakia Spain Sweden United Kingdom 1995 no data 10.1 no data 3.9 9.7 no data no data 6.7 no data 15.4 11.1 9.2 12.3 11.2 no data no data 2.9 no data no data 8.0 6.6 no data 7.3 7.4 no data 18.8 8.8 8.5 2000 8.6 7.7 13.6 3.6 6.9 4.8 8.7 4.3 12.8 9.8 9.1 11.3 4.3 10.1 13.7 16.4 2.3 6.4 6.7 7.2 2.8 16.1 4.0 6.7 18.8 11.4 5.6 5.4 2001 8.4 7.3 14.5 3.6 6.6 3.9 8.0 4.5 12.4 9.1 8.4 10.8 4.0 9.1 12.9 16.5 2.1 5.7 7.6 7.4 2.2 18.2 4.0 6.2 19.3 10.8 4.9 5.0 2002 8.8 7.6 14.8 4.2 7.5 3.6 7.3 4.6 10.3 9.1 8.9 10.3 4.5 8.6 12.2 13.5 2.8 5.8 7.5 8.2 2.8 19.9 5.0 6.3 18.7 11.5 4.9 5.1 2003 9.0 8.0 14.3 4.3 8.2 4.1 7.8 5.4 10.0 9.0 9.5 9.7 4.7 8.4 10.5 12.4 3.7 5.9 7.6 9.0 3.7 19.6 6.3 6.7 17.6 11.5 5.6 4.9 2004 9.1 8.1 14.2 4.8 8.4 4.7 8.3 5.5 9.7 8.8 9.6 10.5 4.5 8.0 10.4 11.4 4.8 6.1 7.3 9.5 4.6 19.0 6.7 6.3 18.2 11.0 6.3 4.7 Source: Population and social conditions – Labour Market, EUROSTAT, 2005. Statistical information – Labour Market, SORS. 2005 8.7 7.9 13.4 5.2 8.4 5.3 7.9 4.8 7.9 8.4 9.5 10.0 4.3 7.7 9.0 8.2 5.3 7.2 7.3 9.5 4.7 17.7 7.6 6.5 16.4 9.2 6.3 4.7 Figure 2: ILO and registered unemployment rate by gender Slovenia continues strengthening the knowledge-based economy factors. The education structure is improving and is slowly catching up with the EU average. Although the tertiary educated population share has increased to 20.0 percent in 2005, Slovenia is approaching the EU-25 average (22.8 percent) only slowly. The lag is especially high in comparison to Scandinavian countries. Estonia and Lithuania also progress much faster than Slovenia. The total education expenditure is high (6 percent of GDP), but Slovenia falls behind in the expenditure per participant in the tertiary 17 education. The ratio between the student number and teaching staff is also significantly behind the developed countries, which is summarised in Table 8. Table 8: Selected indicators in the field of education and training Slovenia EU-25 EU-15 Tertiary educated population share (25-64 years) in % (2nd quarter 2005) 20.0 22.8 24.0 Public expenditure on education in v % GDP (2002) 5.98 5.22 5.22 Private expenditure share for educational institutions at tertiary level in % (2002) 23.3 17.2 12.8 Annual expenditure for educational institutions per tertiary education student in € SKM (2002) 6,138 7,946 8,562 Number of students per 1000 inhabitants (2003) 50.9 37.0 35.6 Number of graduates per 1000 inhabitants aged 20-29 years (2003) 46.6 52.9 51.2 Source: SORS, EUROSTAT, UMAR calculations The development of the services society and the globalisation enhance the challenges by way of reduction of employment and education disparities in the labour market. Quick technological changes emphasise the need for lifelong learning and new, less typical and more flexible forms of employment relations. In 2005 172,000 persons of age group 25 to 64 years have attended vocational trainings, which represents 15.3 percent of the total population in this age group. The extent of the lifelong learning has increased and exceeded the EU-25 average, in 2005 this share was 10 percent (EUROSTAT). The lifestyle standard has improved: given the human development index (HDI) Slovenia has continuously improved its placement in comparison to other countries – in 2003 the HDI in Slovenia value exceeded 0.90 (0.904) for the first time, which is a very high level of development (average HDI value in EU-25 in 2003 was 0.907, in EU-10 0.865). Gross salary as the main income source is increasing (in 1995-2004 the average gross salary per employee actually increased on average 2.8 percent annually and was by 1.1 percentage point behind the labour productivity growth. LAND USE In the land use structure of Slovenia the predominant part is covered by forests (59.8 percent of the total national territory)12, whereas to date their share has gradually increased. Agricultural land represents 32 percent of total Slovenian territory, and other land 8.2 percent. Table 9: Actual land use in Slovenia, 2005 Land use Area (ha) Share (%) Forest Other land Agricultural land 1,213,424 165,837 648,113 59.8 8.2 32 Source: MAFF, 2005 Given the latest official statistics at European level (Forest Resources Assessment 2005 – FAO) 62.8 percent of Slovenian territory is covered by forest (http://www.fao.org/docrep/008/a0400e00.htm). 12 18 Table 10: Actual agricultural land use in Slovenia, 2005 Land use Fields and gardens Meadows and pastures Perennial crops Other agricultural land Total agricultural land Area (ha) 196,204 353,901 54,649 43,360 648,113 Share (%) 30.3 54.6 8.4 6.7 100 Source: MAFF, 2005 The greatest share of the structure of agricultural land use is covered by permanent grassland and pastures (54.6 percent), followed by fields (30.3 percent) and perennial crops (8.4 percent) (Table 10). Nearly 7 percent of agricultural land is other agriculturally land. There, the production was abandoned in the past due to different natural, economic and social causes. The grassland share in the agricultural land use structure is nearly as twice as large as the average EU share. In spite of the high share, characteristic for grassland in Slovenia is a relatively low economic cultivation as extensive meadows still represent a higher share that intensive meadows. Meadows and pastures cover nearly two thirds of the total agricultural land in Slovenia. The reasons therefore are: - dissected terrain and structured surface, - climate humidity providing favourable conditions for the growth of grassland plant varieties due to the above-average humidity and a relatively favourable distribution of precipitation and temperatures throughout the year, - altitude, together with dissected terrain, disabling more intensive types of use of arable land particularly in mountain areas, - karstic surface features in the majority of the country conditioning predominant grassland use of the soil due to shallowness and lower quality of the soil. The trend of increasingly overgrown surfaces, present in the past decades, has declined since 2003. Hence, in the last three years the total agricultural land surface has not changed significantly. Characteristic for agricultural land in Slovenia, which covers nearly 650,000 ha according to the latest data, is high absolute grassland share and a relatively low arable land and perennial crops share. The ratio between grassland and arable land areas has significantly changed in the last century to the favour of grassland. In agricultural land area per capita (0.32 ha) Slovenia is close to the European average, whereas in arable land area per capita (0.11 ha) it is at the bottom of the European scale (Figure 3). Slovenia disposes of no larger continuous areas suitable for crop production. Due to the dissected surface arable land is mainly situated in plain areas in valleys and basins, with the exemption of the Pannonian area to the Northeast representing the most important crop production area in the country. As a traditional vine and fruit growing country Slovenia’s perennial crops area per capita is comparable to the EU (Figure 3). Due to its geographical position, which is partially Submediterranean and partially Subpannonian, the share of agricultural land adequate for cultivation of vineyards, orchards and olive groves in Slovenia is relatively high. But the terrain there is much dissected and the areas are hilly, which limits the options for setting up plantations. Vineyards and orchards are mainly restricted to sites in inclination – the so-called absolute vineyard areas. 19 Figure 3: Average agricultural land area per capita (SORS 2005) The majority of agricultural land (72.5 percent) is situated in less favoured areas in accordance with the RDP 2004-2006 (see chapter 5.3.2.1). The unfavourable conditions do not make agricultural activity entirely impossible, but they cause lower production capacity of the farms, narrow down the choice of crops, production management and demand technology adaptation, which again causes a more expensive production. Farms in these areas are less competitive and, due to the reflection of specific natural conditions under the agricultural land use structure, less adaptable. In spite of lower production potentials in these areas agriculture plays an important role in the maintenance of the settlement and cultural landscape as well as ecological balance. In Slovenia agriculture is predominantly founded on family farms, representing 99.8 percent of the total number of agricultural holdings and utilising 94.8% of the total utilised agricultural area (2005). The 1990s changes have accelerated the concentration and specialisation process in agriculture, but the average holding size still remains small (6.3 ha of agricultural land). In 2000, family farms and agricultural enterprises, surveyed within the framework of the census of agriculture, owned 848,058 ha of land in total. Calculated per holding unit family farms own nearly 10 ha of land on average, which is more than five times less than agricultural enterprises. The disparities in the land size owned show in the average size as well as in the size structure of holdings. Among family farms medium sized holdings prevail, the major share (27.3 percent) of which represent farms with 5 to 10 ha of land owned. In the size structure of agricultural enterprises nearly fifty percent are captured by holdings owning over 20 ha of land. Agricultural holdings let out more than 8,000 ha or 9.3 percent of the total land owned on lease to other users. The majority of land (98.5 percent) is let out on lease by family farms. On average these lease out 1.7 ha of land per holding. Nearly 30 percent of farms lease out from 1 to 2 ha of land owned. In the light of the number of holdings as well as the areas the rental of land is more extensive. Nearly 30 percent of agricultural holdings in Slovenia decide for rental. More than one fourth of the total land is rented by agricultural enterprises. While family farms mainly rent smaller areas, among agricultural enterprises prevail holdings which rent 50 or more hectares of land. Table 11: Family farms and agricultural enterprises All AH - family farms - agricultural enterprises Number of AH (2005) 77,175 77,042 133 Source: SORS 20 Table 12: Age structure of agricultural holding owners Total 2003 2005 Total 77,149 77,175 Source: SORS Younger than 45 years 2003 2005 14,389 14,503 45 to less than 55 years 2003 2005 19,158 18,777 55 years and more 2003 2005 43,602 43,894 Table 13: Agricultural holding owners structure by gender Gender Percentage Women 27.26 Men 68.88 Unknown 3.86 Total 100 Source: Register of agricultural holdings Private property and split-up estate are predominant in forestry as well. Due to the denationalisation process the ownership structure of Slovenian forests is still intensively changing. It is estimated that after the conclusion of the denationalisation process 20 percent of forests shall remain in the possession of the state. Family farms own nearly one half of private forests. Private non-farm property has increased in the total share of private forest cover, especially in the number of estates. 21 3.1.2 Agriculture, food industry and forestry characteristics The accession to the European Union entailed the Common Agricultural Policy and other single market provisions upon Slovenian agriculture. In spite of prior harmonisation of the national legislation with the EU legal order in the pre-accession period, certain problems occur in the implementation of regulations in agriculture, which are being resolved ongoing. In general, the EU accession brought no major difficulties for Slovenian agriculture. The analysis of trends and key income factors in agriculture indicate no greater changes that could directly be related to Slovenia’s accession to the European Union. By adopting the of the Common Agricultural Policy (CAP) reform in June 2003 on direct payments Slovenia has also committed to implement the it. On 1 June 2006 the Government of the RS adopted the decision on the model for implementing the CAP reform on direct payments for Slovenia in 2007-2013, whereby Slovenia is designated as a single region. The Decree on implementing direct payments in agriculture lays down the payment entitlements in detail representing the amount of the per-hectare payment of eligible area. Payment entitlements are a basis for obtaining direct payments from 2007 onward. In Slovenia, there are three payment entitlement types: payment entitlement comprising of regional payment (or also from supplement for milk and/or supplement for sugar and/or supplement for cattle sector and/or for specific conditions), payment entitlement accompanied by an approval for fruit, vegetable and potato production, and payment entitlement for set aside land. The amount of the regional payment shall range from EUR 133 per hectare for grassland to EUR 332 per hectare for arable land. Slovenia has transferred all EU regulation establishing the standards on the common agricultural policy into the national legislation. The fulfilment of the requirements and conditions set out by the standards shall be checked by way of the cross compliance control system and regular inspections. Slovenia adopted the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended), which is compliant with the requirements under the Community standards and represents the legal basis for the supervision over the implementation of the standards in the light of obtaining direct payments and other per area payments under the common agricultural policy. AGRICULTURAL ACTIVITY Agriculture, food industry and forestry in Slovenia are facing restructuring processes. Low productivity remains predominantly the problem of agriculture. The causes therefore can be found in the weak land and parcel structure, low professionalisation rate and relatively low labour intensity. According to data of the economic accounts for agriculture in 2004-2005 the gross value added of agriculture in Slovenia amounted on average to EUR 5,499 per productive man-work unit (PMWU), which is less than one third of the EU-25 value. 22 Table 14: Economic development indicators of Slovenian agriculture Economic accounts for agriculture (EAA) 2000 2001 2002 2003 2004 2005 GVA (Mio. €) 434.5 400.8 505.1 391.8 499.5 492.1 - share in the total GVA in Slovenia (%) 2.4 2.1 2.5 1.8 2.2 2.0 - share in the total GDP in Slovenia (%) 2.1 1.8 2.1 1.6 1.9 1.8 Employment (000 PMWU) 103.8 107.1 106.0 95.6 90.2 90.2 - share in the total employment rate (%) 11.6 11.9 11.6 10.5 9.9 9.8 GVA/PMWU (€) 4,187 3,743 4,766 4,098 5,541 5,458 Index - GVA/employee of all activity branches = 100 20.6 17.5 21.2 17.3 22.1 20.8 - GVA/employee EU-25 = 100 27.8 23.4 29.8 24.6 30.7 33.6 EU-25 GVA/PMWU (€) 15,047 16,028 15,971 16,648 18,033 16,233 Source: SORS (Economic accounts for agriculture, NA), EUROSTAT (EAA) Next to the unfavourable size structure, among the factors contributing to the low productivity of agriculture, are also the age and education structure as well as the low level of production specialisation on agricultural holdings. In 2005 the average economic size of holdings amounted to only 4.6 ESU. In spite of the concentration process the average size of agricultural holdings in Slovenia is still nearly three times smaller than the EU average. Additionally, the labour input on Slovenian agricultural holdings, measured in PMWU, is at the EU level, which indicates a low productivity and poorly exploited labour potential in agriculture. Table 15: Number and average agricultural holding size in Slovenia Agricultural holdings 2000 86,467 470,498 Year 2003 77,149 456,167 2005 77,175 421,587 2005/2000 89.3 89.6 Index 2005/2003 100 92.4 utilised agricultural area (ha) 5,6 6.3 6.3 111.9 100 number of livestock units (LU) 6,2 5.9 5.5 88.7 93.2 standard gross margin (ESU) 4,7 4.6 4.6 98.5 100 Number of agricultural holdings Number of LU Average size with regard to: Source: SORS One of the reasons for the low productivity of agriculture is also the unfavourable age and education structure of the agricultural holding operators. According to the structural survey (SORS-AHS) in 2005 more than 50 percent of the operators on agricultural holdings were over 55 years old, the share of operators under 45 years was only 19 percent. Table 16: Age structure of operators on family farms in Slovenia 2000 Number % Total 86,336 100.0 < 45 years 17,709 20.5 45-55 years 19,779 22.9 >=55 years 48,648 56.3 Source: SORS (Structural surveys of agricultural holdings) 2003 Number 77,037 14,341 19,117 43,579 % 100.0 18.6 24.8 56.6 2005 Number 77,042 14,461 18,703 43,877 % 100.0 18.8 24.3 57.0 In 2005 the share of operators with vocational or higher education was 46.8 percent. The share of agricultural holding operators with any agricultural education was only 27.8 percent. 23 Table 17: Agricultural education of operators on family farms in Slovenia Education Operators, total No data Practical experience only Agricultural courses Vocational or secondary education Higher, university or postgraduate education Operators with any agricultural education Source: SORS (Structural surveys of agricultural holdings) 2000 2003 2005 Number % Number % Number % 86,336 100.0 77,037 100.0 77,042 100.0 1,869 2.2 1,001 1.3 0 0.0 72,440 83.9 63,104 81.9 55,562 72.1 7,045 8.2 7,415 9.6 16,368 21.2 4,340 5.0 4,755 6.2 4,429 5.7 642 0.7 763 1.0 681 0.9 12,027 13.9 12,933 16.8 21,478 27.8 Younger farm operators have a higher level of formal education and are better trained for work in agriculture and are thus able to adjust to technological changes and market conditions more efficiently. The transfer of farms to younger farmers as well as training and more efficient use of already established advisory, education, information and training systems throughout the country can make an important contribution to a greater innovation, structural changes and raised competitiveness of agriculture. Characteristic for Slovenia are split-up agricultural units, which are, in addition to this, mainly small and dispersed. Utilised agricultural area is divided into 720,000 agricultural units extending over more than 1,700,000 parcels. This makes 9 to 10 agricultural units per agricultural holding, which are generally dispersed on several locations. The unfavourable parcel structure is a considerable structural obstacle in further development of agriculture. In the last few years certain improvements have been noted, which are still being obstructed by the immobility of the agricultural land market and an inefficient land use policy. However, this is one of the key conditions for improving the parcel structure. On the other hand, the split-up agricultural land contributes to the conservation of biodiversity, habitats and environmental specifics, which is positive for the preservation of the environment. The extent of conducted land consolidation, which can efficiently contribute to solving the problem of agricultural land fragmentation, has been very limited in the past years. Hence, in the past 15 years only 5,000 ha have been consolidated, which represents only 1 percent of the total utilised agricultural area. The experience on supporting the land consolidation has shown that it can be effective only if the initiative to introduce land consolidation comes directly from farmers. This particularly applies if the support involves the land improvement and the arrangement of the traffic infrastructure in the consolidated area. Another problem of Slovenian agriculture with negative impacts on the competitiveness is the great dependency of production on the natural conditions. The problem mainly relates to the extent, quality and environmental carrying capacity of the hydro-melioration systems. Climate change and more frequent longer lasting droughts on one hand and exuberant precipitation on the other cause great loss of income in agriculture. In Slovenia only a small percentage of agricultural land is irrigated. The construction of new irrigation systems with a controlled use of water is, next to the long-term adaptation of plant production to the climate change, one of the more effective measures providing for greater crop and income stability in agriculture, which, through continuous training and awareness raising of the irrigation users, must contribute to a better environmental carrying capacity of the use of natural resources which do not burden the environment. Slovenian agriculture still carries the burden of the past. For decades it had developed under a specific political and economic influence not in favour of private farming. Due to the decentralised regional development providing for jobs nearby a special socio-economic structure of agricultural 24 holdings was established with prevailing mixed farms, which combined the income from various sources, and where agriculture was often merely the secondary and not the primary activity. The 1990s changes have accelerated the concentration and specialisation process, but mixed farms still prevail. Significant for this situation is also the smallness of Slovenian farms. For a long period of time Slovenian agriculture had developed in the totally opposite direction than agriculture in the majority of the European countries. This especially applies for the agrarian structure and its development. While in the agriculturally developed countries in a relatively short time the establishment size and the production specialisation were increased together with the improvement of agricultural technology, the opposite process took place in Slovenia all up to 1990s. Characteristic was weakening of parcel and land use structure, low professionalisation level and relatively low labour intensity. Slovenia is a European country with the lowest rate of specialisation in agriculture. While within the EU-15 nearly 85 percent of agricultural holdings are specialised in a specific plant or animal production, only 43.5 percent of Slovenian agricultural holdings are specialised, given the data of the agricultural holdings survey in 2003. Characteristic for plant production is a relatively intensive specialisation in horticulture and perennial crops production and a moderate specialisation in crop production. Livestock holdings are specialised particularly in meat and milk production. The livestock production of Slovenian farms is less versatile than crop production. Cattle production is prevailing due to the natural conditions and indirectly due to great grassland share within the agricultural land structure. Specialised holdings manage more than the half of agricultural land (55 percent) and produce 62.7 percent of the total standard recovery value of agricultural production in Slovenia. The production structure of Slovenian farms is a direct reflection of the agricultural land use structure. In plant production the seeding composition is relatively narrowed and simplified. The three leading crops – maize, wheat and silage maize – cover nearly two thirds of the entire arable land in Slovenia. High share of farms growing individual crops and generally small average area size indicate a low level of specialisation and great dispersion of crop production. In the last decade, in particular after Slovenia’s accession to the EU, agrarian structure began to improve. This shows especially in progressed parcel concentration and consequently in a larger average size of agricultural establishments. Given the research on the agricultural holdings structure (KMG) in Slovenia, in 2005 77,175 agricultural holdings were engaged in agricultural production, which is 10 percent fewer than in 2000 (Table 15). Although the number of agricultural holdings in 2003 declined in comparison to 2000, the area of utilised agricultural area remained basically unchanged. According to statistical data from 2003 and 2005 the average size of agricultural holdings in Slovenia was 6.3 ha. The structural changes reflect also in the farm size structure. While ten years ago more than two thirds of total agricultural land was managed by farms of which more than one the half were smaller than 2 ha and nearly 70 percent smaller than 5 ha, today the production core has shifted towards larger and development-oriented farms. The share of small farms (under 2 ha UAA) amounts to 23 percent and they utilise only about 4 percent of the total UAA. In 2000-2005 the umber of farms larger than 20 ha UAA had increased by more than 50 percent. Based on the relatively fast land increase these farms manage over 23 percent of total agricultural land. Nevertheless, the farm size structure in Slovenia is still incomparable to that in the EU, where similar structure can be found only in some Mediterranean countries (Greece, Italy and Portugal). The farm size and the production structure significantly govern the production type of farms in Slovenia. In general, the structural conditions are far more appropriate for labour and income intensive livestock production and less for specialised crop and mixed production. 25 16 - < 40 ESU 3,7% =< 40 ESU 0,6% 8 - < 16 ESU 7,9% 4 - < 8 ESU 14,4% > 2 ESU 48,9% 2 - < 4 ESU 24,5% Figure 4: Production types and economic size of agricultural holdings in Slovenia (SORS, 2003) In Slovenia, two production types prevail – grazing livestock rearing and mixed livestock production (Figure 4). In total, these two types represent more than one half of all farms. In 2005, 51.2 percent of agricultural holdings were engaged in a certain type of plant or livestock production (SORS-AHS). Compared to 2004 the share increased by nearly 8 percentage points. Nevertheless, compared to the EU average the percentage remains low (EU-25 2003: 72%). The share of agricultural holdings engaged in the production of grazing animals (cattle, sheep and goats) has increased the most as well as the share of holdings engaged in crop production. The extent and type of agricultural production are closely related to the average economic size of agricultural holdings. Given the data of the agricultural holdings survey in 2005 the economic size was 4.6 ESU. The economic size of nearly 50 percent of agricultural holdings is lower than 2 ESU, and of another 25 percent between 2 and 4 ESU. Low level of economic size of Slovenian farms reflects in the fact that only about 4 percent holdings dispose of economic size over 16 ESU. In 2004 agriculture and forestry contributed 2.2 percent of the total GDP and employed 10.5 percent of all employed population in the country. In the past decade the contribution of agriculture to GDP and employment rate has steadily declined and in 2005 it decreased to 2.0 percent. Compared to 1995, the agriculture share in GDP decreased by 1.4 percentage point, while employment went back by 3.7 percentage points. In spite of the lower share of agriculture in the Slovenian economy the importance of the sector is still higher than the EU-25 average. Although the economic importance of agriculture is decreasing, other functions of agriculture, having an impact on the development, are increasing – multifunctional role of agriculture. The economic importance of agriculture remains relatively high in predominately rural areas where economy is less developed. From the disparity between the participation of agriculture in the value added and the employment structure the low productivity of the sector compared to other activities can be gathered. Low labour productivity emerges from various factors, among them unfavourable age, education and parcel structure and low degree of production specialisation. Based on the data of economic accounts for agriculture in Slovenia the average gross value added of agriculture in 2000-2004 amounted to EUR 4,800 per productive man-work unit (PMWU), while the EU-25 average for the same period was EUR 16,478 per PMWU, which is 3.4 times more than in Slovenia. Due to the decreasing number of persons employed in agriculture the value added per productive man-work is rising. However, even in the very prosperous year 2004 it reached only 20 percent of average GVA per employee at the national level. Slovenian agriculture is dealing with a serious income issue. The income in agriculture is about 50 percent lower than the income average in the economy. It also falls significantly behind the income 26 of agricultural holdings in the old Member States, particularly in the neighbouring countries to which Slovenian agriculture is often compared. The level of the aggregate income in the last decade has remained unchanged, whereas due to the decline of the extent of labour the income per manwork unit is improving. The structure of the income generated is also changing. As a result of the accession to the EU and the price depression of agricultural products at operators, direct payments under the common agricultural policy gain in importance. For already 135 years Slovenian agriculture and countryside have significantly been shaped by cooperatives. End of 2005 497 cooperatives were registered in Slovenia, thereof 145 in the filed of agriculture, hunting and forestry and 9 in the filed of fisheries. Cooperatives are active in farm and rural population supply, especially in remote places, and buying-in of over 90 percent of slaughter cattle, 81 percent of milk, and over 58 percent of grapes and potato. They are also an important purchaser of vegetables, cereals, wood, hop and other agricultural products. But their most important role is in the sale of plant protection products, seeds, mineral fertilisers and concentrated feedingstuffs. Within the range of their operation are also processing activities, e.g. of grapes, meat and milk. As a result of the unfavourable income situation the investment capacity of agricultural holdings is weak. The investments in agriculture have increased in the past years, but mainly due to the increased restructuring funds from the European and national resources. The response to such development support enhances the thesis on the importance of the public financial support to investments as well as the organisation and cooperation with the food processing industry. This is particularly important in the light of the direct payments reform within the framework of the first pillar of the CAP, which shall be carried out in Slovenia 2007 onward. The reform model in Slovenia retains to a certain permissible extent some production linked payments13, but the majority of direct payments shall be included into the regional model of the single payment scheme (in combination with various historic supplements)14 which is not linked to any production type. Single payment per hectare shall substitute different types of support per hectare or per animal applicable so far and is the same for all agricultural holdings in Slovenia. The only difference shall be in the amount of the single payment under the regional model for grassland areas, which were not entitled for direct payments so far, and for other eligible areas (higher payments). It is anticipated that the reform shall induce the restructuring need towards more market oriented and competitive agriculture as well as towards the extensification and diversification of activities. Additional restructuring needs derive from making the payments conditional on the fulfilment of the cross compliance requirements related to the protection of the environment, people, animals and plants as well as the standards on land utilisation to prevent overgrowing and other environmental issues. 13 From the currently production linked aids Slovenia shall retain 75 percent of the special premium for bulls and steers, 50 percent of the sheep and goats premiums and 25 percent of the hops area payment. 14 The historic supplements per single regional payment shall be calculated individually. They shall be allocated from the resources for milk premium, together with additional payments from resources for sugar beet ant the national reserve for helping cattle breeders which would be in a very difficult situation due to the transfer to the new direct payments system. The individual producers shall be eligible for supplements by 2013, by meeting the cross compliance requirements and without the obligation to keep the agricultural production concerned. 27 FOOD PROCESSING INDUSTRY Compared to some new Member States Slovenia has a relatively economically and technologically well developed food processing industry. This part of the agrifood chain contributes 2.1 percent of the total GDP and 2.4 percent of the employment structure. Given the value added contribution in 2004 the food processing industry was the fourth most important processing activity and the third largest employer in the aggregate of processing activities. According to the national accounts data (SORS) the GVA per employee in food and beverages production (without tobacco production) amounted in 2004-2005 to 23,763 EUR on average, which is 93 percent of the GVA average per employee in Slovenia and less that 50 percent of the EU-25 average (2003: EUR 50,500 per employee). Table 18: Economic development indicators of food industry in Slovenia Food and beverages production (DA 15) GVA (Mio. €) - share in the total GVA in Slovenia (%) - share in the total GDP in Slovenia (%) Employment (000 PMWU) - share in the total employment rate (%) GVA/employee (€) Index - GVA/employee of all activity branches = 100 Source: SORS (National accounts) 2000 2001 2002 2003 2004 2005 467.6 496.4 518.3 542.2 522.9 472.8 2.6 2.6 2.5 2.5 2.3 2.0 2.2 2.2 2.2 2.2 2.0 1.7 22.6 22.2 21.9 21.5 21.3 20.5 2.5 2.5 2.4 2.3 2.3 2.2 20,692 22,318 23,680 25,393 24,501 23,024 101.8 104.3 105.3 107.0 97.9 87.6 Given the numerous indicators of economic performance the branch has denoted a steady decline in the recent years, as a result of the late opening of the markets and the increasing pressures and changes exerted by the relatively high-developed trade. The importance of the food processing branch is declining in both key macroeconomic aggregates. Considering the industry production volume index, it is in stagnation (Table 19, Figure 5). However, this is only a temporary and not a long-term structural crisis. The competitiveness circumstances at domestic and export markets have been intensified. Table 19: Trend of important indicators of food processing industry operations in 2000-2004 Number of enterprises Number of employees Resources (milliard SIT) Sales revenues (milliard SIT) Export revenues (milliard SIT) Export orientation Productivity (000 SIT) Value added per employee (000 SIT) Profit / loss per employee (000 SIT) Return on assets (ROA) Return on sale (ROS) 2000 2001 2002 2003 2004 424 18,141 568.1 434.9 72.0 16.56% 23,974 6,206 Index 2004/2003 105.0 95.8 102.3 97.2 92.6 91.9 101.4 93.5 Index 2004/2000 109.3 93.2 103.7 96.0 91.0 74.4 103.0 95.4 388 19,473 429.9 355.4 62.1 17.46% 18,252 5,105 377 19,281 461.4 391.1 74.1 18.94% 20,284 5,450 394 19,841 512.0 418.3 76.,6 18.30% 21,083 5,910 404 18,938 535.8 432.1 75.1 17.40% 22,816 6,407 241.6 72.0 503.4 541.2 -119.8 -661.1* -361.5* 1.09% 1.32% 0.30% 0.35% 1.95% 2.39% 1.91% 2.37% -0.38% -0.50% -2.3° -2.9° -2.0° -1.8° Source: Agency of the RS for public and legal records and services (2005), data processing: Kuhar (2005) Remark: Indicators indexes in SIT are revalorised Remark: * Absolute difference in 000 SIT, ° Absolute difference in percentage points. 28 Figure 5: Importance of Slovenian food industry by key macroeconomic aggregates between 1999 and 2004 Enterprises in this branch (especially enterprises processing foodstuffs of animal origin) have put great efforts in the past years (and must consequently put up with high expenses) to adapt to the Community quality standards. The branch also faces considerable structural deficits and a low level of research and development activities. Substantial reserves exist in the area of efficient work organisation, more efficient marketing, vertical networking and participation in quality schemes. Regardless of the current deficits it is estimated that food processing industry in Slovenia has longterm perspectives, indicated by the investments and further concentration processes, by maintaining the aggregate production level. In 2005 an average food industry enterprise in Slovenia employed 40.5 workers and produced EUR 4.13 million turnover. On average the productivity of food enterprises between 2000 and 2005 has increased by more than 3 percent. Food industry is the third largest employer in the Slovene processing industry. In 2005 426 enterprises in the food processing industry employed 18,315 workers, whereby about 10 percent were large enterprises, 10 percent medium large and nearly 80 percent were small enterprises. Thereof 182 enterprises were engaged in the processing of the products referred to in Annex I to the Treaty and employed nearly 11,000 workers. Table 20: Number of food processing enterprises and other economic operators engaged in processing of agricultural products under Annex I to the Treaty and of wood, with regard to the number of regularly employed persons Enterprise type Micro company 0-9 persons Small company 10-49 persons Medium company 50-249 persons Large company 250 persons and Food processing enterprises Self-employed persons Wood processing enterprisessawmills Farms with subsidiary activity – processing of agri. products and wood Total 116 133 170 324 743 31 13 0 0 44 16 2 0 0 18 17 0 0 0 17 29 more Total 180 148 170 324 822 With regard to the number of regularly employed persons micro processing enterprises prevail (90 percent of all establishments). In the new programming period of the RDP 2007-2013 they shall be the only ones to be granted development funds to adapt to the newly introduced minimum Community standards. The enterprise structure in regard of the employee number is shown in Table 20. The competitiveness potential of the Slovene agriculture and other operators alongside the agrifood chain lies is a long-term policy towards the quality food production and marketing, which contributes also towards healthier nutrition as well as the protection and strengthening of health. This has been confirmed by the growing interest in various quality schemes, which have been intensively introduced. Appropriate legal bases ensure the implementation of the registration, certification and quality monitoring processes for special agricultural products and foodstuffs, for which indications of protection can be acquired. The policy of special agricultural products and foodstuffs protection has two main purposes: - enable the producers and processors to be competitive as regards the quality enabling them economic presence in the market; - comply with the consumer demand to purchase products which are produced in a special manner and are authentic and of better quality. Currently, there is only one certification body in Slovenia accredited in accordance with the EN 45011 standard. So far, 26 agricultural products and foodstuffs are protected with one of the following indications: “designation of origin”, “geographical indication”, “traditional reputation” and “higher quality”. Of these 26 protected agricultural products and foodstuffs 15 have been certified and 4 are currently undergoing the certification process. In organic and integrated production 5 inspection bodies operate. A certificate for organic and integrated production has been obtained by 1,379 organic and 5,314 integrated farms or agricultural holdings. By 25.04.2007 only one product was protected and registered by the European Commission, while 17 applications of preliminarily protected agricultural products and foodstuffs at the national level are currently undergoing the registration procedure at the European Commission. All 17 applications are in the registration procedure ever since May 2004. A preliminary study of market and a long-term development of special agricultural products and foodstuffs showed that Slovenia's market potential lies in special agricultural products and foodstuffs. The consumer awareness of product indications is however still weak. Since sufficient consumer demand is the key element for the quality schemes operation substantial investments shall be necessary for the promotion and enhancement of special products and foodstuffs sales. A research conducted by the Institute for sustainable development (2005) showed that only 15-20 percent of organic farms are market oriented. The consumer interest in organic products increases year by year. Therefore the supply of organic products and foodstuffs at organic markets no longer satisfies the consumer demand as regards the quantity as well as the type of the products. Poor market organisation and low market share of organic products and foodstuffs is one of the key issues of further development of organic farming in Slovenia. 30 FORESTRY Forestry plays an important role in the economy and the nature protection in Slovenia. Forests cover 59.8 percent of the entire Slovenian territory and have gradually expanded. Wood supply and increment have increased in the last fifty years. Due to various causes the production capacity, in particular of private forests, is not fully exploited. In accordance with the forestry management plans about 62 percent of the wood output could be extracted, but currently only 40 percent are actually being extracted (Table 21). Table 21: Forest area, wood supplies, increment and felling in Slovenia Forest area (000 ha)* Wood supply (000 m3) Increment (000 m3) Felling (000 m3) - Felling compared to annual increment (%) *without overgrown area Source: SORS 2000 1,134 262,795 6,872 2,609 38.0 2001 1,143 267,912 6,925 2,614 37.7 2002 1,150 276,574 7,102 2,646 37.3 2003 1,158 285,735 7,290 3,007 41.2 2004 1,164 293,532 7,446 2,958 39.7 2005 1,169 300,795 7,569 3,236 42.8 Due to the denationalisation process the ownership structure of Slovenian forests is still intensively changing. The analysis performed simultaneously with the preparation of the forestry management plans 2001-2010 showed the following structure: 71 percent of private forests owned by natural persons, 1 percent of private forests owned by legal persons, 26 percent of national forests and 2 percent of municipal forests. During 2000-2005 private forests gained one or two percent on the account of national forests. It is anticipated that after the conclusion of the denationalisation process approximately 20 percent of forests shall remain in the possession of the state. Family farms, 68,644 in 2003, own less than 50 percent of private forests (385,361 ha). Private non-farm property has increased in the total share of private forest surface (53 percent), especially in the number of holdings (78 percent). According to the national accounts the average GVA per employee in forestry in 2004-2005 amounted to EUR15,455, which makes 60 percent of Slovenian average. The contribution of the forestry to the GDP in the recent years is about 0.2 percent. The management performance indicators (Table 22) show that forestry falls behind the average of other national processing branches. The return on assets and capital in forestry is also lower than the average of other industry branches; over-averaged are only the short-term financial and business commitments of the forestry branch. Table 22: Economic development indicators of Slovenian forestry Economic accounts for forestry (EAF) GVA (Mio. €) - share in the total GVA in Slovenia (%) - share in the total GDP in Slovenia (%) Employment (000 PMWU) - share in the total employment rate (%) GVA/employee (€) Index (GVA/employee of all activity branches = 100) 2000 65.2 0.4 0.3 2001 67.5 0.4 0.3 2002 66.4 0.3 0.3 2003 70.5 0.3 0.3 2004 68.7 0.3 0.3 2005 69.3 0.3 0.3 5.1 5.0 5.6 5.2 4.5 4.4 0.6 0.6 0.6 0.6 0.5 0.5 12,779 13,522 11,769 13,600 15,322 15,587 62.9 63.2 52.4 57.3 61.2 59.3 Slovenian forestry has low labour performance. This could be overcome only by an intensive grouping of forest owners, which would significantly reduce the felling, storage and sale costs, while the sale of forestry wood assortments would increase. To improve the utilisation of forests it is necessary to increase the accessibility of forests by providing forest roads and trails. 31 For various reasons the forest productivity, in particular private forests productivity, is not sufficiently exploited. The main reasons are split-up forest structure (2.6 ha of forest/owner), great dispersion (214,000 private owners and 485,000 forest owners), insufficient collaboration of forest owners in forestry work performance and wood sales, weak and inadequate infrastructure, and insufficient qualification of forest owners and equipment for forestry work as well as inadequate organisation and too low efficiency of existing advisory services. As a result of present conditions management costs are high. Simultaneously, in the last decade a trend of wood price depression is evident. Greater efforts must be put in the improvement of technological qualification and the level of knowledge required for the application of more advanced technologies as well as the networking of producers, and in higher value added rate of public resources. New income opportunities with explicit positive environmental effects can also be accomplished by a higher exploitation of alternative forest resources (wood as renewable energy source). The forest management policy in Slovenia is aimed at sustainable forest use. The national regulations in force make sure that the natural conditions are respected. Further on, any intervention into forests shall be subject to an assessment on the impacts on the environment. 3.1.3 State of the environment Agricultural land and forests in Slovenia cover nearly 92 percent of the surface and have an important environmental, aesthetic and spatial function. The nature and environmental protection have a common social value in Slovenia, which also reflects in the policies concerned. Slovenia’s forest management is sustainable and has a relatively high standard as its policy is often serves as an example to others. In agriculture the wide-ranged implementation of agri-environmental measures helps maintain the utilisation of agricultural areas. In less favoured areas and the preservation of the multifunctional role of agriculture other measures for rural development are important as well. These measures have been the key element of the rural development policy so far and are well accepted by the beneficiaries and by the public. NATURAL HANDICAPS AND THREAT OF ABANDONMENT AND MARGINALISATION Less favoured areas cover 85 percent of the whole national territory, whereof nearly 72 percent are mountain areas (Annex 1, Figure 2). Within the less favoured areas are mountain areas with typical steep slopes and high altitudes, making agricultural production more difficult, areas with frequent floods and strong winds, the Ljubljansko barje marsh and the Karst areas restricting the agricultural land use due to their specific natural elements, i.e. limestone terrain, different soil depth, dissected micro relief, sinkholes, flood fields and other karstic features, as well as erosion threatened hills in the central and north-east Slovenia. Agricultural holdings in these areas are less competitive and due to the reflection of specific natural conditions in the agricultural land use structure also less adaptable. In spite of lower production potentials agriculture in these areas plays an important role in maintenance of the settlement and cultural landscape as well as ecological balance. Table 23: Total and agricultural land by less favoured areas as confirmed in the RDP 2004-2006 Total land (%) Agricultural land (without other agricultural area) 32 Handicapped areas Mountain area Other less favoured area Areas affected by specific handicaps Less favoured areas Areas outside LFA Total area Source: MAFF 2005 71.8 4.0 9.2 85.0 15.0 100.0 Surface (000 ha) 325 23 91 439 166 605 Structure (%) 53.7 3.8 15 72.5 27.5 100.0 Due to the specific natural features various ecosystems and habitats have been established in these areas which depend on the cultivation of agricultural areas. A wide-ranged set of environmental characteristics and high share of utilised agricultural land in these areas indicate a high level of biodiversity conservation and confirm the efficiency of the current measures for less favoured areas in prevention of the abandonment of agricultural activity and the marginalisation of these areas. The trend of increasingly overgrowing areas, present in the past decades, is in decline since 2003. Hence, the total surface of agricultural land has not changed significantly in the last three years. HABITATS AND BIODIVERSITY The commitment to the conservation of habitats and biodiversity reflects in the high share of protected areas. As much as 47.7 percent of the whole national territory was designated as ecologically important areas (Annex I, Figure 4) covering 202,000 hectares of agricultural land and 660,000 ha of forests. Ecologically important areas cover habitat types, parts of habitat types or larger ecosystem units which substantially contribute towards the conservation of biodiversity. Cartographically, these areas are designated in detail in the Decree on ecologically important areas (OJ RS No 48/04). Due to the high level of conservation of biodiversity, variety, habitats and landscape specifics in Slovenia there is a need for further preservation of these conditions. The best possible method to achieve this is by maintaining the utilisation of agricultural land in an environment-friendly manner, by maintaining agricultural activity in marginal areas and in areas unfavourable for agriculture, where great risk of land abandonment and overgrowing is present, and by sustainable forest use. Agriculture plays an important role in the habitat, biodiversity and landscape conservation. Areas, such as permanent grassland, areas with low production intensity and mosaic-like structure, and areas with endangered species and high biodiversity cover 300,000 ha of Slovenia (Annex I, Figure 3). This is over fifty percent of all agricultural land, which is mainly located in marginal and natural handicap areas. Abandonment of agriculture in these areas and reduction of open area would mean a serious environmental hazard and potential loss of cultural landscapes. Therefore, agricultural activity in these areas must be maintained to prevent the loss of habitats and reduction of animal and plant biodiversity as well as to preserve the landscape diversity and the recognisability of Slovenian landscape. The high level of biodiversity, preservation of habitats and other natural and landscape diversity emerges also from the split up agricultural land and forest structure. The dispersed agricultural parcel structure preserves the mosaic-like landscape where the semi-natural areas are interwoven with other utilised areas. In high nature value areas the split up land structure must be preserved and support to farmers must be secured to compensate for the economic shortcoming emerging from such structural conditions. With the Decree on special protection areas (Natura 2000 sites) (OJ RS No 49/04) 286 different Natura 2000 sites were designated throughout the national territory as a part of the European special 33 protection areas network – the Natura 2000 sites. Thereof 260 areas were designated on the bases of the Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora, and 26 areas on the basis of the Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild birds. The designation of special protection areas represents an important step in the implementation of the Birds Directive, which is groundwork for the long-term provision of favourable conditions of bird population status, as well as in achieving the Göteborg objectives to reverse the decline of the biodiversity level by 2010. The Natura 2000 sites (Annex 1, Figure 5) cover 36 percent of the Slovenian territory (thereof forests represent 71 percent), which is 30 percent of agricultural and forestry areas and one of the highest shares of protected areas in Europe.15 The favourable natural status with high level habitat and biodiversity conservation in Slovenia needs to be preserved by way of appropriate strategic guidelines and measures. Nevertheless, it must not restrict too severely the optimal utilisation of economic potentials of agriculture and forestry in these areas. The measures under the RDP 2007-2013 putting special focus on the agri-environmental measures represent an important contribution towards achieving favourable farmland bird population status. The common index of the farmland bird population status, which is one of the key indicators on the biodiversity status at the EU level, indicates a downward trend in the last decade (Figure 7) and since 1996 it has decreased by more than 10 percent. Given the data the decline in the bird count in agricultural areas has been caused by the specialisation and the changes in the processes and technologies of the agricultural activity. The key changes affecting the birds are the removal of hedgerows, land amelioration, higher degree of mechanisation application, and increased land application of fertilisers and pesticides, as well as the simplification of the crop rotation and decline of farming diversity. Figure 6: Trend of the farmland bird population status at the EU level. Index 2000 = 100. 15 In Europe Natura 2000 sites cover approximately 15 percent of the entire territory, which is 12.5 percent of the European agricultural and forestry land. 34 In designating the special protection areas for birds in Slovenia 51 qualifying species were used, among them also the White stork Ciconia ciconia, Short-Toed Eagle Circaetus gallicus, Rock Partridge Alectoris graeca, Corncrake Crex Crex, Scops Owl Otus scops, Roller Coracias garrulous, Wryneck Jynx torquilla, Woodlark Lullula arborea and Lesser Grey Shrike Lanius minor, as well as other species inhabiting agricultural areas and the countryside in general. Given the data analysis of the 1990-2000 period the bird count of 55 species had decreased in the past decade, which is more than one fourth of all nesting birds in Slovenia. Thereof, 32 species (58 percent) are farmland birds. In no other bird habitat type the population status has declined as much as with farmland birds. Hence, it is not surprising that many of them are classified as very or even critically endangered on the Red List of Nesting Birds in the RS. Most affected are the nesting populations of the Roller, Lesser Grey Shrike and Snipe, which are threatened with extinction in Slovenia. Three typical farmland bird species (Lesser Kestrel, Meadow Pipit and Rook) have unfortunately already extinct in 1990-2000. However, numerous farmland bird species classified as endangered in the major part of Western Europe are relatively frequent in Slovenia. Presently, farmland birds are the main bird group in the light to be protected. Of 32 farmland bird species with declining population status, 16 species are significantly dependent on different grassland types (“grassland bird species”) and 16 species which depend on the rich, predominantly extensive, mosaic-like cultural landscape. Both habitat types mentioned are exposed to numerous changes which can negatively affect the birds. The Slovenian ornithology association DOPPS-BirdLife Slovenia, together with the BirdLife International, has prepared guidelines for the favourable conservation status of qualification and other endangered farmland and forest bird species in special protection areas in Slovenia. The guidelines mentioned are a baseline for the preparation of appropriate actions at the national level, in particular within the framework of the possibilities under the programming period 2007-2013, in which the financing of Natura 2000 under the structural funds is foreseen, as well as under the RDP and a special financing programme LIFE+. Special emphasise shall be on the RDP 2007-2013 measures, whereby the key measures for the conservation of farmland bird populations are in particular: extensive grassland maintenance, preservation of special grassland habitats, preservation of humid extensive meadows, high-trunk orchards and the wide range of actions under organic farming. In the majority of special protection areas in Slovenia certain basic habitat types occur which represent the basis for the categorisation of ecological requirements of endangered bird species and consequently the protection measures for individual habitat types in protected areas. Basically, three main habitat types of farmland birds exist: mosaic-like cultural landscape, humid extensive meadows and dry extensive grassland. Humid extensive meadows represent an important habitat for birds in eight Slovenian special protection areas: Ljubljansko barje marsh, Lake Cerknica, Nanošèica River basin, Planinsko polje field, Reka River valley, Jovsi, Mura River and Snežnik-Pivka. In the areas mentioned one of the main negative impacts in the past was the drainage of humid grassland. To secure favourable status of humid grassland types the land amelioration activities need to be reduced and/or their acceptability assessed, especially from in the light of biodiversity. It is also important that the existing land amelioration systems be maintain in a manner minimizing negative effects on the species (cleaning and maintenance off the nesting season, alternating cleaning of river banks, maintenance of ditch and canal vegetation). The regulation on cross compliance (Regulation on statutory management requirements and good agricultural and environmental conditions for farming, OJ RS No 34/07, as amended) partially, but not entirely, resolved the problem of permanent grassland conversion into arable land. Dry extensive grassland is an important habitat in six Slovenian special protection areas: Karst, Snežnik-Pivka, Trnovski gozd forest – southern borderline stripe and Nanos, Banjšice, Julian Alps, Breginjski Stol and Planja. In the light the preservation of favourable bird population status the 35 main threat represents the loss of considerable areas of dry grassland due to the abandonment of pasture and consequently of overgrowing. Mosaic-like cultural landscape is a complex habitat maintaining important populations of endangered bird species in seven Slovenian special protection areas: Gorièko, Mura River, Dravinjska valley, Slovenske gorice valleys, Kozjansko, Drava River and Šentjernejsko polje field. The trend of agricultural intensification in these areas is still deemed the main threat for farmland birds. Due to agricultural intensification the elements of the traditional cultural landscape vanish, i.e. hedgerows, border strips, certain trees and bushes, field paths and high-trunk orchards. For the purposes of more intensive food production the conversion of meadows into arable land is still present. The traditional land use in the form of grassland and old crop varieties have been replaced by foreign, more intensive cultures, which negatively affect the population of Slovenian nesting bird species due to the land application of fertilisers and the use of plant protection products. In the Natura 2000 sites farmers as agricultural land managers are recognised a special social status, based on which it is important to produce quality and healthy food and also that the farmer lives and works in a sustainable manner in a healthy environment and preserves the traditional cultural landscape as well as a high biodiversity level. Since no common monitoring system for biodiversity monitoring has yet been established in Slovenia, the results on the situation are only qualitative. The indications on the indicator species and habitat types status show that populations within the areas with a great extent of land engaged in the agri-environmental measures have not decreased and remained within the range of natural fluctuations. Table 1, Annex 1, shows the farmland bird status in Slovenia and the nesting population trends in 1990-2000. STATE OF WATERS The Water Framework Directive introduced a new approach to water management in Europe and pays special attention to ecology as the overall water status indicator. Simultaneously, common approaches and standards are also evident from the requirements to group different viewpoints on water protection, and particularly from the requirements for overall designing of measures with regard to different viewpoints and criteria. Under the Rules on determining and classification for water bodies (WB) of surface water (OJ RS No 63/05 and 26/06) 155 surface water bodies16 were designated in the RS and under the Rules on determining WB of groundwater (OJ RS No 63/05) 21 groundwater bodies17 were designated. In accordance with the Nitrate Directive (91/676/EEC) and the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the entire Slovenian territory was designated a vulnerable zone, where land application of nitrogen from livestock manure may not exceed 170 kg/ha. Hence, the entire agricultural sector must comply with the strict requirements on livestock manure management and take into consideration the principles of good agricultural practice. Within the framework of the adaptation to the nitrate directive standard a considerable amount of resources was devoted in 2004 and 2005 to the construction of sufficient 16 Thereof 122 WB of watercourses, 3 WB of natural lakes, 4 WB of seas, 4 artificial water bodies and 22 candidates for strongly modified water bodies, thereof 2 at sea. WB Savska kotlina basin and Ljubljansko barje marsh, WB Savinjska kotlina basin, WB Krška kotlina basin, WB Julian Alps in the Sava River basin, WB Karavanke, WB Kamniško-Savinjske Alps, WB Cerkljansko, Škofjeloško and Polhograjsko, WB Posavsko hribovje to the central Sotla, WB Lower Savinja River to the Sotla River, WB Kraška Ljubljanica, WB Dolenjski kras, WB Drava River basin, WB Haloze and Dravinjske gorice, WB Western Slovenske gorice, WB Murska basin, WB Eastern Slovenske gorice, WB Gorièko, WB Coast and Karst with Brkini, WB Julian Alps in the Soèa River basin and WB Goriška Brda and Trnovsko-Banjška planota plateau. 17 36 storage capacities for livestock manure, in accordance with the standard requirements. Given the groundwater monitoring data the impact of the arrangement of the livestock manure storage capacities, could at present not yet be assessed. Considering that agriculture is one of the main pollution sources of nitrogen compounds in the environment and that the input and manure storing are under strict supervision, positive results regarding the nitrates contents in water can be anticipated in near future. In surface water the impact of nitrogen load from agriculture is treated as an increased nitrate concentration in surface waters. Increased nitrate contents in surface waters are deemed contents of over 4.5 mg nitrate per litre, which is currently present in about 30 percent of agricultural land in rear areas. Thus, with unchanged agricultural practice in surface WB with over 30 percent of agriculturally utilised land an increased nitrate concentration in surface waters can be anticipated. The 30 percent criterion of agriculturally used land representing the threshold for assessing the impacts of relevant loads from local agricultural sources was also checked on the basis of information on where the actual surplus exceeded the permissible nitrogen surplus. Permissible nitrogen surplus is surplus not exceeding the limit concentration 50 mg nitrate per litre in soil water by precipitation dilution in the area concerned. The local pollution sources from agricultural activity or urban area18 activities cause considerable loads affecting the groundwater quality. The highest shares of anticipated loads from the local pollution sources from agricultural and artificial (urban) surfaces in groundwater WB are in the areas of intergranular aquifers of the Savinjska, Krška and Murska basin (82-93 percent). Significant loads affecting the groundwater quality also occur in the other two most important intergranular aquifers, i.e. the area of the Dravska kotlina basin and Savska kotlina basin with Ljubljansko barje marsh. High loads are evident also in some smaller aquifer systems and their parts, particularly in densely populated and agricultural coastal area, parts of the Vipavska dolina valley and the Goriška Brda. The lowest shares of surface with typical local pollution are located in the Alps (Karavanke 7 percent, Julian Alps 10 percent and Kamniško-Savinjske Alps 18 percent). The data on the plant protection products residues and their metabolites show a reduction trend in the majority of aquifers, as a result of the atrazine and desetilatrazine concentration reduction based on the prohibition of its application from 2002 onward. The number of certain active substances and their breakdown products, exceeding limit values 0.1 ìg/l for individual substances, has also decreased. Thereof, most frequently detected in groundwater is metolachlor, one of the most frequently used active substances in maize production in Slovenia. Based on the information of the national groundwater quality monitoring poor chemical status is present in three groundwater bodies: Dravska, Murska and Savinjska kotlina (Figure 7). Given the current trend on certain most relevant parameters on chemical status the prognoses for 2015 is also not promising. The WB Dravska dolina in the Drava River basin is most affected by the impacts of the agricultural activity in Slovenia. In the majority of the sampling stations of the national monitoring network the nitrate values exceed the top limit 50 mg/l and are increasing. The poor condition of the Dravsko and Ptujsko polje field aquifer is mainly caused by pesticides (in particular atrazine and desetilatrazine), the contents of which substantially exceed the top limits in most cases. In the WB Murska kotlina increasing nitrate contents in groundwater are registered. Most frequently present pesticides causing poor water status are atrazine and desetilatrazine. At all sampling stations a decline of the atrazine and desetilatrazine contents was noted. 18 In urban areas the input of harmful substances into groundwater is caused by constructions not intended for human habitation, industrial and craft facilities, public utility and transport infrastructure and to a smaller extent by apartment blocks and other areas. 37 The chemical status of the WB Savinjska kotlina is poor due to the overrun of the representative nitrate content, which had exceeded the top limit 50 mg/l in 2004. The trends indicate further increase. The waters are also overloaded with the pesticide atrazine and its degradation element desetilatrazine. However a downward trend was recorded at all sampling stations. Figure 7: Annual average of nitrates concentration (mg/l) in observed alluvial aquifers in 1993-2004. Annual average of nitrates concentration in three karst/fissure porosity aquifers (Karst Ljubljanica, Trnovsko Banjška Plateau and Triest-Quarnero Bay) was lower than 6 mg/l (ARSE). AIR POLLUTION, CLIMATE CHANGE The most important greenhouse gases in agriculture are methane and dinitrous oxide. In 2004 Slovenian agriculture released 1,973,000 tons of equivalent carbon dioxide (CO2)19, methane and dinitrous oxide, which is about 10 percent of the total greenhouse gas releases in Slovenia. Considering the base year 1986, which is a baseline for the calculation of Slovenia’s commitments for the reduction of greenhouse gas emissions, by 2004 the releases in agriculture were reduced by 14.4 percent. Given the Kyoto Protocol commitments for Slovenia (8 percent by 2008-2013), this is favourable. The reduction is mainly a result of reduced cattle and poultry production and new waste treatment plants on large pig farms. Greenhouse gases are also a result of the fossil fuel use in agriculture. Mobile users of fossil fuels in agriculture, forestry and fisheries (tractors, mobile agricultural machinery and others) contribute approximately 1.3 percent of the total greenhouse gas emissions in Slovenia. Bio gas facilities can considerably contribute to the methane emissions in livestock manure storing. According to raw estimations only 10 percent of the potential in cattle production and one third in pig production are realised due to the dispersed agriculture. In plant production it is most important 19 Due to the differences in the greenhouse effect the release of methane and dinitrous oxide is shown in carbon dioxide equivalents. 38 to promote a technically founded fertilisation by applying adequate input technologies emphasising efficient nitrogen cycle in agriculture. Although agri-environmental submeasures in the programme are not directly aimed at reducing the greenhouse gas emissions, their indirect effect is considerable. In the light of the reduction of the greenhouse gas emissions the following agri-environmental submeasures are crucial: integrated fruit production, integrated vine production, integrated horticulture, mountain pastures, sustainable rearing of domestic animals, extensive grassland maintenance, permanent green cover in water protection area and organic farming. A considerable economic and environmental damage is caused by release of ammonia into the atmosphere. It contributes to acid rain and soil acidification and by discharging nitrogen and all ammonia emissions the changes of the natural environment (eutrophication) occur. The majority of ammonia is discharged from stables and during livestock manure storage and fertilisation with livestock manure. A large amount is also produced through the fertilisation with mineral fertilisers. Annual ammonia emissions per hectare of utilised agricultural area (UAA) in Slovenia amount to 39.1 kg and are considerably higher than the EU-15 average (21.7 kg). The high releases per area unit are mainly a result of high grassland share and the corresponding well-developed animal husbandry as well as the prevailing stable rearing where discharges are much higher than in pasture rearing. During 1990-2002 the ammonia releases in Slovenia decreased from 22,012 to 19,749 tones or by 10.3 percent, which is mainly a result of herd reduction and the fact that due to the increased rearing intensity and changes in rearing methods the discharges did not entirely follow the changes in the herd size. Given the estimation, without any special intervention it is unlikely to keep the level of ammonia emissions under 20,000 tones per year as set out in the Directive 2001/81/EC on national emission ceilings for certain atmospheric pollutants. The most important measure in the ammonia emission reduction is the promotion of technically founded fertilisation emphasising the efficient nitrogen cycle in agriculture. The measure also contributes to the water protection and greenhouse gas emission reduction (Table 24). The emissions can be reduced by increasing pasture rearing, with adequate methods of keeping stable rearing, through adequate methods of livestock manure storing and appropriate application thereof. Required are overall solutions as it is typical for ammonia emissions that positive effects of individual measure can be completely neutralised if they are not integrated into the entire chain of livestock manure treatment. In Slovenia, most critical is the spreading of the liquid livestock manure since practically all farmers apply the least favourable method, i.e. slurry spreading with a splash plate. Within the framework of agri-environmental payments requirements on registered application of livestock manure are set as well as preparation of fertilisation plans based on the soil analysis, which provides for a more balanced nitrogen application and prevents too excessive inputs into the environment. Table 24: Greenhouse gas emissions in 1986, 2000 and 2004 and projections for 2008-2012 without the measures for reduction and with the envisaged measures [kt CO2 equ] Emissions without measure Envisaged effect without measure 1. Anaerobic digesters 2. Grazing cattle 3. Rational fertilisation Emissions with measure Source: ARSE, AIS 1986 2000 2004 2008 2010 2012 2305.4 2136.4 1972.6 2216.8 2245.0 2255.2 Average 2008-2012 2239.8 37.2 67.7 99.0 68.0 7.7 7.0 22.5 2179.6 15.5 14.8 37.4 2177.2 23.5 23.1 52.4 2156.2 15.6 14.9 37.5 2171.8 39 The greatest problems in agriculture can be expected as a result of the anticipated increased drought frequency and intensity, in particular, if simultaneously with the increased temperature a reduced quantity of precipitation during the summer months should occur, accompanied by the aboveaverage duration of the sunny weather. On frequent occasions in the last decade the drought has a considerably reduced the produce. In addition thereto, the agricultural production may be negatively affected by increased frequency of natural disasters, frostbite, hail, heavy rainfalls or substantial long-lasting precipitation and consequently floods. According to estimations the positive effects shall not offset for the negative impacts and thus in future the agricultural production shall become more expensive. One shall also have to take into account the envisaged weather and climate change and not only the gradual warming of the atmosphere as a result of the increasing greenhouse gas concentrations. Yearlings represent a considerable share of plants in agricultural production. This can ease the adaptation to the climate change by adjusting the soil cultivation, and sowing time as well as the selection of appropriate cultivars and species. Perennial crops, e.g. fruit trees and vine, shall experience more severe climate change, but these effects as well may at least partially be mitigated through an appropriate agricultural practice. Hence, a considerable share of adjustment measures can be made at the farm level. These shall be promoted by the Government by increasing the level of professionalism in farming, training and information actions, by promoting a better use of agrimeteorological data and forecasts as well as research directed towards the additional prediction and evaluation of adaptation capacities. The changed and inconsistent weather and climate conditions shall also change the conditions for the appearance and spreading of plant diseases and insects. Plants weakened by unfavourable weather and climate conditions shall be receptive to diseases and insect attacks. Under the changed climate conditions changes of the plant pathogen life cycles are more likely to occur. It shall be necessary to improve the prognosis service which shall be expected to deliver more accurate and earlier information and warnings of diseases occurrence, pest development and plant endangerment due to weather conditions. Intensified must also be the prevention measures for input of new diseases and pests. The irrigation possibilities and the introduction thereof must be carefully thought through as regards their potential side effects, in particular to establish a system of adequate agri-meteorological support for the irrigation systems. The submeasures mountain pasture and sustainable rearing of domestic animals are particularly directed towards the production of grazing cattle, while integrated production is the most important instrument aimed at improving the nitrogen cycle efficiency, whereas reasonable fertilisation is related to the use of mineral fertilisers, which is limited in several measures. As a result of the limited land application of nitrogen from livestock manure, farmers are redirecting the livestock manure application technologies by ways causing fewer nitrogen losses from ammonia and ensuring a potentially higher utilisation thereof through plants. The more sophisticated and controlled methods of livestock manure application, considerably supported by training, also contribute to the reduction of the ammonia emissions. In accordance with meeting the requirements of the Council Directive (EC/676/1991) a large number of manure storage capacities were built in Slovenia in 2004-2006. Therefore an additional reduction of the ammonia emission level from agriculture can be expected. In 2004 and 2005 the funds under the measure “Support for meeting the EU standards on agricultural holdings” were used to co-finance the construction of livestock manure storage capacities for 123,600 LUs, which represents nearly 30 percent of the total domestic animals count in Slovenia. Compliant with the regulation governing the nitrogen input agricultural holdings in Slovenia must meet the requirement on the size and the arrangement of livestock manure storage capacities, which are checked by the agricultural inspectors in accordance with the regulation concerned. The regulation applies throughout the territory of the RS, which is entirely designated as vulnerable 40 zone. Simultaneously, in accordance with the cross compliance requirements agricultural holdings obtaining agricultural subsidies must meet the same requirement, which is additionally checked by controllers within the range of the 1 percent mandatory controls. The storage capacities must suffice for the period during which the livestock manure application is prohibited or not possible. In Slovenia the storage capacities must suffice for the amount of livestock manure produced on agricultural holding within six months or four months in the coastal area. Forests are a dominant and most preserved natural ecosystem. They protect the landscape and secure ecological balance therein. Due to their well preserved status forests are for the time being successfully mitigating the negative impacts on the environment impaired by the civilisation. Forests represent important CO2 and carbon sinks. Given the data the annual CO2 accumulation in Slovenian forests in 1990-2005 amounted to 9.867 Mt CO2 per year on average, which means that in Slovenian forests over 60 percent of annual CO2 emissions in Slovenia are accumulated. Due to their slow response and long life span of trees forests are particularly sensitive for climate change. Forests shall be exposed to the stress occurring as a result of climate change in almost all sites. Particularly vulnerable are sites at lower and medium high altitudes where the forest structure has been anthropogenically changed in the past centuries by the spruce introduction, which originally grows in colder areas. In the exposed sites the protection role of forests shall also be endangered. The advantage of Slovenian forests in adapting to the climate change is the traditional sustainable practice of forest management, which avoids the vulnerable monoculture stands. The sustainable forest management, which is already one of the standard practices in Slovenian forestry, is a good basis for the adjustment of forests to the climate change. The increased wood supply in Slovenian forests shall contribute to a better resistance of forest ecosystems and thus to their tolerance to climate change. The key issue of the adaptation is the change of the forest stand structure. The basic guidance is an increased count of thermophilous species. The majority of forestry experts favour the increased share of deciduous trees, particularly beech. To guide the forest stand structure the monitoring of the status must be accelerated as well as the vulnerability research of potentially most endangered lowland and sub-mountain forests with a disproportionately high share of conifers. The potentially increased fire hazard requires measures of passive and active forest protection, particularly in already more endangered areas. Locally, forests are also threatened by wind damage caused by the Karavanke foehn, a strong south wind, or by summer thunderstorms. Forests can also be damaged by rim, deciduous trees in particular by a stronger spring snowfall, which breaks greening branches. The changing climate conditions may affect the insect threat and their changed life cycle, which could coincide with the diminished tree resistance when exposed to the stress caused by the unfavourable climate conditions. It is necessary to research the threat arising from the increasing air pollution from photochemical smog in the worm period of the year. Agriculture has several options for reducing the greenhouse gas emissions. Unfortunately, due to various reasons the effects of many of them cannot be adequately recorded and demonstrated in the official emission trends reports. Among the most important measures for the greenhouse gas emissions reduction is the promotion of more efficient livestock breeding (efficient selection, optimal feeding, provision of good reproduction parameters and long life of the pure bred females). In the cattle production, which produces the most greenhouse gases, much can be done by enhancing pasture rearing and optimising the rations with the purpose to reduce the methane emissions and nitrogen secretion. Based on the general stocking density ceiling (maximum 1.9 LU) on agricultural holding the implementation of all agri-environmental submeasures shall contribute to the greenhouse gas emissions reduction originating from livestock production. The submeasure “Sustainable rearing of domestic animals” in particular enhances the use of home made feed and limits the purchase of concentrated feedingstuffs, which additionally reduces the production of the surplus nitrogen on agricultural holding. 41 Agriculture can contribute to the greenhouse gas emissions reduction by producing energy crops, particularly oilseed rape for biodiesel production as well as electricity and heat production from biogas. Currently, biodiesel is the only bio fuel produced in Slovenia. The main raw material for this production is oilseed rape. In 2006 oilseed rape was grown on about 3,000 ha of arable land. According to data of the paying agency in 2005 the claims for energy crops production captured 1,395 ha and in 2006 1,938 ha. The trend indicates an increase of energy crops production. To promote the energy crops production Slovenia shall support the producers through a measure bringing EUR45 per hectare additionally to the basic direct payment (EUR332 per hectare for fields). For setting up of perennial plantations for biomass production the EU granted national aid. In 2007 about 4,000 ha are under oil plants and planned is also sowing of soy and sunflowers. It is estimated that about 10 percent of arable land (15,000 ha) can be used for production of energy crops. In practice this means a smaller surface due to the unfavourable land and parcel structure in Slovenia. If translating the number of hectares (provided they are under oilseed rape) into bio fuel, this would represent 15,000 tonnes of biodiesel. An enormous amount of renewable energy resources represent forests as nearly two thirds of the territory are covered with forests. The production of renewable energy in forestry amounts to 454 Ktoe20. SOIL During the last period the land application of plant nutrients has decreased (Figure 8). The total amount of mineral fertilisers used in 2000-2005 was reduced by 14 percent and the application of pure nutrients by 21 percent (SORS). In 2000 the average land application of plant fortifiers was 172 kg/ha of fertilised land, by 2005 it was reduced to 133 kg/ha. Table 25: Application of mineral fertilisers in Slovenia 2000 2001 2002 2003 2004 2005 Mineral fertilisers application (t) 174,180 178,166 175,724 177,589 162,680 149,467 Application of pure nutrients per ha of fertilised land (kg) 172.3 166.4 162.3 155.9 147.1 133.2 -N 78.8 80.0 77.7 77.1 70.1 66.2 - P2O5 42.1 38.2 36.5 34.2 33.9 30.5 - K2O 51.3 48.1 48.0 44.7 43.0 36.5 Source: SORS The land application reduction was achieved also by the establishment and the use of fertilisation plans introduced as an obligatory part of good agricultural practice in the use of fertilisers. Fertilisation plans based on soil analysis contribute significantly to a balanced land application of plant nutrients as well as to a favourable nutrient balance in the soil and water. Therefore a favourable gross nutrient balance, in particular of nitrogen, in the soil is expected. In 1995-1997 there was a high nitrogen surplus of 40 kg per hectare of agricultural land. Nevertheless, it is still far lower than the EU average value at that time. Currently, Slovenia does not dispose of more updated information on the nutrient balance in the soil, but there is a research in preparation to give new information. 20 Ktoe is a unit standing for the equivalent of 1000 tonnes of oil. 42 Figure 8: Use of plant nutrients per hectare of utilised agricultural area in Slovenia 1992-2004. (SORS, Phytosanitary Office of the RS, and Agricultural Institute of Slovenia) A general restriction of land application of nitrogen from livestock manure amounting to 170 kg per hectare annually applies for the entire agricultural sector. In certain water protection areas the permissible land application of nutrients is even lower. Based on the construction of sufficient storage facilities for livestock manure the agriculture substantially contributes to the reduction of nitrates application, favourable nutrients level and the improvement of chemical status in waters. Areas at great erosion risk appear locally and depend on relief, vegetation, soil type and climatic conditions. According to the estimations of the JRC Institute (Ispra) in 2004 0.87 tons of soil per hectare on average were to be washed away during the erosion process in Slovenia, which is about one half of the EU-25 average. The level of erosion is significantly affected by the land use. Erosion can be prevented primarily through sustainable land use permanently covered with green cover. Slovenia must enhance the utilisation of agricultural land to preserve or even decrease the erosion level. In general, the soil in Slovenia is well provided with organic matter. The soil maps indicate that the organic matter content on 86.2 percent of agricultural land amounts to over 2 percent, on 30.9 percent of agricultural land it amounts to 4 percent. Laboratory sample analyses showed similar results, as in 88.6 percent of the samples the organic matter content was over 2 percent and in 37.3 percent of the samples it amounted to over 4 percent. The relatively good condition results from the fact that in the agricultural land structure grassland prevails. The allowed contents of heavy metals in the soil are locally exceeded in the surroundings of industrial centres (Mežiška dolina valley, Celje and Jesenice). According to data available the application of fertilisers (livestock manure and mineral fertilisers) in agriculture does not cause any exceeding heavy metals contents in the soil. Due to the use of plant protection products based on copper compounds increased copper concentrations can be detected in areas where intensive vine growing is present. This particularly applies for vineyards with a vine growing tradition of several decades. 43 ORGANIC FARMING One of the most efficient ways for sustainable agricultural use of natural resources is organic farming as it significantly contributes to the provision of public goods, preservation and improvement of biodiversity, preservation of drinking water sources, conservation of agricultural landscape and environmental protection. Furthermore, it ensures the production of high-quality food and healthy food with high nutritional contents and has the best possible impact on sustainable management of the non-renewable natural resources and exerting the principle on adequate animal rearing. Organic farming is one of the most efficient methods of sustainable agricultural use of natural resources. According to DG AGRI reference data in 2002 organic farming was carried out on 15,400 ha of Slovenian agricultural land. First organic farms in control system were registered in 1998. Given the statistics their number and the land under organic farming have continuously increased ever since. In 2006 organic farming was carried out on 1,876 agricultural holdings on 26,830.62 ha of agricultural land. In the recent years the organic agricultural holdings share under organic production increased from 1.5 percent to 2.4 percent. Table 26: Organic farming* 2000 2001 2002 2003 2004 2005 Number of holdings under organic farming 600 1,000 1,160 1,415 1,568 1,718 Number of certificates 115 322 412 632 910 1,220 Area under organic farming (ha) 5,440 10,828 13,828 20,018 23,023 23,553 - share in total agricultural land use (%) 1.1 2.1 2.08 3.01 3.4 3.8 *Agricultural holdings and land already engaged in organic farming or converting to organic production. Source: MAFF 2006 1,876 1,379 26,830.62 4.16 In 2004 support for organic farming under the agri-environmental measures set out in the RDP 2004-2006 was disbursed for 15,477 ha of agricultural land. As a result of the increasing consumer sensitivity for health, environmental and animal welfare issues the demand for organically produced foodstuffs has increased immensely. Given its natural features Slovenia has excellent opportunities for further development of organic farming. Hence, based on the European action plan, Slovenia drew up the national action plan for a long-term development of organic farming, containing analyses and setting out the needs, goals, proposals and measures for enhancing the long-term development of organic farming in Slovenia by 2015. Based on the increasing number of organic farms and natural conditions in Slovenia as well as the raised consumer awareness and demand for organic products, organic farming represents an opportunity for Slovenian farmers to secure an adequate source of income. In connection to adequate processing and marketing of organic products the consumers are offered higher quality food products. The supply of Slovenian organic foodstuffs on the market does not grow proportionally to the number of organic farms, which indicates that the demand for organic products in Slovenia is currently greater than the supply. One of the reasons is the prevailing engagement of organic farms in animal husbandry, although the greatest demand is for vegetables and fruit. Due to the high level of biodiversity, habitat diversity and extent as well as landscape specifics in Slovenia the need to preserve these features in future was made priority. This can be achieved best by applying environment friendly technologies, maintaining agricultural activity in areas at risk of abandonment and overgrowing as well as by sustainable forest use. The utilisation of agricultural land is important also with respect to the maintenance or reduction of the erosion level. As the 44 agricultural practices mentioned have positive impacts on the nature and environment conservation as well as on water protection it is important to continue supporting these farming methods in the next programming period. In Slovenia integrated production is present, which was carried out in 2006 on 5,767 agricultural holdings on 49,458 ha of agricultural land. Integrated production is also based on meeting stricter rules on fertiliser application and the use of plant protection products. ENVIRONMENTAL FUNCTION OF FORESTS In Slovenia the protection of the nature and environment has a common social value, which also shows in the concerning policies so far. Slovenia has managed with forests in a sustainable manner and has a relatively high standard in this field which has achieved the contents and the level laid down by the Forestry Strategy for the European Union (Council Resolution of 15 December 1998 1999/C 56/01). Forests in Slovenia are prevailing and most preserved natural ecosystem; they protect the landscape and ensure ecological balance therein as forests represent the habitat or at least shelter and a source of food to many animals which live outside the forest as well. They also successfully mitigate the negative impacts of the civilisation. Such forest status was achieved through a consequent implementation of sustainable and multifunctional management in which all functions of the forests are basically equal. Slovenian forests have important environmental functions. They are important for the biodiversity conservation as they provide living environment to numerous organisms. In Slovenia 100,750 ha have been designated as protective forests and 9,630 ha as forest reserves. Protective forests protect and preserve the ecologic balance where it is particularly sensitive and endangered. The protective forest management is aimed at strengthening their protective and biotope functions. Forest reserves, where forests are left to the natural development, contribute to increased biodiversity and enable research on the natural forest development. Good preservation of Slovenian forests also shows in the high percentage of the national territory designated as the Natura 2000 sites. In the Natura 2000 71.3 percent of the surface is covered by forest, which represents 42.3 percent of Slovenian forests. A large portion of Slovenian forests represents important habitat types which under the European criteria are endangered and rare. Forests contribute to the renewal and functioning of natural systems and provide conditions for a favourable conservation status of wild birds and plants. This way Slovenian forests contribute to the accomplishment of the environmental objective: reversing the biodiversity decline by 2008. Forests in Slovenia are very versatile. Inside them are certain tree structures and other vegetation coinciding with the protected species under Natura 2000. Diverse sites and climate conditions ensure great versatility of the forest communities (habitat types). The high biodiversity conservation is ensured mainly through wide closed forest areas in different stages of succession with a high share of dead tree volume and forest islands in agricultural and suburban landscape (in particular the Dinaric fir-beech forests, lowland alder groves and flooded oak forests, rare forest communities of other fresh and headwater sites, other rare ecosystems, habitats and biotopes/ ecocells in forest, forest at the upper forest borderline, primeval reserves, natural and old semi-natural forest types, forest genetic reserves and autochthonous provenances). In such forests rare habitat and organism types have often been preserved, which particularly need to be protected. Important for the protected species among the forest vegetation are older hollow trunk trees and dead trees. There, 45 individual animal species (birds) find food and nesting place. Next to the hollow trunk trees other specific biotopes for the protected species exist (water areas inside a forest, hollows, etc.). Forests have ecological, social and production functions. In the light of the environment most important are the ecological functions evaluated in Table 27. Table 27: Evaluation of ecological forest functions Level 1* Function Area ha 158,850 59,241 28,557 22,748 Level 2* Share % 13.1 4.9 2.4 1.9 Area ha 269,699 157,568 510,496 45,698 Share % 22.1 13.0 42.1 3.8 Protection of forest land and stands Biotope function Hydrologic function Climatic function Source: Slovenia Forest Service *The focus of the functions is evaluated in forest management plans. The focus of the function at Level 1 means that forest management must conform to the function (Level 1 sets out the manner of management), while the focus of a certain function at Level 2 only impacts the forest management. Forests also contribute to the pollution sink for greenhouse gases from the atmosphere and thus to a more favourable national carbon balance. Organic matter in forests accumulates CO2, the utilisation of wood for energy reduces the use of fossil fuels; the application of wood as material contributes to a more favourable carbon balance (carbon storage for the duration of the wood product). Forests have an important impact on the quality and quantity of water and the quantity distribution in the landscape. Preserved forests and forest soil are a natural water “filter” which shifts from precipitation into forests (sulphur and nitrogen compounds, heavy metals as well) and mitigate the acidification and eutrophication processes of water and soil. Due to the extreme weather occurrences the importance of preserved forests (particularly in the Karst) is crucial to balance and mitigate the water flows. Forests not only affect the amount of the water flow and its time distribution, but also secure water purity which runs off the forest or drains through the forest soil. Therefore forests are an irreplaceable source of clean drinking water. Hence, the overall forest management must consider the maintenance of water flows and headwaters as well. Through their protective function forests balance the water drainage, protect the land from deposition, leaching and crumbling, mitigate climate extremes and are the most important source of clean drinking water and designer of the water source regimes. They also have an irreplaceable function in soil protection in steep areas, particularly in mountain areas, where they protect the lower located land and buildings from natural threats. The protection function is particularly evident in forests providing soil resistance to erosion caused by water and wind. Slovenian forests significantly contribute to the accomplishment of the environmental objective of the soil protection. 3.1.4 Rural areas and the quality of life in the rural areas In the past decades Slovenian rural areas have been facing explicit economic, social and demographic restructuring. The intensive transformation of the unique agrarian countryside proceeded relatively fast, under the influence of urbanisation, and is considerably different from the development of rural areas in Western Europe. The deagrarisation which reflected in the abandonment of the agricultural production, employment restructuring, and in some areas even in population migration and depopulation, included wide range of rural areas. In approximately 40 years the share of agricultural population decreased from approximately 50 to about 5 percent. Here, the polycentric regional development is important, which was one of the main factors of bringing urbanisation in rural areas. The industrialisation, contingent on the concept of this 46 development, accelerated the development of the tertiary and quartary activities, which contributed to larger and faster growing number of population employed outside agriculture. Under the influence of these processes a characteristic settlement pattern was established in Slovenia, which reflects mainly in: - different demographic area types; - typical settlement size and social structure. Characteristic for Slovenian rural areas are three different types of demographic areas. Particularly in the valleys and in the lain the urbanisation area has formed with a relatively stabile population count and poly-structured distribution of jobs. Increasing employment outside the agriculture reflects in increased disproportion within the agrarian structure (increasing share of mixed and subsidiary farms, deprofessionalisation of agriculture). However, due to the possibility of daily labour migration the settlement of rural areas was preserved with a different, less classical rural lifestyle. In the wide ranging mountain and karst areas as well as in borderline areas the classical agrarian landscape was preserved. Rural areas, which are less attractive to work and live in, still fall behind in development and are being demographically emptied in some parts. The main reasons for such trends are mainly: - the leading economic activities – agriculture and forestry do not provide for sufficient income; - job opportunities in non-agricultural activities are still not available in the areas themselves nor within the range of the daily migration; - lack of larger urban centres and poor traffic infrastructure. Between the urbanised and peripheral areas are the so called transitional areas. Typical for these areas is interlocking of individual urbanised islands around smaller central settlements and relatively wide ranging non-urbanised hinterland with greater or smaller share of agrarian population. These relatively wide ranging areas are located predominantly in Slovenian hilly and peripheral lowland. Characteristic for Slovenian rural areas settlement is also the disproportionally high number of smaller and medium large settlements. Of about 6,000 settlements only 16 have more than 10,000 inhabitants. In settlements with the town status lives about one third of the total population. The settlement size differs from region to region. In the lowland the majority of the settlements has more than 200 inhabitants, while in the hilly, karst and mountain areas small settlements prevail (in mountain areas about 25 percent of all settlements have less than 20 inhabitants). In Slovenia the rural areas with the lowest population density are also the areas with the smallest average settlements. Generally, the economic development of Slovenia has lead to a reduced share of agriculture and an increased share of non-agricultural activities as regards the value added structure as well as employment structure. In 2005 the secondary and tertiary sector produced 97.5 percent of the total GVA, whereby the service sector alone contributed 63.4 percent, and employed 89.9 percent of the total employed population. 47 Table 28: Development indicators of non-agricultural activities in Slovenia Activities Production activities (C to F) GVA (Mio. €) - share in total GVA in Slovenia (%) Employment (000) - share in total employment (%) Service activities (G to P) GVA (Mio. €) - share in total GVA in Slovenia (%) Employment (000) - share in total employment (%) Non-agricultural activities, total (C to P) GVA (Mio. €) - share in total GVA in Slovenia (%) Employment (000) - share in total employment (%) Source: SORS (National accounts) 2000 2001 2002 2003 2004 2005 6,582.6 36.2 340.6 38.1 6,914.1 35.9 341.1 37.9 7,247.4 35.3 335.3 36.7 7,689.1 35.6 329.4 36.2 7,991.0 35.0 326.2 35.7 8,203.7 34.1 324.3 35.4 11,018.5 11,753.8 12,613.0 13,362.1 14,251.4 15,259.5 60.6 61.1 61.5 61.9 62.4 63.4 447.7 454.8 476.9 482.6 492.8 499.7 50.0 50.6 52.3 53.0 54.0 54.5 17,601.1 18,667.9 19,860.4 21,051.1 22,242.4 23,463.2 96.8 97.0 96.8 97.4 97.3 97.5 788.3 795,9 812.1 812.0 819.0 823.9 88.1 88.5 89.0 89.2 89.7 89.9 Parallel to the development of the non-agricultural activities the share of self-employed persons in these sectors has also increased, while the self-employment in agriculture has declined. Table 29: Self-employment in Slovenia Economically active population (000) Self-employed persons (000) Source: SORS (Labour force survey) 2003 % 897 100.0 89 9.9 2004 % 943 100.0 92 9.8 2005 % 949 100.0 96 10.1 It may be anticipated that the intensified global competitiveness and expensive domestic labour force shall have important impacts on the business of economic operators in Slovenia in the coming years and create additional pressures on the labour market, whereby the importance of selfemployment shall become even more evident. Labour intensive branches, in which the consequences of the intensified market conditions shall be most evident, employ many people from the rural areas who gravitate to their jobs in smaller urban centres. The relatively polycentric spatial pattern of economic development in the past which, through the development of cities and regional and local centres, provided jobs nearby for rural population had an important impact on agriculture. A specific socio-economic structure of agricultural holdings was developed in which farms combine their income from different sources and in which agriculture is often only an additional and not the main activity. According to data of the structural agriculture survey for 2005 (EUROSTAT, 2006) as much as 74.4 percent of agricultural holding operators made their income also from other activities. One of additional sources of income and employment on agricultural holdings are subsidiary occupations. Subsidiary occupations are activities related to the agricultural and forestry activity providing a better output of the working mechanisation and labour force on family farms. In 2003 1,262 family holdings were officially engaged in subsidiary activity, 1.7 percent of all farms. In 2005 the number of farms increased to 2,148 or 3 percent of all farms (MAFF). Four activities prevail in particular: agricultural machinery services, tourism on agricultural holdings, wood processing, and fruit and vegetable processing. Other subsidiary occupations are represented only to a smaller extent (Table 30). The demand for products and services of subsidiary occupations is increasing. 48 Table 30: Main subsidiary occupations on family farms Type of subsidiary occupation Services Tourism on farm Processing Handicraft Flower arranging Obtaining energy form renewable sources Education Sales Collecting and composting organic material Aquaculture Total Source: MAFF Number of farms 2003 2005 261 1015 337 458 206 336 36 143 57 96 23 43 20 34 7 19 6 11 8 1,262 11 2,148 Index 2005/03 388.8 135.9 163.1 397.2 168.4 186.9 170 271.4 183.3 137.5 170.2 Structure (%) 2003 2005 20.7 47.3 26.7 21.3 16.3 15.6 2.8 6.7 4.5 4.5 1.8 2.0 1.6 1.6 0.5 0.9 0.5 0.5 0.5 100.0 0.5 100.0 Tourism is one of the most important economic branches worldwide. The importance of tourism is increasing year by year and the same trend is also present in Slovenia. According to the estimations of the Strategy of Slovenian tourism 2002-2006 tourism makes 9.1 percent of the GDP, employs 52,500 people and with the inflow of EUR 1.2 milliard represents 1 percent of Slovenian export. In 2001 Slovenia was visited by 2 million domestic and foreign gests; together with daily visitors the total tourist number amounted to approximately 6 million. In 2002 and 2004 the number of tourists increased by about 3.8 percent, while the number of overnight stays only by 2.5 percent. The number of foreign tourist increased faster, the average stay however is relatively short. According to 2005 data this was a record year since the Slovenian independence since 2.395 million domestic and foreign guests were registered, which is by 2.3 percent more than in 2004. In the past years the number of guest arrivals has increased as well as the number of the overnight stays. In 2005, 7.573 million overnight stays were registered (58.1 percent thereof were foreign guests). In Slovenia certain tourist centres (ski resorts, spas, and coast) are well developed and update their offer, while rural areas still lack tourist offer. Rural areas have great potential in cultural and natural heritage, cuisine and wines as well as leisure, but the offer is not sufficiently developed and recognisable. According to data from the cultural heritage register, kept by the Ministry of Culture, 24,120 units of different heritage types are registered; thereof 11,152 are units of ethnologic heritage. About 5,000 more units are yet to be registered. Prevailing among the heritage types is architectural heritage. Table 31: Data on number of registered heritage units by heritage types HERITAGE TYPE archaeological heritage profane architectural heritage sacral architectural heritage sacral-profane architectural heritage memorial heritage park architectural heritage urban heritage cultural heritage historic heritage other TOTAL NUMBER 2632 11080 5746 166 3133 194 917 153 18 81 24120 By organising training, advisory service and various programmes for investment support, the state has contributed substantially to the promotion and development of additional employment 49 opportunities and making of income on holdings in the last decade. In future, the state shall continue pursuing a more intensive support for development of business in rural areas, whereas the focus shall be put on the activities based on competitive advantages of the rural areas (e.g. traditional knowledge, manpower, raw materials). In the past, agriculture was predominant in the economic structure of Slovenian rural areas, whereas economic development was directed in cities as well as regional and local centres. In spite of the relatively polycentric spatial pattern of economic development in the past, the trends of demographic structure deterioration captured the majority of predominately rural areas. Data analysis of national accounts by regions and activities for 1995-2003 showed that in the predominantly rural areas the service activity (53 percent) is lower than the average in Slovenia. The disparities between them grow further. The closeness of stabile and interesting jobs outside agricultural activity and positive restructuring processes in agriculture have given some rural areas a new impulse. In places where no considerate development in agriculture had taken place a social degradation and even a renewed appearance of poverty is registered, which, at least in the rural areas, were less present in the past. In the recent decades the rural population share is declining as the majority of inhabitants living in Slovenian countryside does not make a living from farming. Nevertheless, rural areas preserved typical developmental and cultural patterns. The countryside has also become an attractive place for living, work and leisure, at the same time the economic interaction and coherence between urban and rural areas have emerged. Although various business activities are available, they remain less developed in the countryside than in urban centres. Enterprises located in the rural areas produced made 19 percent more income in 2004 than in 2002 and employed 6.6 percent more workers. Nevertheless, the income of rural enterprises per capita is 2.7 times lower than the income in urban municipalities21. A more active role of the state and the local communities is required in securing quality jobs in rural areas. Even though agriculture is still a typical economic activity of rural communities the rural areas are increasingly becoming a place to live and work in for people engaged in various non-agricultural activities. In 2003 207,743 family members and 268 full-time employees were involved in work on family farms (Table 32). Agricultural businesses and cooperatives had 3,234 full-time employees. Together with seasonal and occasional work and machinery services the input of on-farm work, expressed in productive man-work units (PMWU), was 95,605, which is by 11 percent lower than in 2000. The reduction of the PMWU number was similar to the reduction of the number of agricultural holdings. Thus, compared to 2000 the average PMWU number per agricultural holding declined by less than 1 percent. More severe (by 12 percent) was the reduction of labour input expressed in per UAA unit. Table 32: Labour force in agriculture Number Total labour force in agriculture (number of persons) Labour force in agricultural businesses and cooperatives Labour force on family farms Thereof: Family labour force PMWU number Labour force in agricultural businesses and cooperatives Labour force on family farms 21 Index 2003/00 82.3 Share (%) 2000 2003 100.0 100.0 2000 256,783 2003 211,245 4,058 3,234 79.7 1.6 1.5 252,725 252,528 107,809 4,032 208,011 207,743 95,605 3,383 82.3 82.3 88.7 83.9 98.4 98.3 100.0 3.7 98.5 98.3 100.0 3.5 103,777 92,222 88.9 96.3 96.5 Source: SORS and MAFF calculations 50 Thereof: Family labour force PMWU/number of persons working on holdings PMWU/100 ha UAA PMWU/holding 99,718 40.5 87,741 45.3 22.2 1.25 19.6 1.24 88.0 111.9 92.5 - 91.8 - 88.3 99.2 - - A faster development of non-agricultural activities requires a keen-witted entrepreneurship. The development of the existing and new non-agricultural activities in the rural areas can create numerous opportunities for self-employment and new jobs for the members of farm households as well as for other inhabitants and thus contributes to an optimally utilised labour potential and the preservation of populated rural areas. Thereby, it is necessary to develop the activities based on the competitive advantages of the rural areas, which requires additional education actions, establishment of information systems and provision of good practices transfer. To raise the quality of life and increase the economic diversification of activities in the rural areas it is necessary to make optimum use of the following advantages of Slovenian rural areas: - infrastructure availability, rich architectural, cultural and natural heritage as the basis for the development of alternative economic activities in the rural areas; - traditional handicraft as the basis for the development of entrepreneurship based on the advantages of the rural areas; - diversity of cultural landscape and the conservation of the natural environment as the opportunity for the development of rural tourism. In relation to the EU Slovenia has a comparable economy structure as regards the economic operator size. Micro and small enterprises represent 98.4 percent and employ 37.5 percent of all employees in Slovenia. They produce 38.8 percent of the total turnover and 51 percent of the net income and 52 percent of the net loss (2003 situation). An average Slovenian enterprise employs 6 persons, a micro company 1.8 and a small company 20.2 workers. National surveys on the situation among small and medium-sized enterprises (SME) indicate a decline of the entrepreneurship in Slovenia. Recently, the entrepreneurship passed the transition stage and has catch up on the “normal” trend, currently a downward trend. Although a wide range of business activities is available, these are less developed in the rural than in urban areas. Slovenia has not yet developed any entrepreneurship culture. According to the GEM data (Global Entrepreneurship Monitoring) only 2.6 percent of the active population in Slovenia (about 35,000) were engaged in the early phases of the entrepreneurship process. Hence, as regards the initial business activity Slovenia was placed even lower than in the previous years. Given the GEM data in 2002, 2003 and 2004 Slovenia took the 41st place among 44 countries of a reduced sample. In Slovenia only every thirty-eighth inhabitant between 18 and 64 years of age is engaged in business. Whether they started with an undertaking or a business or own and run a small enterprise. According to GEM the share of adult population in Slovenia intending to enter entrepreneurship or already owning an enterprise for less than three years and a half increased to 4.4 percent in 2005, which means approximately 20,000 people more than in 2004. Nevertheless, Slovenia is still in 17th place of 20 European countries by early business activity and placed in the last fifth in the global respect. In the past, Slovenian rural areas plaid the role of spare space, supply of natural resources and unorganised cheap labour force. The development in Slovenia as in most Western Europe was concentrated in the cities. Thus rural areas fell behind the urban ones. Development opportunities of the countryside were not sufficiently exploited and the demographic situation and age structure 51 were visibly deteriorating. The majority of rural population is 35-49 years old; and except in the age group over 70 years men prevail. The rural population share has been declining ever since 1990s, however, the rural areas retained the typical social and cultural patterns. Agriculture is still the most typical economic activity of the rural communities, but the rural areas are becoming increasingly the place for living and working for people engaged in different non-agricultural activities. The decline of the population employed in the agricultural sector is typical for the economy, but employment opportunities outside this sector are minimal. This particularly applies for marginal rural areas with weak economic structure and basic infrastructure. Characteristic for further agricultural development shall most likely be greater concentration, specialisation and industrialisation of the activity on farms engaged in agriculture professionally. The regional GDP allocation shows that in regard of business infrastructure and other supportive services affecting the quality of life Slovenian rural areas fall behind the developed urban areas. However, in the recent years the rural areas are becoming an attractive place for living, work and leisure. Simultaneously, the economic links and interdependence between urban and rural areas grow stronger. Positive trends are also recorded in the Internet use as the Internet users share increased from 48 percent in 2005 to 54 percent in 2006. Thereby Slovenia exceeded the EU-25 average (51 percent). Among the new Member States Slovenia continues to have the highest share of households with the Internet access. Among the old Member States 10 countries have a higher share than Slovenia (SORS, UMAR, 2006). The Internet access rate in households in densely populated areas (minimum 500 inhabitants/km2) amounts to 65 percent, in households in moderately populated areas (between 100 and 499 inhabitants/km2) amounts to 52 percent and in households in sparsely populated areas (less than 100 inhabitants/km2) amounts to 51 percent (EUROSTAT, Households – Level of Internet access 2006). However, with regard to investments in ICT Slovenia has fallen behind in the past years (by investment share in ICT expressed in GDP) since investments in 2004 amounted to only 5.2 percent of the GDP, while in the EU-25 the share was 6.4 percent. Municipalities and local communities play an important role in the development of Slovenia as they enable the local population to participate in the decision making processes on local matters under the “bottom-up approach”. Local communities are irreplaceable in the implementation of public policies since they know the problems in their areas best as well as the means and methods to deal with them. Slovenia has long-year experience in active integration of local communities and population into development planning. The turning point in this area was the initiation of the comprehensive countryside development and village renovation programmes (CCDVR). The CCDVR programmes were based on the animation of the local population. Eventually, the CCDVR programmes were upgraded with the development programmes for the countryside, which included development initiatives on a wider area then the CCDVR (areas of multiple municipalities). The strategic orientations in the field of traffic and traffic infrastructure are laid down by the traffic policy of the RS. The focus lies on the accomplishment of social optimum related to the traffic sector. Investments in the field of the environment are based on the orientations of the National Programme on Environmental Protection, whereas the priority is to improve the provision of quality public services on environmental protection for as much of the population of the RS as possible. The development of new infrastructure and the construction of facilities for wastes and wastewater as well as the facilities for drinking water distribution, monitoring on the state of the environment and facilities for protection against floods set the groundwork for integrated water management in accordance with the WFD. Development priority in urban wastes management emerges from the Operational programme on waste disposal aimed at reducing the quantity of bio waste degradability by the end of 2008, adopted by the Government of the RS in 2004, and the 52 Operational programme on waste collection. The programme Reduction of harmful water operations is aimed at reducing the endangerment due to floods and the corresponding erosion in the RS. Investments in energy are based on the orientations of the National energy programme (NEP) and shall be carried out in industry, service and public sector, and traffic as well as households. The investments shall significantly contribute to Slovenia's fulfilment of the obligations regarding the greenhouse gas emission reduction in accordance with the Kyoto Protocol and fulfilment of the objectives laid down in the EU directives and the NEP. The Operational programme on the development of the environmental and traffic infrastructure shall be financed under the Cohesion Fund and to a smaller extent from the European Fund for Regional Development. Under the RDP 2007-2013 individual investments in the area of individual villages shall be supported within the framework of the measure Village renewal and development. In 2004-2006 the rural activities were supported within the framework of structural funds as well. Therefore the main objective of the SPD was pursued - increasing the competitiveness of Slovenia and economic strengthening of its regions – which was outlined in three priority tasks and measures. In 2007-2013 an important role for a balanced regional development and thus the development of the countryside shall play the Operational Programme for Strengthening Regional Development Potentials for the period 2007-2013, in particular its priority Development of regions. The proposed amount of resources for the Operational Programme for Strengthening Regional Development Potentials for the period 2007-2013 is EUR 2,011,470,027 (EU and national participation) and for the priority Regional development EUR 728,756,042 (EU and national participation). 3.1.5 LEADER In the recent years a strong process of developmental networking of local communities in Slovenia is evident. Since adopting the Promotion of Balanced Regional Development Act (1999) the local communities have concluded agreements on cooperation. They established regional development agencies and programme committees as an implementation structure of regional programming. In the recent years regional development programmes have been designed and adopted in all 12 territorial units NUTS 3. The new Promotion of Balanced Regional Development Act (2005) provided a new system framework for these activities. The drawing up of development regions at the NUTS 3 level and cohesion regions at the NUTS 2 level represents an upgrade and reorganisation of the current model of regional development management in Slovenia. New legal persons (e.g. regional development agencies) with financial accounts and management authorities have been established to perform original and delegated tasks of the state and municipalities. Thus a new implementation structure at the regional level has been built up competent to gradually take over the implementation of certain sections of the EU cohesion policy programmes. Slovenia has fifteen years of experience in the implementation of programmes for the overall rural development and in active animation of local communities in development planning. A milestone in this area was reached with the Programmes of integrated comprehensive countryside development and village renovation programmes (CCDVR) in the beginning of 1990s. The CCDVR programmes were based on the local population animation. By intense participation and cooperation of local population during the initial phase local development programmes were designed. The initial phase was followed by the implementation of the priority projects. Eventually, the CCDVR programmes were substituted by development programmes for the countryside (DPC). They upgraded the CCDVR programmes. The resemblance between them is in the methodology approach, but they 53 differ in territorial extent22. By greater target orientation and wider-ranging area the Development Programmes for the Countryside address a better defined target population and a larger potential critical mass of participants. Thereby, the conditions for drawing up efficient local development partnerships were set. By 2005 31 programmes for the development of the countryside have been realised or were in the preparation phase, which covered about 96 percent of the total national territory and 88 percent of the total population. The initiative LEADER is aimed at the realisation of development programmes at the local level based on the initiative and cooperation of the local population. The introduction of the initiative shall contribute towards the strengthening of the existing partnerships and creation of new partnerships, increased integration of private sector into the local development and promotion of the local capacity building. By implementing the development programmes in accordance with the LEADER the decisions on the local development shall be transferred to the local level and shall be based on developmental needs and potentials of individual areas. The promotion of public-private partnerships shall strengthen the local awareness on possibilities and obligations at the local level for independent decisions on the development and implementation of development projects. The initiative LEADER was not implemented in Slovenia in the previous periods. In the countryside the lack of interest and the necessary knowledge for local development as well as the participation of the local population in the designing and decision making on the development is present. Therefore it is necessary to encourage local population for networking into local publicprivate partnerships (LAG) and support the establishment thereof in the new programming period. For successful establishment of LAG and participation of local population in the designing and realisation process of the development programmes (local development strategies) the training on gaining of adequate professional skills and knowledge on principles, methods and applicability of the initiative LEADER must be promoted and encouraged. In the new programming period Slovenia shall apply the experience on comprehensive countryside development and village renovation programmes, the local development programmes and the integration of local communities into the development planning and upgrade them within the framework of the priorities under the LEADER axis. 22 By 2001 (by the end of initial phase) 290 IRDVR programmes had been realised. By 2005 31 rural development programmes have been realised or are in preparation. Nearly entire Slovenian territory is included in at least one of the rural development programmes mentioned. 54 SWOT ANALYSIS The SWOT analysis is founded on a thorough analysis of the conditions and the situation of agriculture, food industry and forestry as well as the incorporation of these sectors into the countryside and the wider-ranging rural areas. Special attention was paid to the strengths and weaknesses in relation to the environment as the structural conditions and circumstances into which people are imbedded and which influence the quality of their life. In the following these strengths and weaknesses as well as opportunities and threats to the rural development in Slovenia are laid down. - Strengths (S) established quality standards and good hygiene practices established certification and quality control system - - low - favourable supporting environment for sustainable farming and forest management - well preserved and diverse environment and favourable species and habitat status - favourable environmental conditions for organic farming - diversity of cultural landscape and preservation of the natural environment on the countryside - rich cultural and natural heritage - craft tradition in the countryside - integration of enterprises in rural areas into local community - established local development partnerships through CCDVR and DVC projects - established information, advisory, education and training network throughout Slovenia and awareness of its importance - non-governmental organisations active in the countryside Opportunities (O) - high consumer preference for domestic products - creation of local markets - recognisable trade mark of organic products - demand for organic products and other feedingstuffs of higher quality - expansion to EU market and third countries markets - strengthening multifunctional role of agriculture - active and healthy leisure options in the countryside - recognisability of Slovenia as a country with high level of natural preservation Weaknesses (W) low productivity of agrifood and forestry sector level of production specialisation and professionalisation of agricultural holdings weak investment capacity of agrifood and forestry sector lack of efficient vertical and horizontal networking in agrifood and forestry sector and lack of efficient marketing unfavourable parcel and land holding structure - unfavourable age and educational structure of the - population in rural areas potential environmental hazard due to locally intensive farming difficult natural conditions for farming soil sensitivity to erosion in some areas of Slovenia - low income structure and lack of alternative income - sources (high dependency on primary agricultural production) lack of business and other specialised knowledge and skills in the countryside - low level of business activity in the countryside - lack of infrastructural equipment in the countryside - undefined status and lack of experience in partnership developmental cooperation at local level Threats (T) - uncompetitive domestic products in single and world markets - increased demand for high-qualified labour force (“brain drain” threat) - Establishment of production methods potentially harming the environment due to current economy and competitiveness pressure - abandonment of production in agriculture and forestry and thus loss of traditional rural lifestyle - abandonment of agricultural land - unbalanced development of agriculture 55 3.2 Strategy chosen to cover strengths and weaknesses The strategy chosen to tackle the advantages and weaknesses emerging from the baseline analysis, potentials and specific needs of the rural areas of Slovenia was outlined in the National strategy plan for rural development 2007-2013 (NSP). It reflects the needs for the improvement of competitiveness of all three sectors of the primary production, i.e. agriculture, food industry and forestry. In addition thereto it strives towards strengthening the economic and social conditions of the rural areas as well as the establishment of the entrepreneurship logic to increase the employment. Special attention is paid to the sustainable management of the natural resources, maintenance of the cultural landscape, environmental protection, and preservation of the settlement and the identity of the rural areas. The national priorities of the RDP 2007-2013, outlined on the basis of the NSP, cover the measures under four axes: - improving the competitiveness of the agricultural and forestry sector (axis 1); - improving the environment and the rural areas (axis 2); - improving the quality of life in the rural areas and the diversification of the rural economy (axis 3); - LEADER (axis 4). The selection and the hierarchy between the rural development measures, in three key intervention areas: competitiveness, environment, diversification and quality of life in Slovenia, shall be achieved by a target-oriented and deliberated allocation of resources among the intervention areas. National priorities set out on the basis of the baseline analysis, potentials and specific needs shall contribute towards an effective accomplishment of the common EU objectives laid down in the Council Decision on Community strategic guidelines for Rural Development as well as the Lisbon Strategy and Göteborg objectives. For the accomplishment of the objective raising the competitiveness of the agri-processing and forestry sector and thus the implementation of the axis 1 measures Slovenia allocated about 33 percent of the EAFRD resources. The measures under axis 1 are divided into three priority tasks: - measures to raise the qualification and to strengthen the human potential in agriculture and forestry; - measures to restructure the physical capital in agriculture and forestry as well as enhancing the innovation; - measures to improve the quality of the agricultural production and products. Unfavourable size, age and education structure, low specialisation level in agriculture and the lag in productivity in agriculture and forestry diminish the efficient use of production sources and prevent appropriate market orientation. A lag in achieving the quality, hygiene and food safety standards is also recorded. To raise the competitiveness a new development cycle is necessary, which cannot be achieved without a more active participation of public resources, therefore the measures are aimed at raising the qualification level for work in agriculture and forestry, improving the age structure of operators on farms, increasing the application performance of production factors in agriculture, food industry and forestry as well as the quality raising and adaptation of supply to market requirements. The measures under axis 1 shall contribute towards raising the productivity of the agri-food and forestry sector, raising the innovation level, production specialisation and professionalisation by considering the principles of the sustainable management. Within the framework of these priorities about 65 percent of the resources shall be devoted to the agricultural sector, nearly 25 percent to the processing sector of agricultural products and about 14 percent to forestry and the processing of forestry products. Axis 1 shall support all sectors of agricultural production and rearing. In the area of cattle production as the leading branch support shall mainly be directed towards the production raising, perennial plantations and vegetable production shall be directed towards the adaptation to 56 the market requirements, and the entire plant production towards the adaptation to the productivity and climate change. Due to its well preserved and diverse environment, favourable species and habitat status, favourable environmental conditions for organic farming and sparsely populated rural areas Slovenia has put into the first place the implementation of the axis 2 measures to contribute to the utilisation and the preservation of these conditions. In addition thereto these measures shall reduce the hazard to the environment as a result of the locally intensive farming, preserve the agricultural activity in less favoured areas and prevent the soil erosion processes in certain areas. For this purpose Slovenia allocated nearly 53 percent of the EAFRD resources. Under axis 2 the measures agri-environmental payments and less favoured areas shall be implemented. In regard of the allocation of the resources more resources were devoted to the implementation of the measure agri-environmental payments. To accomplish the goals of Natura 2000, the Water Framework Directive and mitigation of climate change the programme under axis 2 does not envisage any specific measures. The goals shall be realised through the measures set. The habitat and biodiversity status within the Natura 2000 sites in Slovenia indicates a good conservation and functionality. The favourable situation is also indicated by the high share of the national territory in special protection areas. The current practice of forest management, based on the preservation of the ecological forest functions, provides a favourable status of the species and habitat types in the Natura 2000 sites. In the most important parts of the agricultural areas (permanent grassland, meadow orchards and structural elements of the agricultural landscape) located in the Natura 2000 sites, the preservation of the favourable status of species and habitat types is ensured through the permanent utilisation of these areas. The majority of the Natura 2000 sites (94 percent) coincide with the less favoured areas. Within the range of the implementation of the measure less favoured areas the utilisation of the agricultural land in these areas is support as well. Additionally, in 2007 the regional model of the single payment scheme was introduced, which also covers payments for grassland and thus emphasises the need for preserving these areas utilised. Currently, there are no specific requirements set for farming in the Natura 2000 sites which would specify the land management in individual sites. Therefore no measure has been set out providing compensation allowances for extra costs and income foregone as a result of performing agricultural activity in these areas. The goals of the Natura 2000 shall be achieved by preserving the sustainable forest management and maintaining agricultural land utilised. The habitat and biodiversity status shall be monitored by way of various indicators. Currently, a system for farmland birds monitoring is being established, which shall indicate common trends of the species populations and the habitat conservation. The system shall enable the monitoring of the populations in specific areas as well (e.g. in areas where certain agri-environmental submeasures are implemented). For several years the monitoring of the populations of endangered birds in special protection areas Natura 2000 and the monitoring of water birds populations has been conducted. The goals of the Water Framework Directive shall be achieved by the strict environmental policy on water protection. The entire Slovenian territory was designated as nitrate vulnerable zone in accordance with the Nitrate Directive. Hence, the entire national territory and the whole agricultural branch are subjected to the restrictions as regards the quantities, period and the method of land application of nitrogen. In addition thereto all agricultural holdings must provide for adequate livestock manure storage facilities. In water protection areas, representing approximately 20 percent of the national territory, additional stricter requirements on farming apply. Prohibited is the application of certain fertilisers, the quantities are additionally restricted and the permanent green cover of crop land is mandatory as well as the fulfilment of other specific requirements related to the area. In future it shall be possible to claim compensatory allowances in these areas for the income foregone and additional costs emerging from the restrictions in farming, which shall be 57 disbursed as state aid. Through the cross compliance mechanisms containing the nitrate directive standard the area linked measures and payments shall contribute to the accomplishment of the improved water quality goals. Additionally, the measures under axis 1 shall provide the possibility of purchasing the mechanisation enabling the optimal application of fertilisers and plant protection products and thus reduce the possibility of residues leaching into the groundwater and other water bodies. To achieve the reduction of the greenhouse gas emissions emerging from the agricultural, processing and forestry sector the programme foresees measures which shall contribute to the mitigation of the climate change. All agri-environmental submeasures require a common stocking density restriction and a controlled and limited application of fertilisers, which shall contribute towards the reduction of the methane, ammonia and dinitrous oxide emissions. Similar impact shall arise form the investment measures for the construction of new buildings for animal rearing, biogas facilities and investments in mechanisation functioning in an environment friendly manner. Investment measures in forestry shall help to optimise the utilisation of wood as a renewable source of energy. In addition thereto the measures shall enhance the efficiency of domestic animals rearing. In cattle production, which produces most greenhouse gases, the measures shall enhance the pasture rearing and optimised feeding rations with the purpose to reduce the methane emissions and nitrogen secretion. The most important measure for ammonia emissions reduction is the promotion of technically founded fertilisation with emphasise on an efficient nitrogen cycle in agriculture. Projects providing adequate animal housing solutions with appropriate livestock manure storage facilities shall be adequately supported. A large potion of Slovenian territory are rural areas (according to OECD), 85 percent are designated as less favoured areas, 36 percent as Natura 2000 sites and a considerable portion of agricultural land meet the criteria on high nature value area. All areas mentioned overlap in the main part. This means that certain measures can contribute to the achievement of the goals and favourable situation on particular areas and level simultaneously. The measure less favoured areas horizontally positively affects the preservation of populated areas and agricultural activity in the major part of areas mentioned before. It contributes to the habitat and ecosystem conservation arising from the implementation of the agricultural activity and which would extinct if the activity were abandoned. In addition thereto some agri-environmental submeasures which are target oriented to the production extensification and biodiversity conservation also have an impact on the preservation of the conditions in these areas. Typical for Slovenia are the craft tradition and the potential for further development of entrepreneurship in the countryside, good integration of enterprises into local communities, the established structure of local development partnerships and the rich natural and cultural heritage. The measures under axis 3 for which nearly 11 percent of the EAFRD resources had been allocated shall be aimed at improving the quality of life and encourage the economic diversification in the countryside. This intervention areas is devoted the least resources, but it shall contribute towards the improvement of the unfavourable age structure of the rural population, the increase of the low income grade and the increase of the knowledge and capacity level in the rural entrepreneurship. In the light of the resources allocation Slovenia shall pay the greatest attention to the measure Supporting the establishment and development of enterprises (66 percent of the resources under axis 3), followed by the measures Village renewal and development (23 percent of the resources under axis 3) and Conservation of the heritage in the countryside (11 percent of the resources under axis 3). With appropriate support to individual activities within the axis 3 the upgrading and complementarity with other measures under RDP 2007-2013 shall be achieved, as well as with other OPs, which shall contribute to a more efficient utilisation of the countryside advantages. The promotion of the entrepreneurship in the rural areas is aimed at the utilisation of the countryside potential showing in labour force, utilisation of natural resources, whereby the inclusion of young 58 people, women and high educated people is very important. The measure Village renewal and development is aimed at preserving or bringing back the life in villages by considering the tradition and heritage component as well as the needs and development. The conservation and upgrading of the heritage is aimed at presenting the countryside as a place with rich heritage and a place interesting for leisure. Approximately 3 percent of the resources shall be devoted to the implementation of the LEADER axis capturing activities of all intervention areas and contributes towards the achievement of all overall objectives of the RDP 2007-2013 by establishing the rules on the development of the decision-making process under the bottom up approach. The measures shall support the operation of local action groups, skills acquisition and animation (20 percent), cooperation between LAGs (10 percent) and the implementation of projects under the LEADER principle (70 percent). LEADER as a method of constitution and achievement of sustainable development of rural areas based on an overall approach for finding new solutions to remain or become competitive, for exploiting their conditions and tackling the challenges by involving the local population in the management of the preliminary development of their areas, shall significantly contribute to the accomplishment of the objectives under all other three axes and particularly the objectives under axis 3. 3.3 Ex ante evaluation The ex ante evaluation process was initiated at a relatively early stage of the programming period making the opportunity for the evaluator to be involved in the process in an interactive way. This has resulted in different types of activities like workshop, day – to – day assistance as well as commenting on measure sheets and the National Strategy. The Draft RDP was submitted to the team on the 18th September for the official ex ante evaluation. It should be emphasised that the evaluator finds that a lot of work has been done so far and it is obvious that a lot of resources and effort has been out into preparing the National Strategy as well as the RDP. This said, the ex ante evaluation has shown that there is still room for improvements and that crucial issues needs to be dealt with before the RDP can be submitted officially to the EC Commission e.g. the chapters on complementary and competitiveness are absent in the current draft and needs to be developed shortly. In general, the impression is that the main focus has been at preparing the measure sheets whereas horizontal issues and co-ordination e.g. objective hierarchy, complementarity, SWOT etc. of the RDP program has achieved less attention during the programming period. This is to some extent understandable however, it should be emphasised by the evaluator that both issues are equally important in order to design a coherent RDP. Furthermore, information on the level of aid per measures and also their determination (calculations), according the regulation criteria, are not presented in the current draft. This is especially a matter that relates to axis 2 measures. Due to this, the evaluation was only made partially. It is strongly suggested that this is brought into line, especially in light of the financial weighting of axis 2 measures. The analysis of the current situation gives some basic facts founded on primary statistical and academic sources, however in several cases the description of the problems/disparities and the evidences cannot be directly linked to the selected objectives. The dilemma is that many empirical evidences for qualitative problem statements do not exist. For the future more targeted research to prove the qualitative statement is strongly recommended, especially in the field of environmental and forestry economics. 59 In addition, the definition of objectives could with advantages be enhanced. Several of the measures lack a clear and logic objective hierarchy defining the overall specific and operational objectives for each measure, which again links up to the objective hierarchy for the entire programme. The selection and design of the measures is mainly based on previous programmes. To some extend such an approach is logical; however, the pitfall is that it might lead to prolongations of deficiencies into the next programme period. Sufficient and substantial reflection on actual policy could be improved in the current version including a deeper impact analysis of the SAPARD, RDP 04-06 and SPD measures. It has not been easy to assess the cost-effectiveness of the measures and thus of the programme as such. The report does several time express that some measures maybe could be implemented for less public expenses, but in order to assess this more carefully, targets (results and impacts) need to be better quantified. The horizontal overview and discussion about the financial priorities could also be improved significantly. Due to the fact that the majority of the proposed measures are based on previous programmes, the administration set-up and implementation of the project would not be expected to be a key problem of the future RDP policy. However, in order to enhance the quality of the programme some critical overview of existing practices and development of more transparent and efficient procedures could be considered. It is the assessment that this would improve the absorption capacity of the programme. Ensuring an efficient RD policy in Slovenia, the internal and external coherence of the RDP needs to be enhanced. In several cases the evaluators find that the measures are not distinguished sufficiently. This is especially valid for direct payments (LFA, Agri-environment, 1st pillar payments), but also some measures between axis 3 and regional policy should be more precisely defined. As a summary statement, the ex ante evaluators recommend that the issues outlined in the table at the next pages are taken aboard by MAFF in order to improve the current RDP version. The entire ex-ante evaluation report comprising synthesis report and annexes which cover the strategic impact assessment on the environment is contained in the Annexes to the RDP 2007-2013. 60 Table 33: Key recommendations of the ex-ante evaluation group No. Chapter RDP Subject Recommendations 1. 3.1 Analysis 2. 3.1 SWOT 3. 3.2 Strategy 4. 3.4 Lessons learned 5. 4.1 Objectives, priorities 6. 5.1 Measures – requirements gen. 7. 5.2 Measures requirem. – spec. 8. 5.3 Measure general 9. 5.3 Measure 111 10. 5.3 Measure 112 In order to improve effectiveness of the measure, an increase in the allocated resources (and thus a higher number of supported beneficiaries) could be considered. 11. 5.3 Measure 113 Significant revision of the measure or, alternatively its abolishment. Question for reconsideration: shifting of funds from measure 113 to measure 112? description – General and cross-cutting issues Summarize key problems and challenges of the programme at the end of the analysis chapter (e.g. as a table presentation). Improve the links between the SWOT analysis and programme objectives (can be demonstrated with a summarised presentation of outcomes of the SWOT matrix). Improve the links between the problems analysed in Ch. 3.1 and the strategy chosen in Ch. 3.2. (more references to the key problems and challenges from Ch. 3.1). Include a description of (i) impacts caused by previous actions and (ii) relevant findings of evaluations of previous programmes. Revision: (i) improve the focus of the (overall) programme objectives; (ii) improve the hierarchy of objectives by adding axis-related objectives (one per axis); define and quantify the objectives (targets) at the programme level. Revision in line with requirements from the RDP template, Annex II of the implementing regulation (for each priority axis, identify the rationale for intervention, the objectives, the scope and actions, indicators, quantified targets). Revision in line with requirements from the RDP template (Annex II of the implementing regulation). Divide bulleted text into six sub-chapters, resuming six requirements from the template for Ch. 5.2. Improve the consistency of the measure descriptions: (i) sequence of measures should be derived from the objectives of the RDP (and NS); (ii) measures should be described at comparable level of detail, preferably using common structure for all measures (‘summary technical sheets’). Axis 1 Measures It is suggested to clarify the types of eligible training costs. Additional incentives (e.g. reimbursement of transport costs and opportunity costs) could be considered as well. Reference to ER Presented within SWOT analysis. Recommendations largely considered. Recommendations largely considered. Recommendations largely considered. Recommendations largely considered. Target values considered in chapter 5.3 for individual measure. Recommendations largely considered. Recommendations largely considered. Recommendations largely considered. Recommendation considered. Eligible expenditure set out. A detailed definition of eligible expenditure (amount, individual type) laid down in call for tender. Recommendation considered. Amount of resources for this measure has increased and thus a higher number of beneficiaries is anticipated. Recommendation partially considered. Measure thoroughly revised. Given the lessons learned and beneficiaries response the measure implementation is assessed suitable under RDP 20072013. 61 No. 12. Chapter RDP 5.3 Subject Measure 121 Recommendations Revisions suggested: (i) maximum amount of support could be lowered (e.g. 100,000 €); (ii) reduction of support rate and decreasing rate of public support in relation to investment value; (iii) aggregation of output and results indicators. 13. 5.3 Measure 123 Question for reconsideration: shift of investment support for processing at the farm level (not explicitly stated as eligible in Art. 24 of Regulation 1698/2005) to the measure 121 (Modernisation of agricultural holdings), where on/off farm diversification activities are referred as eligible. 14. 5.3 Measure 123 Suggested revision: (i) re-assessment of result indicators; (ii) measure could be stimulative towards vertical and horizontal cooperation (e.g. by selection criteria). 15. 5.3 Measure 125 Suggested revision: (i) reconsideration of indicators and their quantification; (ii) less detailed description of implementing provisions (level of detail deviates from other measure sheets). 16. 5.3 Measure 131 17. 5.3 Measure 132 Revisions needed for improvement of transparency and intervention logic of the measure: (i) a clear statement that the measure is intended for payments of commitments from RDP 2004-06 (measure sheet); (ii) clearly explained phasing-out procedure of the measure. The maximum level of support could be reconsidered using the additional cost criterion. Varying level of support by categories of quality schemes (and their market presence) could be considered. 18. 5.3 Measure 132 It is recommended to include the information what should be the evidence for “market presence” which beneficiaries are expected to present. Reference to ER Recommendation on support amount considered. Recommendation on different support shares regarding the range of investment not considered. Possible detailed division implemented in call for tender. Recommendation on aggregation of output and result indicators not considered, therefore the EC instructions. Recommendation not considered. Measure No 123 does not apply only to food industry, but to all enterprises adding value in the production of Annex 1 products. Thereby the European definition of “enterprise” applies as it is broader than the Slovenian definition. Recommendation on result indicator adequacy not considered, as EC instruction was complied. Promotion and contribution of the measure to the enhancement of horizontal and vertical links implemented in call for tender. Recommendation partially considered. In drawing up indicators the EC instructions complied. Indicator values are set out. Measure description reduced and harmonised with descriptions of other RDP 2007-2013 measures. Recommendation considered. Transparency and explanation improved. Recommendation considered. The highest support level decreased. Detailed criteria by individual schemes included in call for tender. Recommendation considered. 62 No. 19. Chapter RDP 5.3 Subject Measures 132, 133 Recommendations Incentives to improve presence of quality scheme products at the market could be strengthened (e.g. by improved coherence with measures 123 and 133; participation in quality schemes considered as additional weight/ponder in selection criteria). 20. 5.3 Measure 133 21. 5.3 Measure 133 Suggested revision: (i) replacement of the existing (sector-related) result indicators to more measure-related ones; (ii) selection criteria needs to be defined; (iii) risks of overcompensation needs to be minimised (revision of the list of eligible costs). Extension of eligibility criteria to all holders of adequate quality marks (eg. also enterprises awarded with national quality signs) should be considered. 22. 5.3 Measures 122 and 142 23. 5.3 Measures 122 and 142 24. 5.3 All Axis 2 measures 25. 5.3 Measures 211, 212 Problem description needs to be improved in order to justify public intervention. Improvements should be made in measure descriptions, especially concerning administrative setup and measure indicators. Division of measure 122 to specific sub-measures (e.g. forest infrastructure, forest mechanisation, silviculture) should be reconsidered and financial allocations between different activities should be defined. Axis 2 Measures Calculations (both methodology and results) need to be presented in the revised version of the programme. Special attention should be devoted to legally and economically correct justification of additional costs level related to specific areas (LFA compensatory allowances) / submeasures (agri-environmental measures). The design of measure sheet has to be brought into line with other RDP measures and complemented with the missing information (esp. indicators, justification of payment level). Reference to ER Recommendation considered. Link between measure 132 and 133 considered in criteria chosen in call for tender. In call for tender the measure 123 shall better evaluate products under quality schemes. Recommendation considered. Recommendation not considered. Measure intended for all producer groups participating in eligible quality schemes. Measure not targeted at enterprises and promotion of awards received as a result of quality. Only quality schemes proving constant control are eligible, which is considered already in preposition of measure. Recommendation considered. Recommendation considered. Recommendation considered. Recommendations largely considered, but the measure description cannot be harmonised with other measures as the description of this chapter complies with Regulation 1257/99 and implementing regulation 817/04. 63 No. 26. Chapter RDP 5.3 Subject Measures 211, 212 Recommendations Payment level should be reconsidered by the additional criterion (adjustment against the CAP pillar I, single area payments for grassland). 27. 5.3 Measure 214 The measure sheets need to be completed with financial details (presentation of payment levels, financial allocation by sub-measures) and quantification of measure indicators. A clear distinction has to be determined between certain sub-measures (e.g integrated crop production and sustainable livestock production) and LFA or CAP Pillar I payments in order to prevent overcompensations. Reference to ER Recommendation not considered. Annex to RDP 2007-2013 contains calculation methodology for payment amounts already included in calculations for RDP 2004-2006. Recalculation (due to comparison to pillar 1 and direct payments) unnecessary as compensatory allowances merely defray higher production costs in LFA with regard to non-LFA. Recommendation partially considered. Payment amounts by individual submeasures are shown, but are not yet finalised. Implementing regulation does not require resources allocation by sub-measures but only at measure level – in this case agri-environmental payments, which was considered. Overpayments are already considered, therefore conditions on implementation of sub-measures are appropriately designed. Calculations also consider cross compliance serving as the basis. Conditions on individual sub-measures upgrade these conditions, i.e. stricter requirements as set by cross compliance. Indicators also included. 64 No. 28. Chapter RDP 5.3 Subject Measure 214 Recommendations Introduction of additional measures of relevance within axis 2 could be considered (e.g. by measures 215 (animal welfare payments), 224 (Natura 2000 payments) and 225 (forestenvironment payments)). 29. 5.3 Measure 214 Transparency of agri-environmental scheme could be improved by aggregation of related submeasures, with distinction of payments for subcategories if necessary (e.g. integrated agricultural production). 30. 5.3 Measure 311 31. 32. 5.3 5.3 Measure 311 Measure 311, 312 33. 34. 5.3 5.3 Measure 312 Measure 312 Axis 3 Measures Areas of support in RDP and measure sheet need to be brought into line (only investment support or coverage of operational costs as well); Withdrawal of support for investments in retail from the list of eligible activities is suggested. Overlaps of ‘support for social activities’ between measures 311 and 312 needs to be avoided. Description of eligible activities in RDP and measure sheet needs to be brought into line. A clear-cut distinction of eligibility criteria between this measure and similar schemes under the cohesion policy should be defined. Reference to ER Recommendation not considered. Objectives and requirements under Regulation 1698/2005 are sufficiently captured in proposed sub-measures within measure agri-environmental payments. Agri-environmental scheme is the only obligatory and is also included in RDP 2007-2013. Meeting requirements on animal welfare reflect in certain submeasures (EK, PP, REJ), Natura 2000 objectives are covered by submeasures HAB, MET, STE and VTR. Forestry environmental measures are not included as forest use is already sustainable and it concerns the maintenance of the current status. Recommendation not considered. Combining certain sub-measures under integrated production is not reasonable. Each sub-measure is a completed unit and relates to an exact area as it is specific in production technology and is based on an independent regulation and technological rules. Control and certification system of integrated production is linked thereto. It is more transparent in the light of implementing procedures. Recommendation considered. Recommendation considered. Recommendation considered. Support for social activities was included in measure 321. Recommendation considered. Recommendation considered. Division is territory linked regarding enterprise size. 65 No. 35. Chapter RDP 5.3 Subject Measure 321 36. 5.3 Measure 322 37. 5.3 Measure 331 38. 5.3 Measure 331 Activity ‘Awareness-raising programmes about healthy nutrition’ falls out of the concept of vocational training and is suggested to be eliminated from the list of eligible activities. 39. 5.3 Measure 41 (411, 412, Axis 4 Measures Inclusion of orientation information about the total value of projects per individual local development strategy is suggested (as guidance to potential beneficiaries in preparation of their local development programmes). 413) 40. 5.3 Measures 421, 431a 41. 5.3 Measure 431b 42. 5.3 Measure 431b 43. 6 Financial plan 44. 45. 6.2 9 46. 47. 10 10 Financial plan by axes Competition rules, state aid Complementarity Complementarity 48. 11 Administrative setup Recommendations Measure sheet needs to be more elaborated esp. in terms of indicators and general administration set up. A clear-cut distinction between this measure and similar activities from Operational Programme for strengthening of regional development potentials in 2007-2013 needs to be defined. Reformulation of target group of potential beneficiaries is suggested (‘municipalities and nonprofit organisations’ instead of ‘municipalities and NGOs’). Overlaps between this measure and measure 111 need to be avoided and a clear-cut distinction should be made (e.g. by focusing the measure 111 to technical skills and measure 331 to entrepreneurial/managerial skills). Suggested revision: (i) indicative allocation of public expenditure should be made between the two types of activities carried out under this measure; (ii) designation of maximum eligible cofinancing rate for running the LAG should be revised and put in line with the Art. 37 of the implementing regulation. Suggested revision: (i) reference to the measure 341 (animation and acquisition of skills for areas not included in Leader programmes) should be added; (ii) preparation of a yearly financial breakdown of the measure. There are potential overlaps with the measure ‘Running the local action groups, acquiring skills and animating the territory’ (421, 431a). Clear-cut criteria to avoid such overlaps should be defined. General and cross-cutting issues (cont’d) Table 35 (Financial plan for Leader measures and Technical support) could be incorporated into Table 37 (Annual contribution of EARDF) Table 36 needs to be revised. Reference to the state aid and competition rules should be added. Beforehand, it is recommended to consult the Commission about the required contents of the chapter. The chapter needs to be inserted. The demarcation lines to e.g. actions supported by ERDF in the current version are not explicitly clear. It is recommended that this be done in order to avoid overlaps between the two funds. The same exercise needs to be carried out for other EU and national funds as well. Paying agency: revision of implementing provisions is suggested particularly for: (i) submission of projects; (ii) project assessment procedures; (iii) project selection procedures. Reference to ER Recommendation considered. Recommendation considered. Recommendation considered. Training under measure 111 relates to training in agricultural, forestry and food activities. Measure 331 covers other activities. Recommendation considered. Recommendation considered. As the number of LAGs is not yet known no allocation of resources per LAG or individual project is possible. Recommendation considered. Recommendation considered. Recommendation considered. Recommendation considered. Recommendation considered. Recommendation considered. Recommendation considered. Recommendation considered. Recommendation considered. 66 No. 49. Chapter RDP 12 Subject Monitoring & evaluation 50. 12 Monitoring Committee 51. 13 Publicity 52. 14 Public consultations 53. RDP General 54. Annex 4 Baseline indicators 55. Annex 4 Technical sheets Recommendations Description of the monitoring system should be thoroughly completed. The collection system for monitoring data should be described. Construction of a central monitoring system should be considered (and briefly described in the programme). Governmental and non-governmental organisations included in the Monitoring committee should be explicitly indicated. The information plan needs to be supplemented: (i) indicative budget for implementing the information plan; (ii) definition of criteria for evaluating the impact of information and publicity actions. Required completion: a clear indication as to what extent the views and suggestions of social partners were accepted and included in the program. The programme has to be sufficiently formatted in style and form (meaningful division into subchapters (numbering to 4th level at most), avoid repetitions, quotations from previous programmes, chapters balanced in terms of details presented). Table ‘baseline indicators related to context’ to be brought into line with Table 2, Annex VIII of the draft implementing regulation. Result and impact indicators for 2nd Axis measures in Technical sheets should be brought into line with Table III, Annex VIII of the draft implementing regulation. Reference to ER Recommendation largely considered. Recommendation largely considered. Recommendation considered. Recommendation largely considered. Broader public discussion and consultations expected with public publication of RDP 2007-2013 draft. Recommendation considered. Recommendation considered. Recommendation considered. 67 By setting and implementing the priorities Slovenia shall contribute towards accomplishing national objectives related to rural development and put effort in achieving a balance and synergy within individual axes as well as between the axes. Successful exertion of individual axis depends on successful implementation of measures under the axis concerned (successfully completed training and knowledge transfer into practice means successful modernisation of economy). The same applies for impacts between axes (successful farm modernisation contributes to mobilisation of labour force, which may mean an introduction of non-agricultural activities). 3.4 Impacts from previous programming period and other information The key documents on the rural development in Slovenia: the Rural Development Programme for the RS 2000-2006 (SAPARD) in the pre-accession period, the Rural Development Programme for the RS 2004-2006 (RDP 2004-2006) as well as the Single Programming Document 2004-2006 (SPD) (third priority Restructuring of agriculture, forestry and fisheries) after the EU accession, were aimed at improving all three developmental components: economic, social and environmental. They also contributed to the reduction of the regional disparities between urban centres and rural areas. Among the measures which were financed from the budget of the RS in the preliminary programming period 2000-2006 it is necessary to point out the Slovene Agri-Environmental Programme 2001-2006 (SAEP) which laid special focus on the environment and was divided into three basic groups: - Group I: reduction of negative impacts of agriculture on the environment (9 measures); - Group II: preservation of natural features, biodiversity, soil fertility and traditional cultural landscape (8 measures); - Group III: maintenance of protection areas (5 measures). Group IV comprised training and promotion, which were not designed as measures of per area payments. In this period the SAEP comprised 22 measures and training and promotion. Based on an annual decree at the national level the SAEP was initiated with 10 pilot measures in 2001, in 2002 12 measures were implemented and in 2003 already 14 measures. By 2003 agri-environmental measures were entirely financed from the national budget as state aid. From 2004 onward 21 measures of the SAEP have been implemented under the RDP 2004-2006, whereas training and promotion as technical assistance, in accordance with Council Regulation 1257/199923 and Commission Regulation 817/200424. The number of the measures was reduced from 22 to 21. The response of producers to the SAEP was relatively high as in the first year of the implementation about 20 percent of all agricultural holdings applied for agri-environmental payments. In total SIT 1,393,680,692 were disbursed, the most (41 percent) for the measure sustainable rearing of domestic animals (REJ). In 2001 agri-environmental measures were implemented by 11,400 agricultural holdings covering 93,736 ha; in 2002 by 11,859 agricultural holdings covering 110,849 ha and in 2003 by 12,422 agricultural holdings covering 124,838 ha. Compared to 2001 the extent of agricultural land under agri-environmental measures in 2002 increased by approximately 18 percent and in 2003 by about 33 percent. 23 Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations (OJ L 160, 26.6.1999, p. 80–102) 24 Commission Regulation(EC) No 817/2004 of 29 April 2004 laying down detailed rules for the application of Council Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) (OJ L 153, 30.4.2004, p. 30–81) 68 One of the measures financed from the national budget in the preliminary programming period was Compensatory allowances for less favoured areas (LFA), which was an integral part of the agricultural policy reform in Slovenia. The Programme of the Slovene agricultural policy reform (1998) for these areas was coordinated with the EU criteria already in the pre-accession period. In compliance with the National agriculture reform programme the shift to the compensatory allowances for LFA was completed – per hectare payments were laid down in a decree on the introduction of financial investments for the preservation and development of agriculture and food production for 2000. In the first year after the establishment of the new system compensatory allowances for production costs were obtained by 40,773 agricultural holdings. In the second year of the implementation of the LFA measure the number of the beneficiaries claiming compensatory allowances for 300,526 ha of agricultural land increased to 44,206. In addition thereto, in Slovenia landscape and environmental measures based on the strategic orientations of the Development programme of agriculture, food industry, forestry and fisheries 200-2002 and the Agricultural policy reform programme 1999-2002 have been implemented since 1999 and some even earlier (measure “Pohorje beef” rearing in 1995-2000). In 2000 the measure erosion control in vineyards with minimum 20 percent inclination was initiated, which was transformed into a new measure in 2001 with changed conditions. The new measure Erosion reduction in fruit and vine production became integral part of the SAEP, but was not implemented in 2001. In Slovenia the following structural measures and rural development measures were financed from the national budget: investments in agricultural holdings, renewal of perennial crops and programmes supporting the restructuring of agricultural holdings. 3.4.1 Pre-accession instruments During the pre-accession period Slovenia disposed of the financial instrument for rural development (SAPARD). Under the pre-accession aid of the SAPARD programme, comprising four basic measures and the technical assistance, the support was aimed at the realisation of the following two priorities: - Improving production structures in agriculture and food processing industry (measures: investments on agricultural holdings and investments in food processing industry) The main goal of the measure investments on agricultural holdings was the adaptation of the sectors milk, meat and vegetable production and processing to the requirements within the framework of veterinary and sanitary regulations, animal protection, environmental protection and marketing improvement. In the first and second public tender the funds under this measure were allocated to milk and meat production and processing. In the third call for tender, involving also the amendments to the SAPARD programme, the funds were allocated to the support for investments in vegetable, berries and berry bushes production and processing, investments in independent purchase of agricultural mechanisation and the first purchase of breeding animals in accordance with the investment in stalls. The measure investments in processing and marketing of agricultural and fisheries products was aimed at the adaptation of meat, fish and milk sectors to the requirements under the veterinary and sanitary regulations, animal and environmental protection and the improvement of marketing, competitiveness in the market and working conditions of employees. Within the range of this measure the funds were allocated for investments in technological equipment, including computer hard- and software as well as the adaptation of existing real estates. - Economic diversification and the improvement of rural infrastructure (measures: economic diversification on farms and the development and improvement of infrastructure in the countryside) 69 The measure economic diversification on farms was aimed at providing additional income on farms, new jobs, improving the social status of farmers in preserve the settlement in the countryside. The funds were devoted to investments on tourist farms with accommodation facilities, excursion tourism and handicraft. The investments could be realised as new constructions or reconstructions. The main aim of the measure development and improvement of the infrastructure in the countryside was to improve rural infrastructure, which is one of the crucial prerequisites for preserving the settlement in the countryside as well as the preservation and development of agriculture. Financial aid was devoted to areas where the Regional Development Programmes of the Countryside have been initiated, which were implemented by the MAFF. The funds were allocated to co-financing investments in the arrangement of thematic trails to improve the tourism infrastructure in the countryside and water infrastructure in the countryside for drinking water supply. The total available public resources for four basic measures under the SAPARD and supporting measure technical assistance amounted to SIT9.1 milliard. The co-financing share by the EU was 66.6 percent, the remaining resources were provided from the national budget. In 2002 and 2003 the ARSAMRD published 4 calls for tender and based thereon awarded contracts with the beneficiaries by the EU accession (by 30.04.2004) on the implementation and financing of projects which are mostly multi-annual and last by the end of 2006. Table 34: Overview of number of contracts awarded, commitments undertaken and disbursements by measures under the SAPARD programme MEASURE TOTAL Investments in agricultural holdings Investments in processing and marketing of agricultural and fisheries products Economic diversification on farms Development and improvement of rural infrastructure Technical assitance 9,100,337 10.172,621 563 Share of commitme nts entred by 31.12.2005 533 112% 3,165,218 3,653,489 406 397 115% 3,573,120 808,672 97.8% 3,617,391 3,974,457 32 31 110% 3,954,727 830,336 99.5% 1,266,135 1,367,815 86 67 108% 1,217,401 421,922 89.0% 983,821 1,153,050 36 35 117% 1,108,821 348,540 96.2% 67,772 23,810 3 3 35% 23,810 0 100.0% Resources available (2000–2003) No. of contracts Commitment s entered by Total - Concl situation 31.12.05 uded 31.12.05 Disbursed In % of all commitme nts entered Total by 31.12.05 In 2005 9,854,069 2,409,470 96.9% Source: MAFF By the end of 2005 96.9 percent of commitments undertaken have been disbursed, which means Slovenia has already exceeded the 100 percent value of the annual contracts awarded and started to use the resources under the EAFRD, Guarantee Section within the Rural Development Programme 2004-2006. By the end of 2005 95 percent of all projects have been concluded. The midterm evaluation showed that the SAPARD programme was very adequate for resolving the rural problems, in particular for increasing the competitiveness and thus the sustainability of farms and food processing enterprises. The programme has also contributed to the improved income and employment situation of the agricultural and food processing sector. The implementation of the programme had a significant impact on the improvement of the institutional competence of some administrative and other structures (MAFF, ARSAMRD, and advisory services) and more efficient implementation of other programmes. 70 Next to SAPARD and ISPA, the third pre-accession financial instrument for co-financing the investments in traffic and environment was PHARE. It was aimed at co-financing projects providing professional help in restructuring of economy and the realisation of the EU legal order as well as investments. Within the range of the PHARE programme several projects on agriculture have been implemented. Based on the activities on rural development which were carried out by way of the European resources during the pre-accession period as well as preliminary programming period Slovenia has undoubtedly gained valuable experience in planning, management and implementation of the European structural policy, which shall contribute to a more effective exhaustion of resources. 3.4.2 RDP 2004-2006 Special attention of the RDP 2004-2006, the main objective of which was to support a consistent implementation of the developmental policy in the countryside and which connects different sectors for the sustainable raising of the quality of life and work of rural population, was aimed at the balanced regional development by considering the social and economic aspects. Within the framework of the two priority tasks under the RDP 2004-2006, i.e. sustainable development of agriculture and rural areas as well as economic and social restructuring of agriculture, different measures were implemented: - compensatory allowances for less favoured areas; - agri-environmental measures (21 measures); - early retirement; - support for meeting the EU standards on agricultural holdings; - technical assistance. The implementation of the measures was conducted within the expected range, the EU standards even above the expectations. In 2004-2006 the resources under individual measures are presented in Table 35. 71 Table 35: Framework financial table Public expenditure 2004 EC contribution Private sector contribution Priority 1: Sustainable development of agriculture and countryside LFA (Mio. €) 42.0 33.6 0.0 Agri-environmental measures (Mio. €) 32.9 26.3 0.0 Total Priority 1 (Mio. €) 74.9 59.9 0.0 Priority 2: Economic and social restructuring of agriculture Early retirement (Mio. €) 1.8 1.4 0.0 Support for meeting EU standards (Mio. €) 9.4 7.5 0.0 Technical assistance (Mio. €) 2.2 1.7 0.0 Total Priority 2 (Mio. €) 13.4 10.6 0.0 Total Priority 1 + 2 (Mio. €) 88.3 70.5 0.0 Programme SAPARD (Mio. €) 0.0 0.0 0.0 Complements to direct payments (Mio. €) 17.8 14.2 0.0 TOTAL (Mio. €) 106.1 84.7 0.0 Source: Rural Development Programme of the RS 2004-2006 Public expenditure 2005 EC contribution Private sector contribution Public expenditure 2006 EC contribution Private sector contribution Public expenditure Total EC contribution 47.3 37.8 0.0 35.2 28.1 0.0 124.5 99.5 0.0 36.3 29.0 0.0 56.4 45.1 0.0 125.6 100.4 0.0 83.6 66.8 0.0 91.6 73.2 0.0 250.1 199.9 0.0 2.8 2.2 0.0 1.3 1.0 0.0 5.9 4.6 0.0 17.0 13.6 0.0 32.9 26.3 0.0 59.3 47.4 0.0 0.3 0.2 0.0 0.5 0.4 0.0 3.0 2.3 0.0 20.1 16.0 0.0 34.7 27.7 0.0 68.2 54.3 0.0 103.7 82.8 0.0 126.3 100.9 0.0 318.3 254.2 0.0 1.6 1.1 1.3 0.8 0.5 0.8 2.4 1.6 2.1 13.2 10.5 0.0 1.4 1.1 0.0 32.4 25.8 0.0 118.5 94.4 1.3 128.5 102.5 0.8 353.1 281.6 2.1 Private sector contribution 72 The aim of the measure compensatory allowances for less favoured areas was the protection of agricultural land, the preservation of utilised agricultural land and the positive impact on the preservation of the settlement in areas with low population density. The agri-environmental measures were aimed at reducing the negative effects of agriculture on the environment, maintenance of the current status, as well as at the contribution to the long-term improvement of natural resources in Slovenia. In addition thereto, the measures have positive impacts on the raising of the education and competence level for the implementation of the sustainable farming methods. The measure early retirement was targeted at improving the age structure on farms. The early retirement support disbursed to the transferors simultaneously improved the economic position of agricultural holdings. The measure support for meeting the EU standards on agricultural holdings contributed especially to the positive impact on the environment and the improvement of the safety at work on farms as well. The RDP measures have significantly contributed to the economic, social and environmental benefits of the rural areas, they were also connected to other measures of agricultural policy, i.e. measures under structural policy (land operations, investments in agricultural holdings and restructuring of food processing industry) and the measures of the overall rural development (innovative programmes, village renewal, conservation of cultural heritage in the countryside, encouraging on-farm subsidiary occupations and agricultural infrastructure management). Significant influence on the RDP 2004-2006 had also the measures and direct payments under the first pillar of the CAP. The changed conditions, trends and policy in relation to the role of agriculture in the countryside and the natural and environmental preservation are a result of the implementation of the RDP 2004-2006 measures and have a long-term impact on: - reinforcement of the multifunctional role of agriculture, balanced and common rural development, environmental protection, in particular of water and soil against pollution and degradation, ensuring the settlement by preserving jobs and securing adequate income on farms, implementation of nature friendly production methods contributing also to the preservation of the agricultural landscape elements, production of high-quality agricultural products and foodstuffs, improvement of agriculture structure (socio-economic structure). The implementation of the measures contributed to an increased farmers’ awareness for the longterm and sustainable farming. As a result of the reduced substances release and the decreasing intensification of agricultural activity into the environment the long-term impacts of the measures shall reflect in an improved environment status. The measures enabled further decline of harmful substances contents in the groundwater, reduced nitrogen concentrations in the water and the preservation of the favourable habitat and biodiversity status. In addition to that they contribute to an improved production quality under the nature friendly management methods and the improvement of the age structure of farmers as well as meeting the EU standards. The implementation of the measures under the RDP 2004-2006 contributed to the settlement of rural areas and agricultural activity in marginal and less favoured areas. An independent expert group shall conduct the ex post evaluation on the effects of the implementation of the measures under the RDP 2004-2006 to define in detail the impacts thereof. 73 3.4.3 SPD The Single Programming Document of the RS 2004-2006 (SPD) supported agriculture within the third priority Restructuring of agriculture, forestry and fisheries. Within this priority 7 measures were implemented in 2004-2006, as follows: - four measures in agriculture - one measure in forestry and - two measures in fisheries 3.1 Improving the production and marketing of agricultural products, 3.2 Investments in agricultural holdings, 3.3 Diversification of agricultural activities and activities close to agriculture, 3.4 Investments in forests to improve their ecological and economical value, 3.5 Marketing of quality agricultural and food products, 3.6 Modernisation of existing vessels and small-scale coastal fisheries, 3.7 Aquaculture, processing and marketing. Table 36 shows financial resources allocated to the priority 3 and the SPD 2004-2006 measures: Table 36: Financial resources for individual priorities/measures Priority/ measure Total Priority 1 Priority 2 Priority 3 Improvement of processing and marketing of agricultural products Total Total EU ERDF 334,516,689 174,444,715 96,899,124 49,512,906 16,498,364 237,509,597 129,240,164 72,674,342 25,350,133 8,249,182 136,523,478 129,240,164 0 0 0 75,635,986 0 72,674,342 0 0 23,569,093 0 0 23,569,093 8,249,182 1,781,040 0 0 1,781,040 0 14,141,456 9,427,638 7,070,728 4,713,819 0 0 0 0 7,070,728 4,713,819 0 0 4,713,818 2,356,910 2,356,909 1,178,455 0 0 0 0 2,356,909 1,178,455 0 0 1,187,360 890,520 0 0 0 890,520 1,187,360 890,520 0 0 0 890,520 13,659,944 10,244,958 7,283,314 2,961,644 0 0 Investments in agricultural holdings Diversification of agricultural activities Investments in forests Marketing of quality agricultural and food products Modernisation of existing vessels and small-scale coastal fisheries Aquaculture, processing and marketing Technical assistance ESF EAGGF FIFG Source: SPD 2004-2006 Table 37: Overview of number of contracts awarded, commitments undertaken and disbursements by measures under the SPD 2004-2006 MEASURE TOTAL Improving the production and marketing of agricultural products Investments in agricultural holdings Diversification of agricultural activities Marketing of quality agricultural and food products Resources available (2004–2006) (Mio. SIT) Funds granted (Mio. SIT) Total by 31.12.05 Share of commitments entred by Granted 31.12.2005 No. of contracts In 2005 Sumbitted Disbursed (Mio. SIT) Total by 31.12.05 In % of all commitments entered 2,005.6 40.6%.6% In 2005 7,371.2 5,150.9 3,000.9 943 266 69.9% 2,090.3 3,010.2 2,320.7 1,429.9 92 27 77.1% 880.4 880.4 37.9% 2,589.9 1,477.2 690.2 596 120 57.0% 567.6 567.6 38.4% 1,378.5 1,265.3 829.7 217 98 91.8% 591.2 520.6 46.7% 392.6 87.7 51.1 38 21 22.3% 51.1 37.0 58.3% Source: MAFF 74 The priority contributed to higher competitiveness of the agricultural and food sector and promoted the efficient use of resources in rural areas. Due to their economic and wider social importance the structural support was also oriented to the forestry and fisheries sector. The objective of the priority was the competitive adaptation of the sector to the single market requirements, promoting the food safety and quality, development of alternative sources of income in rural areas and sustainable development of forests as well as the competitive adaptation of the fisheries and aquaculture. The most important objectives of the third SPD priority were: - raising the competitiveness of the agrifood, forestry and fishery sector, - creation of conditions to achieve equal income level of the rural population, - maintenance of settlement patterns and economic restructuring of rural areas, - sustainable use of natural resources, - environmental protection in the countryside and preservation of natural resources. The measures under this priority were aimed at enhancing the restructuring of agriculture, forestry and fisheries and ensured the gradual increase of production and processing performance as well as the competitiveness of these sectors. The Specific objectives to improve the competitiveness of the agrifood, forestry and fisheries sector were aimed at: - improving the economic performance and competitiveness of agriculture, forestry and fisheries, - successful adaptation to the single market requirements, - promotion of other sources of income in rural areas, - promotion of safety and quality of food products, - maintenance and sustainable development of forests. The objective of the measure improving the production and marketing of agricultural products was to increase the efficiency and competitiveness of the agrifood industry and to raise the value added of food products by investing in the construction, purchase or renovation of real estates, new machinery and equipment. The results of the midterm evaluation of the third SPD priority25, which was evaluating the first results of the implementation of the measures, show the correctness and compliance of the activities financed with the actual needs. The investments in production modernisation have increased the competitiveness of enterprises and have had a positive impact on the environmental aspects; however, simultaneously a negative trend in employment of the labour force has occurred. The measure Investments in agricultural holdings was targeted at increasing the competitiveness and market orientation through investments in agricultural holdings, which contributed to the income increase. The investments have contributed to the improved technological equipment and productivity of agricultural holdings. In addition to this they have contributed to the pollution reduction in agriculture, lower energy consumption and improved working conditions. The objective of the measure diversification of agricultural activities and activities close to agriculture – alternative income sources was to improve the efficiency of work allocation on agricultural holdings and thus secure additional sources of employment and productivity and better income. The objective was accomplished through investments in small processing establishments, building of tourism capacities, workshops and exhibitions and sales facilities, 25 Considering the short programming period 2004-2006 in which Slovenia started to benefit from the structural funds this task was not mandatory. Nevertheless, the Managing Authority decided to conduct a smaller-scale evaluation to assess the impact of the selected activities/measures in relation to the objectives set and to analyse the effects on specifically structural issues. This task was also outlined in the SPD 2004-2006 in Chapter 6.1.2 Management arrangements. 75 and investments in energy production from biomass. Through the implementation of the measure the number of employees on agricultural holdings has increased, in particular the employment opportunities for groups in the countryside, which are more difficult to employ. The investments have also contributed to the quality of the living and working environment as well as the renovation of the building and cultural heritage. The measure marketing of quality agricultural and food products was aimed at encouraging the producers of special agricultural products and foodstuffs to participate in the market and simultaneously towards achieving higher prices and satisfying the consumer requirements for authentic products of higher quality. The measure has contributed to a higher awareness and education on the nature conservation. Nevertheless, the low labour productivity and consequently the high expenses of agricultural production remain the key issues of Slovenian agriculture. The social structure of the agricultural population has increased recently, but is still unfavourable and obstructs a more efficient management of agricultural holdings. With regard to the organisation the vertical networking of agriculture with other production sectors is still weak. The measures within the framework of the SPD are necessary for further development of Slovenian agriculture, forestry and agrifood industry, which was also indicated by the results of the midterm evaluation. 76 4 RATIONALE OF PRIORITIES CHOSEN WITH REGARD TO COMMUNITY STRATEGIC GUIDELINES, NATIONAL STRATEGY PLAN AND ANTICIPATED IMPACT OF EX ANTE EVALUATION The national priorities outlined in the RDP 2007-2013 and set out by Slovenia based on the baseline analysis, potentials and specific needs shall contribute to the efficient accomplishment of the common Community objectives laid down in the Council Decision on Community strategic guidelines for rural development, the Lisbon Strategy and the Göteborg objectives. 4.1 Rationale of the RDP 2007-2013 priorities chosen with regard to the Community Strategic Guidelines and the National Strategy Plan The entire rural development policy, the RDP 2007-2013 with its priorities, activities and measures reflect the national priorities which are compliant with the European strategy and outlined in the NSP. The balance between the key intervention areas at the national level is compliant with the most important European priorities in this field. It concerns the balance between the competitiveness of agriculture, food industry and forestry, environmental protection and the conservation of natural landscape as well as the improvement of the quality of life in rural areas and the promotion of diversification. The priorities under the NSN are designed in accordance with the Council Decision on Community strategic guidelines for rural development26 together with the Lisbon strategy guidance, the decisions of Göteborg and the key principles of the Common agricultural policy. Next to the Community strategic guidelines, in drawing up the national RDP 2007-2013 priorities the objectives of the aforementioned strategic documents were considered: creation of new and better jobs, establishment of stronger and more stabile economic growth, promotion of sustainable development and adding the environmental dimension to all key processes. In accordance with the Community strategic guidelines the rural development policy must assist the rural areas to accomplish the objectives of greater competitiveness, job creation and innovation. Required is greater focus on investments in human resources, knowledge and experience as well as in the capital in agricultural and forestry sector, new methods of conducting environmental services and creation of more and better jobs in the rural areas. By helping rural areas to accomplish their potential as an attractive place for investment, work and living and by adapting these activities to the conditions of the environment and the nature the rural development policy indirectly supports the sustainable development. The rural development contributes towards an increased competitiveness in agricultural and food processing sector, whereas the innovation and information and communication technology must be particularly emphasised. To encourage the innovation and entrepreneurship local initiatives are required (LEADER) contributing to the creation of new jobs, increased income and promotion of equal opportunities in the countryside – and support for extension of activities. Substantial source of income and employment opportunities in the countryside are environmentrelated activities, i.e. tourism. Important for the development of the rural areas are in addition to the rural development policy also and foremost the measures under the structural funds. Slovenian agriculture and agri-food industry are not sufficiently competitive to operate effectively under the single market conditions. Still the consequences of the previous policies are evident, which show in the small and dispersed farms where most frequently farming is only an additional activity to people employed in other sectors. Similar situation is present in the 26 Council Decision of 20 February 2006 on Community strategic guidelines for rural development (programming period 2007 to 2013) 2006/144/EC (OJ L 055/20) 77 Slovenian forestry. The activities under axis 1 – improving the competitiveness of the agricultural and forestry sector – shall contribute to a raised productivity and thus the competitiveness of the agricultural and forestry sector. In addition thereto, they shall directly and indirectly have an impact on the preservation of the environment and improved quality of life in the rural areas. In determining the measures, which shall enable the modernisation of the existing and the introduction of new technologies, the environmental requirements and the application of renewable energy resources shall be particularly emphasised. Hence the activities under axis 1 shall indirectly contribute to a more favourable balance of nutrients in the soil and to a better water and air quality (axis 2). The activities supporting the modernisation and raised value added in agriculture, food processing industry and forestry shall, through the multiplicative effects, contribute to improved employment opportunities and quality of life in the rural areas, i.e. the key objectives under axis 3. Explicit synergy effects can also emerge from the measures supporting the quality schemes, which simultaneously contribute to the income diversification (axis 3) and the establishment of environment friendlier production practices (axis 2). Characteristic for Slovenia is the high diversity of the natural resources and landscape types. The protection of the nature and environment are deemed a common social value in Slovenia. The activities under axis 2 – improving the environment and the rural areas lead to the utilisation of the rural areas and the implementation of nature friendly technologies in agriculture and forestry. They contribute to the environmental protection, conservation of the natural resources and production conditions for agriculture. The settlement of rural areas and population activity in agriculture is essential in providing sustainable development of the rural areas. The established forest management system and the preservation and promotion of sustainable farming shall to a great extent ensure a favourable biodiversity status and the preservation of habitats in the Natura 2000 sites. The activities under axis 2 mainly complement with the activities under axis 1 and 3. They area aimed at encouraging agricultural holdings and the rural population to engage in innovative practices which are related to the preservation of the rural areas and environmental protection and which are more interesting as regards the income and improve the living standard in the rural areas. The implementation of the measures under axis 2 captures the accomplishment of the objectives on the conservation of the Natura 2000 sites, reversing the biodiversity decline under the Göteborg commitment, water quality preservation in accordance with the Directive 2000/60/EC of the European Parliament and of the Council as well as mitigating the climate change under the Kyoto Protocol. All envisaged measures shall contribute to an efficient implementation of the National Strategy Plan of Rural Development 2007-2013 which in its strategy foresees the same measures for the accomplishment of the objectives on environmental protection. The measures under axis 2 consider in the maximum possible way the comments and recommendations of the ex ante evaluation of the programme and are predominantly balanced with the guidelines delivered. Slovenia shall pursue to accomplish the objectives of the Water Framework Directive (2000/60/EC), i.e. secure and maintain good condition of surface and groundwater bodies, through the Donube River Basin District Management Plan and the Adriatic River Basin District Management Plan as well as the corresponding Measure Programmes, by considering measures under sister directives, in particular Nitrate Directive (91/676/EEC), Urban Waste Water Treatment Directive (91/271/EEC), Protection of Groundwater against Pollution and Deterioration Directive (2006/118/EC), Dangerous Substances Directive (76/464/EEC) and Bathing Water Directive (2006/7/EC). Based on conducted assessment of the surface and groundwater bodies status, where problems have been identified as a result of loads from agriculture, additional actions have been envisaged, in particular increased buffer zone width by watercourses and lakes, on which the use of fertilisers and plant protection products shall not be allowed, designation of water protection areas of water sources intended for drinking water supply of the population, improved hydro-morphological condition of surface water bodies and adaptation of crops and farming methods to environmental requirements. To implement these 78 measures Slovenia has envisaged a possibility of appropriate adaptation of instruments and measures under agricultural and environmental policy. The Natura 2000 objectives, i.e. conserving natural habitats, wildlife and wild birds as well as biodiversity, shall be accomplished through the implementation of measures under the Operational programme-Natura 2000 Sites Management Programme, laying down the objectives, actions and support activities in these areas. By considering both directives, i.e. Habitat Directive (92/43/EEC) and Birds Directive (79/409/EEC), as well as through the implementation of measures under the Operational programme-Natura 2000 Sites Management Programme and certain RDP 2007-2013 measures (some agri-environmental submeasures) as well as by considering forest management plans Slovenia shall prevent the deterioration of the Natura 2000 sites condition. In Slovenia the Environment Protection Act (UJ RS No 39/06) establishes a systems framework for nature conservation the main component of which is biodiversity conservation. The Nature Conservation Act (OJ RS No 96/04) lays down an overall nature conservation system aimed at protecting natural values and conserving biodiversity components. Set out were protection subjects, protection methods and measures, organisation in the field of nature protection and its financing, as well programming and planning in nature protection and other contents necessary for efficient nature protection. The Act on Forests (OJ RS No 30/93 and 67/02) lays down sustainable multifunctional forest management and need be considered in accordance with the principles on environmental protection and natural values and in a manner securing the action of forests as ecosystem when planning and implementing management guidance. In Slovenia, Natura 2000 sites management is satisfactory and is carried out mainly through agri-environmental measures. Currently, there is no need for setting up additional requirements restricting agricultural and forestry production in these areas. Hence, there is also no need for designing a measure on payments for Natura 2000 sites. In case that in certain areas stricter requirements, under individual management plans, should be set out Slovenia shall establish a system of compensations to farmers and forest owners from national resources or shall adapt the RDP 2007-2013 accordingly. Characteristic for Slovenian rural areas are unutilised human and natural potentials, insufficient entrepreneurship activity and lack of income alternatives. The activities under axis 3 - the quality of life in the rural areas and diversification of the rural economy – promote the entrepreneurship and are aimed at raising the quality of life in the rural areas. They provide for higher employment and have positive impacts on the economic development of the rural areas as well as on the conservation of the natural and cultural heritage. The utilisation of other features in the rural areas provide for the diversification of economic activities in the rural areas. The activities under axis 3 upgrade, complement and refine the effects of axis 1 and 2. New employment opportunities in the rural areas release the pressure on jobs in agriculture and forestry. Simultaneously, by expanding the activity in the rural areas, they can contribute to increased value added of the economic chain. Axis 4 – LEADER initiative and its measures are aimed at promoting the decision-making on the development of individual rural areas under the bottom up approach by local action groups (LAG). The local population must be able to decide alone on the development of its area and realise its development ideas. For a successful operation of LAGs and integration of the rural population into the process of drawing up and the implementation of the development programmes (local development strategies) it is necessary to promote the training for the acquisition of appropriate skills. The priorities contributing to the accomplishment of the objectives under axis 4 must also contribute to the achievement of the objectives under axes 1 and 2 and particularly axis 3. Technical assistance is a set of activities crucial for the efficient management and implementation of the programme. A detailed determination of these activities shall be outlined 79 by a special programme. The resources are devoted to the management and implementation of the RDP 2007-2013, information actions for general public, research and technical support for the implementation, running, control and evaluation as well as technical activities for the overall implementation for 2007-2013. Eligible for the resources under the measure technical assistance is the MAFF as the Managing Authority of the RDP 2007-2013 which runs the activities under this measure. The allocation of financial resources by axes is in accordance with the requirements on minimum shares per axis laid down by Regulation 1698/2005. Slovenia shall devote 33 percent of the total resources for axis 1 measures, 52 percent for the preservation of cultural landscape and environmental protection, 11 percent to axis 3 and 3 percent to the LEADER axis. The Leader axis shall be devoted to the objectives of all three axes, but it shall particularly contribute to the objectives under axis 3. 80 Table 38: Objectives at programme level by axes and priorities with measures GENERAL OBJECTIVES COMMON OBJECTIVES Improving the competitiveness of agricultural and forestry sector Enhancing environment friendly Improving the economic and farming social status in the countryside Enhancing the local development initiatives Improving the income situation on holdings supported and with private forest owners. Establish the balance between agricultural production and the protection of the nature and the environment. Awareness raising of the local population on the initiative LEADER. Increasing the innovation and the development of new products and introducing new production technologies. Adaptation to newly introduced minimum Community standards on holdings supported. SPECIFIC OBJECTIVES SUSTAINABLE RURAL DEVELOPMENT Improving the parcel structure of agricultural land and arrangement of functional infrastructure. Raising the income level in the countryside. Creating employment opportunities in the countryside. Involve local partnerships in Preserve agricultural activity in rural development. areas with difficult conditions for Improving the quality of living in farming. the countryside. Promote the LEADER approach in rural development Preserve the settlement of rural programming. areas. Promote inter-territorial and Stop the biodiversity decline, transnational cooperation. protect water quality and mitigate climate change. Chronologically planned production and increasing the amount of irrigated agricultural areas. Increasing the production value of agricultural products under quality schemes. Increasing the number of agricultural holdings and private forest owners entering the market. Raising the competence of persons engaged in agriculture, food industry and forestry. 81 AXIS MEASURES BY PRIORITIES AXIS 1 – Improving the competitiveness of the agricultural and forestry sector AXIS 2 – Improving the AXIS 3 – Improving the quality environment and the countryside of life in rural areas and the promotion of economic diversification AXIS 4 – LEADER 1. Competence raising and strengthening of human potential in agriculture and forestry - Setting up of young farmers - Early retirement of farmers 1. Preserving agriculture in less favoured areas - Compensatory allowances to farmers in less favoured areas 1. Implementing local development strategies - Implementing local development strategies 2. Restructuring of physical capital in agriculture and forestry and promoting innovation - Modernisation of agricultural holdings - Improving the economic value of forests - Adding value to agricultural and forestry products - Improving and developing infrastructure related to the development and adaptation of agriculture 2. Enhancing nature friendly agricultural practices - Agri-environmental payments 1. Improving employment opportunities in the countryside - Diversification into nonagricultural activities - Support for the creation and development of enterprises 2. Running local action groups and encouraging cooperation 2. Improving the quality of life in - Running local action groups the countryside and animating cooperation - Village renewal and development 3. Promoting inter-territorial - Conservation and upgrading of and transnational cooperation rural heritage - Promoting inter-territorial and transnational cooperation 3. Improving the quality of agricultural production and products - Participation of farmers in food quality schemes - Supporting producer groups for information and promotion activities for products under food quality schemes - Supporting setting up of producer groups 82 4.2 Anticipated impact from the ex-ante evaluation with regard to the priorities chosen The RDP 2007-013 draft drawn up by the MAFF in August 2006 does not outline the anticipated intervention impacts and does not contain any quantitative target output values (specific targets) nor any impact values (general targets) at the programme level. The major part also lacks quantitative defining of outputs and results at the measure level. Regardless thereof, it may be anticipated that the RDP 2007-2013 and its measures shall have a direct or an indirect structural, economic, social or environmental impact. Therefore the ex-ante evaluation group provides an assessment of the anticipated outputs and impacts based on the following issues: Economic and social impacts It can be anticipated that the majority of the measures shall have an economic impact on the aid recipients and indirectly also on rural areas in broader sense. In the new programming period the public resources amount to EUR 1,158,928,916, this shall be complemented by private funding and thus related effects when the economic activity shall draw in private funds into rural areas, amounting approximately €387 million. A certain multiplication effects of the above mentioned public and private resources may be expected. In case that the rural development resources are spent, the empiric assessments for Slovenia (summoned from the results of the 5th OP REAPBALK) indicate an aggregate multiplication effects within the range of 30 percent. It must be stressed out that the real economic impacts shall depend on the amount of the financial resources per individual measure and on the input of resources within the measures for different purposes. Based on the assumption that the absorption of public resources shall be at 100 percent the public support for the modernisation of agricultural holdings shall for example amount to approximately EUR 82,334,549 followed by an identical amount of private funds. The economic impacts of investments shall depend on the purpose of an investment and the division between the sector and the sub-sectors. The same applies for the measure Adding value to agricultural products in which EUR 81,525,471 shall be invested equally divided among public and private resources. Both measures shall contribute to a greater productivity. Considering the trends of the previous years in the sector it is not realistic to anticipate an increase of jobs. Some other measures may contribute to the economic growth and higher employment, e.g. Setting up of young farmers, Supporting setting up of producer groups, Early retirement, Supporting farmers who participate in food quality schemes, Support for the creation and development of micro enterprises, Basic services and Vocational training, but to a smaller extent than the measures mentioned earlier. It is anticipated that the social impacts shall be stronger than in the previous period, especially due to the LEADER approach aimed at increasing the responsibility and motivating individuals as well as the collective development of local communities. The social impacts in general shall be strengthened within the range of all axes by improving the vocational and general qualifications, e.g. through “vocational training” and “training and information actions”. Another expected social and economic impact of the RDP 2007-2013 is a better self-organisation of individuals in want of improving their living conditions. Again, this is particularly supported by the LEADER approach and the measure support for the creation and development of enterprises under axis 3 as well as the support for setting up of producer groups under axis 1. The axis 2 measures – LFA and agri-environmental payments – shall substantially contribute towards achieving the overall programme objectives. Additionally, they shall also contribute towards achieving the economic and social objectives of rural development. In the economic sense the implementation of the measures shall prevent the loss of a part of the income made by agricultural holdings as a consequence of the natural resources protection. The compensation system shall contribute to the income stabilisation, which is in particular important for farmers in 83 LFA. Another economic consequence may be also the development of service activities based on the sustainable development paradigm (e.g. eco-tourism, conservation and improvement of rural heritage). Environmental impacts In accordance with the Guidelines and the Common Monitoring and Evaluation Framework the programme was also subjected to the Strategic Environmental Assessment. The Strategic Environmental Assessment (SEA) was prepared to check the conformity of the Slovenian Rural Development Programme (RDP) for 2007-2013 with the environmental aims of relevant legislation and strategic documents, asses its impact on the environment, nature, human health and cultural heritage, and to form effective mitigation measures for potential adverse effects. The outcome of the SEA is this Environmental Report and an adapted RDP. The Environmental Report contains the main data on the RDP and the environmental baseline, outlines the complete evaluation process and key findings, and gives possible alternatives, an impact analysis and mitigation measures. The SEA process also promotes the inclusion of the public in decision-making related to programme adoption. This Environmental Report has been prepared as part of the ex ante evaluation of the RDP, in line with the recommendations contained in the Guidelines for the Common Monitoring and Evaluation Framework (CMEF). The guidelines state that European Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment (the SEA directive) applies to programmes funded from the European Agriculture Fund for Rural Development (EAFRD). The legal basis for the implementation of the strategic evaluation assessment represent the regulations based on which Directive 2001/42/EC was transposed into the Slovenian legal order. The Decision of the Ministry of Environment and Spatial Planning No 35409-253/2006 of 29 September 2006 lays down that for the RDP the Environmental Impact Assessment on protected areas is required. The findings of the programme's impact on areas protected under environmental regulations are outlined in the Appendix on the appraisal of the programme's effects on protected areas, an independent supplement to the report. In particular segments, related to the nature and protected areas, of the environmental report the evaluators worked together with experts on the nature conservation. Alternatives were considered as part of preparations for the Strategic Environmental Assessment. The process established that the implementation of the RDP would have both negative and positive effects, but that the positives would prevail and that the selection of the »zero alternative« (i.e. not implementing the programme) would be less favourable in terms of the environment. The assessment of the impacts was carried out for groups of related measures within the individual priorities of the RDP. Measures under axis 1 were found to have diverse environmental effects, ranging from positive to negative effects that could be overcome with mitigation measures. Generally speaking however the established effects were negligible when mitigation measures were implemented. Axis 2 is dedicated fully to activities that aim to promote environmentally-friendly agricultural practices and contribute to limiting adverse environmental, land and social effects of abandoning agricultural production on less favoured areas. Generally speaking positive effects were registered for virtually all segments of the environment. The measures under axis 3 were found to have negligible effects on the environment if mitigation measures were applied. Positive effects were registered foremost in the segments of cultural heritage and the health of people as well as the quality of rural life. The »Implementing the LEADER Programme« priority cannot be subject to the Significant 84 Effects Assessment due the nature of the LEADER programme - its effects cannot be anticipated since the list of approved projects is unknown. The effects are heavily dependent on the type of projects that shall be selected by local development partnerships. Considering that at the level of individual projects under the RDP 2007-2013 no activities are to be anticipated which would exceed the limit values for SEA and that the majority of the producers in the primary agricultural production are bound to cultivate in accordance with the cross compliance principles, the risk of negative environmental and spatial effects is relatively low. 85 5 INFORMATION ON AXES AND MEASURES PROPOSED UNDER EACH AXIS AND THE DESCRIPTION THEREOF The RDP 2007-2013 of the RS shall be implemented through measures of all four axes as laid down in the following. Table 39: Measures and activities of the RDP 2007-2013 by axes 86 Code Axis 1 111 112 113 121 122 123 125 132 133 142 Axis 2 211 212 214 Axis 3 311 312 322 323 Axis 4 41 (411, 412, 413) 421 431 511 Measure Regulation (1698/2005 Measure description IMPROVING THE COMPETITIVENESS OF AGRICULTURAL AND FORESTRY SECTOR Measures to raise the competence and strengthen human potential in agriculture and forestry Training for persons engaged in agriculture Article 20 (a) (i), Article 21 Defraying training costs and forestry Supporting young farmers Article 20 (a) (ii), Article 22 Defraying the costs of farm transfer and structural adaptation of the holding after the transfer Early retirement of farmers Article 20 (a) (iii), Article 23 Financial aid to farm transferors Measures for restructuring of physical capital in agriculture and forestry and for promoting innovation Modernisation of agricultural holdings Article 20 (b) (i), Article 26 Co-financing investments in primary production Improving the economic value of forests Article 20 (b) (ii), Article 27 Co-financing investments in extraction and primary production of wood Adding value to agricultural and forestry Article 20 (b) (iii), Article 28 Co-financing investments in production products and marketing of agricultural and forestry products Improving and developing infrastructure Article 20 (b) (v), Article 30 Co-financing land consolidation, hydrorelated to the development and adaptation of meliorations and infrastructure agriculture Measures to improve the quality of agricultural production and products Participation of farmers in food quality Article 20 (c) (ii), Article 32 Defraying costs emerging from schemes participation in quality schemes Supporting producer groups for information Article 20 (c) (iii), Article 33 Co-financing promotion costs and promotion activities for products under food quality schemes Supporting setting up of producer groups Article 20 (d) (ii), Article 35 Co-financing establishment and operation costs IMPROVING THE ENVIRONMENT AND THE COUNTRYSIDE Natural handicap payments to farmers in Article 36 (a) (i) Compensation due to natural handicaps mountain areas in area concerned Article 36 (a) (ii) Compensation due to natural handicaps Payments to farmers in areas with in area concerned handicaps, other than mountain areas Agri-environmental payments Article 36 (a) (iv) Compensation due to stricter farming requirements QUALITY OF LIFE IN RURAL AREAS AND DIVERSIFICATION OF RURAL ECONOMY Measures to diversify the rural economy Co-financing investments in Diversification into non-agricultural Article 52 (a) (i), Article 53 diversification of economic activities in activities the countryside Support for the creation and development of Article 52 (a) (ii), Article 54 Co-financing investments in micro micro enterprises enterprises and training costs Measures to improve the quality of life in rural areas Article 52 (b)(i),(ii), Article Co-financing the arrangement of areas in Village renewal and development 56 public use and buildings Co-financing renewal costs of cultural Conservation and upgrading of the rural Article 52 (b) (iii), Article 57 heritage facilities and areas of natural heritage values LEADER Implementing local development strategies Article 63 (a), Article 64 Co-financing implementation projects Promotion of inter-territorial and transnational cooperation Running local action groups, skills acquisition and animation of the territory TECHNICAL ASSISTANCE Article 63 (b), Article 65 Co-financing LAG cooperation projects Article 63 (c) Co-financing animation, establishment and operation of LAGs Financing activities under technical assistance programme Article 66 A detailed description of the axes, measures and activities as well indicators for progress, effectiveness and performance measurement of all four axes is contained in Chapter 5.3. 87 5.1 General requirements By setting up and the implementing the priorities by axes Slovenia shall endeavour to enhance the balance and synergy within each axis as well as between the axes. Successful implementation of each axis is dependant on successful implementation of the measures under each axis. The same applies for the output between axes. At the beneficiary level the implementation of activities under certain measure can animate the implementation of other measures. This shall enable a more efficient utilisation of the resources and a quicker and more successful accomplishment of the measure and axis objectives. Table 40: Interaction of the RDP 2007-2013 measures for accomplishment of common objectives by axes MEASURES 111 112 113 121 Training for persons engaged in agriculture and forestry 122 Improving the economic value of forests 123 Adding value to agricultural and forestry products 125 Improving and developing infrastructure related to the development and adaptation of agriculture Participation of farmers in food quality schemes Supporting producer groups for information and promotion activities for products under food quality schemes Supporting setting up of producer groups Natural handicap payments to farmers in mountain areas 132 133 142 211 Setting up of young farmers Early retirement of farmers Modernisation of agricultural holdings 214 Payments to farmers in areas with handicaps, other than mountain areas Agri-environmental payments 311 Diversification into non-agricultural activities 312 Support for the creation and development of micro enterprises 322 Village renewal and development 323 Conservation and upgrading of the rural heritage 41 (411, 412, 413) 421 Implementing local development strategies 431 Running local action groups, skills acquisition and animation of the territory 212 Promotion of inter-territorial and transnational cooperation INTERACTION WITH MEASURES 112, 121, 122, 123, 125 111, 113, 121, 123, 311, 312, 323 112 111, 112, 122, 123, 125, 211, 311, 312, 41 (411, 412, 413) 111, 121, 123, 311, 312, 41 (411, 412, 413) 111, 112, 121, 122, 132, 133, 142, 311, 312, 41 (411, 412, 413) 111, 121, 322, 323, 41 (411, 412, 413) 123, 133, 142, 214 123, 132, 142, 214 123, 132, 133, 214 121, 212, 214, 323 211, 214, 323 132, 133, 142, 211, 212 112, 121, 122, 123, 322, 323, 41 (411, 412, 413), 421 112, 121, 122, 123, 322, 323, 41(411, 412, 413), 421 125, 311, 312, 323, 41 (411, 412, 413), 421 112, 125, 211, 212, 311, 312, 322, 41 (411, 412, 413), 421 121, 122, 123, 125, 311, 312, 322, 323, 421, 431 121, 122, 123, 125, 311, 312, 322, 323, 41 (411, 412, 413), 431 41 (411, 412, 413), 421 The Community contribution for the implementation of the RDP 2007-2013 measures in the seven-year period is estimated at EUR 900 million (in 2004 prices) and from the national budget 20-25 percent for co-financing of the measures shall be allocated, in accordance with the provision on the co-financing rate by Regulation 1698/2005. The total amount of the EAFRD resources devoted to the rural development of Slovenia is earmarked within the framework of the Convergence Objective. The importance of each objective under the RDP 2007-2013 reflects also in the percentage of the resources allocated for each axes. The greatest share is devoted to the land management and the 88 preservation of the utilisation of the countryside (52.22 percent). The competitiveness in agriculture and forestry was devoted 33.28 percent, 11 percent were allocated to the improvement of the quality of life in rural areas and the promotion of diversification, while LEADER activities were devoted 3 percent and technical assistance 0.5 percent of the EAFRD resources. Table 41: Financial resources by individual axes and percentage of EAFRD co-financing rate AXIS Total 399,487,151 587,640,844 132,039,136 33,760,006 Public resources (€) EAFRD co-financing 75.00% 80.00% 75.00% 80.00% EAFRD resources % per EAFRD axis Axis 1 299,615,363 * 33.28 Axis 2 470,112,675 * 52.22 Axis 3 99,029,352 11.00 Axis 4 27,008,005 3.00 Technical 75.00% 0.50 assistance 6,001,779,00 4,501,334 77.68% 100.00 Total 1,158,928,916 900,266,729 *The EAFRD percentage in this table has been rounded to two decimal places for reasons of transparency. The amounts by each axis are set based on rounding to seven decimal places. Table 1: Impact indicators and anticipated impact as a result of the implementation of the RDP 20072013 measures in certain areas IMPACT INDICATORS Economic growth (Net value added) Economic size of agricultural holdings (Change in economic size of KMG) Employment creation (Net number of created jobs) Labour productivity (Change in GVA/MWU) Anticipated impact +0.1 % + 0.6 ESU +2,755 Agriculture: +EUR1,900 Forestry: +EUR4,645 Food industry: +EUR4,737 Reversing the trend of declining biodiversity 50% trend reversal (Stopping the biodiversity declining trend with regard to farmland birds population) Maintenance of high nature value farming and forestry areas +2,700 ha (Changes in high nature value area) Improvement in water quality Trend: decline (Changes in gross nutrient balance – surplus of nitrogen ) -4 kg/ha Land application of nutrients - 10 kg/ha (Change in the quantity of applied nutrients) Contribution to combating climate change Agriculture: low* (Increase in production of energy from renewable sources in agriculture and Forestry: significant forestry) * Within the framework of the RDP 2007-2013 measures the agricultural sector shall have an impact on climate change mitigation through investment measures of axes 1 and 3. The impact of the RDP 2007-2013 implementation on climate change mitigation shall be significant. 89 5.2 Requirements on all or certain measures Measures and expenditure transferred from the previous programming period Early retirement Pursuant to Article 7 of Regulation 1320/2006 Slovenia shall transfer the commitments undertaken in the previous programming period for the measure early retirement from the RDP 2004-2006. In 2004, 2005 and 2006 contracts with the beneficiaries were awarded enabling them to obtain early retirement support for the duration of 10 years. As this time period continues into the new programming period the beneficiaries shall receive the support until the conclusion of the contractual commitment in the 2007-2013 period as well. From 1 January 2007 onward the expenditure shall entirely charge the 2007-2013 programming period and shall be earmarked as axis 1 expenditure. The total amount allocated for commitments undertaken from the previous programming period amounts to approximately EUR 14.5 Mio. In accordance with the Correlation table for measures from Annex II to Regulation 1320/2006 provided for in 1698/2005 the given resources are included into axis 1 of the RDP 2007-2013. Support for meeting the EU standards Pursuant to Article 7 of Regulation 1320/2006 Slovenia shall transfer the commitments undertaken in the previous programming period for meeting the EU standards into the programming period 2007-2013 and thus ensure the conclusion of the activities. The selection of the beneficiaries was conducted in accordance with the RDP 2004-2006 provisions. The total sum devoted thereto amounts to approximately EUR40.4 Mio. The disbursement of the resources shall be compliant to the Correlation table of measures under Annex II of Regulation 1320/2006 provided for in Regulation 1698/2005 included in axis 1 of the RDP 2007-2013. Table 43: List of existing standards based on Community regulations and the date from which a standard must obligatory be implemented in compliance with the Community rules Area Standard Environmental protection Nitrate Directive Plant health Agricultural plant health protection Date on which standard became valid 01.05.2004 01.05.2004 Regulations SLO Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) Rules concerning good agricultural practice in manuring (OJ RS No 130/04) Plant Protection Products Act (OJ RS No 98/2004 – UPB 1) Rules on professional training and assessment of knowledge in phytomedicine (OJ RS Nos 36/02, 41/04, 17/05) Rules on handling the stocks of plant protection products after the expiry of registration (OJ RS No 59/03, 6/05) Rules on the responsibilities of users of plant protection products (OJ RS No 62/03) EC Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources(OJ L No 375, 31.12.1991, p. 1) Council Directive 91/414/EEC concerning the placing of plant products on the market (OJ L No 230, 19.8.1991, p. 1) 90 Area Standard Occupational safety Safety and health at work Date on which standard became valid 01.05.2004 Regulations SLO Occupational Health and Safety Act (OJ RS No 56/99, 64/01) EC Council Directive 89/391/EEC on the introduction of measures to encourage improvements in the safety and health of workers at work (OJ No L 183 of 29. 6. 1989, p. 1) Single Programming Document 2004-2006 Pursuant to Article 8 of Regulation 1320/2006 Slovenia shall transfer a part of commitments undertaken in the previous programming period for the implementation of the third priority under the Single Programming Document of the RS 2004-2006 into the programming period 2007-2013. In 2006, in the Decision of the Government of the RS No 55402-1/2006/13 additional entitlements were granted to optimise the drawing on of funds of the third priority under the SPD, which amount for the EAGGF - Guidance Section approximately EUR5.36 Mio. These resources shall be disbursed for the commitments under the third SPD priority - EAGGF Guidance Section. The payments under this measure shall be conducted in 2007 and 2008. In accordance with the Correlation table for measures from Annex II to Regulation 1320/2006 provided for in Regulation 1698/2005 the given resources are included into axis 1 of the RDP 2007-2013. Agri-environmental measures Pursuant to Article 5 of Regulation 1320/2006 Slovenia shall transfer the commitments undertaken in the previous programming period for the implementation of agri-environmental measures into the programming period 2007-2013. The commitments under this measure shall be entered by 31.12.2006 and the disbursements conducted in 2007 and 208. The total amount allocated for the commitments entered in the previous period is EUR 5 Mio. In accordance with the Correlation table for measures from Annex II to Regulation 1320/2006 provided for in Regulation 1698/2005 the given resources are included into axis 2 of the RDP 2007-2013. Cross compliance Pursuant to Article 7 of Regulation 1320/2006 Slovenia shall transfer the commitments undertaken in the previous programming period. Fulfilment of the cross compliance provisions is a condition for granting any support per area under the measures of axis 2. At the national level the cross compliance requirements are laid down in the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended), which captures the provisions of Regulation 1782/200327. Support for investments In support for investments in production, processing and marketing of agricultural and forestry products the marketing possibilities of the product concerned shall be considered. Support shall not be granted for investments which would lead to a production above the quotas or other production limitations emerging from the CAP provisions. 27 Council Regulation (EC) No 1782/2003 of 29 September 2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulations (EEC) No 2019/93, (EC) No 1452/2001, (EC) No 1453/2001, (EC) No 1454/2001, (EC) 1868/94, (EC) No 1251/1999, (EC) No 1254/1999, (EC) No 1673/2000, (EEC) No 2358/71 and (EC) No 2529/2001 (OJ L 270, 21.10.2003, p. 1–69) 91 Products supported under the first pillar of the CAP Measures under the RDP 2007-2013, pursuant to Article 5(6) of Regulation 1698/2005, are laid down in a manner providing that the purposes of the support schemes outlined in Annex I of Regulation 1974/2006 and related to fruit and vegetable, wine, olive oil, hops, cattle and calves, goats and sheep, beekeeping, sugar and direct payments are not supported under the RDP 20072013, except for exemptions laid down under measure 121 Modernisation of agricultural holdings. The criteria and rules confirming that the support under the first CAP pillar outlined in Annex I to Regulation 1974/2006 do not overlap with the activities under the RDP 2007-2013 are outlined under each measure in Chapter 5.3. A detailed explanation and demarcation of the first pillar of the CAP and RDP 2007-2013 measures is given in Chapter 10. Before the funds under the measures of axis 1 are granted and disbursed, the MAFF and ARSAMRD shall conduct an administrative control and compliant with the rules also on-thespot checks to avoid potential doubling of funds for the same purpose with CAP measures. Applicants entitled to aid under the measures of axis 1 of the RDP who already obtained public funds of the RS or EU funds for the same purpose for which they are applying under the RDP shall not be eligible for these funds, which the applicants shall confirm in a written statement. Applicants for support deriving from the RDP 2007-2013 submit individual claims and the paying agency separately checks the fulfilment of the criteria for the allocation of the resources. A connection between the direct payments and axis 2 measures exists, which are related due to the conduction of cross compliance controls. Verifying the adequacy of payment amount calculations In cases where setting up of payments for certain measures and activities under axis 2 of the RDP 2007-2013 requires a preliminary evaluation of costs or income foregone, in accordance with Articles 48(2) of the decree on the implementation of rural development measures the costs were evaluated and the calculations drawn up by an independent institution which enables the verification of the data and calculation baselines relevance. Other provisions The measures under the rural development programme do not refer to the defraying of the interest rate and to other forms of financial transactions referred to in Articles 49 to 52 of the regulation on the implementation of rural development measures. 92 5.3 Information necessary for axes and measures 5.3.1 Axis 1: Improving the competitiveness of the agricultural and forestry sector Rationale In labour productivity Slovenian agriculture and forestry fall behind the average in the economy as well as the average of these activities in the EU-25. Basic factors having an impact on the low competitiveness are as follows: - low education and unfavourable age structure of agricultural holding operators as a factor diminishing the prospects of farming as a profession and hampering the agriculture restructuring; - unfavourable agricultural holding size structure, immense parcel fragmentation and poor land infrastructure as a factor diminishing the investment capacity of the holdings and thus makes the adaptation to the stricter environmental, hygiene and other standards difficult, reduces the innovation and opportunity of introducing new or better technologies and products and thus the application effectiveness of production factors in agriculture and primary processing; - large number of small private forest owners with poor equipment for forestry tasks and insufficiently qualified as a factor hampering better utilisation of the economic potential of forests and introduction of new products; - insufficient participation of holdings and production in quality schemes, low share of marketability and inefficiently market oriented producers within the framework of these schemes and poor consumer awareness of such products as factors obstructing an increase of the production and products quality and thus the value added growth in agriculture and food industry. - With regard to the natural features Slovenia is a very heterogeneous land. Next to the natural features the activities structure is also affected by other factors, e.g. the closeness of the market, economic position of agriculture, age and education structure of farmers and activity operators, etc. As regards investments the selection of priority sectors under measures of axis 1 shall be ensured through public tenders. Although measures of axis 1 are aimed at increasing the competitiveness of the agricultural, forestry and food industry sector, this shall not cause environmental pollution, biodiversity deterioration, habitat loss or decreased natural and landscape diversity. In implementing measures of axis 1 all provisions and commitments shall be considered which emerge from Natura 2000 and are outlined in regulations governing environmental protection and spatial planning. Each investment which represents an activity affecting the environment must be compliant with the spatial plan preliminarily confirmed by the ministry responsible for environment and spatial planning. As regards consents for activities affecting the environment the ministry responsible for environment and spatial planning gives its consent on compliance of an investment with the regulations governing environmental protection and spatial planning, as follows: - At the first stage of administrative ruling the consent is issued by an appropriate administrative unit, which operates as a field office of the ministry responsible for environment and spatial planning; - In the procedures of issuing consents for activities affecting the environment the ministry responsible for environment and spatial planning functions as appeal body and second instance. Objectives 93 The measures and activities under this axis are aimed at increasing the labour productivity in agriculture and forestry and thus raise the competitiveness level of these sectors, whereby the activities shall be targeted at: - raising the qualification level for engagement in agriculture and improving the competence of farms as well as contributing to the improved value added in agriculture and forestry; - enhancing investments in agriculture, parcel structure and primary processing aimed at improve the restructuring of agricultural holdings and food processing establishments and thus contribute to a better management effectiveness; - enhancing investments on holdings managing private forests and in micro enterprises for wood processing, raising the qualification for engagement in forestry and increasing organised supply of wood assortments to increase the utilisation of economic potentials of forests and make the adaptation to the market requirements easier, particularly in the light of the needs for energy from renewable resources and thus contribute to increased value added in forestry; - animating producers to participate in quality schemes and increase the production and sale of higher quality products to raise the quality level of agricultural production and products, to make the adaptation to the market requirements easier and contribute to increased value added in agriculture and processing. Measures and activities Code 11 111 112 113 12 121 122 123 125 13 132 133 142 Measure Measures to raise the qualification and strengthen human potential in agriculture and forestry Training for persons engaged in agriculture and forestry Setting up of young farmers Early retirement of farmers Measures to restructure physical capital in agriculture and forestry and top promote the innovation Modernisation of agricultural holdings Improving the economic value of forests Adding value to agricultural and forestry products Improving and developing infrastructure related to the development and adaptation of agriculture Measure to improve the quality of agricultural production and products Participation of farmers in food quality schemes Supporting producer groups for information and promotion activities for products under food quality schemes Supporting setting up of producer groups Regulation 1698/2005 Article 20 (a) (i), Article 21 Article 20 (a) (ii), Article 22 Article 20 (a) (iii), Article 23 Article 20 (b) (i), Article 26 Article 20 (b) (ii), Article 27 Article 20 (b) (iii), Article 28 Article 20 (b) (v), Article 30 Article 20 (c) (ii), Article 32 Article 20 (c) (iii), Article 33 Article 20 (d) (ii), Article 35 Next to the specific conditions under each measure the following provisions for the measures under axis 1 apply accordingly: - - The measures shall be implemented in the RS throughout the programming period. The measures shall be implemented in accordance with the criteria set as one or multiannual commitments. A beneficiary obtaining aid under the measures of axis 1 must keep the required documentation set out by a call for tender and a contract on granting funds and is to be kept for at least 5 years after the last disbursement of funds. Agricultural holdings and other subjects must be recorded in adequate registers and meet all other conditions in accordance with applicable legislation and tender conditions. Costs eligible for co-financing are costs arising in the period from 01.01.2007 to 31.12.2015. If an investment or activity has already started in the previous period only the costs arising from 01.01.2007 onward shall be acknowledged. Preliminary arising general costs related to the preparation and implementation of an investment or activity shall also be acknowledged regardless of the date they arose. Detailed provisions for each measure shall be outlined in 94 - - - - - the implementation rules. As eligible costs in investments shall not be deemed: purchase of annual seedlings and breeding animals, paying of taxes, customs and duties, purchase of transport vehicles, except the equipment (trailers) for animal transport, current business costs, bank and guarantees costs, purchase of used machinery and equipment. A project must be concluded before the last funds disbursement. Detailed provisions as to what is deemed project conclusion for each measure shall be outlined in the implementation rules. The beneficiary may not use the investment contrary to the purpose of funds granted. Durability of activities linked to investments pursuant to the provisions of Article 72 of Regulation 1698/2005. Considering force majeure pursuant to the provisions of Article 47 of Regulation 1974/2006. Based on the investment and technical documentation a beneficiary applying for funds for a part of an investment must provide an inventory of works and costs for the entire investment, in case of a phased construction he must provide a proof of the works completed and the value thereof. In case of investments in new constructions or a reconstruction of facilities and the purchase of the corresponding equipment located or to be located in the buildings constructed for other purposes as well, only the costs, of the total construction or reconstruction costs of the entire building, in the proportional share with regard to the net surface of the building covered by the facilities concerned (common use areas, roof, façade, etc.) shall be deemed eligible costs. Investments in environment friendly technologies shall be given various advantages, e.g. higher aid share, priority in application selection. If a beneficiary is deemed contractor in accordance with the rules on public procurement he must furnish proof that the contractor selection procedure was carried out in accordance with the Public Procurement Act. A beneficiary who has already obtained public funds of the RS or EU funds for the same purpose as given in the application for RDP funds is not eligible for funds. Measure combinations and demarcation The delimitation to the measures of other axes is set by the beneficiaries, activities and/or purposes, as follows: - Within the range of axis 1 eligible for support are agricultural holdings, food processing establishments and private forest owners; - Within the range of axis 1 the support shall be granted for the production of agricultural and forestry products. - The support shall be devoted to own primary production. If an investment can be partially intended for the implementation of other activities as well it shall not be eligible for support for that particular part under axis 1. This is clearly evident in case of investments in renewable energy resources. Support may be granted only for investments in own energy consumption from renewable energy resources, whereas the sale of energy to other users shall no be supported within the range of the measures under axis 1. If not otherwise specified for each measure, the application for payments under axis 1 is excluded by applications under other operational programmes, pursuant to the provisions of Article 70 of Regulation 1698/2005 and of state aid. Before granting each project the MAFF shall check the data on already obtained public funds for individual project. Target group The measures and activities under this axis are intended for natural and legal persons engaged in agriculture, forestry and processing of agricultural and forestry products by considering the restrictions and conditions under individual measures or activities. 95 Financial provisions The measures under 1 are financed by public resources, whereby up to 75 percent of the resources are co-financed by the EAFRD and at least 25 percent by the national budget of the RS. The share of public resources for each measure shall be laid down in a decree governing the payments for the measures under axes 1, 3 and 4, as well as by calls for tender. The commitments for granting funds to the beneficiaries may be made up to the amount of opened resources for each measure. The restriction criteria as a safety mechanism preventing the available resources from being exceeded shall be outlined by the implementation rules. General objectives and indicators OBJECTIVES BASELINE INDICATORS Improving the education and age structure on agricultural holdings Share of operators with any agricultural attainment Raising the labour productivity in agriculture GVA/PMWU in agriculture GVA/PMWU in agriculture; EU25=100 Gross fixed capital formation in agriculture Economic size of agricultural holdings Raising the labour productivity in food industry GVA/PMWU in food industry Raising the labour productivity in forestry GVA/PMWU in forestry VALUES Baseline 28% (2005) Target (2013) 45% €5,500 (2004-2005) 32% (2004-2005) €199 Mio. (2004-2005) €7,400 37% €227 Mio. 4.6 ESU (2005) €23,763 (2004-2005) 5.5 ESU €15,455 (2004-2005) €20,100 €28,500 96 5.3.1.1 Measures to raise the qualification and strengthen human potential in agriculture and forestry 5.3.1.1.1 Training for persons engaged in agriculture and forestry Legal basis: Regulation 1698/2005; Article 20 (a) (i), Article 21 Measure code: 111 Rationale of the measure: The education structure of the agricultural holding operators and private forest owners is poor; however the labour in agriculture and forestry requires new knowledge and skills. For a quicker development of both sectors a continuous training of producers is necessary in technological as well as economic field. Higher qualification level contributes to increased labour productivity and better competitiveness of agricultural holdings. Objectives By supporting training actions the qualification level for engagement in agriculture and forestry shall be raised and education structure improved and thus the labour productivity in agriculture and forestry raised. Measure description: The measure supports the acquisition of new knowledge and vocational education within the range of training programmes from the field of agriculture and forestry which are not included in the regular education system. The training must be verifiable by a proof on concluded training. Within this range support shall be granted for: - training and vocational qualification acquisition for the measures under axis 1 and 2 relevant to perform the activities under the RDP 2007-2013 measures and: • provides for certificate acquisition on vocational qualification in accordance with the National Vocational Qualifications Act and the Catalogues of professional knowledge and skill standards, or • is a condition for obtaining support within the framework of certain measures under axes 1 and 2 of the RDP 2007-2013; - training for specific skills acquisition in accordance with thematic sets to be set out in call for tender. Support for training shall be implemented as financial aid to the beneficiaries to defray training and examination costs. Proof of participation and successful completion of training or certificate acquisition must be submitted together with the application. Training shall be carried out by specially selected institutions which were granted concession within the framework of the national vocational qualifications system, or by institutions which shall be selected in a call for tender. Target group Beneficiaries are producers engaged in production and processing of agricultural and forestry products laid down in Annex I to the Treaty and private forest owners. Financial provisions: Maximum aid rate amounts up to 100 percent of the eligible costs. Maximum aid amount granted per person is up to EUR 1,000 annually. 97 Objectives and indicators OBJECTIVES Specific Operational Raising the competence level of engagement in agriculture and forestry Making training and information actions easier RESULT AND OUTPUT INDICATORS Number of participants who successfully completed training (acquired certificate) Number of training participants Number of training days received Baseline 0 0 0 VALUES Target (2013) 10,000 15,500 5,000 98 5.3.1.1.2 Setting up of young farmers Legal basis: Regulation 1698/2005; Article 20 (a) (ii), Article 22 Measure code: 112 Rationale of the measure: The age structure of agricultural holding owners in Slovenia is unfavourable and has deteriorated, which negatively affects farming as profession. Younger farm operators are generally more qualified for engagement in agriculture and more enterprising and are therefore able to adapt to the technological changes and market conditions more effectively, which is a condition for raised labour productivity and competitiveness of agriculture. Often young people do not decide to take over a farm even if they have an opportunity to do so as this is closely related to the problem of paying off other heirs and providing the stat-up capital for structural adaptation of the holding. Objective This measure is aimed at promoting the transfer of farms on the younger generation, improving the age structure of agricultural holding operators, raising the development capacity of farms taken over and thus contributing to increased labour productivity in agriculture. Measure description Support for setting up of young farmers shall be implemented as a single financial aid to enable easier transfer and structural adaptation of the agricultural holding after the transfer. First ownership takeover is deemed the first ownership takeover of the entire farm, which is verified by the ownership right entry into the land register. In case the entry procedure has not yet been concluded it is sufficient for the fulfilment of the condition to submit the application for entry into the land register. First ownership takeover is also deemed the takeover of a farm larger than the farm owned by the young farmer so far and for which the resources have not yet been used under this measure. Additionally to the application young farmer must submit a business plan on the development of the agricultural activity in the transferred agricultural holding, which must contain the following: - the description of the starting situation on the agricultural holding and of specific needs, turning points and development goals after the transfer; - a plan of trainings in case the transferee does not meet the requirements set as regards the adequate skills and qualification; - an investment plan in case investments are necessary for the realisation of the development goals set after the transfer. Based on the submitted business plan a young farmer may apply for support under the following measures as well: - under measure 111: Training for persons engaged in agriculture for the acquisition of adequate vocational knowledge and qualification; - under measure 121: Modernisation of agricultural holdings for planned investments on agricultural holding if the business plan contains the information required for this measure and if the investment is to be implemented within five years from the first ownership takeover. General conditions: - At submitting the application the agricultural holding must poses at least 3 ha of comparable agricultural land, except in cases of farms engaged in intensive plant production, beekeeping, or poultry rearing for meat or eggs production, rabbit rearing for meat production or intensive 99 - - - - - rearing of cattle, equines, pigs or sheep and goats. In such cases at submitting the application the beneficiary must possess at least 40 bee families and/or must rear a minimum of: 1000 chicken broilers or 200 turkeys per cycle, or 400 laying poultry, or 50 breeding females or 200 broilers per cycle in case of rabbit rearing for meat production, or 5 LUs for intensive rearing of cattle, equines, pigs or sheep and goats. The ownership takeover of the farm must be conducted up to 18 months prior to the issuing of the decision. At the application submission the entire farm must be taken over by the young farmer or by the young farmer and his/her spouse from marital or non-marital relationship. Excluded may be agricultural or forestry land in the size of 0.5 hectares comparable agricultural land to be kept by the transferor or for disbursing heirs, by considering the conditions that after depreciation of this agricultural land the agricultural holding still must meet the requirement on the minimum amount of comparable agricultural land possessed. At the application submission young farmer must have adequate vocational knowledge and qualification. The condition is fulfilled if the young transferee has: completed at least primary education, had minimum 5 years of work experience in agriculture and acquired the national vocational qualification in agriculture or farming related activities, or completed at least vocational education in agriculture or farming related activities and had minimum 3 years of experience in work on farm. Inasmuch a young farmer does not fulfil the conditions on adequate vocational knowledge and qualification at the time of the application submission he must fulfil these requirements within 36 months from the issuing of the notification on funds grant provided that these needs are outlined in the business plan. A beneficiary obtaining aid under this measure must establish a business result monitoring system in one year after receiving the funds at the latest and must monitor the business results for at least five years after receiving the disbursement of funds under this measure. Young farmer undertakes to remain the operator and owner of the agricultural holding for at least 5 years from receiving the aid under this measure. If, based on a control conducted not later than 3 years after receiving the decision on funds grant under this measure, young farmer does not fulfil the requirements set out in the business plan, he shall have to return all funds obtained under this measure. In case the business plan envisages investments as well and the young farmer obtained funds under the measure 121: Modernisation of agricultural holdings, the goals set out in the business plan must be fulfilled not later than within five years from issuing of the decision on funds grant under this measure. In case he did not obtain funds at a call for tender within the framework of other measures for which he applied in accordance with the business plan, or obtained them outside the time frame set out in the business plan, it is considered that he did not breach the provisions of the business plan. Target group The beneficiaries are young farmers over 18 years and less than 40 years of age or turning 40 in the year of the call for tender was published, which have taken over an agricultural holding as operators for the first time. Financial provisions The support shall be provided as single financial aid. The aid amount is based on points achieved in the evaluation of submitted applications, which shall fulfil the conditions set and may amount up to EUR 40,000 per beneficiary. The point system shall consider the marketing and economic production elements as well as the development, regional, social and environmental aspects of the farm and the costs of the farm transfer. 100 Objectives and indicators OBJECTIVES Specific Operational RESULT AND OUTPUT INDICATORS Increasing the development capacity of transferred farms GVA on holdings supported (index) Ease farm transfer and structural adaptation after the transfer Total number of assisted young farmers Total volume of investments VALUES Baseline Target (2013) 100 120 0 1,200 0 €50 Mio. 101 5.3.1.1.3 Early retirement of farmers Legal basis: Regulation 1698/2005; Article 20 (a) (iii), Article 23 Measure code: 113 Rationale of the measure: The average age of farm holders in Slovenia is over 56 years. The share of persons over 55 years is more than 55 percent and is not decreasing. Older farm holders find it difficult to transfer their farms to younger farmers. Not transferring agricultural holdings to the younger generation indirectly diminishes the development capacity of farms and obstructs the process of concentration and consolidation of agriculture. By encouraging older farmers to stop farming early and transfer their farm to a younger farmer a new job on farm has indirectly been created. Objective The measure is aimed at enhancing structural changes on agricultural holdings, improving the age structure of farm operators and increasing the development capacity of the transferred farms and thus contributing to increased labour productivity in agriculture. Measure description The measure is implemented as annuity to older farmers for stopping the gainful agricultural and forestry activity on agricultural holding due to the transfer of the holding to the younger, more active generation or any other transferee who increases his holding through the transfer. The condition is also fulfilled if in exceptional cases, e.g. death of transferee, the agricultural holding is temporarily transferred to the Farmland and Forest Fund of the RS, until new transferee is found, but not longer than for the period of one year. The transferor may not be less than 57 years and may not be yet retired. The total period of obtaining support under this measure is 10 years and no longer than until the transferor reaches the age of 70 years. When the transferor begins to obtain the pension under the national pension scheme, the pension is subtracted from the early retirement support. The transferor must - irrevocably quit gainful activity related to agriculture and forestry; - have farmed on the agricultural holding to be transferred at least for the last 10 years; - have pension and disability insurance under the heading agriculture for at least the last 7 years. The transferee must - succeed the transferor by taking over the agricultural holding; - be older than 18 years and have at least 5 years of experience in farming or 3 year in case he has completed at least agriculture or farming related specialised school. The transferor must transfer the entire agricultural holding to the selected transferee. In case there is more than one farm owner (transferors) and they all fulfil the requirements under this measure, they split the annuity with regard to their farm share. In case there is more than one farm owner (transferors) and only one of them fulfils the requirements under this measure, only the transferor fulfilling the conditions obtains the annuity for the entire agricultural holding transferred. In case of the death of the transferor the annuity may be transferred to his spouse or non-marital partner or children if they have no sources of income of their own providing for social security. 102 The size of the agricultural holding to be transferred must not be less than 5 hectares of comparable agricultural land. The transferor may keep no more than 0.5 hectare comparable agricultural land at the most for his own needs and the accommodation facility. Target group Beneficiaries under this measure are farmers engaged in agricultural and forestry activity who are more than 57 years old and not yet retired. Financial provisions Financial aid is provided as annual annuity disbursed monthly. It comprises of a fixed part, amounting to EUR 5,000 per farm annually, and a variable part which depends on the size of the agricultural holding transferred. The variable part is calculated on the basis of the actual use of the comparable agricultural land in the year of entering the measure. For each hectare of transferred comparable agricultural land the amount of EUR 300 per hectare annually is paid, but maximum for 20 ha of comparable agricultural land. If the transferred farm is larger, the entire land must be transferred, but the annuity does not increase. The total amount of the annuity obtained in the entire period may not exceed EUR 110,000 per transferor. Objectives and indicators OBJECTIVES Specific Operational Increasing the farm development capacity Enhancing structural changes RESULT AND OUTPUT INDICATORS GVA on holdings supported (index) Total number of farmers early retired Total extent of agricultural and forest land released Baseline 100 VALUES Target (2013) 120 0 210 0 2,226 ha 103 5.3.1.2 Measures to restructure physical capital in agriculture and forestry and top promote the innovation 5.3.1.2.1 Modernisation of agricultural holdings Legal basis: Regulation 1698/2005; Article 20 (b) (i), Article 26 Measure code: 121 Rationale of the measure: Low labour productivity is to a great extent a result of unfavourable agricultural holding size structure and low specialisation level and frequently by out-dated fixed assets. The improvement of the competitiveness of agriculture is closely related to the investments in fixed assets on agricultural holdings providing better utilisation of production factors and better labour productivity. Particularly on smaller holdings (below 15 LU) the compliance of the facilities with the requirements of the newly introduced standard on animal welfare is problematic. Additionally, in Slovenia great dependence on natural conditions has been registered, which additionally diminishes the competitiveness of the agricultural sector. In future, the adaptation to the new climate conditions shall play a key role in further development of agricultural sector. With measures under the first pillar of the agricultural policy no overlapping with investments under this measure is expected. Nevertheless, within the scope of areas Fruit and vegetables and Hop, pursuant to Article 5, paragraph 6 of Regulation 1698/2005, in relation to Article 2, paragraph 2 of Regulation 1974/2006, recognised producer organisations and groups with preliminary recognition or their members are granted an exemption and may apply for support under this measure. Support shall be granted for investments types of agricultural holdings, which may also be obtained under operational programmes under the first pillar of the CAP, but only for investments for which more than EUR3,500 of support from public resources is obtained. Operational programmes under the first pillar of the CAP shall support investments amounting to less than EUR3,500 of support from public resources. In case of aforementioned sectors nets against hail are supported under the RDP 2007-2013 and not under the first pillar of the CAP. Exemption is allowed also to beekeepers for investments in the apiculture sector. Investments in equipment purchase, supported within the framework of Technical assistance under the Apiculture programme of Slovenia for the period 2008-2010, which was adopted on 19.06.2007 by the Management Committee for Poultry meat and Eggs, shall not be supported under this measure. A special attention will be made to the amount of support given for honey ensuring there is no overlapping with aid granted on measures improving general conditions for the production and marketing of apiculture products following Council Regulation (EC) Nº 797/2004. Prior to granting and disbursing funds under this measure, the ARSAMRD, which implements all MAFF measures of the first pillar of the CAP as well as of the rural development, shall conduct a centralised administrative control and if required on-the-spot visit to prevent potential doubling of funds for the same purpose with measures under the CAP. Beneficiaries for aid under this measure who already obtained public funds of the RS or EU funds for the same purpose for which they are applying under the RDP shall not be eligible for these funds, which the applicants shall confirm with a written statement. Although the measure is aimed at increasing the competitiveness of the agricultural sector, this shall not cause environmental pollution, biodiversity deterioration, habitat loss or decreased natural and landscape diversity. In implementing the investments the provisions emerging from Natura 2000 shall be considered at all times. Agricultural holdings located in the Natura 2000 sites or in water protection areas linked to Directive 2000/60/EC shall be granted a higher aid share, which shall contribute that in these areas farming and consequently biodiversity arising 104 from traditional use shall be preserved. Specific objectives The support for modernisation of agricultural holdings is aimed at enhancing the restructuring and increasing the management efficiency by: - introducing new products, technologies and production improvements; - qualifying agricultural holdings for meeting newly introduced minimum standards of the Community , for improving the environmental protection, hygiene and safety at work; - stabilising the income on agricultural holdings, and thus contribute to increased investment capacity or labour productivity in agriculture. Measure description The support shall be granted for investments in own primary production of agricultural products as laid down in Annex I to the Treaty, including investments intended for conducting agricultural mechanisation services. Within the range of this measure support shall be granted for investments of individual agricultural holdings (individual investments) as well as investments conducted by two or more agricultural holdings organised as agricultural holding associations and registered in accordance with the regulations governing companies or cooperatives (joint investments). The investment must contribute to improved overall performance of the agricultural holding and comply with the minimum standards of the Community. The improved performance of the agricultural holding must be evident from the application form for simple investments and for demanding investments from the business plan. Simple investments are deemed projects the total value of which does not exceed EUR 50,000 per project. The support shall be devoted to agricultural holdings which make an appropriate gross income from the agricultural activity or from the agricultural, forestry and subsidiary activities on farms per unit of labour input at the time of the application submission. Appropriate gross income is deemed the income of 1 gross minimum salary per employee in the RS in the year before the year of the call for tender. In case that at the application submission an agricultural holding does not conduct agricultural activity the appropriate income referred to in the previous paragraph must be achieved not later than at the conclusion of the investment. For investments aimed at meeting the Community standards support may be granted only to investments aimed at adapting agricultural holdings to the requirements of the newly introduced minimum standards. In this case agricultural holdings are permitted a period of grace to adapt to the standard, which may not exceed 36 months from the date on which the standard becomes mandatory for the agricultural holding. Young farmers obtaining support under the measure 112: Setting up of young farmers may be granted support for investments to qualify for meeting the existing Community standards if these investments are outlined in the business plan. The period of grace to meet the standards may not exceed 36 months from the date of the first ownership takeover by the young farmer. Supported shall be the following types of investments: - investments in stables with corresponding interior equipment (production, feeding, milking and secretion equipment) for milk, eggs and meat production; at the level of individual beneficiaries the production restrictions apply which emerge from the market organisation; - investments in fodder storage facilities and corresponding equipment; - investments in other facilities for production, storing and preparation of agricultural products for the market as well as for the direct on-farm sale of agricultural products and corresponding equipment; - investments in facilities and corresponding equipment for honey production and other bee products as well as bee queen breeding, except the equipment to be supported within the 105 - - - range of the technical assistance for support under the first CAP pillar (Programme of the beekeeping measures in Slovenia 2008-2010 or later); investments in facilities and corresponding equipment for storing of agricultural mechanisation intended for own primary production on agricultural holding or for conducting agricultural mechanisation services; investments in purchase and setting up of greenhouses and corresponding equipment; purchase of agricultural mechanisation and equipment intended for own primary production and/or services with agricultural mechanisation, storage and marketing of agricultural products; purchase of agricultural land which does not exceed 10 percent of the total investment value; first setting up or restructuring of orchards, olive groves and hop gardens; purchase and setting up of nets against hail; investments in setting up of pastures and pens for controlled pasture of domestic animals and farmed game; investments in agri-amelioration works on agricultural holdings, within the range of conducted consolidations; investments in irrigation infrastructure for irrigation systems in private property, including the construction of corresponding water resources; investments in renewable sources of energy for agricultural holdings needs; investments in road and water infrastructure on agricultural holdings (field paths, access roads, trails in permanent plantations). Eligible costs: - acquisition, construction and improvement costs of real estates, agricultural land, infrastructure and corresponding equipment for agricultural production on agricultural holding; - purchase costs of new mechanisation and equipment and computer hard- and software; - contributions in kind; - costs related to the agricultural holding management and the purchase of corresponding computer hard- and software; - general costs related to the preparation and implementation of projects. Target group Beneficiaries are agricultural holdings engaged in agricultural activity or agricultural mechanisation services and fulfilling the conditions set. Demarcation The investments under this measure are delimited to other RDP 2007-2013 measures and other operational programmes by the designation of the beneficiaries, activities and/or purposes, as follows: - eligible for support are only agricultural holdings; - support is allocated for investments in the primary production of agricultural products. In cases of investments which can be partially intended for the implementation of other activities, this particular part of the activities shall not be supported under this measure. This is clearly evident in case of investments in renewable energy sources. Support may be granted only for investments in own energy consumption from renewable energy resources on the agricultural holding, whereas the sale of energy to other users or mare use in own household shall no be supported within the range of this measure. The claim for aid disbursement under this measure is delimited from the claims under other OPs and states aids. Under this measure only investments in private infrastructure and/or arrangement of access to the public infrastructure on the agricultural holding shall be supported, whereby overlapping with measure 125 is avoided. 106 Financial provisions Financial support is allocated in the form of non-refundable funds. The maximum aid rate amounts up to 40 percent of the acknowledged investment value. When a beneficiary applies for investments under the heading young farmer in accordance with the provisions of measure 112: Setting up of young farmers, the co-financing rate amounts up to 60 percent of the acknowledged investment value for investments of agricultural holdings located in areas referred to in Article 36(a)(i), (ii) and (iii), or up to 50 percent of the acknowledged investment value for investments of agricultural holdings located outside areas referred to in Article 36(a)(i), (ii) and (iii). When a beneficiary claims a higher aid share for investments of agricultural holdings in areas referred to in Article 36(a)(i), (ii) and (iii), the co-financing rate amounts up to 50 percent of the acknowledged investment value. In case of agricultural mechanisation purchase the aid rate amounts up to 30 percent of the acknowledged investment value, regardless of the beneficiary status. If purchasing special mechanisation for farming in mountain areas the aid rate amounts up to 40 percent of the acknowledged investment value. Minimum aid amount granted is EUR 3.500 per project. Maximum aid amount granted is EUR 1,000,000 per project. In the programming period 2007-2013 an agricultural holding may obtain maximum EUR 2,000,000 public aid under this measure. Objectives and indicators OBJECTIVES Specific Operational Enhancing the introduction of new products, technologies or production improvements on agricultural holdings Qualifying agricultural holdings to meet newly introduced minimum standards of the Community, for improving the environmental protection, hygiene and safety at work Stabilising the income in agricultural holdings Increasing the development capacity of agricultural holdings and the performance of the use of production factors RESULT AND OUTPUT INDICATORS Number of agricultural holdings introducing new products and/or techniques Number of agricultural holdings adapted to the newly introduced minimum Community standards Agricultural land on which the investment has stabilised the income from agricultural activity Gross value added on agricultural holdings supported (index) Total number of agricultural holdings supported Total investment value Baseline 0 VALUES Target (2013) 490 0 1,225 0 1,000 ha 100 130 0 2,450 0 €164.7 Mio. 107 5.3.1.2.2 Improving the economic value of forests Legal basis: Regulation 1698/2005; Article 20 (b) (ii), Article 27 Measure code: 122 Rationale of the measure: Nearly 60 percent of the entire surface of Slovenia is covered by forests. Therefore Slovenian forestry has an important impact on the economic vitality of the entire rural area. Due to the outdated means of work by private forest owners and poor technical equipment for work in forests the utilisation of the economic potential of forests and thus the income from forestry is low. In addition thereto, there are many accidents and injuries at work in forests. An important factor diminishing the income in forestry is insufficient openness of forests with forest roads. Better openness of forests reduces the costs of obtaining wood and thus provides for increased income from forest. For better safety at work in forests and better utilisation of forests, which also creates opportunities for the diversification of production and introduction of new forestry products investments in private forests in particular are necessary. Although the activities under this measure are aimed at increasing the economic value of forests, this shall not cause environmental pollution, biodiversity deterioration, habitat loss or decreased natural and landscape diversity. In implementing the activities under this measure all provisions and commitments emerging from Natura 2000 shall be considered. Objectives The support is aimed at improving the performance of the private forests management through: - increased utilisation of the production potential of forests; - introduction of new products and production improvements in felling and extraction; - increased safety at work in forests, and thus contributes to increased labour productivity in forestry in accordance with the objectives of the national and EU forestry strategy. Measure description In the field of investments in private forests the following investments shall be eligible for support: - in purchase of mechanisation for wood felling and extraction, provided the beneficiary fells and/or extracts minimum 150 m3 of wood annually, in machinery felling minimum 2,500 m3 of wood annually; - in purchase of equipment for wood felling and extraction, provided the beneficiary fells and/or extracts minimum 150 m3 of wood annually or owns at least 3 ha of forest; - in construction and reconstruction of forest tracks, provided the forest track enables annual extraction of at least 3 m3 of wood per 100 m of the forest track; - in construction and reconstruction of forest roads, provided the forest road enables annual transport of at least 10 m3 of wood per 100 m of the forest road. Support to investments in construction or reconstruction of forest roads must comply with applicable forest management plan; whereas support to investments in felling and extraction of wood and for forest tracks must comply with the silvicultural plan. For forest roads and tracks appropriate permits must be obtained and a calculation of extraction costs reduction made, which is to be drawn up by the SFI. Eligible costs regarding investments in private forests are: – costs of new mechanisation and equipment purchase; 108 – – – – costs of purchase of personal protection equipment for work with machinery and equipment; costs of training for work with mechanisation or equipment which is the subject of the investment; costs of construction, reconstruction of forest roads or tracks and equipment therefore, including the contribution in kind by the beneficiary (own work of the investor confirmed by the SFS and the value of the land on which the traffic route shall be built); general costs related to the preparation and implementation of projects. Target group Beneficiaries for support to investments in private forests are private forest owners or co-owners, their associations, municipalities and their associations. Demarcation In case of investments in forest roads and private tracks, under this measure investments on private land are supported. The OP (ERDF) supports local roads, which are public infrastructure. Financial provisions Financial aid is provided as non-repayable funds. For investments in private forests the maximum aid rate amounts to: - for less favoured areas and Natura 2000 sites: up to 60 percent of the acknowledged investment value; - for areas outside these areas: up to 50 percent of the acknowledged investment value. Minimum aid amount granted is EUR500 and maximum aid amount granted up to EUR 500,000. In the whole programming period 2007-2013 a beneficiary may obtain maximum EUR 500,000 of aid under this measure. Objectives and indicators OBJECTIVES Specific Operational Improving the management performance of private forests Raising the economic value of private forests RESULT AND OUTPUT INDICTORS Number of forest owners introducing new products or production improvements Number of forest owners and their associations improving the safety at work in forest GVA of private forest owners supported (index) Total number of forest owners supported (investments in private forests) Total value of investments in increasing the economic value of forests Baseline 0 VALUES Target (2013) 490 0 490 100 120 0 3,276 0 €49.9 Mio. 109 5.3.1.2.3 Adding value to agricultural and forestry products Legal basis: Regulation 1698/2005, Article 20 (b) (iii), Article 28 Measure code: 123 Rationale of the measure: Efficient performance of the food processing industry is vital for the existence of the primary agricultural production. The food processing industry is equally dispersed throughout the country and plays an important role in the job preservation and creation. It functions as a factor of production stability and economic development alongside the entire food chain. Investments in the food processing establishments are necessary in the light of the productivity growth and thus to the competitiveness of the entire sector as well as in the light of the required adaptation to stricter hygiene and environmental standards. The processing of agricultural products conducted as additional and subsidiary on-farm activity represents an important source of income, particularly on small family farms, provides for their existence and has positive impacts on the vitality of rural areas. In the first processing stage and marketing of wood, where for quite some time poor competitiveness and low performance of micro enterprises is evident, technological modernisation and networking can ensure better competitiveness and source of income, in particular since lately the demand for products of the first stage of wood processing has increased. Objective Support for adding value to agricultural and forestry products is aimed at: - the introduction of new products and efficient marketing of the products; - the modernisation of production processes and the improvement of environmental protection, hygiene and safety at work; - income stabilisation in the field of processing and marketing of agricultural and forestry products, and thus contribute to a better overall labour efficiency and productivity. Measure description As regards the processing of agricultural and forestry products support shall be granted to investments related to: a) processing and marketing of products outlined in Annex I to the Treaty (hereafter referred to as agricultural products), except fish products and products skimming and supplementing milk and milk products; b) processing and marketing of other products, the raw material of which are agricultural products; c) first stage of wood processing and marketing. The investment must contribute to an improved overall performance of enterprises and comply with the minimum standards of the Community applying for such an investment. Improved performance of the enterprise must be evident from the application form for simple investments and for demanding investments from the business plan. Simple investments are deemed projects the total value of which does not exceed EUR 80,000 per project. In case of demanding investments the beneficiary must draw up a business plan to prove the economic eligibility for investments. As regards investments aimed at meeting the Community standards aid may be granted only to those carried out by micro enterprises and which were implemented with the purpose of meeting the newly introduced standards of the Community, in a period which may not exceed 36 months 110 from the date on which the standard becomes mandatory for the enterprise. Support shall not be granted to enterprises in difficulty in the sense of the Community guidelines on State aid for rescuing and restructuring firms in difficulty. The beneficiaries under the measure must fulfil all conditions to perform a certain activity in accordance with the applicable legislation. Support shall be granted to: - investments in the purchase, construction and renovation of real estates; - investments in the purchase of machinery and equipment as well as computer hard- and software; - investments in equipment for production of energy from renewable resources for own needs; - general costs related to the preparation and realisation of projects, including costs of training for work with machinery or equipment which is the subject of the investment; - purchase of patents and licences directly related to the implementation of a project. Target group Beneficiaries in the field of processing of agricultural products are: - micro, small and medium sized enterprises registered for food processing activity as well as large enterprises with the same activity, provided they employ less than 750 employees or their annual turnover is under EUR 200 Mio.; - members of a farm household engaged in the processing of agricultural products in accordance with the Agriculture Act; - privately owned alps engaged in milk production. Beneficiaries in the field of the first stage of wood processing are: - micro enterprises; - members of an agricultural holding on farm engaged in the activity of wood processing in accordance with the applicable legislation. Processing establishments on agricultural holdings are deemed micro enterprises, provided they employ less than 10 persons and have less than EUR 2,000,000 turnover. Demarcation Investments under this measure are delimited from other RDP measures and other operational programmes through the designation of the beneficiaries, activities and/or purposes, as follows: - Eligible for support are food and wood processing establishments. - Support is allocated for investments in the processing and marketing of agricultural products and products raw materials of which are agricultural products. In cases of investments which can be partially intended for the implementation of other activities, the particular part of those activities shall not be supported under this measure. This is clearly evident in case of investments in renewable energy sources. Support may be granted only for investments in own energy consumption from renewable energy resources in the processing establishment, whereas the sale of energy to other users shall no be supported within the range of this measure. - Under this measure support shall be allocated to the first stage of wood processing under the statistical classification of activities (SCA) SORS 20.10. Other processing is supported under measures 311 Diversification into non-agricultural activities and 312 Support for the creation and development of micro enterprises. The claim for aid disbursement under this measure is delimited from the claims under other OPs and states aids. 111 Financial provisions Financial aid shall be granted as non-repayable funds. Support for micro, small and medium sized enterprises in the sense of Commission Recommendation 2003/361/EC shall amount up to 50 percent of the acknowledged investment value. In case of enterprises which are not covered by Article 2 (1) of the aforementioned Recommendation, with less than 750 employees and turnover under EUR 200 Mio. the aid intensity is cut in half. A higher share of support, but not higher than 50 percent of the acknowledged investment value, is granted when a micro, small or medium-sized enterprise applies for support in investments in products raw material of which are agricultural products from organic production. Minimum aid amount granted is EUR 3,500 and maximum aid amount granted for different investment types is as follows: a) for processing and marketing of products outlined in Annex I to the Treaty (hereafter referred to as agricultural products), except fish products and products skimming and supplementing milk and milk products, up to EUR1,800,000. In the entire programming period 2007-2013 a beneficiary may obtain maximum EUR4,000,000 under this measure. b) For processing and marketing of other products and/or raw materials from renewable energy sources, the raw material of which are agricultural products, up to EUR200,000 in the last three budget years. c) First stage of wood processing and marketing up to EUR200,000 in the last three budget years. Objectives and indicators OBJECTIVES Specific Operational Enhancing the modernisation and increasing the performance of processing of agricultural products Improving the processing and marketing of agricultural products RESULT AND OUTPUT INDICATORS Number of establishments introducing new products or production improvements Total GVA in establishments supported (index) Number of food establishments supported Total number of supported micro enterprises and farm households (investments in the first stage of wood processing) Total volume of investments Baseline 0 VALUES Target (2013) 100 100 130 0 450 0 126 €227.1 Mio. 112 5.3.1.2.5 Improving and developing infrastructure related to the development and adaptation of agriculture Legal basis: Regulation 1698/2005; Article 20 (b) (v), Article 30 Measure code: 125 Rationale of the measure: Next to the unfavourable size structure one of the main development problems of Slovenian agriculture is land and parcel dispersion. The bad size and property structure significantly contribute to the high costs of land utilisation per area unit and thus to lower economic performance of the agricultural production. The unfavourable property structure represents a major obstacle in further development of agriculture and hinders faster restructuring as well as reduces the competitiveness at the level of individual agricultural holdings as well as at the level of agriculture as a whole. The agriculture is increasingly facing the consequences of the climate change. As a result of the limited extent of irrigated areas the extended drought periods cause a high loss of the produce, which has negative impacts on the amount and the stability of the income in agriculture. The study on the feasibility of the national irrigation programme in Slovenia, conducted under the auspices of the World Bank in 1999, showed that in the light of the environment and the availability of water resources in areas under fruit and vegetables production, nurseries and production of other products, the establishment of irrigation systems is necessary for the stability and the quality of the production. The design of the existing hydro-melioration systems is technologically inadequate, which diminishes the economic performance of agricultural production and excessive consumption of water in these areas. Although the activities under this measure are aimed at restructuring the agriculture, which leads to more efficient utilisation of production factors and thus increased income and labour productivity, this restructuring shall not cause environmental pollution, biodiversity deterioration, habitat loss or decreased natural and landscape diversity. In implementing the activities under this measure all provisions and commitments emerging from Natura 2000 shall be considered. Objectives By investing in land infrastructure the measure is aimed at accelerating the restructuring of the agriculture, leading to a more efficient utilisation of production factors and thus to increased income and labour productivity; within the range of the technical upgrading of the existing amelioration systems and the construction of new irrigation systems as well as more rational water consumption and more controlled input of nutrients. The implementation of the measures related to irrigation is strictly linked to the Water Framework Directive (2000/60/EC). Measure description Under this measure the following activities shall be performed: - land consolidations carried out on the basis of the regulation governing agricultural land arrangement (considering the past experience support to the conduction of land consolidation is envisaged in the land consolidation areas which shall not exceed 300 ha on average); - construction and arrangement of new infrastructure necessary in relation to the land consolidation, and foreseen in the idea design of consolidation area arrangement and directly related to agriculture); - construction and upgrading of large irrigation systems based on the regulation governing the agricultural land arrangement, whereby preferential treatment shall be devoted to 113 - technological upgrading of irrigation systems; technological revitalisation of water amelioration systems based on regulations governing the agricultural land arrangement, facilities construction and spatial planning; construction of demonstration irrigation centres intended for education and certification of irrigation system users with focus on technologies for reduction of water consumption and land application of nitrates and pesticides. Support for investments in land infrastructure is provided on the basis of proof on the economic eligibility of the investment. In investments in irrigation systems the verified internal profitability grade must amount to at least 6.5. In accordance with the national and Community legislation any spatial intervention is allowed on the basis of obtained mandatory permissions together with consistent consideration of requirements under the Water Framework Directive and Habitat Directive. In case of land operations representing spatial intervention, under the applicable legislation for obtaining construction licence, it is necessary to draw up an assessment of impacts on the environment and to obtain nature protection consent, for irrigation systems also water consent. Issuing of construction licence for a certain spatial intervention requires that the purpose is clearly indicated and permitted in all documents and permissions. To obtain water permission, which is a mandatory document for issuing of construction licence, it is necessary to conduct analyses of water source availability by considering the requirements on the application of technologically advanced equipment providing reduced consumption of water and electricity. Co-financed shall be: - all construction, geodetic and other craft services; - costs of land purchase for joint facilities and infrastructure (pumping stations, transformer stations, water collector, expanding of amelioration ditches for the purposes of the ecoremediation, for wind protection stripes); - technical equipment of demonstration irrigation centres and irrigation equipment including delivery and mounting costs; - general costs directly related to the preparation and implementation of projects. Target group - applicants for support to carrying out of land consolidation and/or construction and arrangements of the emerging new infrastructure envisaged in the idea plan for the arrangement of the land consolidation area are municipalities in which the land consolidation is carried out; the final beneficiaries of the effects of the non-repayable funds granted are the owners of the consolidated land; - applicants for support to investments in large irrigation systems and the upgrading of hydroamelioration systems are natural or legal persons authorised by the land owners to run the investment; the final beneficiaries of the effects of the non-repayable funds granted are the land owners or multiannual leaseholders who shall use these systems; - applicants for support to the construction of the demonstration irrigation centres are adequately registered legal persons which shall be selected in a public tender to perform the works. Demarcation RDP 2007-2013 Under this measure the support shall be devoted to the construction and arrangement of new infrastructure the construction of which was necessary for the conduction of consolidations, however only in cases the construction is located or carried out in the area where land consolidation is conducted. The infrastructure is to be established on the basis of the regulation governing the agricultural land arrangement. The infrastructure must be envisaged in the idea 114 design of consolidation area arrangement and be directly related to the development of agriculture or forestry. The infrastructure outlined in the idea design of consolidation area arrangement which is not directly related to the development of agriculture (e.g. cycling tracks and other recreation facilities, thematic tracks, park arrangement, etc.) is not eligible for support under this measure. This infrastructure is supported under the measure 322: Village renewal and development. Other operational programmes The infrastructure construction under this measure is delimited to the infrastructure arrangement under other operational programmes in a manner in which under this measure only infrastructure is supported which is located in areas where land consolidation is conducted and that it regards the infrastructure which is basically intended for the development of agriculture and forestry. Financial provisions: The financial aid is granted as non-repayable funds. The share of public financing amounts up to 100 percent of the acknowledged costs. Minimum amount of aid granted is EUR 20,000 and the maximum amount of aid granted is EUR 1,500,000; in case of irrigation systems, including the conduction of a water source for irrigation purposes only, those investments showing the internal profitability grade of at least 11.5. Objectives and indicators OBJECTIVES Specific Operational Enhancing the restructuring of agricultural holdings Increasing the range of irrigated and hydromeliorated land and thus reduce the dependency of production from the natural conditions Improving the land holding structure RESULT AND OUTPUT INDICATORS Total GVA on holdings where operations were conducted Number of operations supported Total extent of supported operations Areas equipped with water gauges Total volume of investments Number of operations supported Average parcel size within consolidation area Number of parcels within consolidation area Total volume of investments VALUES Baseline Target (2013) 100 120 0 45 4,000 ha 400 ha 3,400 ha 0 €26.2 Mio. 50 100% 200% 100% 50% €17.4 Mio. 115 5.3.1.3 Measure to improve the quality of agricultural production and products 5.3.1.3.2 Participation of farmers in food quality schemes Legal basis: Regulation 1698/2005; Article 20 (c) (ii), Article 32 Measure code: 132 Rationale of the measure Slovenia has established a quality scheme system for producers ensuring that the quality of their agricultural products and foodstuffs is of higher quality than the standard quality and that they are produced under a certain method. Participation in quality scheme is related to additional costs and obligations which are usually not entirely reimbursed by the market and which often represents an obstacle for a quicker and more better participation of producers in these schemes. More intensive participation of farmers in the quality schemes creates new marketing opportunities and thus indirectly contributes to increased income and consequently to better competitiveness of the agricultural sector. Objective The measure is aimed at encouraging agricultural producers to participate in the quality schemes which stand for improved quality of the agricultural production and products and thus contribute to increased value added in agriculture. Measure description Support for agricultural producers participating in quality schemes is granted as annual payment, a compensation for fixed costs related to the integration and participation in the quality schemes. Support is granted for a period of 5 years at the most. Quality schemes supported under this measure are as follows: Community quality schemes (Regulations 509/200628, 510/200629 and 2092/9130): - special agricultural products and foodstuffs (protected designation of origin or geographical origin; protected geographical indication or geographical indication; traditional specialty guaranteed or traditional reputation); - organic production and processing; acknowledged national quality schemes: - integrated production; - higher quality. Support shall be granted for agricultural products outlined in Annex I to the Treaty and the Annexes to Regulations 509/2006, 510/2006 and 2092/91, except for fish products. Eligible for geographical denominations and traditional speciality guaranteed are those agricultural products which are on the day of application submission of single beneficiary entered in the EU register. 28 Council Regulation (EC) No 509/2006 of 20 March 2006 on agricultural products and foodstuffs as traditional specialities guaranteed (OJ L 93, 31.3.2006, p. 1–11) 29 Council Regulation (EC) No 510/2006 of 20 March 2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs (OJ L 93, 31.3.2006, p. 12–25) 30 Council Regulation (EEC) No 2092/91 of 24 June 1991 on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs (OJ L 198, 22.7.1991, p. 1–15) 116 Eligible for higher quality are those agricultural products which are on the day of application submission of single beneficiary entered in the national register. Support shall be devoted to agricultural producers producing agricultural products and foodstuffs in accordance with the regulations and rules governing the aforementioned quality schemes. Regardless of the quality scheme type, the common condition to be fulfilled by all agricultural holdings is to furnish proof that the producer group or agricultural holding has applied for certification procedure, or in case of already concluded certification procedure to furnish a copy of the certificate or proof of successfully completed inspection. Obtained certificate for production of special agricultural products and foodstuffs under the Community quality schemes assures the consumer that the products were produced in accordance with the requirements under the specification which is an integral part of the registration procedure for every product. At the first stage the registration procedure, which simultaneously represents the protection of the name of a certain product, is performed by the MAFF, whereas the registration applies only in the RS. When the registration is also confirmed by the European Commission, the product is also protected in the entire EU. Under the organic production and processing scheme product registration is not required. For these products the certification is enough. Obtained certificate for integrated production under the national quality scheme assures the consumer that the products were produced under the technological guidelines set out in advance and that they are compliant with the national rules laying down technological requirements and restrictions on integrated production of fruit, crops, grapes and vegetables. Each year the expert working group draws up Technological guidelines for each category separately. Technological guidelines lay down detailed production rules and conditions for fruit, crops, grapes and vegetables, which are each year confirmed and published by the MAFF. The rules and technological guidelines are obligatory for producers under the integrated production scheme. Integrated production is based on stricter requirements on production and the use of plant protection products. The scheme is available to all producers meeting the requirements on integrated production and providing a complete traceability of the products. Each year the producers are controlled by an inspection body appointed on the basis of the regulation governing the technical and organisation conditions to be fulfilled by an organisation controlling the integrated agricultural products and foodstuffs. The inspection body controls the compliance with the provisions of the technological guidelines and the rules on integrated production. Obtained certificate for higher quality under the national quality scheme assures the consumer that the products have specific characteristics which exceed the due minimum quality and are set out in detail in the product specification which is integral part of the registration of each higher quality product. The specific characteristics of an agricultural product are determined with regard to its composition, sensory and physical and chemical features as well as to the production and/or processing method. The specification contains a description of the characteristics of the higher quality product, documentation proving that the product, given the specific characteristics, is of higher quality than the corresponding agricultural products of minimum quality, and the description of the production and/or processing procedure. The specification is checked by an expert committee which states an expert opinion. Based on a positive expert opinion the MAFF issues a decision on the acknowledgment under this scheme. Each year the producers are controlled by a certification body which must be accredited in accordance with the standard EN 45011 and appointed by the Ministry. The certification body checks the compliance with the provisions laid down in the specification of the higher quality product. The scheme is available to all producers and provides a complete traceability of the products. For each scheme the minister of agriculture, forestry and food appoints inspection and certification bodies conducting controls of agricultural products and agricultural holdings and checking the compliance with the requirements set. The controls must be carried out mandatory 117 once per year at the producers under individual scheme. Next to the annual controls the certification body conducts about 10 percent of unannounced controls, which are random and a part of the required procedure of the certification body under EN 45011. In case of suspected misuse of the requirements set the certification body conducts an additional control. The internal control is carried out by a producer group providing for compliance with the specification and/or required rules. To conduct control of quality schemes an inspection and/or a certification body must submit an application at the Ministry, together with evidence on the fulfilment of the technical and organisation conditions. Submitted must also be the accreditation document issued by an accreditation service included into the European accreditation, which indicates that the body was accredited in accordance with EN 45011. If an inspection and/or a certification body no longer fulfils the conditions set, then, based on a Decision of the Minister, the body concerned is withdrawn the authorisation to conduct controls and/or certification of agricultural products and agricultural holdings. The official supervision over the implementation of the applicable legislation for all quality schemes is carried out by the Inspectorate of the RS for Agriculture, Forestry and Food as a body under the responsibility of the MAFF. Target group Beneficiaries are natural or legal persons (agricultural holdings) producing agricultural products intended for human consumption and participating in one of the Community or national quality schemes. Demarcation Support under this measure may not overlap with support under the first CAP pillar outlined in Annex I to Regulation 1974/2006. Overlapping could occur in the field of fruit, vegetables, olive oil and honey for support for activities on quality improvement. Eligible for support under the measures of the first CAP pillar are producer organisations, whereas under this measure the beneficiaries are individual agricultural holdings. Before granting and disbursing the funds under this measure the MAFF and the ARSAMRD necessary on-the-spot checks to avoid the funds for the same purpose being paid twice. Applicants for aid under this measure who already obtained public funds of the RS or EU funds for the same purpose for which they are applying under the RDP shall not be eligible for these funds, which the applicants shall confirm with a written statement. Financial provisions Financial support shall be granted as non-repayable funds in the form of a single annual payment. In setting up the aid amount the fixed costs shall be considered emerging from entering and participating in food quality schemes and having a form of annual payment. Fixed costs with special agricultural products and foodstuffs as well as higher quality products are specified with regard to the quality scheme, and product and production type. Fixed costs with organic production and processing as well as with integrated production are specified with regard to quality scheme, production type and agricultural holding size. In the production of special agricultural products and foodstuffs (Community schemes) and higher quality products (national scheme) as fixed costs shall be deemed: - costs of control ensuring the compliance with the specification requirements (certification, annual external control, unannounced external control, control by producer group, internal control); - costs of agricultural products and foodstuffs sample analyses required by the product specifications (organoleptic analyses, physical and chemical analyses, micro-biological 118 - analyses, GMO determination, etc.); administrative costs (annual membership fee for participation in producer group, keeping of records, printing of labels of the quality symbols, etc.). In organic production and processing (Community scheme) as fixed costs are deemed: - costs of control ensuring the compliance with the regulation and the rules (annual production control on agricultural holding, annual control of the processing establishment on agricultural holding, unannounced controls, control by producer group), - analyses costs of foodstuffs of plant origin, fodder and soil (physical and chemical analyses, GMO determination); - administrative costs (annual membership fee to participate in producer group, keeping of records, printing of labels of the quality symbols, etc.). In integrated production (national scheme) as fixed costs are deemed: - costs of control ensuring the compliance with the rules (annual production control); - administrative costs (annual membership fee to participate in producer group, keeping of records, printing of labels of the quality symbols, etc.). Maximum aid amount for participation in food quality schemes is EUR 3,000 per agricultural holding. With regard to the quality scheme the applicants involved into the quality schemes are eligible for support amounting: - up to EUR 1,500 for special agricultural products and foodstuffs (Community scheme) and for the higher quality products (national scheme); - up to EUR 3,000 for organic production and processing (Community scheme); - up to EUR 1,000 for integrated production (national scheme). The amount of the annual payment under each scheme shall be defined in more detail in the bill of costs within the call for tender. Objectives and indicators OBJECTIVES Specific Operational Improving the quality of agricultural production and products Encouraging agricultural holdings to participate in quality schemes RESULT AND OUTPUT INDICTORS Agricultural production value under quality scheme GVA of supported producer groups in agriculture (index) number of supported agricultural holdings participating in quality schemes VALUES Baseline Anticipated (2013) €56 Mio. €100 Mio. 100 130 7,000 10,000 119 5.3.1.3.3 Supporting producer groups for information and promotion activities for products under food quality schemes Legal basis: Regulation 1698/2005; Article 20 (c) (iii), Article 33 Measure code: 133 Rationale of the measure: In Slovenia a system of special indications of agricultural and food products applies, which are included in quality schemes and protected under the national and/or European legislation, which however are still not very known. Studies show that a need for raised consumer awareness is present on the existence of products with indications of higher quality, which are subjected to strict control performed by certification bodies, as well as on their specific characteristics and advantages. In Slovenia the producers of special agricultural products and foodstuffs group for each protected product separately. In the recent years a high grade of non-activity of the existing producer groups was recorded, which shows in deficient planning and insufficient supply concentration as well as joint marketing of products by the producer group members. Better information on the products with special indications for consumers and better organised and more active marketing by the producers makes the supply coordination easier and creates new marketing opportunities for the producers, which consequently has an impact on the value added growth in agriculture and the competitiveness of the agri-food sector. Objective Support under this measure is aimed at increasing the production and marketing extent of products protected under a quality symbol, contributing to raised quality of agricultural products and foodstuffs and increased value added in agriculture. Measure description Support under this measure is granted for information activities for consumers and sales promotion. The activities shall promote the purchase and application of agricultural and food products under the acknowledged quality schemes. Quality schemes under this measure are: Community quality schemes (Regulations 1698/2005, 509/2006, 510/2006 2092/91 and 1493/199931): - special agricultural products and foodstuffs (protected designation of origin or geographical origin; protected geographical indication or geographical indication; traditional specialty guaranteed or traditional reputation); - organic production and processing; - quality wines produced in specific production area (quality wine psr, superior wine psr and wine rtd). Acknowledged national quality schemes: - integrated production; - higher quality. 31 Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine (OJ L 179, 14.7.1999, p. 1–84) 120 Within this range support shall be devoted to activities which clearly indicate that specific quality symbols mark specific characteristics of products, in particularly as regards the quality, specific characteristics of production methods or the impact of geographical area on the product quality. Support shall be devoted to defraying of costs emerging from performing information and sale promotion activities for products under the eligible quality schemes, such as: - costs of organisation and participation in fairs, thematic markets, exhibitions, thematic shows and other forms of public appearance and events; - costs for advertising and information actions at retailers and other communication channels; - costs of preparation, publication and distribution of information and promotion material; - costs of organisation and performance of other adequate forms of advertising. The condition for obtaining support is the submission of a sale promotion programme by the producer group with envisaged advertising and information actions for a five-year period containing a detailed plan on information and promotion actions with anticipated results for the project concerned and simultaneously enabling a preliminary checks of materials intended for information, advertising and sale promotion actions as regards the compliance with the EU legislation. The paying agency ensures that the activities supported under the submitted project were not financed for the same purpose under Regulation (EC) No 2826/200032. The materials aimed at informing, advertising and sales promotion contain in the front of the protected product the quality symbol of the product, as follows: - for organic products or products protected under the European legislation as special agricultural products and foodstuffs (protected designation of origin or geographical origin, protected geographical indication or geographical indication, traditional specialty guaranteed or traditional reputation) the corresponding EU quality symbol and/or national quality symbol; - for integrated products or products protected under the national legislation as special agricultural products and foodstuffs and higher quality, the corresponding quality symbol; - for quality wine psr, superior wine psr and wine rtd correct indication of the name and area. Support shall be granted for agricultural products outlined in Annex I to the Treaty and in Annexes to Regulations 1698/2005, 509/2006, 510/2006, 2092/91 and 1493/1999, except for fish products. Target group Beneficiaries are legal persons registered as a producer group grouping producers under one of quality schemes for a specific agricultural product or foodstuff and using the corresponding quality symbol and: - have protected their products at the European level, or their products have already been protected at the national level and are in the procedure of acquiring the European protection for protected designation of origin, protected geographical indication, or traditional specialty guaranteed; - represent producers of organically produced and processed products and foodstuffs with the indication organically produced; - have protected their products at the national level with the indication higher quality; - represent producers of integrated products and foodstuffs with the indication integrated production; 32 Council Regulation (EC) No 2826/2000 of 19 December 2000 on information and promotion actions for agricultural products on the internal market (OJ L 328, 23.12.2000, p. 2–6) 121 - represent the producers of quality wines produced in certain production area (quality wine psr, superior wine psr and wine rtd). Single application may be submitted by multiple producer groups which are individual beneficiaries under this measure. Professional and branch groups or producer organisations representing one or more sectors are not deemed producer groups under this measure. Demarcation Support under this measure may not overlap with support under the first pillar of the CAP outlined in Annex I to Regulation 1974/2006. Overlapping could occur in the field of fruit, vegetables, olive oil and honey for support for information and promotion activities. Eligible for support under the measures of the first pillar of the CAP are producer organisations, whereas under this measure the beneficiaries are producer groups joining producers participating in one of the quality schemes. To avoid the possibility of overlapping this measure contains the provision that professional and branch groups or producer organisations representing one or more sectors are not deemed producer groups under this measure. Based on this requirement which shall be checked in submitted applications the possibility of overlapping was eliminated. Nevertheless, before granting and disbursing the funds under this measure the MAFF and the ARSAMRD shall conduct an administrative control and where necessary on-the-spot checks to avoid the funds for the same purpose being paid twice. Applicants for aid under this measure who already obtained public funds of the RS or EU funds for the same purpose for which they are applying under the RDP shall not be eligible for these funds, which the applicants shall confirm with a written statement. Financial provisions Financial aid shall be granted as non-repayable funds. Aid intensity for information, advertising and sales promotion activities amounts up to 70 percent of acknowledged costs of the project. The maximum aid amount per call for tender for a project of the final beneficiary is up to EUR 200,000. Objectives and indicators OBJECTIVES Specific Operational Improving the quality of agricultural production and products Improving consumer awareness on products under quality schemes RESULT AND OUTPUT INDICTORS Agricultural production value under quality symbol Number of projects supported VALUES Baseline Anticipated (2013) €150 Mio. € 300 Mio. 0 50 122 5.3.1.4 Transitional measures for the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia 5.3.1.4.2 Supporting setting up of producer groups Legal basis: Regulation 1698/2005; Article 20 (d) (ii), Article 35 Measure code: 142 Rationale of the measure: Slovenian organic farmers are joined under two framework associations organised mainly under the territory principle and do not have any marketing characteristics. The majority of market oriented organic farms and other organic food producers are bound to the direct sale methods at home or on weekly local markets (the so called eco markets). The direct sale alone has become insufficient for larger organic farmers and organic foodstuff producers, which are therefore in search of new marketing channels. Poor marketing organisation and low market share of organic products and foodstuffs are the key problems of further development of organic farming in Slovenia. Similar situation is present in the production of special agricultural products and foodstuffs, where no increase of these products in the market can be expected without appropriate organisation. Objective The measure is aimed at enhancing the establishment and operation of producer groups in organic production and production of special agricultural products leading to increased supply concentration and easier adaptation of production to the market requirements and contributing to increased value added in agriculture. Measure description Support under this measure shall be granted to producer groups of organic and special agricultural products (protected designation of origin or geographical origin, protected geographical indication or geographical indication, traditional specialty guaranteed or traditional reputation) for defraying the operating and establishment costs. Due to different actual situations and requirements support for producer groups of organic agricultural products shall be allocated to producer integrations by products (e.g. milk products) as well as producer integrations from different areas by the production method (e.g. organic producers of organic products of the Pomurje region). For producer groups of special agricultural products support shall be allocated to producer integrations by products (e.g. producers of the “kraški pršut”). Producer groups must officially be recognised by the competent authority by 31.12.2013 and must have at least 3 members. They must submit an operational activities programme for the duration of at least 5 years containing: i. Concept plan of harmonising the production with the demand;, ii. Concept plan of accelerating the supply concentration and joint product marketing of its members; iii. Plan on drawing up joint marketing, information and promotion actions. Support shall be devoted to administrative costs, including the facilities arrangement, registration, drawing up of common rules on production, purchase of information technology and other equipment, and salary for one permanent employee as well as the costs of purchasing the primary equipment necessary for joint marketing of the producer group. Support is allocated in annual rates for the first 5 years from the date of the producer group recognition. It is calculated based on the annual market production of each group. 123 Support shall be granted for agricultural products outlined in Annex I to the Treaty and in Annexes to Regulations 1698/2005, 509/2006, 510/2006 and 2092/91, except for fish products. Target group Beneficiaries for support under this measure are producer groups which: - group organic agricultural producers of a specific organic agricultural product for the purposes of the joint operation of this agricultural product in the market, - group organic agricultural producers from specific areas of the RS for the purposes of the joint operation of organic agricultural products of this area in the market; - group producers of a specific protected special agricultural product for the purposes of the joint operation of this product in the market. Demarcation Support under this measure may not overlap with support under the first pillar of the CAP outlined in Annex I to Regulation 1974/2006. Overlapping could occur in the field of fruit, vegetables, olive oil and honey. Eligible for support under the measures of the first pillar of the CAP are producer organisations, whereas under this measure the beneficiaries are producer groups joining producers engaged in organic production and processing as well producers engaged in production of special agricultural products and foodstuffs. Due to the possibility of overlapping, before granting and disbursing the funds under this measure the MAFF and the ARSAMRD shall conduct an administrative control and where necessary on-the-spot checks to avoid the funds for the same purpose being paid twice. Applicants for aid under this measure who already obtained public funds of the RS or EU funds for the same purpose for which they are applying under the RDP shall not be eligible for these funds, which the applicants shall confirm with a written statement. Financial provisions: The maximum aid rate amounts up to 5 percent of the own marketable production. Maximum amount of support amounts with regard to the range of the own marketable production up to EUR 1,000,000 in the first five years, as follows: Year 1: 5 percent from marketable production, Year 2: 5 percent from marketable production, Year 3: 4 percent from marketable production, Year 4: 3 percent from marketable production, Year 5: 2 percent from marketable production, Maximum amount of support amounts in regard of the range of the own marketable production to over 1,000,000 EUR in the first five years, as follows: Year 1: 2.5 percent from marketable production, Year 2: 2.5 percent from marketable production, Year 3: 2.0 percent from marketable production, Year 4: 1.5 percent from marketable production, Year 5: 1.5 percent from marketable production, But in each of the first five years supported it may not exceed the amounts, as follows: Year 1: EUR 100, 000; Year 2: EUR 100, 000; Year 3: EUR 80, 000; Year 4: EUR 60, 000; Year 5: EUR 50, 000; 124 Objectives and indicators OBJECTIVES Specific Operational Supply concentration and making adaptation of production to market requirements easier Promoting the establishment and operation of producer groups of organic products and special agricultural products RESULT AND OUTPUT INDICATORS Number of agricultural holdings entering the market Number of agricultural holdings participating in supported producer groups of organic products and special agricultural products GVA of supported producer groups in agriculture (index) Number of supported producer groups Gross income of supported producer groups Baseline 200 VALUES Anticipated (2013) 700 1,000 1,500 100 130 0 30 €150 Mio. €450 Mio. 125 5.3.2 Axis 2: Improving the environment and the countryside Rationale Agricultural land and forests in Slovenia present nearly 92 percent of the territory use and have an important environmental, aesthetic and spatial function. The nature and environmental protection has a common social value, which also reflects in the relatively well preserved and diverse environment, favourable species and habitats status and favourable environmental conditions for organic farming. The general commitment to the environmental protection goals also reflects in the fact that a considerable proportion of Slovenian territory was designated as ecologically important areas, whereby the high nature value areas are predominantly located in marginal and in less favoured areas, where farming is economically less interesting. Farming abandonment in these areas and the reduction of open area would mean an environmental hazard and potentially a loss of cultural landscapes with negative impacts on the settlement of the rural areas. Soil, water and air pollution and erosion risk as the consequence of intensive farming have increased in the past years and the entire Slovenia has been designated as nitrates vulnerable zone. Objectives In 2007-2013 one of the priority objectives in Slovenia is the implementation of activities which maintain the utilised countryside and by the adaptation of technologies contribute to the reduction of the negative impacts of the agriculture on water, air and biodiversity. Identified and acknowledged is the priority conservation of utilised agricultural area, particularly in areas unsuitable for intensive farming and where additional source of income needs to be provided by way of compensatory allowances for farmers, as well as by preventing the marginalisation of these areas. The second priority under this axis is further conversion of farms into sustainable practices which are nature friendly and have a long-term positive impact on the environmental conditions, the implementation of which has already started during the pre-accession period. The measures under axis 2 are aimed at the conservation and improvement of the environment (soil, water and air), biodiversity and cultural landscape conservation and thus directly contribute to the accomplishment of the objectives in Natura 2000 sites and high nature value areas, which are essential for the biodiversity conservation. Measures and activities Activities under this axis are mainly focused on agriculture, while as regards the forest management Slovenia fulfils the objectives under this axis through consistent observation of the national legislation and the implementation of the already established sustainable forest management. The activities under this axis are adjusted to the natural conditions of Slovenia and the options provided by the farming technologies. The measures are horizontal and are intended for all farmers in Slovenia meeting the criteria on obtaining payments under each individual measure. The measure of compensatory allowances may be applied only for areas which are designated under this programme as LFA. Certain spatial restrictions apply also for some specific agrienvironmental submeasures which depend on the protection regimes or management requirements on the preservation of individual habitats. Code 211 212 214 Measure Natural handicap payments to farmers in mountain areas Payments to farmers in areas with handicaps, other than mountain areas Agri-environmental payments Regulation 1698/2005 Article 36 (a) (i) Article 36 (a) (ii) Article 36 (a) (iv) 126 In addition to the specific conditions for each measure under axis 2 it is also necessary to implement the cross compliance requirements outlined in Regulation 1782/2003 and Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) as well as additional minimum requirements on the use of fertilisers and plant protection products. Combination with other measures and demarcation Due to the calculation method, which covers only the difference emerging from the specific natural conditions and/or additional production restrictions, the claims for payments under axis 2 measures may be applied for areas for which single payments per area under the first pillar of the CAP are being applied as well. Target group The beneficiaries under axis 2 are agricultural holdings farming in less favoured areas as well as agricultural holdings which undertake to implement at least one agri-environmental submeasure on the entire area or a part of the area by considering the restrictions and conditions set out under each measure, submeasure or activity. Demarcation Measures under axis 2 are linked to utilised agricultural area and through the support for physical handicaps or additional environmental requirements they complement the payments under the first pillar of the CAP as well as the measures which enhance rural development under axes 1, 3 and LEADER. Measures under axis 2 contribute to improved status of the environment and nature achieving a synergy effect with the OP for environment and transport. The measures are not doubled as the purposes are kept separate. Financial provisions The measures under this axis are financed from public resources, whereby up to 80 percent of the resources are co-financed by the EAFRD and at least 20 percent from the national budget of the RS. Setting up of payments is based on the preliminary estimation of additional costs and/or income foregone for each measure or submeasure, which was made by a qualified independent institution by a methodology providing a verification of the data relevance and calculation baselines. General objectives and indicators OBJECTIVES BASELINE INDICATORS VALUES Baseline Target (2013) Stopping biodiversity decline Population of indicator bird species* Declining Trend reversal Conservation of high nature value systems High nature value agricultural areas 268,000 ha 268,000 ha Overgrown agricultural land in Natura 2000 sites 10,500 ha 9,000 ha Land application of nutrients 129 kg/ha 115 kg/ha 40 kg/ha 40 kg/ha Conservation of Natura 2000 sites Improved water quality Gross nutrient balance – surplus of nitrogen 127 Remedying marginalisation and land UAA share with regard to total area abandonment 29.5% 30% Overgrown agricultural land 25,200 ha 20,000 ha Soil erosion reduction Annual amount of soil in areas at risk of erosion 0.874 t/ha 0.825 t/ha Maintaining soil quality Agricultural area under organic production 26,800 ha 64,000 ha** Mitigation of climate change Area devoted to production of renewable energy sources 300 ha 3,000 ha production of renewable energy sources from forestry 454 kToe Increase production of renewable energy sources from agriculture 0 Increase 1,967,000 t (CO2 eq) 1,850,000 t (CO2 eq) 20,600 t/year 20,400 t/year Greenhouse gas emissions from agriculture Ammonia releases * In 2007 Slovenia initiated the monitoring of farmland bird populations. * * UAA included in the organic farming control 128 5.3.2.1 Preserving agriculture in less favoured areas Measure: Less favoured areas Measure code: 211 and 212 (Article 36 (a) (i), Article 36 (a) (ii) and Article 93) In 2007-2013 Slovenia shall continue to implement the measure compensatory allowances for less favoured areas (LFA) based on Article 93 of Regulation 1698/2005 which sets out that for the period 01.01.2007 to 31.12.2009 Articles 13(a), 14(1) as well as indent one and two of 14(2), 15, 17 to 20, 51(3) and 55(4) apply as well as a part of Annex I laying down the amount referred to in Article 15(3) of Regulation 1257/1999. By 31.12.2009 the provisions 9.V.A.1., 9.V.B.2., 9V.B.3. and 9.V.B., second paragraph of Regulation 817/2004 in accordance with Annex II of Regulation 1974/2006 apply for the description of the measure compensatory allowances for LFA. Rationale of the measure In the past agricultural utilisation had been abandoned in LFA. Indirectly the impoverishment of the cultural landscape and the depopulation of these areas occurred. In Slovenia the support for agricultural production in LFA has been implemented since mid 1980s. Positive effects reflect in the cessation of agricultural production abandonment in LFA. The measure providing agricultural holdings in LFA compensatory allowance covers the costs emerging in these areas from the specific natural conditions which negatively affect the farming process. The measure has proven effective in the past in the preventing the agricultural land abandonment and the corresponding negative consequences. Therefore it is sound to continue with the implementation of this measure. Less favoured areas cover 86 percent of the national territory. Utilised agricultural land in LFA captures 74 percent of the total UAA. Objectives To preserve and enhance further utilisation of LFA compensatory allowances are needed due to the additional costs in farming. Compensatory allowances shall contribute to: - the preservation and promotion of sustainable farming systems, - the maintenance of the cultural landscape, - the sustainable use of agricultural land, - the preservation of jobs in rural areas. Description of LFA In 2007-2013 Slovenia shall implement compensatory allowances for all areas which have been supported under the RDP 2004-2006, as follows: - mountain area; - other areas; - areas affected by specific handicaps. Detailed descriptions are contained in Annex 3 to the RDP. Supplementation of the LFA in the programming period 2007-2013 In the new programming period Slovenia applies the criteria and the LFAs from the RDP 20042006. For the new programming period up-to-date information on less favoured areas were reviewed and the procedure on designating the areas rerun. It was ascertained that by applying the same criteria as set out in the RDP 2004-2006 certain areas meet the conditions for LFA and 129 in the RDP 2007-2013 these areas were designated as mountain area and areas affected by specific handicaps. 1) The supplementation of the list of mountain area is based on: the ascertainment that certain parts of cadastral communities border mountain areas and meet the criteria set out in the RDP 2004-2006. Therefore cadastral communities were divided and certain cadastral community parts which fulfilled the conditions were attached to mountain areas. The same analysis applies for areas which were designated in the RDP 2004-2006 as areas affected by specific handicaps. Rationale: Slovenia carried out the division of cadastral communities under this criterion already in the RDP 2004-2006. There, 66 divided cadastral communities, covering 32,270 ha in total (1.56 percent of the country), were included into mountain areas. After a thorough analysis it was ascertained that considering this criterion 41 more divided cadastral communities, covering 7,838 ha in total (0.4 percent of the country), can be included in mountain area. the ascertainment that homogenous smaller areas which do not meet the criteria on mountain area but are surrounded by mountain area are deemed mountain area if the area concerned is: - smaller or equals five cadastral communities, or - larger than five cadastral communities and simultaneously shows the criteria of poorer soil production capacity and the share of poorer categories amounts to minimum 75 percent. It is deemed that an area is surrounded by mountain area in accordance with the previous paragraph if: - minimum 90 percent of the area concerned is surrounded by mountain area, or - minimum 40 percent of the area concerned is surrounded by mountain area and the remaining part of the area borders a river, sea or state border (minimum 90 percent in total). Rationale: In Slovenia, the rounding off in accordance with this criterion was conducted already in the RDP 2004-2006. There, 168 cadastral communities, covering 80,966 ha in total (3.99 percent of the country), were included in the mountain area. After a thorough analysis it was ascertained that according to this criterion 8 more cadastral communities, covering 2,704 ha in total (0.1 percent of the country), can be included in the mountain area. Mountain area was added 10,542 ha or 0.5 percent of the Slovenian territory. The total area of mountain area has increased from 71.8 percent to 72.3 percent. 2) The supplementation of the list of areas affected by specific handicaps is based on: a detailed analysis of the Dolenjsko podolje, where it was ascertained that it is affected by handicaps described for the Karst area (Annex 3). The karstic features are very explicit here, therefore a part of the Dolenjsko podolje was attached to areas affected by specific handicaps. Characteristic for the Dolenjsko podolje is stony, humid and watered soil with karstic features. Farming in these areas is possible. However it is very limited due to the water regime between the vegetation and fast water fluctuations. Characteristic is grassland use and specific ecological conditions have shaped “humid meadows”, in some parts dry meadows, with typical karstic flora and fauna. Therefore these areas should continue being agriculturally utilised. 130 Areas affected by specific handicaps were added 17,578 ha of area. Hence 0.8 percent of Slovenian territory was attached to areas affected by specific handicaps. The total extent of areas affected by specific handicaps has increased from 9.2 percent to 10.0 percent of the national territory. The LFAs have thus increased by 1.3 percent from the total of 85 percent of Slovenian territory to 86.3 percent. The share of added areas is shown in Table 44. Table 44: Supplementations for the RDP 2007-2013 Added areas Mountain area Areas affected by specific handicaps Total Surface of cadastral communities (ha) 10,542 17,578 28,120 Share of total surface (%) 0.5 0.8 1.3 Utilised agricultural area Area (ha) Share (%) 5,500 0.9 7,000 1.1 12,500 2.0 Figure 9: LFAs confirmed in the RDP 2004-2006 according to Regulation 1257/99 131 Figure 10: LFAs designated by the RDP 2004-2006 and marked supplementations for the RDP 20072013: Added divided c.c. in mountain area Figure 11: LFAs designated by the RDP 2004-2006 and marked supplementations for the RDP 20072013: Added rounded off c.c. in mountain area 132 Figure 12: LFAs designated by the RDP 2004-2006 and marked supplementations for the RDP 20072013: Added areas affected by specific handicaps Figure 13: LFAs designated by the RDP 2004-2006 and marked supplementations for the RDP 20072013 133 The share of LFA with regard to the total territory of the RS is shown in Table 45. Table 45: Scope of LFAs in 2007-2013 Area Mountain area Other LFAs Areas affected by specific handicaps Total LFAs Non-LFAs Slovenia Area of cadastral communities 1,467,240 81,200 202,480 1,750,920 276,370 2,027,300 % SLO 72.3 4.0 10.0 86.3 13.6 100.0 Utilised agricultural area Area (000 ha) Share (%) 328 54.2 23 3.8 98 16.2 449 74.2 156 25.8 605 100.0 The criteria and less favoured areas were designated under the RDP 2004-2006 and supplemented by the RDP 2007-2013. Pursuant to Article 93 of Regulation 1698/2005 they shall apply until 31.12.2009. It is anticipated that the measure shall capture 45,000 agricultural holdings utilising 300,000 hectares of agricultural land. Figure 14: LFAs in Slovenia under the RDP 2007-2013 Measure description For the areas referred to in Article 13(a) of Regulation 1257/1999, different amounts of compensatory allowance are introduced in accordance with Article 15(2). The amount of compensatory allowance depends, by considering the delimitation of the LFAs and the environmental properties of each area, on the classification of agricultural holdings into one of the classification categories. For the purpose of payments differentiation the calculations where made by the Agriculture Institute of Slovenia. In 2003, Slovenia began to implement the EU comparable compensatory alowances scheme in LFAs in compliance with Regulation 1257/1999 and the Decree on the designation of less 134 favoured areas (OJ RS No 18/03). The payments for the areas were carried out according to the “Detailed report on areas with natural restrictions in the RS” confirmed by the Minister in 1990. The study of the Agriculture Institute of Slovenia “Costs of agricultural production in different less favoured areas” drawn up for 2004-2006 established the difference in the costs of production “between sub-areas” within LFAs defined by the EU. On this basis the actual level of compensatory allowances in LFAs were structured with respect to Article 15 of Regulation 1257/1999. In 2006 the study was amended and considers the amended baseline costs, resulting in amended calculations of per-hectare allowance amounts (see Annex 4) (Reference: AIS; Rednak et al., 2003, 2006). The essentials of the study were: • The level of the compensatory allowance per hectare for specific crops should provide that the own price (at the threshold and/or storage of holding) of the product produced in less favourable conditions equals the own price of the product produced in favourable conditions. • Differentiation of payments was defined in a simulation model with various natural and production factors to determine the probable differences at the level of economic indicators. • The analysis of production costs and the impact of different factors, which are typical for production in LFAs, on production costs has shown that the differences in costs for individual crops are substantiated enough if the following two indicators are used as criteria for different cultivation conditions: (1) intensity of production (yield quantity) and (2) the potential productivity of human and machinery work (possible use of machinery in production). The impact of these two factors on costs is significantly different for specific crops. The level of costs also depends on the type of agricultural land use. • In case of Slovenia, the level of necessary compensatory allowances for LFAs has been defined on the basis of a model matrix calculation. It has taken into account the current criteria for the definition of LFAs and the available data of agricultural land use. Agricultural land was classified under the individual elements of the matrix according to altitude (four classes) and inclination (six categories). Categories were identified on the basis of analysis of use in LFAs and analysis of trends of costs for specific products in difficult production conditions. Representative calculations of costs were made for different crops: potatoes, wheat and maize and for grassland - hay, silage and pasture. Table 46: Differentiated compensatory allowances per ha for LFAs Type of agricultural holding Mountain Alpine pasture Steep slope Karst Hilly Different unfavourable conditions Basic Calculated compensatory allowance per hectare (EUR) Target compensatory allowances per hectare (EUR) 254.4 254.4 218.8 218.8 178.9 90.5 25.0 185.3 185.3 158.4 158.4 130.3 63.9 25.0 Eligible area (ha) 96,000 6,000 17,500 35,500 67,000 58,000 20,000 Payments for areas above 100 ha are gradually reduced, which means that the areas exceeding 100 ha receive 50 percent of the envisaged payment. Beneficiaries - Compensatory allowances are granted to agricultural holding operators for utilised agricultural land in LFAs; - The agricultural holding must meet the cross compliance requirements in accordance with Regulation 1782/2003 (for more detailed description see chapter 5.3.2); - The minimum area per agricultural holding, which is eligible for compensatory allowance is 1 ha; 135 - The beneficiary undertakes to pursue his agricultural activity in the LFAs for at least five years upon receiving first compensatory allowance for this purpose; Total UAA in the LFA list is eligible for compensatory allowances. Objectives and activities OBJECTIVES Specific Maintaining the extent of utilised agricultural areas in Natura 2000 sites. Maintaining the extent of utilised agricultural land in less favoured areas. RESULT AND OUTPUT INDICATORS Area on which the LFA measure is implemented within Natura 2000 sites Area under successful land management contributing to: - Biodiversity, - Marginalisation and land abandonment prevention Number of agricultural holdings Operational Preserving the number of agricultural holdings engaged in the engaged in the measure: measure. - Natural handicap payments Preserving the extent of the area to farmers in mountain areas under the measure. - Payments to farmers in areas with handicaps, other than mountain areas Area on which the measure is implemented: - Natural handicap payments to farmers in mountain areas, - Payments to farmers in areas with handicaps, other than mountain areas Payments to farmers in: - mountain areas, - areas with handicaps, other than mountain areas VALUES Baseline 81,300 ha Anticipated (2013) 84,000 ha 300,000 ha 300,000 ha 300,000 ha 300,000 ha 33,000 33,000 10,600 11,000 226,000 ha 226,000 ha 74,000 ha 74,000 ha €37 Mio €7.1 Mio €34 Mio €6.3 Mio 136 5.3.2.2 Promoting environment friendly agricultural practices Measure title: Agri-environmental payments Article (and paragraph) related to the measure: • Articles 36(a)(iv) and 39 of Regulation 1698/2005. • Article 27 and point 5.3.2.1.4 of Annex II to Regulation 1974/2006. Measure code: 214 Rationale of the measure Agri-environmental payments support agriculture in its environmental function and, by means of sustainable farming methods, contribute towards the reduction of environmental pollution, the conservation of biodiversity and specific values of Slovenian countryside, such as traditional farming methods and the conservation of cultural heritage and typical Slovenian landscapes related thereto. Payments contributing towards the sustainable development of rural areas and the provision of public goods, which are also a reflection of society demands for environmental services, are granted to agricultural holdings for farming methods ensuring the protection and improvement of the environment, landscape, natural resources and genetic diversity as well as public health. Measure objectives - General objectives Agri-environmental payments support sustainable agricultural practices and contribute towards the performance of public functions of agriculture related to the maintenance of cultural landscape, the conservation of biodiversity as well as water and soil protection from potential agricultural pollution. The measure is aimed at balancing agricultural production and protection of the nature and environment. - Specific objectives Agri-environmental payments are aimed at: • the reduction of negative impacts of agriculture on the environment, • the conservation of natural conditions, biodiversity, soil fertility and traditional cultural landscape, • the maintenance of protection areas. - Operational objectives Agri-environmental payments are aimed at: • improving soil quality and fertility, • reducing the discharges of chemical substances into the environment (soil, water, air), • producing higher quality products and protecting potential consumer health, • preserving traditional farming methods, • conserving typical cultural landscape, specific natural features and habitats, • preserving autochthonous and traditional domestic breeds and agricultural plant varieties, • maintaining and preserving the extent of animal and plant habitats, • preventing agricultural pollution of drinking water sources. 137 Aim and activities - Aim Agri-environmental payments are aimed at conducting environment friendly farming methods emphasising the multifunctional role of agricultural production reflecting in the public function of maintaining the landscape and biodiversity as well as preserving the settlement of Slovenian countryside by taking into account ecological, social and spatial settlement patterns in the rural areas. Payments are granted for socially relevant activities, e.g. conservation of settlement, cultural landscape and environment, which are not directly measurable from the marketing viewpoint. Payments are disbursed per hectare of utilised agricultural land, in some cases per animal, and are intended for partial compensation of costs for additionally invested effort due to the environmental and landscape protection requirements as well as for the preservation of traditional farming methods. - Activities To accomplish the objectives set, the following sub-measures, divided into three groups, shall be implemented within the framework of agri-environmental payments: • Group I - reduction of negative impacts of agriculture on the environment: - preservation of crop rotation, - greening of arable land, - integrated vine production, - integrated fruit production, - integrated vine production, - integrated horticulture, - organic farming; • Group II - conservation of natural conditions, biodiversity, soil fertility and traditional cultural landscape: - mountain pastures, - steep slopes mowing, - humpy meadows mowing, - meadow orchards, - rearing of autochthonous and traditional domestic breeds, - production of autochthonous and traditional agricultural plant varieties, - sustainable rearing of domestic animals, - extensive grassland maintenance; • Group III - maintenance of protection areas: - animal husbandry in central areas of appearance of large carnivores, - preservation of special grassland habitats, - preservation of grassland habitats of butterflies, - preservation of litter meadows, - bird conservation in humid extensive meadows in Natura 2000 sites, - permanent green cover in water protection areas. Confirmation that cross compliance requirements are identical with requirements set out in Regulation 1782/2003 Beneficiaries engaged in the agri-environmental payments scheme shall meet cross compliance requirements set out in Regulation 1782/2003 and Regulation on statutory management 138 requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended). Measure description and payment entitlement based on anticipated effects on the environment with regard to environmental requirements and priorities - Measure description A. Requirements related to all agri-environmental submeasures Eligible for agri-environmental payments, comprising 21 agri-environmental submeasures, are agricultural holdings implementing at least one of these submeasures and considering environmental protection requirements under different farming methods, maintaining plant and animal habitats as well as contributing to the preservation of the settlement and in the utilisation of the countryside. Entering the agri-environmental payments scheme is voluntary. Beneficiaries alone choose the submeasures which they shall implement on a part of or on the whole farm and undertake to implement the submeasure(s) under the agri-environmental payments scheme in accordance with the conditions set for the whole duration of the commitment. In implementing the submeasures the beneficiaries must consequently meet all conditions under each submeasure and keep a mandatory and up-to-date record on all work tasks under the submeasures chosen for the whole duration of the commitment. Agri-environmental payments are granted at the national level, with an exemption of some submeasures related to certain areas (i.e. humpy meadows areas, central areas of appearance of large carnivores, ecologically important areas, central areas of appearance of humid extensive meadow birds in Natura 2000 sites, and water protection areas). Payments are disbursed as aids for the current year. Additionally, agricultural holdings implementing agri-environmental submeasures must fulfil the cross compliance requirements as well as the minimum requirements on the use of fertilisers and plant protection products, as well as all conditions under the Integrated Administration and Control System (IACS) for the whole duration of the commitment. The measure Agri-environmental payments is implemented throughout the programming period and the commitments undertaken for the implementation of the agri-environmental payments last five years with the possibility of a prolongation. - Details on eligibility conditions 1. Payment entitlement Beneficiaries under the agri-environmental submeasures are agricultural holdings entered into the register of agricultural holdings in accordance with the regulation governing the register of agricultural holdings, and which enter the implementation of the submeasures voluntarily and meet the conditions set. Holders of the rights and commitments eligible for payments for agrienvironmental submeasures are agricultural holding operators. 2. Size of agricultural land Minimum size of agricultural land of one use eligible for payment for one agri-environmental submeasure is 0.1 ha, provided that on agricultural holding at least 0.3 ha of agricultural land in total is available for this submeasure, unless defined otherwise under the conditions for individual submeasures (e.g. integrated fruit production). 3. Commitment duration 139 By entering the agri-environmental payments scheme, the beneficiary undertakes to implement the agri-environmental submeasures for the whole duration of the commitment (at least five years), in accordance with the conditions applied in obtaining payments for a particular submeasure. Derogations from the commitment are allowed only in the following cases: • if, after having discharged obligations for a period of four years, the beneficiary definitely ceases agricultural production, or, his successor is incapable of discharging the obligations, • if the area of the agricultural holding increases during the commitment duration, the beneficiary is allowed to enter the scheme with the increased acreage, provided that the increased area clearly contributes to the environmental protection with regard to the character of the submeasures and required conditions and provides for an efficient supervision of the implementation of the submeasures; even in case the beneficiary does not enter the scheme with the increased acreage, he is nevertheless bound to implement the principles of cross compliance and the minimum requirements on the use of fertilisers and plant protection products, whereas the efficiency of the implementation and supervision of other submeasures shall not be impaired, • if the area of an agricultural holding decreases during the commitment duration and this does not impair the efficiency of the implementation and supervision of agri-environmental submeasures, • if the acreage of agricultural land or farming practises on an agricultural holding have changed independently of the beneficiary (land consolidation, land development operations, denationalisation proceedings, compulsory auction, inheritance), • if, in entering the obligation, the changes affecting the later implementation of the submeasures are not yet known or in case of force majeure, as referred to in Article 47 of Regulation 1974/2006. In cases of meteorological disasters (drought, hail, flood) the beneficiary may withdraw the implementation of the submeasure for the current year. If the beneficiary proofs derogation from the commitment as a result of the aforementioned circumstances, his commitment is suspended without the obligation to reimburse the funds obtained. In case of force majeure or aforementioned circumstances the beneficiary must inform the ARSAMRD thereof in writing and furnish appropriate evidence within 10 days from the day he is able to do so. Any derogation from the obligations is handled individually based on an appropriate application submitted by the beneficiary to the ARSAMRD. 4. General objectives In addition to fulfilling the conditions under individual agri-environmental submeasures, the beneficiary shall further meet the following requirements: • Individual agri-environmental submeasures shall be implemented on the same area for the whole duration of the commitment. • In implementing the agri-environmental submeasures the beneficiary eligible for payments shall consequently comply with cross compliance requirements, minimum requirements on the use of fertilisers and plant protection products and utilise agricultural land adequately, whereas the agricultural production shall be adjusted to ecological and soil conditions, appropriate methods to the land and site shall be applied to prevent soil compaction, erosion and pollution, as well as sustainable soil fertility shall be ensured. In addition thereto in implementing agri-environmental submeasures, the beneficiaries shall comply with the applicable agricultural legislation as well as the legislation governing environmental 140 • • ▪ • • • • • protection, health, and veterinary medicine and meet other legal provisions. On areas not included into the agri-environmental payments scheme, agricultural production on these land areas shall have no negative impacts on the environment or impair the efficiency of the submeasures on the areas included in agri-environmental payments. The beneficiary undertakes to implement the submeasure(s) with which he entered the agrienvironmental scheme in accordance with the conditions set for the whole duration of the commitment. During the commitment period, at the turn of a year (not in course of a year), one agri-environmental submeasure may be substituted with another one, provided that such a substitution contributes significantly to the environmental protection. Any derogation from the commitments as regards the substitution of one submeasure with another is handled individually based on an appropriate application submitted by the beneficiary. Stocking density on agricultural holding shall not exceed 1.9 LU/ha of utilised agricultural area. In calculating the number of LUs the total cultivated agricultural land of an agricultural holding is to be taken into account (total utilised area). Inasmuch mineral fertilisers are applied on an agricultural holding, the soil fertility and fertilisation control must be carried out every five years, whereas mineral fertilisers are to be applied on the basis of an annual fertilisation plan. For the whole commitment duration the beneficiary applying for payments under agrienvironmental submeasures shall continuously keep mandatory and up-to-date records of all activities conducted within the scope of submeasures selected, whereby he may use the MAFF forms “Records on working activities” or notes kept by the farmers themselves. For the submeasures integrated crop production, integrated fruit production, integrated vine production and integrated horticulture correspond the records defined by the rules governing integrated crop production, rules governing integrated fruit production, rules governing integrated grape and wine production and rules governing integrated horticulture. For the submeasure organic farming records defined by an inspection body for the control of organic agricultural products and foodstuffs apply. During commitment period a beneficiary eligible for payments under agri-environmental submeasures shall participate in training programme taking at least 4 hours annually during the period set out in the regulation governing the payments for the measures under axis 2. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. A beneficiary obtaining payments under the agri-environmental submeasures is committed to keep all documentation (application copies, other claims and required enclosures, certificate on concluded training) and all records (crop rotation plan, records on work tasks) throughout the commitment period and for four more years from the day of the last obtained payments. An agricultural holding engaged in the implementation of agri-environmental submeasures shall fulfil all conditions specified by the IACS for the whole duration of the commitment, as provided by the regulations applicable for granting payments. 5. Administrative procedures Administrative procedures for the allocation of resources for agri-environmental submeasures are carried out by the ARSAMRD applying IACS. The ARSAMRD also carries out on-the-spot controls. A more detailed description of the procedure is contained in chapter 11.5 Control system. Based on application form set a beneficiary enters the agri-environmental scheme on a voluntary basis and undertakes to fulfil all conditions and provisions for the whole duration of the commitment. The procedure of submitting payment applications under agri-environmental submeasures is laid down in a decree on the implementation of agricultural policy measures. Granting of funds is 141 carried out in accordance with the regulation governing the payments for measures under axis 2. 6. Supervision and sanctions The supervision over the implementation of agri-environmental submeasures and monitoring of the resources spending are carried out by the ARSAMRD in accordance with Regulation 1975/2006 and Regulation 796/200433. The ARSAMRD checks the fulfilment of the conditions on an agricultural holding, particularly the fulfilment of conditions set for individual submeasures and eligibility for claimed or already disbursed funds. The sanctions system is set out by IACS and applies for all irregularities concerning per area and/or per animal payments. For these purposes the ARSAMRD has drawn up the instructions in accordance with Regulation 796/2004. Any other irregularities (breach of minimum requirements on the use of fertilisers and plant protection products and non-compliance with other specific conditions for agri-environmental submeasures) in the procedure of conducting controls prior or after the disbursements are sanctioned on the bases of the Catalogue of breaches and sanctions set out in the regulation governing the payments for measures under axis 2. The control conducted by inspection bodies for integrated and organic production to obtain a certificate is kept separately from the control of the implementation and fulfilment of obligations for granting funds under individual agri-environmental submeasures conducted by the ARSAMRD. The beneficiary shall reimburse all payments for the implementation of agri-environmental submeasures from undertaking a commitment: - if he fails to allow or prevents the inspection of applicable records and documents kept at the agricultural holding, or the access to agricultural land or premises for IACS purposes or supervision of funds utilisation, - if he does not meet the general provisions and does not implement the agri-environmental submeasures for which he obtained the funds, in accordance with the conditions set, - if, during the period defined for keeping the documentation, it is impossible to check the eligibility for already disbursed payments. In case that in the current year an agricultural holding does not fulfil obligations for a particular agri-environmental submeasure, the beneficiary is not eligible for payment under the submeasure concerned for the current year. The funds obtained in previous years need not be reimbursed. If in implementing an agri-environmental submeasure agricultural holding fails to fulfil any condition in two successive years the claim for payments under the submeasure concerned shall be refused. If in implementing an agri-environmental submeasure agricultural holding fails to fulfil any condition in three successive years the claim for payments under the submeasure concerned shall be refused and the commitment of further implementation of the submeasure concerned shall be terminated, whereas the beneficiary, upon a written demand from the ARSAMRD, becomes bound to reimburse any payments received for the implementation of the submeasure concerned in the previous years. 33 Commission Regulation (EC) No 796/2004 of 21 April 2004 laying down detailed rules for the implementation of cross-compliance, modulation and the integrated administration and control system provided for in of Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers (OJ L 141, 30.4.2004, p. 18–58) 142 In case that in integrated production or organic farming the beneficiary had obtained a certificate from the inspection body for the control of integrated or organic production and that an agricultural inspector subsequently detected deviations from the obligations set, the certificate shall be annulled, and upon a written demand from the ARSAMRD, the beneficiary becomes bound to reimburse payments received. In case the ARSAMRD notifies a beneficiary in writing that a payment has been disbursed to him by mistake, and the beneficiary fails to reimburse thus received payment within 15 days from receiving the notification, the recipient becomes bound to pay legal delayed payment interest. The beneficiary is exempt from reimbursing the funds in all cases referred to in Point 3 Commitment period. 7. Combinations of agri-environmental submeasures The combinations of agri-environmental submeasures on the same area are presented in Table 48. In order to avoid overcompensation, only certain combinations of agri-environmental submeasures are possible. Therefore the maximum payment amounts per hectare of agricultural land, available to agricultural holdings for the combination of these submeasures, are limited. In payments for a combination of agri-environmental submeasures the total amount is reduced by the amount for costs which were included into the calculation of the payment amounts for submeasures under the combination (e.g. in the combination greening of arable land, integrated crop production and production of autochthonous and traditional varieties of agricultural plants the amount for training costs included into the calculation of the payment amounts for all three submeasures must be subtracted twice from the total payment amount). Unless otherwise specified for a particular submeasure, payment application under the agrienvironmental scheme may also be submitted for areas being the subject to compensatory allowances for LFAs and/or for areas for which the single area payment applies. 143 ZEL IPL IPS IVG IVR EK PP PPP S35 S50 GRB TSA SOR REJ ETA ZVE HAB MET STE VTR VVO KOL ZEL IPL IPS IVG IVR EK PP PPP S35 S50 GRB TSA SOR REJ ETA ZVE HAB MET STE VTR VVO KOL Table 47: Combinations of agri-environmental submeasures on the same area 214I/1 214I/2 214I/3 N 214I/4 N N N 214I/5 N N N N 214I/6 N 214I/7 N 214II/1 N N N N N N N 214II/1 N N N N N N N N 214II/2 N N N N N N 214II/2 N N N N N N 214II/3 N N N N N N 214II/4 N N N N N N N N N 214II/6 214II/7 N N N N N N N N N 214II/8 N N N N N N N N N 214III/1 N N N N N N 214III/2 N N N N N N 214III/3 N N N N N N 214III/4 N N N N N N 214III/5 N N N N N N 214III/6 214/I-1 214/I-2 214/I-3 214/I-4 214/I-5 214/I-6 214/I-7 214/II-1 214/II-1 214/II-2 214/II-2 214/II-3 214/II-4 214/II-6 214/II-7 214/II-8 214/III-1 214/III-2 214/III-3 214/III-4 214/III-5 214-III/6 N N N N N N N N N N N N N N N N N N 214I/1 N N N N N N N N N N N N N N N N 214I/2 N N N N N N N N N N N N N N N N N 214I/3 N N N N N N N N N N N N N N N N N N N N N N N N N 214I/4 N N N N N N N N 214I/5 N N N N N N N N N N N N N N N N N 214I/6 N N N N N N N N N 214I/7 N N N N N N N N N N N N N N 214II/1 N N N N N N N N N N N N N 214II/1 N N N N N N N N N N N N N 214II/2 N N N 214II/2 N N N N N N N N N 214II/3 N N N N N N N N N N N N N N 214II/4 214II/6 N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N 214II/7 214II/8 N N N N N 214III/1 N N N N 214III/2 N N N 214III/3 N N 214III/4 N 214III/5 N N N N N 214/I-1 214/I-2 214/I-3 214/I-4 214/I-5 214/I-6 214/I-7 214/II-1 214/II-1 214/II-2 214/II-2 214/II-3 214/II-4 214/II-6 214/II-7 214/II-8 214/III-1 214/III-2 214/III-3 214/III-4 214/III-5 214-III/6 214III/6 N: Combination NOT possible : Combination possible Legend of agri-environmental submeasures: KOL ZEL IPL IPS IVG IVR Preservation of crop rotation Greening of arable land Integrated crop production Integrated fruit production Integrated vine production Integrated horticulture PPP S35 S50 GRB TSA SOR EK PP Organic farming Mountain pastures without herdsman REJ ETA Mountain pastures with herdsman Steep slopes mowing with inclination 35-50% Steep slopes mowing with inclination over 50% Humpy meadows mowing Meadow orchards Production of autochthonous and traditional agricultural plant varieties Sustainable rearing of domestic animals Extensive grassland maintenance ZVE HAB MET STE VTR VVO Animal husbandry in central areas of appearance of large carnivores Preservation of special grassland habitats Preservation of grassland habitats of butterflies Preservation of litter meadows Bird conservation in humid extensive meadows in Natura 2000 sites Permanent green cover in water protection areas 144 - Commitment adaptation Agri-environmental commitments may be adapted for the duration of the implementation if the adaptation is adequately founded with regard to the objectives set. These adaptations also refer to the application of new technologies and facilities in the implementation of agri-environmental submeasures and the extension of the commitment duration as well. - Amendments of the national and Community legislation In case of amendments to the national and Community legislation the existing agri-environmental commitments shall be harmonised accordingly. Commitments undertaken on the bases of the provisions under Article 39 of Regulation 1698/2005 may be adapted to the amendments of appropriate obligatory standards and requirements referred to in Article 39(3) of the aforementioned regulation, established pursuant to Articles 4 and 5 of Regulation 1782/2003 and Annexes III and IV of the regulation concerned, as well as minimum requirements on the use of fertilisers and plant protection products and other compulsory requirements captured by the national legislation. If a beneficiary does not accept such an adaptation, his commitment to implement agri-environmental submeasures ceases, whereby the funds obtained for the period when the commitment was valid need not be reimbursed. - Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities Submeasures under the agri-environmental payments scheme represent nature and consumer friendly production method, which: • provides sustainable food production and improves the quality and safety of food thus produced, • maintains natural balance in the soil, • improves and maintains permanent fertility and (micro)biological soil activity, • prefers natural regulatory mechanisms, • accelerates and maintains the biodiversity of agri-ecosystems, • protects the environment by reducing potential pollution sources, • minimises water, soil, air and biotope pollution by optimizing the production, • considers the environmental, social, cultural and tourism functions of rural areas. Agri-environmental submeasures are compliant with the priorities and objectives set out in the National Environmental Protection Programme, Strategy for the Conservation of Biodiversity, Nitrate Directive (91/676/EC) (particularly in the Operational programme on water protection from pollution caused by nitrates from agricultural sources for Slovenia 2004-2008), Water Framework Directive (2000/60/EC) and the Natura 2000 programme (Directive on the conservation of natural habitats and of wild fauna and flora - 92/43/EC and Directive on the conservation of wild birds 79/409/EC). In addition thereto, the conditions on the implementation of these submeasures exceed the cross compliance requirements (1782/2003/EC) as well as the minimum requirements on the use of fertilisers and plant protection products. Therefore, agri-environmental submeasures have positive impacts on the environment, reflecting in: • the preservation of the mosaic-like cultural landscape and specific secondary habitat types essential for the biodiversity conservation (submeasures: mountain pastures, steep slopes mowing, humpy meadows mowing, meadow orchards, sustainable rearing of domestic animals), • the preservation of genetic resources (submeasures: rearing of autochthonous and traditional domestic breeds, production of autochthonous and traditional agricultural plant varieties), • groundwater protection and the implementation of Nitrate Directive (91/676/EC) (submeasures: preservation of crop rotation, greening of arable land, integrated crop production, integrated 145 • • • fruit production, integrated vine production, integrated horticulture, organic farming, permanent green cover in water protection areas), the protection and preservation of ecologically important areas – protection areas and Natura 2000 sites (submeasures: animal husbandry in central areas of appearance of large carnivores, preservation of special grassland habitats, preservation of grassland habitats of butterflies, preservation of litter meadows and bird conservation in humid extensive meadows in Natura 2000 sites), sustainable use in accordance with the Strategy for the Conservation of Biodiversity in Slovenia is provided through the fulfilment of cross compliance requirements and minimum requirements on the use of fertilisers and plant protection products (all submeasures), the reduction of greenhouse gas and ammonia emissions by production extensification (submeasures: organic farming, mountain pastures, rearing of autochthonous and traditional domestic breeds, sustainable rearing of domestic animals and animal husbandry in central areas of appearance of large carnivores). Monitoring and evaluation of agri-environmental submeasures The aim of monitoring and evaluation is to gather information on the implementation of agrienvironmental submeasures for the purposes of potential modifications and amendments of agrienvironmental payments. Monitoring shall provide data on the implementation of individual submeasures for the duration of the commitment and also show how the commitments are actually being put into practice. The data shall be gathered in a manner as to allow the submeasures to be adapted to the needs which shall become evident in course of their implementation. The evaluation of agri-environmental submeasures is an in-depth analysis of their impacts and shall be implemented on the basis of the pre-determined objectives, monitoring data and other relevant information sources. The evaluation shall be based on socio-economic, agricultural and environmental aspects of the area where the submeasures are implemented. It is practically not feasible to monitor and analyse all parameters affected by agri-environmental submeasures. Hence, under the agri-environmental scheme, a set of indicators was defined, which shall serve as the basis for the evaluation of effects of individual submeasures. Control (short-term) and long-term indicators are listed with each of the submeasures. Monitoring of the environmental situation, habitats and biodiversity shall be provided by the ministry responsible for environment; the data on monitoring of brown bear by the Slovenia Forest Service. The monitoring system shall be adjusted to the needs of the implementation of agrienvironmental submeasures. B. Requirements related to individual agri-environmental submeasures Agri-environmental submeasures aimed at the popularisation of agricultural production, corresponding to consumer demand and protection of public health, providing sustainable utilisation of natural resources and conservation of biodiversity and characteristic Slovenian landscape are, with special focus on the environmental component, divided into three basic groups defining the nature and the contents of the submeasures. • Group I: reduction of negative impacts of agriculture on the environment, • Group II: conservation of natural conditions, biodiversity, soil fertility and traditional cultural landscape, • Group III: maintenance of protection areas. Group I: Reduction of negative impacts of agriculture on the environment 146 Intensive food production may have negative impacts on the environment and the soil - plant – groundwater system, as a result of inappropriate application of fertilisers and plant protection products. Irrational production may lead to soil erosion and compaction. Nature friendly production and rearing methods have positive impacts on the environment since the controlled application of plant protection products reduces a potential threat of environmental pollution, increases the biodiversity of plant and animal species, preserves soil fertility and the structure and balance of soil micro organisms, reduces soil leaching, and due to a lower energy consumption reduces the dependency of farms on external inputs, and contributes to selfsufficiency. To reduce the anthropogenic environmental pollution as a result of agricultural production the following sustainable farming submeasures are laid down under Group I: 214-I/1 214-I/2 214-I/3 214-I/4 214-I/5 214-I/6 214-I/7 Preservation of crop rotation, Greening of arable land, Integrated crop production, Integrated fruit production, Integrated vine production, Integrated horticulture, Organic farming. Submeasure 214-I/1 Preservation of crop rotation - Measure description Objective Mechanism Implementation activity Indicators - Content • Preservation of crop rotation on agricultural holdings to improve soil properties and fertility • Payment for extra work involved in more sophisticated farming practice aimed at environmental protection • Crop rotation on arable land and controlled application of fertilisers and plant protection products in crop production • Control: · Acreage on which the submeasure is being implemented (ha) · Stabilisation of crop rotation (crop rotation plan) · Recorded application of fertilisers and plant protection products • Long-term: · Controlled application of fertilisers and plant protection products in crop production · Improved quality of food (less chemical residues in foodstuffs) and ensuring consumers health · Less chemical residues in the soil · Improved groundwater quality Requirements for final beneficiaries under the submeasure in comparison to the baselines Baseline Requirements for final beneficiaries 147 • • • • • • • • Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. • • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. Producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure and the use of plant protection products. By implementing the submeasure land application of sewage sludge, silt and residues from fish farms is not allowed; only compost produced on agricultural holdings may be applied. In implementing the submeasure stocking density on agricultural holding shall not exceed 1.9 LU/ha of utilised agricultural area. Agricultural holding may not produce livestock manure surplus. 148 • • • • • - Baseline Standard on good agricultural and environmental conditions, organic matter in soil: In accordance with Annex 2 of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) the three-year crop rotation is mandatory on at least 50 percent of arable areas of the entire agricultural holding. Grasses, clovers, grass-clover mixtures and clover-grass mixtures on arable areas are a part of crop rotation and may be on the same area longer than three years. Additional minimum requirements on the use of fertilisers: The amount of applied mineral nitrogen is 250 kg/ha annually. Regulatory requirements on operations, standard on plant protection products: Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 - official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. Requirements for final beneficiaries • The entire arable land must be included into the submeasure. • The five-year crop rotation shall: - include at least three different crops, - cereals share may not exceed 60 percent, - legumes must be present at least once. Stubble crops are considered as one the three different crops to be included into the five-year rotation, and maize as a root crop. As legumes shall also be considered the clover-grass mixtures, whereby the legumes share must amount to at least 50%. The crop rotation must be designed at entering the submeasure. In case of force majeure or changed market conditions the potential change of the crops in the rotation may not have negative impacts on the environment nor diminish the performance of the submeasure. • The amount of applied mineral nitrogen may not exceed 170 kg/ha annually. • • In wheat, rye, barley, oats and triticale production the application of growth regulators is not allowed. The application of plant protection products is possible on the basis of a prognosis, where one exists. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities As a result of plant protection products application, monoculture crop production, mechanisation of production and universal agricultural development, necessary additional production planning and required knowledge, crop rotation on fields had increasingly lost in its significance. Data on the crop structure itself show that in Slovenia crop rotation is mostly no common practice on agricultural holdings. Main crops are maize and wheat, primarily grown as monocultures or within a two- or three-year rotation cycle, while in some places stubble crops are sown after the maize and cereals harvest. In general, Slovenian farms are not specialised; but mixed, combining animal husbandry and plant production. Harmonisation of crop rotation with animal husbandry brings the livestock production in line with arable areas used for self-production of fodder on which the manure of from the livestock production can be applied. Thus planned production prevents a surplus of organic fertilisers (manure, slurry and liquid manure), whereas the fertilisation with organic fertilisers reduces the consumption of mineral fertilisers, which results in reduced loads on the environment 149 and in creating better sustainable production methods. Inclusion of legumes into crop rotation helps protecting the soil and environment. Based on their roots system legumes loosen the soils and reduce the erosion of fertile land. Since legumes supply the soils with nitrogen, the need for fertilisation with mineral nitrogen fertilisers is diminished or even disappears, which results in reduced risk of groundwater pollution with nitrates and contributes to ecologically cleaner production and thus complying with the National Environmental Protection Programme. The implementation of the submeasure facilitates the inclusion of all arable land on agricultural holdings in crop rotation, introduction of alternative crops (pulses, oilseeds) in crop rotation, introduction of alternative plant nutrient resources (green manure plants, organic waste, etc.) and reflects in the improved existing crop rotation and thus maintenance and improvement of soil fertility with controlled use of fertilisers and plant protection products. The effects of implementing the submeasure result in the reduction of negative impacts of agriculture on the environment, improved crop structure and consequently in better food quality (less chemical residues in foodstuffs) as well as in ensured potential consumer health. To revive crop rotation, which would include fodder grasses and other soil improving crops having a favourable impact on soil fertility and improve its properties, payments are granted at the national level. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation is based on the comparison of the three-year and five-year crop rotation as envisaged in the submeasure. Included are greening and fallow with oilseed rape. Taken into account was a lower maize yield in sowing after greening (by about 16 percent) and lower potato produce (by about 11 percent). The calculation of payment amounts thus considers the costs of wheat production, greening costs (ploughing costs, costs of equipment use, sowing costs and costs of alfalfa seed purchase), maize production costs (twice), potato production costs, costs of fallow with oilseed rape (ploughing costs, costs of equipment use, and sowing costs), time spent on training and keeping of records on work tasks, lower maize yield in sowing after greening and lower potato yield. The calculation methodology is shown in Annex 6. Submeasure 214-I/2 Greening of arable land - Measure description Objective Mechanism Implementation activity Content • Greening of arable land to reduce erosion and surface leaching of nutrients • Payment for extra work involved in more sophisticated farming practice aimed at environmental protection • Improving soil properties and fertility and reducing erosion and leaching of nutrients by greening arable areas through autumn and winter with adequate vegetation 150 Indicators • · · · · • · · · • • • • • • • Control: Acreage on which the submeasure is being implemented (ha) Green cover through autumn and winter (ha) Stabilisation of crop rotation (crop rotation plan) Recorded application of fertilisers and plant protection products Long-term: Improvement of potential soil fertility Reduced soil pollution Improved groundwater quality Requirements for final beneficiaries under the submeasure in comparison to the baselines Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure and the use of plant protection products. By implementing the submeasure land application of sewage sludge, silt and residues from fish farms is not allowed; only compost produced on agricultural holdings may be applied. 151 • • • • • Baseline Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Standard on good agricultural and environmental conditions, organic matter in soil: In accordance with Annex 2 of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) the three-year crop rotation is mandatory on at least 50 percent of arable areas of the entire agricultural holding. Grasses, clovers, grass-clover mixtures and clover-grass mixtures on arable areas are a part of crop rotation and may be on the same area longer than three years. Standard on good agricultural and environmental conditions, soil erosion: In accordance with Annex 2 to the Regulation about cross compliance (OJ RS No 34/07, as amended) agricultural land need be utilised in a manner minimising the erosion risk and agritechnical measures applied which reduce the erosion risk. Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex 2 to the Regulation about cross compliance (OJ RS No 34/07, as amended) the grower acts with due care and attention if on utilised agricultural area he/she: - regularly utilises and maintains agricultural land; - provides for the conservation or improvement of soil fertility by an adequate use method, - does not cause land degradation (erosion, compaction, pollution) with inadequate technology, - exemplary and regularly maintains the land; - utilises land to enable optimal and economical production by applying appropriate agricultural technology, - manages all areas belonging to agricultural holding to avoid the endangerment of the holding vitality, - provides for adequate land utilisation in case of his/her disability or longer absence, Additional minimum requirements on the use of fertilisers: The amount of applied mineral nitrogen is 250 kg/ha annually. • • • • • • • • • • Requirements for final beneficiaries In implementing the submeasure stocking density on agricultural holding shall not exceed 1.9 LU/ha of utilised agricultural area. Agricultural holding may not produce livestock manure surplus. Five-year crop rotation shall include at least three different crops. Agricultural plant engaged for greening of arable land is considered as one of the three different crops that need be included into the five-year crop rotation. The crop rotation must be designed at entering the submeasure. In case of force majeure or changed market conditions the potential change of the crops in the rotation may not have negative impacts on the environment nor diminish the performance of the submeasure. Soil covered with winter crops through autumn and winter is mandatory. Sowing of winter crops in the period from 1.7. to 25.10. of the current year, immediately after the harvest of main crops. Green (winter sustaining) cover shall spread over the fields from 15.11. of the current year to 15.2. next year. Tillage of greened arable land may start on 15.2. next year. The amount of applied mineral nitrogen may not exceed 170 kg/ha annually. 152 • • Baseline Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. • • Requirements for final beneficiaries In wheat, rye, barley, oats and triticale production the application of growth regulators is not allowed. The application of plant protection products is possible on the basis of a prognosis, where one exists. In case the beneficiaries apply for payments under submeasure 214-I/2 Greening of arable land in the current year, they may claim payments under submeasure 214-I/1 Preservation of crop rotation in the ensuing years. If beneficiaries do not apply for payments under submeasure 214-I/1 Preservation of crop rotation and/or submeasure 214-I/2 Greening of arable land in the ensuing year(s), they have to perform at least the simple crop rotation on these land areas including at least 3 different crops. - Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities In a not too distant past, sowing of winter crops was a common practice ensuring the improvement of soil properties and soil fertility, reduction of erosion and surface nutrient leaching. The introduction of monoculture production and inexpensive nitrogenous fertilisers encouraged many people to discontinue this practice. Today, farmers are rediscovering winter cover crops during autumn and winter and their significance. Since Slovenia is characterised by a large quantity of precipitation, distributed also in spring and autumn (between 800 and 1,500 mm and more annually), nutrients leach also during the growing period and not only in winter, like in most European countries. On the other hand, more than elsewhere, precipitation surplus more than elsewhere dilutes nitrates and other nutrients in percolating water which, given a relatively fast flow of groundwater, decreases the risk of it being polluted above the maximum level allowed for drinking water. Nevertheless, some studies have shown that under the conditions in Slovenia, 10-40 kg of N, 4-9 kg of P2O5, 9-10 kg of K2O, 400900 kg of CaO, 80-230 kg of MgO, 40-280 kg of SO4, 25-100 kg of Cl and 10-30 kg of Na34 per hectare are leached from crop fields annually. Leskošek, M. Gnojenje: za velik in kakovosten pridelek, za zboljšanje rodovitnosti tal, za varovanje narave (Fertilisation: for high and quality yields, for improvement of soil fertility, for nature preservation). Ljubljana, ÈZP Kmeèki glas, 1993 34 153 Therefore, in the light of conservation of natural resources, it is necessary to prevent or to reduce the risk of nutrient leaching from agricultural areas. Numerous benefits of growing cover crops show in: • reduced erosion threat, • improved soil structure and reduced surface crusting, • increased water holding capacity of the soil, • reduced weed growth, • reduced herbicide injury, • improved soil conditions for the following crop, • nitrogen provided if the cover crop is a legume. By implementing the submeasure the soil cover with winter crops through autumn and winter is provided and erosion and nutrient leaching reduced, which results in reduced soil pollution, improved potential soil fertility and improved groundwater quality. Payments are therefore granted at the national level. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation is based on the five-year crop rotation with and without greening (twice in the rotation). Since in this case the only difference is greening, the payment amount was calculated as the difference between the total costs. Considered were wheat production costs (twice), greening costs (twice), maize production costs (twice), potato production costs, time spent on training and keeping of records on work tasks, lower crop produce as a result of autumn fertilisation abandonment and consequently lower fertilisation costs. The greening costs capture ploughing costs, costs of equipment use, and costs of sowing and alfalfa seed. The calculation methodology is shown in Annex 6. Submeasure 214-I/3 Integrated crop production - Measure description Objective Mechanism Implementation activity Content • Controlled application of fertilisers and plant protection products in crop production • Payment for extra work involved in more sophisticated farming practice aimed at environmental protection • Integrated crop production 154 Indicators • · · · • · · · · · - Control: Acreage on which the submeasure is being implemented (ha) Recorded application of fertilisers and plant protection products Number of certificates issued Long-term: Increased acreage of land area engaged in integrated crop production (ha) Improved food quality (less chemical residues in foodstuffs) and ensuring consumer health Less chemical residues in the soil Improved groundwater quality Reduced threat of erosion Requirements for final beneficiaries under the submeasure in comparison to the baselines In implementing the submeasure it is necessary to comply with the regulation governing the integrated crop production and with the technological guidelines on integrated crop production, whereby the beneficiary must: • include all areas into the integrated crop production on which crops are produced in the current year and are owned, leased or rented by him, except areas which are being in the conversion to organic or which are organic in accordance with the regulations governing organic production and areas on which vegetables under crop rotation are produced within the framework of the submeasure integrated crop production, or areas engaged in the submeasure integrated fruit production - berries, or in integrated horticulture, or mandatory fallow; • follow up the forecast of the observation and forecast service to determine the crops health protection measures laid down in the technological guidelines as well as consider the actual crop situation; • identify the actual crop situation by checking the crops and using appropriate accessories; • apply chemical measures or use plant protection products if the mechanical, biological and biotechnical measures in pest control were already exhausted; • use only plant protection products outlined in the technological guidelines or plant protection products and other plant protection preparations allowed in organic production, in accordance with the regulations on organic production; • in chemical pest control, for which the technological guidelines set damage threshold, provide information on the pest and the exceeded damage threshold for this pest in the data sheet, received from the inspection body, to justify the use of plant protection products; • fertilise in accordance with the fertilisation plan; • carry out soil analysis every five years; • apply only fertilisers outlined in the technological guidelines and fertilisers allowed in organic production, in accordance with the regulations on organic production; • draw up a five-year crop rotation plan; • if exceeding the limit values of mineral nitrogen in the soil, abandon the application of nitrogenous fertilisers for the next crop or include into the rotation an intermediate crop using up the nitrogen to prevent its leaching into the subsoil; • register for integrated crop production control at an authorised inspection body by 31 December of the current year at the latest for next year’s control; • keep records and save the documentation, which enables the inspection body to check the types, quantities and use of purchased material (plant protection products, fertilisers) and to check the varieties and the quantities of the crops sold; • save the records for at least five years and the documentation for at least one year; • allow an insight in the records and documentation if required by the inspection body or a competent inspection service; • report to the MAFF every six months the varieties and the quantities of integrated crops produced in the past six months, in fifteen days after the last six months have passed; • ensure traceability of integrated crops on the market. 155 • • • • • • • Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. Regulatory requirements on operations, standard on sewage sludge: On agricultural holdings land application of mud, silt or compost is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05), which also lays down the land application of sewage sludge, compost or silt form river and lake beds as well as the application of substances in plant irrigation and fertilisation, particularly limit values for annual application of dangerous substances and plant nutrients into and on the soil, input reduction grades and other measures regarding the input. • • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure and the use of plant protection products. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. Prohibited is the application of all fertilisers with high heavy metals content. Applied may be only fertilisers outlined in the technological guidelines for integrated crop production or fertilisers allowed in organic production, in accordance with Annex II, Part A and B of Regulation 2092/91. 156 • • • • • • Baseline Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Additional minimum requirements on the use of fertilisers: The amount of applied mineral nitrogen is 250 kg/ha annually. Standard on good agricultural and environmental conditions, minimum maintenance level: The production method is set out in Annex II of the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended). Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. Standard on good agricultural and environmental conditions, organic matter in the soil: In accordance with Annex II to the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - the three-year crop rotation is mandatory on at least 50 percent of arable areas of the entire agricultural holding. - grass, clover, grass-clover mixtures and clover-grass mixtures on arable areas are a part of crop rotation and may be on the same area longer than three years. - for a planned increase and/or keeping of the organic matter and humus share in soil the standard agricultural practice considers mainly crop rotation, ploughing in of harvest remains, regular and balanced fertilisation with livestock manure or inclusion of legumes into crop rotation. • • • • • • • • • • Requirements for final beneficiaries In implementing the submeasure stocking density on agricultural holding shall not exceed 1.9 LU/ha of utilised agricultural area. Agricultural holding may not produce livestock manure surplus. The amount of applied mineral nitrogen may not exceed 170 kg/ha annually. In implementing the submeasure farming is conducted in accordance with special technological guidelines on integrated crop production. Applied may be only plant protection products outlined in the technological guidelines for integrated crop production or plant protection products and other plant protection preparations allowed in organic production, in accordance with Annex II, Part A and B of Regulation 2092/91. Plant protection products may be used only based on a prognosis. The application of certain active substances is limited; the number of treatments is limited as well. In weed, diseases and pest control mechanical/ physical and biotic measures are preferred. The application of growth regulators is prohibited. In implementing the submeasure: - on all arable areas a five-year crop rotation is mandatory with obligatory use of legumes; - in the soil with humus content under 1.5% it is mandatory to leave all harvest remains in the field, sow plants for green manure and/or cover plants and/or compensate for the taken organic matter with livestock manure; - stubble remains are to be ploughed in already in autumn (but not in frozen soil) to avoid pests development. 157 • • - Baseline A grower may utilise agricultural land without acquiring a certificate. Standard on good agricultural and environmental conditions, organic matter in the soil: Crop production in monoculture is allowed. In accordance with Annex II to the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) on all arable areas of an agricultural holding maize may be produced for three years at the most. • • Requirements for final beneficiaries Integrated crop production certificate acquisition is required. Monoculture production of individual crops and related plant varieties (identical genus) is prohibited, with the exemption of hop. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities In Slovenia, integrated production of crops has been implemented since 2004 and is based on the European Initiative for Sustainable Development in Agriculture (EISA) taking into account regulations on environmental protection, plant protection products and research results in Slovenia and in countries which have organised the integrated crop production, and other conceptual IOBC guidelines (International Organisation for Biological and Integrated Control of Noxious Animals and Plants). The anticipated impacts of the implementation of the submeasure are: • long-term environmental protection in all areas under crops on agricultural holding, in particular reduced and controlled use of plant protection products and fertilisers, • improvement of the crop production technique whilst introducing nature friendly farming practices, • preservation and improvement of soil structure and fertility, • production of quality and safe food and raw materials acceptable to consumers (fresh, pest-free, of nice appearance, of adequate size, etc.), • economically acceptable application of means of production, • economical use of energy by applying modern mechanisation. The effects of integrated agriculture are visible in the reduction of negative impacts of crop production on the environment. The careful choice of plant protection products, which are less harmful to the environment, reduces the use of these products and positively affects the biodiversity. However, the input of plant protection products into soil and subsequently into groundwater is also reduced by crop rotation. A rational strategy of fertilisation, in particular soil analysis and elaboration of fertilisation plans, provide optimal fertilisation. The system of integrated production also permits pH balancing of the soil and the achievement and preservation of an appropriate soil structure and thereby also the prevention of soil erosion, while having positive impacts on the macro and micro fauna as well as beneficial insects. Production method can have different impacts on the cultural landscape: monoculture production impoverishes its appearance, while the system of integrated production makes it diverse (crop rotation, crop structure, green stripes of fields, and hedgerows). Green field stripes are very suitable for nesting and provide refuge for wild fauna (birds and small mammals), as well as many beneficial insects (e.g. predator bugs). The system of integrated crop production is based on: (1) regulation governing integrated crop production and (2) technological guidelines intended for crop producers and agricultural advisors and elaborated for individual crop varieties, including technical (organisation requirements and possibility of joining the system of integrated production of crops) and specific guidelines (agritechnical measures). Control of integrated crop production is carried out by inspection bodies. Crops produced in 158 Slovenia may bear the official indication “integrated” if they had been produced in compliance with the rules and if a certificate was issued by an appointed inspection body. This designation, together with the certificates, issued by appointed inspection bodies, ensures quality and guarantees that crops have been produced in integrated manner. Given the data the interest of producers in this kind of production is in continuous increase. In 2004 the integrated crop production certificate was obtained by 829 producers, in 2005 the number increased to 1,309. For Slovenian agriculture, integrated crop production represents a long-term strategy of crop production on agricultural holdings based on nature friendlier cultivation systems with efficient inputs, modern machinery and economically and ecologically justified target crops for the purpose of ensuring greater food quality and safety than by conventional farming. Per-area payments aimed at defraying a part of the costs for additional labour emerging from the more demanding farming method, with controlled use of fertilisers and plant protection products in crop production, are granted to beneficiaries at the national level. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation is based on wheat production. It was made by considering the restrictions under the integrated crop production set out in the submeasure. Taken into account was the produce reduction, which, based on the data provided by regional institutes of the CAFS, in integrated production amounts to about 30 percent. Hence, the calculation considered the wheat production costs, material and energy costs (costs for fertilisation, plant protection products and seed), costs of machinery work (own machinery work and hired machinery services), costs of domestic work, costs of crop production in crop rotation, time spent on training and keeping of records on work tasks and lower income as a result of lower yield. The calculation methodology is shown in Annex 6. Submeasure 214-I/4 Integrated fruit production - Measure description Objective Mechanism Implementation activity Content • Controlled application of fertilisers and plant protection products in fruit production • Payment for extra work involved in more sophisticated farming practice aimed at environmental protection • Integrated fruit production 159 Indicators • · · · • · · · · · - Control: Acreage on which the submeasure is being implemented (ha) Recorded application of fertilisers and plant protection products Number of certificates issued Long-term: Increased acreage of land area under integrated fruit production (ha) Improved quality of fruit produced and ensuring potential consumer health Less chemical residues in the soil Improved groundwater quality Reduced threat of erosion Requirements for final beneficiaries under the submeasure in comparison to the baselines The minimum total acreage of orchards of one fruit variety eligible for payment under the submeasure is 0.5 ha for apples and pears, and 0.3 ha for other fruit varieties. The minimum eligible acreage of an agricultural land unit of one use (single orchard) is 0.1 ha. In implementing the submeasure it is necessary to comply with the regulation governing the integrated fruit production and with technological guidelines on integrated fruit production, whereby the beneficiary must: • include into integrated production all orchards he utilises and which are recorded in the register of fruit producers in intensive orchards, except intensive orchards which are in conversion to organic or which are organic in accordance with the regulations on organic production, • consider that the number of trees must amount to at least 150 trees/ha for olives, at least 100 trees/ha for walnuts and chestnuts and at least 200 trees/ha for any other fruit variety; • follow up the forecast of the observation and forecast service to determine the health protection measures for fruit trees and berries laid down in the technological guidelines as well as consider the actual situation in the orchard or plantation; • identify the actual situation in the orchard or plantation by checking the fruit trees and berries and using appropriate accessories; • apply chemical measures or use plant protection products if the mechanical, biological and biotechnical measures in pest control were already exhausted; • use only plant protection products outlined in the technological guidelines or plant protection products and other plant health preparations allowed in organic production, in accordance with the regulations on organic production; • in chemical pest control, for which the technological guidelines sets a damage threshold, provide information on the pest and the exceeded damage threshold for this pest in the data sheet, received from the inspection body, to justify the use of plant protection products; • apply only fertilisers outlined in the technological guidelines and fertilisers allowed in organic production, in accordance with the regulations on organic production; • register for integrated fruit production control at authorised inspection body by 31 December of the current year at the latest for next year’s control, if he is registering for control for the first time; • keep records and save the documentation, which enables the inspection body to check the types, quantities and use of purchased material (plant protection products, fertilisers) and to check the varieties and the quantities of the fruit sold; • save the records for at least five years and the documentation for at least one year; • allow an insight in the records and documentation if required by the inspection body or a competent inspection service; • report to the MAFF every six months the varieties and the quantities of integrated fruit produced in the past six months, in fifteen days after the last six months have passed; • ensure traceability of integrated fruit on the market. 160 • • • • • • • • Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. Regulatory requirements on operations, standard on sewage sludge: On agricultural holdings land application of mud, silt or compost is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05), which also lays down the land application of sewage sludge, compost or silt form river and lake beds as well as the application of substances in plant irrigation and fertilisation, particularly limit values for annual application of dangerous substances and plant nutrients into and on the soil, input reduction grades and other measures regarding the input. Standard on good agricultural and environmental conditions, minimum maintenance level: The production method is set out in Annex II of the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended). • • • • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure and the use of plant protection products. The producer is obliged to enter into the record all fertilisers applied in the orchard. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. Prohibited is the application of all fertilisers with high heavy metals content. Applied may be only fertilisers outlined in the technological guidelines for integrated fruit production or fertilisers allowed in organic production, in accordance with Annex II, Part A and B of Regulation 2092/91. In implementing the submeasure farming is conducted in accordance with special technological guidelines on integrated fruit production. 161 • • • • • Baseline Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. - Standard on good agricultural and environmental conditions, organic matter in the soil: For a planned increase and/or keeping of the organic matter and humus share in soil the standard agricultural practice considers mainly crop rotation, ploughing in of harvest remains, regular and balanced fertilisation with livestock manure or inclusion of legumes into crop rotation. Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Additional minimum requirements on the application of fertilisers: The amount of applied mineral nitrogen is 250 kg/ha annually. A grower may utilise agricultural land without acquiring a certificate. • • • • • • • • • • • • Requirements for final beneficiaries Applied may be only plant protection products outlined in the technological guidelines for integrated fruit production or plant protection products and other plant protection preparations allowed in organic production, in accordance with Annex II, Part A and B of Regulation 2092/91. Plant protection products may be used only based on a prognosis. The application of certain active substances is limited; the number of treatments is limited as well. In weed, diseases and pest control mechanical/ physical and biotic measures are preferred. The producer must record the type, quantity and time of applied chemical and store fruit separately for at least 3 months after the treatment, if the fruit is chemically protected prior to the storing. In a plantation the width of herbicidal zone may not exceed 1/3 of the row spacing on average (with the exemption for older multiple-row plantations: up to 45%). In implementing the submeasure the target humus content in the soil is 2-4%. In implementing the submeasure stocking density on agricultural holding shall not exceed 1.9 LU/ha of utilised agricultural area. Agricultural holding may not produce livestock manure surplus. In implementing the submeasure the amount of applied mineral nitrogen may not exceed 150 kg/ha annually. In the period from defoliation to blooming of fruit trees or greening of orchard grassland adding of nitrogenous fertilisers is not allowed as well as in the period from end June to autumn, with the exemption of cherries which may be additionally fertilised after harvesting. Olives may be fertilised with nitrogen from end February to mid June and walnut from end March to mid June. Beneficiary eligible for payment under this submeasure must obtain a certificate on integrated fruit production. 162 • • - Baseline Standard on good agricultural and environmental conditions, soil erosion: In accordance with Annex 2 to the Regulation about cross compliance (OJ RS No 34/07, as amended) agricultural land need be utilised in a manner minimising the erosion risk and agritechnical measures applied which reduce the erosion effect. Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. - Agricultural land must be managed every year. - Olive groves must be maintained/ managed in accordance with the established technological practice. • • • • Requirements for final beneficiaries The producer must maintain the orchard grassland system in row spacing as well, with some exemptions (berry plantations; young plantations in the period of berry volume formation; peach and apricot terrains in the Primorska where no possibilities of irrigation exist). Due to the closed cycle the producer must leave the mown grass in the plantation. In new plantations immediate green cover is mandatory (with the exemption of peach plantations until the 3. year, cherry, sour cherry, plum and quetsch plantations until the 5. year; khaki until the 6. year, olives until the 7. year and actinidia until the 4. year). If the producer has a terraced plantation mowing of terrace banks is mandatory. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities Integrated fruit production means balance established by preserving life diversity in the nature through the production of quality and healthy fruit crops in a commercially acceptable way along with controlled use of fertilisers and prescribed plant protection products. Integrated fruit production shall mean the following: • balanced implementation of agri-technical measures whilst taking into account the economic, ecological and toxicological factors, • preferring natural measures over plant protection and bio-technological measures, • reduced use and careful choice of plant protection products, • preferring organic fertilisers over mineral fertilisers, • regular Nmin analysis before nitrogen fertilisation in order to prevent the nitrate leaching into the groundwater and accumulation of nitrates in the plants, • constant control over production by appointed inspection body, • labelled products are compliant with higher production standards. Integrated fruit production is based on: (1) the regulation governing integrated fruit production and (2) technological guidelines intended for fruit producers and agricultural advisors laying down the conditions for setting-up of orchards, orchard fertilisation based on soil analysis, orchard irrigation, soil management in the orchard, pruning, mechanical and technical requirements necessary to maintain the orchards, harvesting and storage, methods of integrated protection of fruit trees against diseases, pests and weeds and list of permitted plant protection products for the following fruit varieties: apple trees, pear trees, peach and nectarine trees, apricot trees, cherry and sour cherry trees, quetsch and plum trees, strawberry, American blueberry, olive trees, actinidia, khaki, fig, 163 walnut, hazel and chestnut trees. Control of integrated fruit production is carried out by inspection bodies. Fruit produced in Slovenia may bear the official indication “integrated” if it had been produced in compliance with the rules and if a certificate has been issued by an appointed inspection body. This designation, together with the certificates, issued by an appointed inspection body, ensures quality and guarantees that fruit was produced in integrated manner. Data show that the interest among producers increases each year, which indicates that producers are becoming aware of the importance of environment friendly farming practices. In 1999 the integrated fruit production certificate was obtained by 451 producers, in 2005 the number increased to 1,131. Integrated fruit production, which is widespread in Slovenia, integrates the economic and the nature protection aspects of agricultural production and, by preserving the diversity of life in the nature, facilitates the production of quality and safe food in an economically viable manner. The development of integrated production contributes to reduced use of chemicals and thus safeguards the environment and public health and, at the same time, ensures improved internal and external properties of fruit. Per-area payments aimed at defraying a part of the costs for additional labour emerging from more demanding farming method, by controlled use of fertilisers and plant protection products in fruit production, are granted to beneficiaries at the national level. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation considered the apple production costs and plantation maintenance costs, time spent on training and keeping of records on work tasks, lower income as a result of lower produce (by about 8 percent) due to the use of less effective plant protection products, particularly to control the codling moth, which consequently reflects in the reduced produce. The calculation was made by considering the restrictions under the integrated fruit production set out in the submeasure. The calculation methodology is shown in Annex 6. Submeasure 214-I/5 Integrated vine production - Measure description Objective Mechanism Implementation activity Content • Controlled application of fertilisers and plant protection products in vine production • Payment for extra work involved in more sophisticated farming practice aimed at environmental protection • Integrated vine production 164 Indicators • · · · • · · · · · - Control: Acreage on which the submeasure is being implemented (ha) Recorded application of fertilisers and plant protection products Number of certificates issued Long-term: Increased acreage of land area under integrated fruit production (ha) Improved quality of grapes and wine produced and ensuring potential consumer health Less chemical residues in the soil Improved groundwater quality Reduced threat of erosion Requirements for final beneficiaries under the submeasure in comparison to the baselines In implementing the submeasure it is necessary to comply with the regulation governing the integrated vine production and with the technological guidelines on integrated vine production, whereby the beneficiary must: • include into integrated production all vineyards he utilises and which are recorded in the register of grape and wine producers, except vineyards which are in conversion to organic or which are organic in accordance with the regulations on organic production, • follow up the forecast of the observation and forecast service to determine the health protection measures for vine laid down in the technological guidelines as well as consider the actual situation in the vineyard; • identify the actual situation in the vineyard by checking the vine and using appropriate accessories; • apply chemical measures or use plant protection products if the mechanical, biological and biotechnical measures in pest control were already exhausted; • use only plant protection products outlined in the technological guidelines or plant protection products and other plant health preparations allowed in organic production, in accordance with the regulations on organic production; • in chemical pest control, for which the technological guidelines sets a damage threshold, provide information on the pest and the exceeded damage threshold for this pest in the data sheet, received from the inspection body, to justify the use of plant protection products; • apply only fertilisers outlined in the technological guidelines and fertilisers allowed in organic production, in accordance with the regulations on organic production; • register for integrated vine production control at authorised inspection body by 31 December of the current year at the latest for next year’s control, if he is registering for control for the first time; • keep records and save the documentation, which enables the inspection body to check the types, quantities and use of purchased material (plant protection products, fertilisers) and to check the varieties and the quantities of the grapes and wine produced, in accordance with the regulations governing the cellaring records and register; • save the records for at least five years and the documentation for at least one year; • allow an insight in the records and documentation if required by the inspection body or a competent inspection service; • ensure traceability of integrated grapes and wine on the market. Baseline Requirements for final beneficiaries 165 • • • • • • • • Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. Regulatory requirements on operations, standard on sewage sludge: On agricultural holdings land application of mud, silt or compost is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) Standard on good agricultural and environmental conditions, minimum maintenance level: The production method is set out in Annex II of the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended). • • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure and the use of plant protection products. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. Applied may be only fertilisers outlined in the technological guidelines for integrated vine production or fertilisers allowed in organic production, in accordance with Annex II, Part A and B of Regulation 2092/91. In implementing the submeasure farming is conducted in accordance with special technological guidelines on integrated vine production. 166 • • Baseline Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. • • • • • • • • • • • • • • A grower may utilise a vineyard without acquiring a certificate. Additional minimum requirements on the application of fertilisers: The amount of applied mineral nitrogen is 250 kg/ha annually. Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. • • • • Requirements for final beneficiaries Applied may be only plant protection products outlined in the technological guidelines for integrated vine production or plant protection products and other plant protection preparations allowed in organic production, in accordance with Annex II, Part A and B of Regulation 2092/91. The frequency of plant protection products application must be reduced. Preferred are mechanical/physical measures for weed, diseases and pests control and measures aimed at the reduction of plant protection products application (selecting adequate site and location, selecting appropriate root stocks and clones, balanced fertilisation - especially with nitrogen). It is necessary to remove leaves from grapes to achieve good aeration and only when a real need arises the application of chemicals for plant protection is allowed. Plant protection products are applied only after all other options have been exhausted and the harmful organisms have exceeded the damage threshold, which mainly applies for pests. A systematic changing of products is necessary. Combinations of products from different chemical groups are necessary, as well as rotation with plant protection products, not only with active substances. In the stripe under the vines weeds may be removed only mechanically. Only in cases this is insufficient, herbicide treatment is allowed, but the width of the treated stripe under the vines may amount to maximum 25% of the net vineyard area. Herbicide application can only be an additional measure. Herbicide application is allowed only by 15. July (with the exemption of vineyards in which particular diseases appear). Special measures for protection against particular diseases have been set. In implementing the submeasure the acquisition of the certificate on integrated vine production is required. In implementing the submeasure the amount of applied mineral nitrogen may not exceed 170 kg/ha annually. In implementing the submeasure stocking density on agricultural holding shall not exceed 1.9 LU/ha of utilised agricultural area. Agricultural holding may not produce livestock manure surplus. 167 • • • • - Baseline Standard on good agricultural and environmental conditions, soil structure: In accordance to Annex II to the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) it is required to apply adequate mechanisation. Standard on good agricultural and environmental conditions, soil erosion: In accordance with Annex 2 to the Regulation about cross compliance (OJ RS No 34/07, as amended) agricultural land need be utilised in a manner minimising the erosion risk and agritechnical measures applied which reduce the erosion effect. Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) the grower acts with due care and attention if on utilised agricultural land he: - regularly utilises and maintains agricultural land; - provides for the conservation or improvement of soil fertility by an adequate use method, - does not cause land degradation (erosion, compaction, pollution) with inadequate technology, - maintains land exemplary and regularly, - utilises land to enable optimal and economical production by applying appropriate agricultural technology, - manages all areas belonging to agricultural holding to avoid the endangerment of the holding vitality, - provides for adequate land utilisation in case of his/her disability or longer absence, Pursuant to Article 10 of the Wine Act (OJ RS No 105/06) the planting density in a vineyard must be minimum 1,500 vines per hectare. • • • • • • Requirements for final beneficiaries Prohibited is mechanical treatment of soil throughout the year. In integrated grape production permanent greening (sowing of grass-clover mixtures or natural greening where a controlled weed or green cover development is present), short-term greening (sown or natural green manure), soil cultivation (rough tillage in every second row) and soil cover (straw, bark) are mandatory. In the period from 1. November until the phonological phase of the vine B-C the soil in the row spacing must have green cover or be adequately covered. In case the producer clears a vineyard and land he/she must replant it in the next year; during the winter the soil must be protected from erosion. It is very important to conduct green activities as a safety measure to avoid occurrence of infections (topping, weeding). The number of shoots may not exceed 20 shoots per running row metre. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities The integrated production of grapes and wine is a nature friendly method of production of high quality grapes and wines using natural resources and mechanisms minimising negative impacts of farming on the environment and public health. Integrated production of grapes and wine is a production method which: • provides the sustainable production of healthy grapes and high quality wines by reducing the chemical residues in products, • maintains the natural balance in the soil, • reduces a potential risk of producers’ health in plant protection products application, • enhances and maintains the biodiversity of the vineyard agri-ecosystem and surrounding areas, • prefers natural regulatory mechanisms, • minimises water, soil, air and biotope pollution by optimizing the production, • improves the quality and healthiness of grapes and wine produced, • considers the environmental, social, cultural and tourism functions of vine production, • conserves the natural and cultural landscape, 168 • • is under constant control carried out by appointed inspection bodies provides that marked products meet the higher quality standards. Integrated production of grapes and wine is based on: (1) the regulation governing integrated production of grapes and wine and (2) technological guidelines intended for producers of grapes and agricultural advisors laying down the obligations of vine producers to ensure traceability, fertilisation of vineyards based on the soil analysis, methods of soil management in vineyards, grass cover and mulching in the vineyards, vineyard loads, protection of leaf area in vineyards after frost, yield regulation (by removing grapes), integrated protection methods of vines against diseases, pest and weeds, vine sprinkling technique, list of permitted preparations and plant protection products. Producers were granted payments for the implementation of integrated vine production for the first time in 1999 and the interest in integrated vine production has increased noticeably in the recent years. In 2001 the integrated grapes production certificate was obtained by 505 producers, in 2005 the number increased to 2,283. The control of integrated vine production is carried out by inspection bodies. Grapes produced in Slovenia may bear the official indication “integrated” if they had been produced in compliance with the rules and a certificate has been issued by an appointed inspection body. This designation, together with the certificates, issued by appointed inspection body, ensures quality and guarantees that grapes were produced in integrated manner. The anticipated effects of implementing the submeasure are increased area under integrated grape and wine production, consequently reflecting in the reduction of environmental loads, improved wine and grapes quality and ensuring potential consumer health. Integrated production of grapes and wine pursues the objectives of the soil, water and air protection using environment friendly methods, which help to maintain economical production of quality grapes and wine, but foremost the preservation of public health and protection of areas under crops. Payments are therefore granted at the national level. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation considered the grapes production costs, material and energy costs (fertilisation and plant protection products costs), costs of machinery production (domestic machinery work, hired machinery services), domestic work costs, time spent on training and keeping of records on work tasks, lower income as a result of lower grapes produce (by about 35 percent) due to grapevine yellow. The calculation was made by considering the restrictions under the integrated grapes production set out in the submeasure. The calculation methodology is shown in Annex 6. Submeasure 214-I/6 Integrated horticulture - Measure description Objective Content • Controlled application of substrates, fertilisers and plant protection products in horticulture 169 Mechanism • Implementation activity Indicators • • · · · • · · · · - Payment for extra work involved in more sophisticated farming practice aimed at environmental protection Integrated production in horticulture Control: Acreage on which the submeasure is being implemented (ha) Recorded application of substrates, fertilisers and plant protection products Number of certificates issued Long-term: Increased acreage under integrated horticulture (ha) Improved quality of vegetables produced and ensuring potential consumer health Less chemical residues in the soil Improved groundwater quality Requirements for final beneficiaries under the submeasure in comparison to the baselines Payments for integrated production of vegetables are granted both for the production in the open air or in protected indoor areas. In implementing the submeasure it is necessary to comply with the regulation governing the integrated production of vegetables and with the technological guidelines on integrated production of vegetables, whereby the beneficiary must: • include into integrated production all areas on which he produces vegetables in the current year and are owned, leased or rented by him, except areas which are in conversion in organic or which are organic in accordance with the regulations on organic production, and areas which are engaged in the submeasure integrated crop production or mandatory fallow; • follow up the forecast of the observation and forecast service to determine the health protection measures for vegetables laid down in the technological guidelines; • identify the actual situation of the produce by checking the produce and using appropriate accessories; • apply chemical measures or use plant protection products if the mechanical, biological and biotechnical measures in pest control were already exhausted; • use only plant protection products outlined in the technological guidelines or plant protection products and other plant health preparations allowed in organic production, in accordance with the regulations on organic production; • in chemical pest control, for which the technological guidelines sets a damage threshold, provide information on the pest and the exceeded damage threshold for this pest in the data sheet, received from the inspection body, to justify the use of plant protection products; • apply only fertilisers outlined in the technological guidelines and fertilisers allowed in organic production, in accordance with the regulations on organic production; • if exceeding the limit values of mineral nitrogen in the soil, abandon the application of nitrogenous fertilisers for the next crop or include into the rotation an intermediate crop using up the nitrogen to prevent its leaching into the subsoil; • register for control of integrated production of vegetables at authorised inspection body by 31 December of the current year at the latest for next year’s control, if he is registering for control for the first time; • keep records and save the documentation, which enables the inspection body to check the types, quantities and use of purchased material (plant protection products, fertilisers) and to check the varieties and the quantities of vegetables sold; • save the records for at least five years and the documentation for at least one year; • allow an insight in the records and documentation if required by the inspection body or a competent inspection service; • report to the MAFF every six months the varieties and the quantities of integrated vegetables produced in the past six months, in fifteen days after the last six months have passed; • ensure traceability of integrated vegetables on the market. 170 • • • • • • • • • Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. Regulatory requirements on operations, standard on sewage sludge: On agricultural holdings land application of mud, silt or compost is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05), which also lays down the land application of sewage sludge, compost or silt form river and lake beds as well as the application of substances in plant irrigation and fertilisation, particularly limit values for annual application of dangerous substances and plant nutrients into and on the soil, input reduction grades and other measures regarding the input. Standard on good agricultural and environmental conditions, minimum maintenance level: The production method is set out in Annex II of the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended). A grower may utilise agricultural land without acquiring a certificate. • • • • • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure and the use of plant protection products. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. Prohibited is the application of silt and compost from sewage sludge. It is allowed to apply exclusively organic fertilisers and materials which do not contain undesirable foreign substances (e.g. heavy metals). Applied may be only fertilisers outlined in the technological guidelines for integrated production of vegetables or fertilisers allowed in organic production, in accordance with Annex II, Part A and B of Regulation 2092/91. In implementing the submeasure farming is conducted in accordance with special technological guidelines on integrated production of vegetables. In implementing the submeasure the acquisition of the certificate on integrated production of vegetables is required. 171 • • • • • Baseline Standard on good agricultural and environmental conditions, soil structure: In accordance to Annex II to the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) it is required to apply adequate mechanisation. Standard on good agricultural and environmental conditions, soil erosion: In accordance with Annex 2 to the Regulation about cross compliance (OJ RS No 34/07, as amended) agricultural land need be utilised in a manner minimising the erosion risk and agritechnical measures applied which reduce the erosion effect. Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) the grower acts with due care and attention if on utilised agricultural area he: - regularly utilises and maintains agricultural land; - provides for the conservation or improvement of soil fertility by an adequate use method, - does not cause land degradation (erosion, compaction, pollution) with inadequate technology, - maintains land exemplary and regularly, - utilises land to enable optimal and economical production by applying appropriate agricultural technology, - manages all areas belonging to agricultural holding to avoid the endangerment of the holding vitality, - provides for adequate land utilisation in case of his/her disability or longer absence. Standard on good agricultural and environmental conditions, organic matter in soil: In accordance with Annex 2 of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) the three-year crop rotation is mandatory on at least 50 percent of arable areas of the entire agricultural holding. Grasses, clovers, grass-clover mixtures and clover-grass mixtures on arable areas are a part of crop rotation and may be on the same area longer than three years. Additional minimum requirements on the application of fertilisers: The amount of applied mineral nitrogen is 250 kg/ha annually. • • • • • • • • • • Requirements for final beneficiaries In soil treatment all measures must be aimed at the conservation and improvement of soil fertility. It is necessary to avoid land sliding and land compaction. The soil on inclined areas must be cultivated crossways to the slope (erosion prevention). It is necessary to conduct deep tillage, but only in optimal soil conditions. In autumn the ploughing in of harvest remains is conducted as late as possible. It is necessary to prevent winter fallow (unsown areas during winter) The soil must be treated in the manner providing for the conservation of the soil structure. In case a winter furrow is required it is to be ploughed in as late as possible. Mandatory is a more than three-year crop rotation which must be widely planned and diverse. In implementing the submeasure the amount of applied mineral nitrogen may not exceed 170 kg/ha annually, except in certain vegetables outlined in the technological guidelines for integrated production of vegetables in which the amount of applied mineral nitrogen may not exceed 200 kg/ha annually. 172 • • • - Baseline Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. • • • • • Requirements for final beneficiaries In implementing the submeasure stocking density on agricultural holding shall not exceed 1.9 LU/ha of utilised agricultural area. Agricultural holding may not produce livestock manure surplus. Applied may be only plant protection products outlined in the technological guidelines for integrated production of vegetables or plant protection products and other plant protection preparations allowed in organic production, in accordance with Annex II, Part A and B of Regulation 2092/91. Plant protection products may be used only on the bases of a prognosis. The application of certain active substances is limited as well as the number of treatments. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities Integrated production of vegetables is a nature and consumer friendly method of production, having the following key objectives: • production of healthy vegetables and improvement of consumers’ nutrition habits, • decreased and controlled use of fertilisers and plant protection products, • improved quality of vegetables produced and ensuring potential consumer health, • environmental protection by reducing potential pollution production sources, • preservation of natural enemies by application of appropriate plant protection methods, • improvement and maintenance of permanent fertility and (micro)biologic activity of the soil, • constant control over production and ensuring consumers that these products are subjected to permanent technical control, • labelled products are compliant with higher production standards. Integrated production of vegetables is based on: (1) the regulation governing integrated production of vegetables and (2) technological guidelines intended for vegetable producers and agricultural advisors laying down the methods of soil management, irrigation conditions, fertilisation of vegetables on the basis of soil analysis, reference Nmin values as a basis for nitrogen fertilisation, selection of cultivars, selection of site for the production of vegetables, crop rotation, production in protected indoor areas, harvesting and storage, integrated protection methods of vegetables against 173 diseases, pests and weeds and list of permitted preparations and/or plant protection products for the following vegetable species : beans and peas, mangold, endive, brassicas, carrots, celery and parsley, early potatoes, tomatoes, peppers and eggplant produced in open fields and under shelters, cucumbers and gherkins, pumpkins, water melon and melon produced in open fields and cucumbers and courgettes produced under shelters, melons, red beet, lettuce, asparagus, spinach, alliaceous plants and witloof. The control of integrated production of vegetables is carried out by inspection bodies. Producers are organised within the frame of Slovenian Association for Integrated Production of Vegetables, which organises education courses, meetings of producers and consumers, provides for application of the trademark, product labelling, promotion and presentations at exhibitions and fairs. Payments for integrated production of vegetables were granted for the first time in 1999. Integrated horticulture is well accepted by the producers, as in the recent years the interest therein has notably increased. In 1999 the integrated vegetable production certificate was obtained by 43 producers, in 2005 the number increased to 380. Compared to market oriented production in Slovenia, in 1998 integrated production of vegetables was carried out by 1 percent of the members, in 1999 by 10 percent, in 2000 by 24 percent, in 2001 by 45 percent, in 2002 by 55 percent and in 2003 by 65 percent of the members. Vegetables produced in accordance with the rules may bear the official indication “integrated” and the indication of the Slovenian Association for Integrated Production of Vegetables in the form of a ladybug. These indications, together with the certificates, issued by appointed inspection body, ensure quality and guarantee that vegetables were produced in integrated manner. The anticipated effects of implementing the submeasure are increased area under integrated production of vegetables, consequently reflecting in a reduction of environmental loads, improved quality of vegetables and ensuring consumer health. The focus of integrated horticulture lies on farm as a whole and is concerned with environmental balance; fertilisation must be based on soil analysis and the needs of plants, maintaining and increasing soil fertility, crop rotation, and selection of resistant varieties/cultivars. Basic objectives of the integrated production of vegetables are: production of healthy vegetables of high internal and external quality, environmental protection and economical employment of raw materials. Production control includes the analysis of pesticide and nitrate residues in crops and, in addition to external product control, also guarantees a high internal control and sanitary suitability of vegetables. Payments are granted at the national level. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation considered the restrictions of integrated production of vegetables outdoors and in protected indoor areas as set out in the submeasure. In the calculation for integrated horticulture certain differences occur, particularly in the application of manual labour as a result of mechanical weed and pest control. The calculation took into account the vegetable production costs, material and energy costs (fertilisation, plant protection products and seed costs), costs of machinery production (domestic machinery work, hired machinery services), domestic work costs, time spent on training and keeping of records on work tasks and in integrated horticulture outdoors the costs of vegetable production under crop rotation as well. 174 Submeasure 214-I/7 Organic farming - Measure description Objective Mechanism Implementation activity Indicators - Content • Controlled production of high-quality foodstuffs and reduction of loads on the environment in accordance with guidance of Regulation 2092/91 • Payment for extra work involved in more sophisticated farming practice aimed at environmental protection • Production employing special controls and technologic limitations • Control: · Records on organic farming (number of farms, number of hectares, livestock count) · Acreage of land area under different crops (ha) · Recorded application of fertilisers and plant protection products · Number of positive reports on organic production and/or processing or certificates issued • Long-term: · Increased number of organic farms (ha, livestock count) · Improved quality of food produced and ensuring potential consumer health · Improved soil properties · Improved groundwater quality Requirements for final beneficiaries under the submeasure in comparison to the baselines Payments under organic farming are granted for: • fields-crops, • vegetables grown outdoors, • vegetables grown in protected indoor areas, • olive groves with tree density of minimum 150 trees/ha, orchards with minimum 100 trees/ha for walnut and chestnut and minimum 200 trees/ha for other fruit varieties, • grassland high-trunk orchards with tree density of 50-200 trees per ha, • vineyards, hop gardens, tree nurseries, • grassland (grasses, grass-clover mix in the fields, extensive grassland). The total area, regardless of the utilisation type, for which payments can be claimed under the submeasure, must cover at least 0.3 ha. The minimum agricultural land area of one use may not be smaller than 0.1 ha. In implementing the submeasure it is mandatory to comply with the regulation governing organic production and processing of agricultural products and/or foodstuffs as well as the regulation designating the areas in the RS suitable for organic beekeeping. Beneficiaries may obtain payments for meadow orchards if they meet the following conditions: • meadow orchards must be recorded in the register of fruit producers in extensive and meadow orchards; • the tree density must range from minimum 50 trees to maximum 200 trees/ha; • maintenance of high-trunk extensive orchards, which includes tree maintenance and plantation renewal (filling in the blank spots); • restoration pruning must be carried out in the first or second year of engagement in the submeasure (for beneficiaries who shifted from the old agri-environmental measures scheme into the new scheme of agri-environmental submeasures it is considered that this condition is fulfilled if they carried out the restoration pruning in the first or second year of engagement in the agri-environmental measure under the old scheme); • in plantation renewal no weak root stocks may be used; • green cover in the orchard; 175 • • mowing or grazing of grassland areas; use of plant protection products based on a prognosis. 176 • • • • • • • • Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex 2 of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) the grower acts with due care and attention if he/she performs the most essential measures with appropriate technology, in particular by regularly utilising and maintaining agricultural areas by applying appropriate agricultural technologies and thus provides for optimal and economic production. • • • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers under the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure and the use of plant protection products. In accordance with Regulation 2092/91 a detailed record on production and processing must be kept. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. In accordance with Regulation 2092/91 in organic farming the restrictions on the application of fertilisers are important, the application of nonsynthetic fertilisers and livestock manure is also limited. Only the application of organically produced seeds and vegetative propagating material is allowed, unless exemptions are allowed. 177 • • • • • • • • • Baseline Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. Annual production plan and livestock management plan are not mandatory. The use of genetically modified organisms and products obtained from GMO is allowed in accordance with Regulation (EC) No 1829/2003 of the European Parliament and of the Council of 22 September 2003 on genetically modified food and feed (OJ L 268, 8.10.2003, p. 1–23). The use of plant protection products containing or comprising of genetically modified organisms is governed by the Plant Protection Products Act (OJ RS No 98/04 – official consolidated text). A grower may utilise agricultural land without acquiring a certificate. Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Beekeeping is possible everywhere. Entry of a meadow orchard into a register is not obligatory. • • • • • • • • Requirements for final beneficiaries In accordance with Regulation 2092/91 in organic farming the restrictions on the use of plant protection products and other plant protection preparation. The application of growth regulators is prohibited. Each year the producer must draw up an annual production plan and organic livestock management plan in accordance with Regulation 2092/91. In accordance with Regulation 2092/91 the use of genetically modified organisms and products obtained from GMO is not allowed. Beneficiaries eligible for payments under this submeasure must obtain a statement on organic production and/or processing of agricultural products and/or foodstuffs or a certificate. In implementing the submeasure: - beneficiaries are eligible for payments for utilised grassland only for organic livestock breeding with stocking density 0.2-1.9 LU/ha of utilised agricultural area in 2007, 0.3-1.9 LU/ha in 2008, 0.4-1.9 LU/ha in 2009 and 0.5-1.9 LU/ha in 2010-2013, except when animals are grazing on alps or common pastures and the stocking density on the primary agricultural holding may be 0-1.9 LU/ha of utilised agricultural area. - Agricultural holding may not produce livestock manure surplus. Organic beekeeping is allowed only in an area designated by the minister responsible for agriculture. In implementing the submeasure the entry of a meadow orchard into the register of fruit producers in extensive or meadow orchards is obligatory. 178 • - Baseline Regulatory requirements on operations, standard on animal welfare: Pursuant to Annex I to the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) domestic animals are to be bred in a manner to satisfy their biological needs, to avoid distraction of their physical functions and behaviour, to prevent their adjustment capability from being overcharged and to treat them in accordance with regulations governing animal protection and veterinary. Feeding, care and accommodation are suitable if the physiological, ethological and other needs of domestic animals are satisfied. Domestic animals are to be fed in a manner suitable for individual domestic species, they are properly cared for and adequate accommodation facilities are provided. Forced feeding of domestic animals is allowed if it is necessary for their survival or for medical reasons. A breeder must regularly and sufficiently provide the animals with quality and adequate fodder and water. • Requirements for final beneficiaries In accordance with Regulation 2092/91 in organic farming tethered breeding is prohibited; additionally, some other restrictions on fodder, pasture, disease control apply. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities In Slovenia, organic farming has been carried out since the late 1980s and the producers were granted payments for the first time in 1999. The implementation of organic farming is based on regulation governing organic production and processing of agricultural products and foodstuffs and rules governing the designation of areas in the RS suitable for organic beekeeping. Both are in accordance with Regulation 2092/91. Organic farming arouse great interest in producers (in 1999, 300 producers were included in the control of organic production and processing, while in 2006 as many as 1,876) and therefore it is expected that organic farming shall include approximately 10 percent of utilised agricultural area by 2013. Additionally, there is also a growing interest of consumers in this kind of products and foodstuffs, since consumers are becoming more and more demanding and aware of the quality and healthiness of such products and foodstuffs. In order to promote organic farming: • payments for different crops have been granted since 1999, • a network of organic farmers was established, • inspection bodies for control of agricultural products and foodstuffs were officially appointed, • with the financial support of the MAFF trademarks of different associations of organic producers were developed (BIODAR), • official label “ ekološki ” (organic) was designed, • MAFF keeps the register of organic producers and processors and manages the labelling system of organic agricultural products and foodstuffs, • MAFF keeps a data base on organic seeds, seed potato and vegetative propagating material, • control of import from third countries was established, • well organised market of organic agri-foodstuff products was founded, • active organic market stands were organised (sale of organic agricultural products and foodstuffs), • in 2005 the Government of the RS adopted the Action plan for the development of organic farming in Slovenia by 2015. In organic farming method production control is mandatory. Certificate issued by an inspection 179 body is a guarantee to consumers on special production methods of organic products and foodstuffs. In compliance with the orientation of safe food production and processing, the safest is certainly the controlled organically produced or processed food since it may not contain any residues of plant protection products and heavy metals, or growth regulators or hormones and genetically modified organisms residues. In order to prove that the products and foodstuffs are organically produced, the consumers or buyers may verify whether a certificate of an appointed inspection body has been issued for these products and foodstuffs. On the areas on which the submeasure is implemented the application of plant protection products and light soluble mineral fertilisers, growth regulators, genetically modified organisms is prohibited. This means that the surface areas shall not be loaded with this type of substances as soon as in the first year of implementing the submeasure. This way, organic farming also contributes to the environmental protection against additional loads resulting from agriculture and to the biodiversity conservation. The average intensity of Slovenian farms is considerably lower than that in the Western European countries. Mostly, the production is still traditional, with a large share of manual work, which, taking into account the increasing consumer demand for higher quality food, contributes to a quickened establishment of organic farming. Small to medium-sized mixed farms also offer ideal opportunities for conversion to organic food production. Therefore per-area payments intended to support the production under the special control and technological restrictions are granted to beneficiaries at the national level. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation for organic farming is based on the direct comparison of costs (in envisaged yield and produce prices) and income of existing calculation system of the Faculty of Agriculture, Maribor. Basic differences mainly occur in products (products are predominantly so much smaller that even higher price cannot compensate for the financial loss), as well as in production costs themselves due to the organic production technology. The calculation was made by considering the restrictions in organic farming set out in the submeasure. The calculation of payment amounts took into consideration: • fields-crops: maize production costs, material and energy costs (fertilisation and seed costs), costs of machinery production (domestic machinery work, hired machinery services), domestic work costs, crop rotation costs, time spent on training and keeping of records on work tasks, higher produce price (by about 29 percent), lower income as a result of lower yield (by about 55 percent), operating costs (20 percent of the income foregone and additional costs emerging from the commitment made); • vegetables grown outdoors: cucumber production costs, material and energy costs (fertilisation, plant protection products and seed costs), costs of domestic machinery production (ploughing, harrowing, produce transport, fertilisation, irrigation, cultivation, sprinkling costs), domestic manual labour costs, crop rotation costs, time spent on training and keeping of records on work tasks, lower cucumber yield (by about 37 percent), higher produce price (by about 55 percent), operating costs (20 percent of the income foregone and additional costs emerging from the commitment made); • vegetables grown in protected indoor areas: cucumber production costs, material and energy costs (fertilisation, plant protection products and seed costs), costs of domestic machinery 180 • • • • production (ploughing, harrowing, produce transport, fertilisation, irrigation, cultivation, sprinkling costs), domestic manual labour costs, time spent on training and keeping of records on work tasks, lower cucumber yield (by about 37 percent), higher produce price (by about 55 percent), operating costs (20 percent of the income foregone and additional costs emerging from the commitment made); orchards: apple production costs, time spent on training and keeping of records on work tasks, lower apple yield (by about 39 percent), higher apple price (by about 33 percent), operating costs (20 percent of the income foregone and additional costs emerging from the commitment made); meadow high-trunk orchards: production costs on the meadow mown three times, additional costs of orchard maintenance (harvesting, pruning and cleaning costs), time spent on training and keeping of records on work tasks, lower hay yield (by about 40 percent), apple yield value, operating costs (20 percent of the income foregone and additional costs emerging from the commitment made); vineyards: grape production costs, material and energy costs (fertilisation, plant protection products costs), costs of domestic machinery production, domestic work costs, time spent on training and keeping of records on work tasks, lower grape yield (by about 59 percent), higher grape price (by about 40 percent), operating costs (20 percent of the income foregone and additional costs emerging from the commitment made); grassland: production costs on the meadow mown three times, time spent on training and keeping of records on work tasks, lower hay yield (by about 38 percent), higher produce price (by about 25 percent), operating costs (20 percent of the income foregone and additional costs emerging from the commitment made). The calculation methodology is shown in Annex 6. Group II: Conservation of natural conditions, biodiversity, soil fertility and traditional cultural landscape Natural conditions are specific properties of a given region. In order to conserve them or at least preserve them to a certain degree, Group II of agri-environmental submeasures is aimed at the promotion and preservation of suitable land management within traditional agricultural practices, emphasising the protection and conservation of natural conditions, biodiversity of the rural areas, soil fertility and traditional cultural landscape in rural areas. Biodiversity of a particular eco-system is based on biologic diversity and variations within species and among them. The submeasures are aimed directly at the conservation of habitats and ecosystems, as the variety of species and habitats are strongly dependent on the framing practices as well. Since, in the rural areas, biodiversity and cultural landscape are related also to agriculture, the submeasures facilitate the establishment of the required balance between these elements, observing, as well, the environmental component, since, in the opposite case, there is a risk to loose the rich biologic and cultural heritage of the rural areas. Hence, the preservation of nature, biodiversity, soil fertility and traditional cultural landscape are comprised under the following submeasures: 214-II/1 214-II/2 214-II/3 214-II/4 214-II/5 214-II/6 Mountain pastures, Steep slopes mowing, Humpy meadows mowing, Meadow orchards, Rearing of autochthonous and traditional domestic breeds, Production of autochthonous and traditional agricultural plant varieties, 181 214-II/7 Sustainable rearing of domestic animals, 214-II/8 Extensive grassland maintenance. The objectives, mechanisms and applicable obligations under each agri-environmental submeasure are listed in the following pages. Submeasure 214-II/1 Mountain pastures - Measure description Objective Mechanism Implementation activity Indicators - Content • Mountain pastures aimed at preserving traditional farming methods in mountain areas and at preserving environmental, cultural and landscape diversity of mountains • Payment per pasture land as compensation for costs of extra work involved in the preservation of traditional farming practices • Pasture in mountains during the pasture season • Control: · Acreage on which the submeasure is being implemented (ha) · Count of grazing animals · Contract with the herdsman • Long-term: · Preservation of utilised mountain areas · Conservation of a typical landscape and habitats of numerous plant and animal species · Production of healthy and quality foodstuffs of animal origin and ensuring consumer health Requirements for final beneficiaries under the submeasure in comparison to the baselines Payment may be obtained for mountain pasture with or without a herdsman. • • • Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine. • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. 182 • • • • • • • Baseline Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. - Agricultural land must be managed every year. Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Herdsman is not obligatory. • • • • • • • • Requirements for final beneficiaries Keeping of records is mandatory for all producers under the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of fertilisers and the use of plant protection products. In case of common use of an alp or mountain pasture a pasture order is required. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. In accordance with Annex II, Part A and B of Regulation 2092/91 only the fertilisers allowed in organic farming may be applied. Utilisation of grassland areas is possible only in a traditional manner with grazing animals. In implementing the submeasure - stocking density during the pasture season shall be 0.5-1.9 LU/ha (by considering all grazing animals). - Agricultural holding may not produce livestock manure surplus. In mountain pasture with a herdsman the presence of a herdsman is mandatory. The herdsman must be under contract. 183 • • • Baseline Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. Cleaning mowing is not obligatory. • • Requirements for final beneficiaries Applied may be only plant protection products and other plant protection preparations allowed organic production, in accordance with Annex II, Part A and B of Regulation 2092/91. After the pasture season manual removal of bushes and weeds is mandatory. Alp on which mountain pasture is employed shall, in addition to the above, meet the following requirements: • by tradition, it is employed in individual or common agricultural land use in the high-altitude region of Slovenia, • it is a geographically rounded estate with farm buildings (stables, dairies), dwelling buildings (shepherd cottages), with its own water supply for human and animal consumption (spring tapping, well), • it is characterised with a shorter vegetation period, versatile climatic and soil conditions, animal and plant life diversity, • it is employed in seasonal pasture of animals, without their daily returning to domestic care, • the animals remain on pasture for a minimum of 80 days, and the extent of grassland area in use is minimum 5 ha. - Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities Similarly to certain neighbouring countries, a significant part of Slovenia lies in the alpine and highaltitude areas. As a result, mountain pasture has a long-standing and rich tradition dating back to the 12th century when written documents first mention mountain pastures under the Krn Mountain. A particular form of economy was established. Mountain pasture begins each year with the movement of animals from the valleys to mountain pastures and ends with their return to the indoor housing facilities in autumn. To manage mountain pasture a special pasture order was established and applied officially in the 19th century for the first time. Pasture order contains the rights and obligations of farmers regarding pasture and work. The significant role of mountain pasture has been preserved to date since summer pasture in high-altitude areas has continued this long-standing tradition of pasture and the processing of milk into milk products (cheese-making); it has also preserved the biodiversity of pastures and prevented overgrowing. The annual use of these pastures allows the maintenance and preservation of infrastructure in the mountains as well. Mountain pastures are located in particular in the Alpine area (Julian Alps, Karavanke, Kamniško184 Savinjske Alps) and the Prealpine area (Polhograjsko-Škofjeloško highlands, Cerkljansko-Idrijsko highlands, Tolminsko highlands, Posavsko highlands, the Zgornja Savinjska valley, Pohorje and Kozjansko) and, to a certain extent, in the Dinaric-Karst area (elevated karst plateaux, karst plateaux of southern Slovenia). In these areas, livestock production and dairy sheep and goat breeding are prevalent and mountain pasture in summer takes place on the alpine pastures. All together, mountain pastures comprise around 12,000 ha, their size ranging from 5 to 250 ha, on average about 44 ha35. Due to the shorter vegetation period, pasture lasts between 80 and 120 days. Mountain pastures mostly feature huts for shepherds, housing for animals, fences, and access roads. Electricity and water supply are more or less available. Buildings are often architectural monuments and as such represent a valuable cultural and architectural heritage of the countryside. The environmental, cultural and landscape variety of mountain pastures makes these areas multifunctional. Traditional mountain pasture is a nature-friendly method of managing the alpine areas and at the same time facilitating their multifaceted sustainable development. The implementation of the submeasure of mountain pasture is therefore intended to preserve the utilisation of alpine areas and traditional farming methods; preserve the typical landscape and habitat for many plant and animal species; ensure healthy and quality foodstuffs of animal origin and thus also promote consumer health. Mountain pastures represent a traditional form of individual or common use of agricultural land in the alpine regions of Slovenia. It contributes to preservation of natural and cultural landscape. In order to preserve these areas utilised and inhabited, payments are granted to beneficiaries who manage mountain pastures, as follows: (1) area payment for mountain pasture alone or (2) area payment for mountain pasture and the herdsman. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation for mountain pasture is based on the comparison of classical rearing in stables and rearing in which dairy cows are grazing during a certain period. The calculation considered the classical rearing costs (9 months), mountain rearing costs (3 months), animal transport and alp maintenance costs, cleaning mowing costs, (manual removal of bushes and weeds), time spent on training and keeping of records on work tasks and costs for herdsman in case of mountain pasture with herdsman. Considered was also lower milk production and milk price as a result of poorer feeding on alp as well as reduced stocking density due to mountain pasture, which is not necessary in regular farming. The calculation methodology is shown in Annex 6. Submeasure 214-II/2 Steep slopes mowing - Measure description Objective 35 Content • Steep slopes mowing aimed at preserving traditional farming methods and typical landscape, natural features and habitats Data from the register of agricultural holdings. 185 Mechanism • Implementation activity • Indicators • · · • · · · - Per area payment land as compensation for costs of extra work involved in the conservation of traditional farming practices Mowing of steep slopes to conserve traditional ways of grassland use in specific natural conditions Control: Acreage with inclination 35-50% (ha) on which the submeasure is being implemented Acreage with inclination over 50% (ha) on which the submeasure is being implemented Long-term: Conservation of traditional farming practices and typical cultural landscape Conservation of natural features Conservation of habitats of numerous plant and animal species Requirements for final beneficiaries under the submeasure in comparison to the baselines Payments for mowing of steep slopes may be obtained for meadows with inclination 35-50 percent and for meadows with inclination over 50 percent. • • - • • - Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, , as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. - - Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers under the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of fertilisers and the use of plant protection products. 186 - • - - - Baseline Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. - Agricultural land must be managed every year. Additional minimum requirements on the application of fertilisers: The amount of applied mineral nitrogen is 250 kg//ha annually. - • Requirements for final beneficiaries Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. In implementing the submeasure - Stocking density on agricultural holding may not exceed 1.9 LU/ha of utilised agricultural area.. - Agricultural holding may not produce livestock manure surplus. - Mandatory are minimum one additional mowing (manual with a self-propelled mower or specialised mechanisation) and gathering (manual or with a special mechanisation) annually. - In implementing the submeasure the amount of applied mineral nitrogen may not exceed 170 kg/ha annually. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities Slovenia is among countries with highly diversified agricultural areas reflecting in varied relief. One of the recognisable Slovenian features is landscape diversity, formed at the contact of natural regional units as the consequence of specific land use and the way of life of our predecessors. Very common landscape elements are thus steep slope meadows. As a part of agricultural landscape they should be regularly maintained, but owing to steep slopes these meadows are abandoned. In order to prevent the abandonment of farming and consequential overgrowing the implementation of submeasure is aimed at mowing of steep slope meadows to prevent the overgrowing, conserve the traditional farming practices (hay mowing and gathering) and typical landscape, conserve specific natural features and the habitats of numerous plant and animal species, which in lower inclinations reflects in intensification prevention (conversion of meadows in perennial crops) and in higher inclinations in afforestation prevention. To prevent such negative trends and to conserve traditional farming practices, payments for mowing of steep slope meadows are granted to beneficiaries whose 187 meadows are located on slopes with inclination of 35 to 50 percent or over 50 percent. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation is based on the meadow mown three times in comparison to the steep slope meadow mown only once. Considered were production costs on the meadow mown once, machinery work costs (produce transport costs), manual labour costs (manual mowing costs), time spent on training and keeping of records on work tasks, lower income as a result of lower hay yield (by about 69 percent) and lower hay price (by about 40 percent) on meadow mown once due to lower feed quality of hay. The calculation methodology is shown in Annex 6. Submeasure 214-II/3 Humpy meadows mowing - Measure description Objective Mechanism Implementation activity Indicators • • Content • Humpy meadows mowing aimed at conserving cultural landscape and habitats • Per area payment as compensation for costs of extra work involved in the conservation of traditional farming practices • Manual mowing of humpy meadows to conserve traditional farming practices and natural landscape features • Control: · Acreage on which the submeasure is being implemented (ha) • Long-term: · Conservation of traditional farming practices and typical cultural landscape · Conservation of natural features · Conservation of habitats of numerous plant and animal species Requirements for final beneficiaries under the submeasure in comparison to the baselines Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. - Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. 188 • • - • - • Baseline Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Different types of meadows are utilised identically, regardless of the area where they are situated. Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. Agricultural land must be managed every year. The application of mineral fertilisers is allowed. - - Requirements for final beneficiaries Keeping of records is mandatory for all producers under the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of fertilisers and the use of plant protection products. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. - Agricultural holding or certain areas of agricultural holding must be situated in humpy meadow areas from official register (Annex 7). • In implementing the submeasure - Stocking density on agricultural holding may exceed 1.9 LU/ha of utilised agricultural area. - Agricultural holding may not produce livestock manure surplus. - Mandatory are minimum one manual mowing and gathering annually. - In implementing the submeasure the application of mineral fertilisers is not allowed. 189 • - - Baseline Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, 5/07). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. - Requirements for final beneficiaries Application of plant protection products is not allowed. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities Additional feature of Slovenian landscape is high spatial fragmentation, which gives a very interesting and varied landscape image of a mosaic-like structure. One of these features can be found on limestone glacial deposits, mainly ground moraines, where chemical dissolving caused formation of shallow sinkholes. As regards the shape and size they are much alike, but irregularly dispersed over meadows. Shallow hollows most frequently separate less than 1 m high rounded embossments, known as humpy meadows. Humpy meadows are an agricultural landscape feature and a natural heritage, but unfortunately they are disappearing due to difficult utilisation conditions. Production intensification can cause a loss of this identity and along with the economical reasons also the disappearance of certain habitats and species since these meadows are being flattened for easier utilisation. In order to preserve these Pleistocene features, the submeasure foresees at least one manual mowing and gathering annually. Thus the conservation of traditional farming practices and of typical landscape, specific natural features and habitats of numerous plant and animal species shall be provided for. Payments are therefore devoted to the conservation of the cultural landscape and traditional methods of humpy meadows management and are granted to beneficiaries in areas specified in Annex 7. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation is based on the meadow mown three times in comparison to the humpy meadow mown only once. Considered were production costs on the meadow mown once, machinery work costs (produce transport costs), manual labour costs (mowing of humpy meadows), time spent on training and keeping of records on work tasks, lower income as a result of lower hay yield (by about 190 69 percent) and lower hay price (by about 40 percent) due to lower feed quality of hay. The calculation methodology is shown in Annex 6. Submeasure 214-II/4 Meadow orchards - Measure description Objective Mechanism Implementation activity Indicators • • • Content • Conservation of meadow orchards to preserve traditional cultural landscape and biodiversity • Per area payment as compensation for costs of extra work involved in the conservation of traditional farming practices • Conservation of traditional extensive perennial orchards • Control: · Acreage of cultivated meadow orchards (ha) · Reduced application of plant protection products in accordance with the prognosis · Recorded application of fertilisers and plant protection products • Long-term: · Reduced threat of erosion · Conservation of traditional and autochthonous fruit varieties · Conservation of traditional meadow orchard, with possible dual use · Conservation of typical landscape and habitats of numerous plant and animal species · Wider range of fruit products, based on old aromatic fruit varieties Requirements for final beneficiaries under the submeasure in comparison to the baselines Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine. • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. 191 • • • • • • Baseline Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. - Agricultural land must be managed every year. - Olive groves must be maintained/ managed in accordance with the established technological practice. - It is required to implement the necessary measures within the framework of appropriate technology and to maintain the land regularly and exemplary. Entry of meadow orchard in register is not obligatory. • • • • • • • • • • Requirements for final beneficiaries Keeping of records is mandatory for all producers under the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of fertilisers and the use of plant protection products. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. Orchards must be under permanent green cover. Required is maintenance of orchard grassland and mowing or pasture of grassland areas. Application of weak growing rootstocks in the plantation renewal is not allowed. Required is maintenance of high-trunk meadow orchards, including the treatment of trees and plantation restoration (planting of empty spots). Minimum number of trees per hectare is 50 and maximum 200 trees per hectare. Restoration pruning must be carried out in the first or second year of engagement in the submeasure (for beneficiaries who shifted from the old agrienvironmental measures scheme into the new scheme of agri-environmental submeasures it is considered that this condition is fulfilled if they carried out the restoration pruning in the first or second year of engagement in the agri-environmental measure under the old scheme). Grassland is to be mown under the tree crowns as well. Meadow orchards must be recorded in the register of fruit producers in extensive or meadow orchards. 192 • • • • • - Baseline Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Additional minimum requirements on the application of fertilisers: The amount of applied mineral nitrogen is 250 kg/ha annually. Regulatory requirements on operations, standard on plant protection products: Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 - official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. • • • Requirements for final beneficiaries In implementing the submeasure - Stocking density on agricultural holding may not exceed 1.9 LU/ha of utilised agricultural area. - Agricultural holding may not produce livestock manure surplus. In implementing the submeasure the amount of applied mineral nitrogen may not exceed 150 kg/ha annually. Application of plant protection products may be allowed on the basis of a prognosis, where one exists. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities Meadow orchards represent a Slovenian countryside identity and the treasury of biodiversity in agriculture. They are spread practically throughout the country, but have been strongly neglected in the last decades. Many meadow orchards have survived to date, but modern commercial orchards have replaced the significance of meadow orchards to a great extent; mainly because they are not economical and interesting for the market. Compared to modern intensive orchards, high-trunk trees are less economic to grow and more susceptible to pests and diseases. Consequently, they have not been utilised or renewed and the threes not maintained. Nevertheless, they are still valuable as a source of apple vinegar, cider, and apple juice and apple segments. According to data on the land use (2005) extensive orchards cover less than 1 percent of the total surface area in Slovenia. The surface area of extensive orchards has gradually fallen in the recent years, while that of intensive orchards has grown. Particular for extensive orchards is alternative fruitfulness; therefore the oscillation of the production volume varies from year to year. In extensive meadow orchards with high-trunk trees the traditional old varieties prevail (bobovec apples, carjeviè apples, Jonathan apples, golden parmena apples), while intensive orchards mostly contain modern apple varieties (IdaRed, JonaGold, Golden Delicious, Gloucester). Meadow orchards represent a traditional farming method and are closely related to environmental protection. They are planted on permanent grassland in a wide range of soil conditions and types as well as different fruit varieties. The structural variety of an orchard provides home for numerous 193 animal and plant species. Mice and hedgehogs live on the ground. The trunk of an old fruit tree is covered with lichens, mushrooms and moss. Cavities in the trunk give shelter to hole-nesting birds, woodpeckers, robins or endangered species like wrynecks, owls or bats. The blossoms provide nectar for honeybees, bumble bees, or butterflies. The fruits are not only for human consumption, but also feed to many birds, hedgehogs, badgers or other wildlife. Typical for meadow orchards is their dual use: grassland can be mown or grazed, and at the same time fruit is produced. Fruit grown in traditional meadow orchards is not treated with chemicals and tastes just as well as or even better than commercially grown fruit. Since meadow orchards are valuable landscape features, and biodiversity and cultural resources they must be preserved. Therefore, the submeasure is aimed at ensuring the appropriate management of meadow orchards to benefit wildlife and plant species. As a result of consumer interest and the reintroduction of traditional varieties meadow orchards are being revived. Therefore per-area payments aimed at partial compensating for costs of extra work involved in the reviving and maintenance of meadow orchards are granted to beneficiaries at the national level. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation was based on the comparison of the meadow mown three times comprising no hightrunk trees and the meadow mown three times comprising high-trunk trees. Considered were production costs on the meadow mown three times, orchard maintenance costs (harvesting, pruning, cleaning), time spent on training and keeping of records on work tasks, lower hay yield (by about 25 percent) and the value of apple yield. The calculation methodology is shown in Annex 6. Submeasure 214-II/5 Rearing of autochthonous and traditional domestic breeds - Measure description Objective Mechanism Implementation activity Indicators Content • Conservation of autochthonous and traditional domestic breeds, their genetic diversity and prevention of loss of biological material adapted to certain environment • Payment per LU for retaining the autochthonous and traditional domestic breeds in production • Breeding of pure-breed animals • Control: · Number of animals under the submeasure · Number of individual autochthonous and traditional breeds reared under the submeasure • Long-term: · Conservation of (endangered) autochthonous and traditional domestic breeds · Conservation of typical cultural landscape associated with the breeding of specific breeds of domestic animals in typical regional manner · Production of healthy and quality foodstuffs of animal origin and ensuring consumer health 194 Payments are granted for: 1. Cattle: - Cika breed; 2. Equidae: - Lipizzan horse, - Posavje horse, - Slovenian cold-blooded horse, - Ljutomer trotter, - Haflinger; 3. Pigs: - Krško Polje breed, - Slovenian landrace (Line 11), - Slovenian landrace (Line 55), - Large white (Line 22); 4. Sheep: - Jezersko-Solèava sheep, - Bovec sheep, - Istrian pramenka, - Bela krajina pramenka, - Improved Jezersko-Solèava sheep; 5. Goats: - Drežnica goat, - Slovenian Saanen goat, - Slovenian Alpine goat; 6. Avian: - Styrian hen, - Slovenian barred hen, - Slovenian silver hen, - Slovenian brown hen, - Slovenian early fathering hen, - Slovenian late fathering hen, - Slovenian heavy weight hen. To turn the number of animals into LU the coefficients laid down in Annex V of Regulation 1974/2006 apply. The description of the aforelisted domestic breeds, including the number of breeding females of each breed, is shown in Annex 8. The list and description have been confirmed by duly recognised bodies, that is: Breed Duly recognised body Cika breed Commercial Association for Cattle Breeding Jable, Grajska cesta 1, 1234 Mengeš Public Institute Kobilarna Lipica Lipica 5, SI 6210 Sežana The Posavje Horse Breeders’ Association Ravno 4, SI 8274 Raka Slovenian Cold-Blooded Horse Breeders’ Association Iška vas 63a, SI 1292 Ig Lipizzan horse Posavje horse Slovenian cold-blooded horse Organisation keeping the breeding book Agriculture Institute of Slovenia Hacquetova 17, SI 1000 Ljubljana Public Institute Kobilarna Lipica Lipica 5, SI 6210 Sežana University of Ljubljana - Veterinary Faculty Gerbièeva 60, SI 1000 Ljubljana University of Ljubljana - Veterinary Faculty Gerbièeva 60, SI 1000 Ljubljana 195 Breed Duly recognised body Ljutomer trotter Trotting Association of Slovenia Ulica 1. slovenskega tabora 13a, SI 9240 Ljutomer Slovenian Haflinger Breeders’ Association Kokra 42, SI 4205 Preddvor Slovenian Chamber of Agriculture and Forestry Celovška 135, SI 1000 Ljubljana Organisation keeping the breeding book University of Ljubljana - Veterinary Faculty Gerbièeva 60, SI 1000 Ljubljana University of Ljubljana - Veterinary Faculty Gerbièeva 60, SI 1000 Ljubljana University of Ljubljana - Biotechnical Faculty, Zootechnical Department Groblje 3, SI 1230 Domžale Slovenian Associations’ Union of Sheep and Goat Breeders Groblje 3, SI 1230 Domžale University of Ljubljana - Biotechnical Faculty, Zootechnical Department Groblje 3, SI 1230 Domžale Slovenian Associations’ Union of Sheep and Goat Breeders Groblje 3, SI 1230 Domžale University of Ljubljana - Biotechnical Faculty, Zootechnical Department Groblje 3, SI 1230 Domžale University of Ljubljana - Biotechnical Faculty, Zootechnical Department Groblje 3, SI 1230 Domžale University of Ljubljana - Biotechnical Faculty, Zootechnical Department Groblje 3, SI 1230 Domžale Haflinger Krško Polje breed, Slovenian landrace (Line 11), Slovenian landrace (Line 55), Large white (Line 22) Jezersko-Solèava sheep, Bovec sheep, Istrian pramenka – Istrijanka, Bela krajina pramenka, Improved JezerskoSolèava sheep Drežnica goat, Slovenian Alpine goat, Slovenian Saanen goat Styrian hen, Slovenian barred hen, Slovenian silver hen, Slovenian brown hen, Slovenian early feathering hen, Slovenian late feathering hen, Slovenian heavy weight hen - Requirements for final beneficiaries under the submeasure in comparison to the baselines Beneficiaries may claim payments for minimum 1 LU. In poultry production beneficiaries must rear at least 100 adult animals. For animals supported under the Gene Bank Programme no payments may be claimed under this RDP measure. • • • Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Keeping of records is not mandatory. • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure. It is mandatory to keep records on fodder purchase by agricultural holdings which buy fodder in addition. 196 • • • • Baseline Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Pursuant to Article 3 of the Livestock Breeding Act (OJ RS No 18/02, as amended) breeding of all domestic animals is allowed, i.e. animals bred by man for his own benefit and living under his guardianship and care and are not deemed wild animals under the regulations on the nature conservation. Animals need not be recorded in a breeding book. Regulatory requirements on operations, standard: standard on animal welfare: Pursuant to Annex I to the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) a breeder must regularly and sufficiently provide the animals with quality and adequate fodder and water. No period is set for rearing of individual animals. The breeder rears each animal according to his/her economic interests. • • Requirements for final beneficiaries In implementing the submeasure - Stocking density on agricultural holding may not exceed 1.9 LU/ha of utilised agricultural area. - Agricultural holding may not produce livestock manure. Mandatory is rearing of autochthonous and traditional domestic breeds specified in a special list. • Animals must be recorded in a breeding book or register. • In cattle, horse, sheep and goat production the maximum permitted purchase of compound feedingstuffs, cereals, oil cakes and other concentrated feedingstuffs per LU is 1,200 kg annually. • In pig production the maximum purchase of compound feedingstuffs, cereals, oil cakes and other compound feed is 2,100 kg per LU annually. • In laying hens production the maximum purchase of compound feedingstuffs, cereals, oil cakes and other compound feed per LU annually is 7,000 kg, with broilers maximum 6,500 kg and with turkey hens maximum 4,000 kg annually. • Fodder and feedingstuffs additives used to feed the animals on agricultural holding must produced pursuant to Annex I B, Chapter 4, point 4.18,of Regulation 2092/91. In implementing the submeasure: - the number of animals must be bred for five years from entering the submeasure. - after the expiry of the deadline for the application submission the beneficiaries must keep the animals for which they have submitted a claim for at least 6 months with cattle, 100 days with sheep and goats, 3 months with horses and pigs and 2 months with poultry. In the fodder purchase record the purchase of compound feedingstuffs, cereals, oilseeds and pulses, by-products of milling and oilseeds processing industry, and dried products from sugar and brewery industry are recorded. The records apply for purchase in the market as well as the purchase from other agricultural holdings. The purchase from other agricultural holding is allowed only if this other agricultural holding is engaged in organic or integrated production. The record must contain the following information: fodder or feedingstuffs type, quantity (kg), date of purchase, name and address of the vendor and KMG-MID number if the vendor is an agricultural holding. For fodder purchased in the market the record must contain invoice and a declaration. Purchase of maize silage is allowed only from another agricultural holding which is engaged in organic or integrated production; there are no quantity limitations. The record must contain only fodder type, date of purchase, name and address of the vendor and KMG-MID number. Purchase of hay and grass silage is not limited. 197 - Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities Domestic animals have always had a cultural value to the mankind. For thousands of years man has used them for food and raw material production, work and as pets. In the centuries and millenniums of development, after the domestication, the geographically isolated populations evolved into subspecies and within these subspecies into various animal types adapted to particular environmental and climatic conditions. Thus, numerous autochthonous breeds of domestic animals developed contributing to a biotic (genetic) diversity in the Slovenian space. The rearing of domestic animals in Slovenia was well developed as far back as the Middle Ages. At the beginning of 20th century, the number of most domestic animal species was higher than today and not too long ago, Slovenian autochthonous domestic animals provided the basis of farmers' income. In the past decades, genotypes with high productivity substituted the less productive autochthonous and traditional domestic animal types, which were gone and the genetic diversity in individual types has decreased. Hence, numerous old autochthonous Slovenian domestic breeds have vanished and only their remains preserved. Therefore, it is necessary to prevent the loss of biological material and maintain the genetic variability of domestic animals for the purposes of maintaining breeds and/or lines and ensuring food safety of the population. Payments are intended for the conservation of autochthonous and traditional breeds in production and thus contribute to the conservation of biodiversity and sustainable utilisation of natural resources. Autochthonous and traditional domestic breeds are a part of the cultural heritage that has already contributed to the preservation of population density in remote Slovenian areas in the past, and also contributed to the preservation of the utilisation of agricultural areas. Today, the increased number of autochthonous and traditional domestic breeds plays an important role in the preservation of traditional farming practices and in environmental protection, conservation of typical cultural landscape associated with rearing of specific species and breeds of domestic animals in typical regional manner, production of healthy and quality foodstuffs of animal origin and ensuring customer health. Payments per LU are therefore granted at the national level. - Combinations with other agri-environmental submeasures Next to area-linked agri-environmental submeasures the beneficiaries may simultaneously implement the submeasure 214-II/5 Rearing of autochthonous and traditional domestic breeds. - Detailed description of calculation methodology The calculation is based on the comparison of a regular breed and autochthonous and traditional domestic breed. The differences in financial results emerge mainly due to poorer production properties of autochthonous and traditional breeds. Considered were the rearing costs of autochthonous and traditional breeds, and time spent on training and keeping of records on work tasks. The data on production properties of autochthonous and traditional breeds were taken from a study by the Biotechnical Faculty, University of Ljubljana (Kastelic et al., 200636). The calculation methodology is shown in Annex 6. Miran Kastelic, PhD, Drago Kompan, PhD, prof. Andrej Šalehar, PhD, 2006. Predlogi višine podpor in postopki izraèuna za posamezne vrste in pasme v Republiki Sloveniji (transl.: Proposed support amounts and calculation procedures for individual species and breeds in the Republic of Slovenia). University of Ljubljana, Biotechnical Faculty – Zootechnical Department. 36 198 Submeasure 214-II/6 Production of autochthonous and traditional agricultural plant varieties - Measure description Objective Mechanism Implementation activity Indicators Content • Conservation of autochthonous and traditional agricultural plant varieties, their genetic diversity and genetic potential and prevention of the loss of biological material adapted to specific environmental conditions • Per area payment for the conservation of autochthonous and traditional agricultural plant varieties in production • Production of rare autochthonous and traditional agricultural plant varieties • Control: · Acreage on which the submeasure is being implemented (ha) · Recorded application of fertilisers and plant protection products · Number of individual autochthonous and traditional varieties in production under the submeasure (ha) • Long-term: · Conservation of (endangered) autochthonous and traditional agricultural plant varieties · Conservation of typical cultural landscape associated with the production of specific varieties of agricultural plants in typical regional manner · Production of healthy and quality foodstuffs, ensuring customer health Payments are granted for: 1. Cereals: - buckwheat: 'Darja', 'Siva', 'Èrna gorenjska', 'Èebelica', - millet: 'Sonèek'; 2. Maize: - 'Lj - 275 t (FAO 200)', 'Lj-180'; 3. Fodder plants: - tall oatgrass: 'Sora', - red fescue: 'Jasna', - meadow fescue: 'Jabelska', - Italian ryegrass: 'Draga', - perennial ryegrass: 'Ilirka', - cock s foot: 'Kopa', - timothy: 'Krim', - rapeseed: 'Starška', 'Daniela', - turnip rape: 'Kranjska okrogla', 'Kranjska podolgovata', - Swede cabbage: 'Rumena maslena', - red clover: 'Živa', 'Poljanka', - crimson clover: 'Inkara', - alfalfa: 'Bistra', 'Soèa', 'Krima'; 4. Vegetables: - onion: 'Belokranjka', 'Ptujska rdeèa', 'Tera', - garlic: 'Ptujski jesenski', 'Ptujski spomladanski', - carrot: 'Ljubljansko rumeno', 'Semor' - cabbage: 'Kranjsko okroglo', 'Emona', 'Ljubljansko', 'Varaždinsko', - large-leaved chicory: 'Anivip', 'Monivip', 'Solkanski', - lettuce: 'Dalmatinska ledenka', 'Leda', 'Bistra', - corn salad or lamb's lettuce: 'Ljubljanski', 'Žlièar', - climbing french bean: 'Jabelski stroènik', 'Jabelski pisanec', 'Jeruzalemski', 'Klemen', 'Semenarna 22', 'Ptujski maslenec', 'Maslenec rani', - bush bean: 'Èešnjevec', 'Zorin', 199 5. 6. 7. 8. - paprika - peppers: 'Ferdi', - tomato: 'Val'; Potato: - 'Kresnik', 'Jana', 'Cvetnik', 'Vesna'; Oil plants: - oilseed pumpkin: 'Slovenska golica'; Hop: - 'Savinjski golding'; Fruit plants: - apple: 'Dolenjska vošèenka', 'Gorenjska vošèenka', 'Goriška sevka', 'Lonjon', 'Majda', 'Priolov delišes', 'Bobovec', 'Boskop', 'Beliènik', 'Carjeviè', 'Grafenštajnc', 'Kanadka', 'Krivopecelj', 'Londonski peping', 'Štajerski mošancelj', 'Ovèji nos', 'Pisani kardinal', 'Zlata parmena', 'Jonatan', 'Legro', 'Krvavka', 'Bužlovka', 'Jakobovka', 'Rožmarinka', 'Špièka', 'Èebulka', 'Peteršiljka', 'Maslenka', 'Grinštantin', 'Klanferca, sladka jabolka', 'Rožnik, rožinski', 'Rambura', 'Lovrenèovka', 'Rdeèi bobovec', 'Železnica', 'Vrtnica', 'Vinšca štrudlovka', 'Brtavka', 'Citronka', 'Štupanka', 'Prsnika', 'Ferdekelca', 'Damasonski kosmaè', 'Harbertova reneta', 'Pogaèar', - pear: 'Tepka', 'Rjavka', 'Pohorska moštnica', 'Vinska moštnica', 'Mleènica ali bela tepka', 'Kraljica julija', 'Šmarjetnica', 'Rožmarinka', 'Vinogradovka', 'Kravšca', 'Špehovka', 'Debela Rupret', 'Pituralke', 'Avranška', 'Druardova maslenka', 'Lukasova', - plum: 'Domaèa èešplja', - cherry: 'Vipavka', 'Vigred', 'Brusniška hrustavka', 'Kozanka', 'Èrna cepika', 'Èufarca', 'Divjaka', 'Terèentka', 'Petrovka', 'Francoska', 'Popovka', 'Napoleonova', - peach: 'Veteran', 'Triogem', - apricot: 'Pišeška', 'Catarji', 'Domaèi flokarji', 'Ogrska', - chestnut: 'Vitoveljski maron', - walnut: 'Elit', 'Haloze', 'MB-24', 'Petovio', 'Raèe-866', - hazel: 'Istrska dolgoplodna (debeloplodna) leska', 'Istrska okrogloplodna leska', - olive: 'Istrska belica', 'Èrnica', 'Buga', 'Štorta'; 9. Vine: - 'Maloèrn', 'Pinela', 'Ranfol', 'Radgonska ranina', 'Rebula', 'Refošk', 'Rumeni plavec', 'Šipon', 'Zelen', 'Žametovka', 'Kraljevina', 'Malvazija', 'Vitovska grganja', 'Cipro', 'Klarnica', 'Pergolin', 'Poljšakica'. The description of agricultural plant varieties listed above is shown in Annex 9. The list and description have been confirmed by duly recognised bodies, which are: Agriculture Institute of Slovenia Hacquetova 17 SI 1000 Ljubljana University of Ljubljana Biotechnical faculty – Department of Agronomy Jamnikarjeva 101 SI 1000 Ljubljana Institute of Hop Research and Brewing Žalskega tabora 2 SI 3310 Žalec Experimental Centre for Olive Production Ulica 15. maja 17 SI 6000 Koper - Vegetables, potato, fodder plants, vine Buckwheat, maize, fruit plants, grasses, clovers Hop Olive Requirements for final beneficiaries under the submeasure in comparison to the baselines Baseline Requirements for final beneficiaries 200 • • • • • • • • • Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Additional minimum requirements on the application of fertilisers: The amount of applied mineral nitrogen is 250 kg/ha annually. • • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers under the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of fertilisers and the use of plant protection products. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. In implementing the submeasure - Stocking density on agricultural holding may not exceed 1.9 LU/ha of utilised agricultural area. - Agricultural holding may not produce livestock manure surplus. In implementing the submeasure the amount of applied mineral nitrogen may not exceed 170 kg/ha annually for cereals, maize fodder plants, vegetables, potato, oil plants, hop and vine, and 150 kg/ha annually for fruit plants. 201 • Baseline Standard on good agricultural and environmental conditions, organic matter in the soil: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) the 3-year crop rotation is mandatory on at least 50 percent of arable areas of the entire agricultural holding. Grasses, clovers, grassclover mixtures and clover-grass mixtures on arable areas are a part of crop rotation and may be on the same area longer than three years. • • • • Tree density in orchards is not specified. • • Meadow orchard need not be recorded in register. • • • - Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. • • Requirements for final beneficiaries Mandatory is five year crop rotation, which shall include at least 3 different autochthonous or traditional crop varieties. Stubble crops are considered as one of the three different crops to be included into the five year crop rotation. The crop rotation must be designed at entering the submeasure. In case of force majeure or changed market conditions the potential change of the crops in the rotation may not have negative impacts on the environment nor diminish the performance of the submeasure. Tree density of autochthonous and traditional fruit tree varieties must be 50-200 trees/ha in high-trunk meadow orchards and minimum 150 trees/ha in olive groves, at least 100 trees/ha with walnut and chestnut, and at least 200 trees/ha with other fruit varieties. Meadow orchards must be recorded in the register of fruit producers in extensive or meadow orchards. Application of growth regulators is not allowed. The application of plant protection products is possible on the basis of a prognosis, where one exists. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities Generations of breeding work contributed to the preservation of agricultural plant varieties that are optimally adapted to their specific local environmental conditions. In the same way, the landscape bears the distinct imprint of farmers' widely varying, regionally adapted land utilisation and production methods. The industrialisation of agriculture in the recent decades has increasingly threatened this genetically and historically valuable human-imprinted biodiversity. Many of the original regional agricultural plants are often characterised by low yields, slow growth and seem to be without important economic value and are therefore threatened to be foregone. Unfortunately, numerous agricultural plant varieties possessing genetic potential worthy of conservation as well as many regional sites with their specific flora and fauna are already irretrievably lost. In order to keep this genetic heritage, the submeasure is aimed at conserving autochthonous and traditional varieties of agricultural plants, with per-area payments encouraging 202 farmers to carry out traditional farming practices and improving the conditions to continue the production of these varieties. High diversity of climatic and soil conditions ensure that numerous plant types within the same species grow on natural sites, with a high variety of species. In order to preserve the original characteristics and genetic variation of autochthonous and traditional agricultural plant varieties, payments for growing and retaining of these plant varieties in production are granted to beneficiaries at the national level. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation is based on the comparison of a regular variety and autochthonous and traditional variety. The differences in financial results emerge mainly from poorer production properties of autochthonous and traditional varieties (lower yield). The difference in lower costs was considered in the basic model. Considered were production costs of autochthonous and traditional varieties, time spent on training and keeping of records and keeping of records on work tasks, lower income as a result of lower yield (by about 7-33 percent with regard to variety). The calculation methodology is shown in Annex 6. Submeasure 214-II/7 Sustainable rearing of domestic animals - Measure description Objective Mechanism Implementation activity Indicators Content • Sustainable rearing of domestic animals aimed at achieving complete nutrient cycle (e.g. nitrogen, nutrients, organic matter, etc.) on an agricultural holding and reduction of loads on the environment • Per area payment as compensation for costs of extra work involved in the conservation of traditional farming practices • • · · · · • · · · · · - Rearing of domestic animals to conserve traditional grassland use, and to ensure fodder produced on agricultural holdings and healthy and quality products of animal origin Control: Acreage on which the submeasure is being implemented (ha) Recorded use of fertilisers Recorded fodder purchase Number of animals per ha of utilised agricultural areas Long-term: Animal friendly rearing Natural nutrient cycle on farm Reduction of environmental pollution with organic waste Reduced pollution of soil and waters Production of healthy and quality foodstuffs of animal origin and ensuring consumer health Requirements for final beneficiaries under the submeasure in comparison to the baselines Baseline Requirements for final beneficiaries 203 • • • • • • • Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure. It is mandatory to keep records on fodder purchase by agricultural holdings which buy fodder in addition. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. 204 • • • • • Baseline Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. - Agricultural land must be managed every year. Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Additional minimum requirements on the application of fertilisers: The amount of applied mineral nitrogen is 250 kg/ha annually. Regulatory requirements on operations, standard on animal welfare: In accordance with Annex I of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) a breeder must regularly and sufficiently provide the animals with quality and adequate fodder and water. • Requirements for final beneficiaries Mandatory are minimum one use (pasture or mowing) and gathering annually. In implementing the submeasure: - stocking density on agricultural holding must be 0.5 - 1.9 LU/ha of utilised agricultural area, except when animals are grazing on alp or common pasture and stocking density on the primary agricultural holding may amount to 0-1.9 LU/ha; - agricultural holding may not produce livestock manure surplus. • • • • • In implementing the submeasure the amount of applied mineral nitrogen may not exceed 170 kg/ha annually. In cattle, horse, sheep and goat production the maximum permitted purchase of compound feedingstuffs, cereals, oil cakes and other concentrated feedingstuffs per LU is 1,200 kg annually. In pig production the maximum purchase of compound feedingstuffs, cereals, oil cakes and other compound feed is 2,100 kg per LU annually. In laying hens production the maximum purchase of compound feedingstuffs, cereals, oil cakes and other compound feed per LU annually is 7,000 kg, in broiler production maximum 6,500 kg and in turkey hens production maximum 4,000 kg per LU annually. Fodder and feedingstuffs additives used to feed the animals on agricultural holding must produced pursuant to Annex I B, Chapter 4, point 4.18 of Regulation 2092/91. In the fodder purchase record the purchase of compound feedingstuffs, cereals, oilseeds and pulses, by-products of milling and oilseeds processing industry, and dried products from sugar and brewery industry are recorded. The records apply for purchase in the market as well for purchase from other agricultural holdings. Purchase from other agricultural holding is allowed only if this other agricultural holding is engaged in organic or integrated production. The record must contain the following information: fodder or feedingstuffs type, quantity (kg), date of purchase, name and address of the vendor and KMG-MID number if the vendor is an agricultural holding. For fodder purchased in the market the record must contain invoice and a declaration. Purchase of maize silage is allowed only from another agricultural holding which is engaged in 205 organic or integrated production; there are no quantity limitations. The record must contain only fodder type, date of purchase, name and address of the vendor and KMG-MID number. Purchase of hay and grass silage is not limited. - Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities In Slovenia livestock production is the most important agricultural branch as it represents 55 percent of agricultural production market value and over two thirds of the final agricultural production value. The most spread livestock production is cattle production, followed by poultry and pig production. Sheep and goat production, horse breeding, rabbit breeding, beekeeping and fish farming are less extended production branches. Slovenia is very sensitive to farming methods, predominantly due to a high share of karstic and sandy agricultural surface area, which is ecologically very sensitive and not suitable for intensive conventional production. Therefore, sustainable farming methods are suitable for Slovenia ensuring quality food production. The environment and animal friendly management methods contribute to the preservation of the settlement and cultural landscape. In addition thereto consumers demand quality products of animal origin, and this can be provided best by sustainable rearing methods of domestic animals. Cattle production is ensured by natural conditions in Slovenia with high grassland share as meadows and pastures represent more than 60 percent of utilised agricultural area. These grassland areas can hence be used best by ruminants rearing. Next to cattle, sheep and goat rearing, particularly for karst and somewhat overgrown grassland areas, is the best solution. In the last decade sheep and goat rearing in Slovenia has been the most developing livestock branch, whereas breeding and feeding methods remain within the range of sustainable rearing. This mainly concerns rearing in pastures and overgrowing areas with the predominant application of a controlled pasture system, only to a smaller extent also traditional short movement of the herd to mountain pastures. Pig rearing, as the second most important livestock production branch, is concentrated in eight large pig farms and larger market oriented farms. Agricultural holdings with animal stock 200 (including farms), representing nearly 0.5 percent of pig agricultural holdings, produce 46 percent of pig stock in Slovenia. The greatest problem of these large systems is the extensive amount of livestock manure which cannot be economically used on areas for fodder production and thus represent a great threat to the environment. Therefore the submeasure is aimed at sustainable methods of rearing and providing quality pork products. The majority of poultry meat and eggs are intensively produced and the majority of raw materials for the preparation of fodder mixtures are imported. Therefore in poultry production sustainable production systems and systems providing the best protection of natural resources possible should be promoted. The objective of the submeasure, whilst taking into account ethological requirements with regard to animal and environmental standards, is to achieve closed matter cycle on agricultural holdings, reduce the pollution of natural resources, decrease the loads on the utilised agricultural land, adjust the number of animals to the fodder basis on agricultural holdings and thus decrease their dependency on external inputs. In order to promote sustainable animal rearing along with the proper grassland maintenance, the implementation of the submeasure is intended for agricultural holdings with stocking density 0.51.9 LU/ha of UAA. Such practice results in animal friendly rearing methods, enables natural onfarm matter cycle, reduction of environmental pollution with organic waste and production of healthy and quality foodstuffs of animal origin, and ensuring customer health. Payments for the 206 implementation of the submeasure are therefore granted at the national level. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation is based on reduced LUs density in the sustainable rearing. Considered were rearing costs by taking into account lower milk yield in feed ration for dairy cows or rearing costs by taking into account higher fodder costs for broilers, and time spent on training and keeping of records and keeping of records on work tasks. The calculation methodology is shown in Annex 6. Submeasure 214-II/8 Extensive grassland maintenance - Measure description Objective Mechanism Implementation activity Indicators • • Content • Preservation of biodiversity through extensive use of grassland • Per area payment to conserve extensive farming practices • Efficient use of grassland to preserve traditional grassland use • Control: · Acreage on which the submeasure is being implemented (ha) · Count of animals · Quantity of green forage produced · Recorded use of fertilisers • Long-term: · Conservation of habitats and biodiversity · Conservation of the landscape and mosaic-like structure of rural areas · Preservation of traditional farming methods Requirements for final beneficiaries under the submeasure in comparison to the baselines Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. 207 • • • • • • • • Baseline Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. - Agricultural land must be managed every year. The manner of hay gathering is not prescribed. The application of mineral fertilisers is allowed. • • Requirements for final beneficiaries Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. In implementing the submeasure: - stocking density on agricultural holding must be 00.5 - LU/ha of utilised agricultural area; - agricultural holding may not produce livestock manure surplus. • • • • Mandatory are minimum one use (pasture or mowing) and gathering annually. Mowing is conducted after the full flowering of the main grass varieties. In implementing the submeasure hay is gathered in traditional manners. The application of mineral fertilisers is not allowed. 208 • • - Baseline Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. • Requirements for final beneficiaries The application of plant protection products is not allowed. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities As a result of the need for agricultural intensification, the vast majority of the extensive permanent grassland has not been properly managed. In the past decades the intensive grassland management resulted in variety-poor composition of green cover. Contrary thereto, grassland extensification increases the proportion of plant varieties which are not sown. Traditional farming in grassland resulted in the appearance of specific types of secondary habitats, which are also very important for the conservation of biodiversity. Characteristic landscape diversity is threatened through the abandoning of agricultural land use in certain areas and the intensification of agricultural production, which changes the appearance of the landscape and negatively affects the biodiversity. Intensive management methods reflect also in the unfavourable botanic composition of the green cover and reduced count of animal species which are dependent on certain habitats. Extensive grassland use is not economic, still it emphasises the nature protection aspect through the recreation of rich flora and fauna in meadows. The maintenance of permanent grassland by traditional grassland management regime includes restrictions on stocking density and is aimed at overgrowing prevention, enabling conservation of habitats and biodiversity, landscape and mosaiclike structure of the rural areas and enabling the full flowering of the main grass varieties. Per area payments aimed at preserving the extensive grassland are therefore granted at the national level. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation is based on the comparison of the meadow mown three times and extensive grassland meadow, whereby a lower hay price on the meadow mown once was considered due to poorer hay quality. Considered were also the costs of machinery work (mowing, turning, and 209 swathing of hay, transport), manual labour costs, time spent on training and keeping of records on work tasks, lower income as a result of lower yield (by about 62 percent) and lower hay price (by about 40 percent). The calculation methodology is shown in Annex 6. Group III: Maintenance of protection areas A part of agri-environmental payments is intended for submeasures supporting protection areas, such as water reserves, national and landscape parks, natural reserves, natural heritage sites and ecologically important areas. By compensating costs emerging as a result of specific environmental conditions, the implementation of submeasures shall also contribute to the conservation of landscape features and areas intended for biotope development. In order to preserve the utilisation and the settlement in special status areas, agri-environmental payments envisage the following submeasures: 214-III/1 214-III/2 214-III/3 214-III/4 214-III/5 214-III/6 Animal husbandry in central areas of appearance of large carnivores, Preservation of special grassland habitats, Preservation of grassland habitats of butterflies, Preservation of litter meadows, Bird conservation in humid extensive meadows in Natura 2000 sites, Permanent green cover in water protection areas. The MAFF receives the official register of protected, ecologically important and water protection areas in digital graphic format, appropriate for the implementation of the submeasures from the MESP, which also provides for the monitoring of the state of the environment, habitats and biodiversity. The monitoring system must be adjusted to the needs of agri-environmental submeasures. The MAFF receives the official register of central areas of appearance of large carnivores from the Slovenia Forest Service, which also provides for the implementation of the monitoring of large carnivores. The system of monitoring of large carnivores must be adjusted to the needs and requirements of agri-environmental submeasures. The objectives, mechanisms and applicable obligations under each agri-environmental submeasure are listed in the following. Submeasure 214-III/1 Animal husbandry in central areas of appearance of large carnivores - Measure description Objective Mechanism Implementation activity Content • Animal husbandry in central areas of appearance of large carnivores to ensure coexistence with large carnivores and to preserve favourable status of the preservation of large carnivores population (brown bear) • Payment per acreage of grassland as compensation for costs of extra work required to protect the herd against attacks by large carnivores • Rearing of domestic animals to conserve grassland and prevent overgrowing, and of establishing conditions for coexistence with large carnivores 210 Indicators • · · • · · · · Control: Acreage on which the submeasure is being implemented (ha) Number and breed of animals grazing Long-term: Grassland maintenance Alleviation of conflicts between large carnivores and farming Reduction of frequency of attacks by large carnivores Coexistence of large carnivores and domestic animals Beneficiaries are eligible for payments only for the period in which animals are actually grazed and guarded. - Requirements for final beneficiaries under the submeasure in comparison to the baselines Beneficiaries may be eligible for payments only for pasture areas grazed during the pasture season. • • • • • • Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Different types of meadows are utilised identically, regardless of the area where they are situated. • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. Agricultural holding or individual areas of agricultural holding must be situated in central areas of appearance of large carnivores from the official register (Annex 10). 211 • • • - Baseline Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. - Agricultural land must be managed every year. Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. It is not required that sheep and goats on pasture shall be guarded at all times. • Requirements for final beneficiaries Grassland areas must be grazed. In implementing the submeasure: - stocking density on agricultural holding must be 0.51.9 LU/ha of utilised agricultural area; • agricultural holding may not produce livestock manure surplus. • • On pasture, sheep and goats shall be guarded at all times. Where possible mobile protection fences and nets are applied. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities Brown bear was widely spread in Slovenia until the 18th century. Due to activities affecting the nature and direct extermination (hunting, poisoning) by man throughout centuries brown bear was pushed to the forests of High Karst. At the time of most intensive persecution only some ten bears survived. After protective measures have been introduced on large farms in the Koèevsko and Notranjsko regions at the end of the 19th century, the number of the species increased again and has been maintained. The central area is defined as the site where the bear has always been present and currently continuously populated. It does not concern the introduction of bears into this area, but the preservation of brown bear population in a favourable state, in a natural age-sex structure and in such a number which enables coexistence between the bear and man. Expected effects of implementing the submeasure derive from the provisions of the Bern Convention ratified by both the RS and the European Community and from the laws laying down its implementation. In the European Community, this concerns Council Directive 92/43/EEC on the conservation of natural habitats and of wild fauna and flora, whereas in Slovenia, the Nature Conservation Act and Brown Bear (Ursus arctos) Management Strategy in Slovenia based on the maintenance of favourable conservation status for large carnivore species listed in Annexes II and IV of Council Directive 92/43/EEC. 212 Where the brown bear appearance coincides with agricultural production areas, particularly with sheep and goat rearing, it may result in a certain loss of income due to damage caused by bears. The loss of income and simultaneous maintenance of favourable conservation status for large carnivores (in particular brown bear) can be prevented by additional protection of herds and flocks, particularly of sheep and goats, or by restructuring the sheep and goat rearing into livestock production. The payment is devoted to an increased scope of work carried out for implementing the protective measures of pasture control (fences, pens, regular opening and closing of passages). Moreover, it encourages the restructuring of sheep and goat breeding into livestock production and provides the coexistence between man and bears, in particular with local population. A central area of appearance of large carnivores is deemed the area defined as such by a special act of the Government of the RS. Central areas of appearance of large carnivores comprise: wider Koèevska region with Ribnica valley, Notranjska region with Krim-Mokrec mountains, part of Dolenjska region and part of Bela Krajina, Nanos, Hrušica, Trnovski gozd, part of Idrija hills. Animals present in these areas indeed live in the forest, but utilised areas offer them food, and the lack of feeding areas, decreased due to excessive number of certain wild animals in the forest, drives them to urban zones and causes conflicts with rural inhabitants and their activities (e.g., sheep rearing). Per grassland area payments compensate for the costs of extra work required to protect the herd against attacks by large carnivores in areas listed in Annex 10. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation took into account the animal protection costs, and time spent on training and keeping of records on work tasks. The calculation methodology is shown in Annex 6. Submeasure 214-III/2 Preservation of special grassland habitats - Measure description Objective Mechanism Implementation activity Content • Increase of grassland area allowing successful reproduction of endangered plant varieties and animal species and targeted nesting of endangered grassland bird species in ecologically important areas • Per area payment to defray for costs of extra work required by environmental and landscape requirements • Conservation of extensive grassland and border strips (tree and bush growth) within ecologically important areas 213 Indicators • · · · • · · · • • • • • • Control: Grassland areas on which the submeasure is being implemented (ha) Areas within the ecologically important areas mown or grazed in accordance with the conditions (ha) Recorded use of fertilisers Long-term: Conservation of typical landscape and habitats of numerous plant, bird and other animal species Population count of indicator bird species Population count of indicator plant species Requirements for final beneficiaries under the submeasure in comparison to the baselines Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Different types of meadows are utilised identically, regardless of the area where they are situated. • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. Agricultural holding or individual areas of agricultural holding must be situated in ecologically important areas as specified in the official register (Annex 11, Point 11.1). 214 • • • • • Baseline Regulatory requirements on operations, Standard on animal species and habitat conservation: In accordance with Annex I of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) land must be utilised at least once per year. Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. - Agricultural land must be managed every year. Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Regulatory requirements on operations, Standard on animal species and habitat conservation: Trimming and thinning of hedgerows is allowed only during a certain season. Application of mineral fertilisers is allowed. • • Requirements for final beneficiaries Green cover use, including pasture or mowing, not allowed prior to flowering of grasses and raising of the offspring of endangered bird species (before 15 July). Pasture or mowing and gathering are performed after the flowering of grasses and raising of the offspring of endangered bird species (after 15 July). In implementing the submeasure: - stocking density on agricultural holding must be 0.21.9 LU/ha of utilised agricultural area; • agricultural holding may not produce livestock manure surplus. • • In implementing the submeasure the existent border tree strips and hedgerows shall be trimmed and thinned every second year. Application of mineral fertilisers is not allowed. 215 • • - Baseline Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. • Requirements for final beneficiaries The application of plant protection products is not allowed. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities Traditional and extensive methods of farming have been widely spread in Slovenia in the past and thus enabled the preservation of habitats to numerous animal and plant species. In the last centuries due to the changes in natural and agricultural landscape, many animal and plant species became dependent on the human activity. Swallows shifted their nests from rock walls to houses, barns and stables, white storks that used to nest on high trees, nowadays build their nests on chimneys or poles in the middle of settlements. Despite its small size, Slovenia has a very diverse landscape and climate and traditional agricultural practices, which contribute to the relatively high biodiversity. Slovenia is situated at the junction of eastern, western and northern fauna elements. Here, numerous animal and plant species also reach the northern, southern, eastern or western borderline of their distribution. All this contributes to the relatively high biodiversity, which also makes Slovenia the second richest country in the EU (UNEP WCMC biodiversity index). Over 850 endemic species, over 250 species and over 40 habitat types are of the European conservation interest, and as such a subject to habitat conservation measures according to the Birds Directive (79/409/EEC), Habitats Directive (92/43/EEC) and Natura 2000 network. In order to preserve the diversity, the implementation of this submeasure is directed towards nature friendly farming which enables the preservation of their habitats. The submeasure is aimed at the preservation of grassland being a natural habitat, in particular for endangered grassland birds listed in Article 4 of the Birds Directive (79/409/EEC), grassland habitat types and grassland plant species listed in Annexes I and II of the Habitat Directive (92/43/EEC) and for which Natura 2000 sites were designated. The submeasure requires adjusted mowing and pasture securing the existence of habitat types, i.e. Orchids (Orhidaceae), Marsh Gladiolus (Gladiolus palustris), Meadow Squill (Scilla litardierei) growing in the areas, and a successful nesting and raising of the offspring, especially of Corncrake (Crex crex), and the reproduction of amphibians, insects and other animals serving as food to White Stork (Cicionia ciconia), Lesser Grey Shrike (Lanius minor) and Red-Backed Shrike (Lanius collurio). Expected effects of implementing the submeasure derive from the provisions of the Convention on Biological Diversity ratified by both Slovenia and the European Community and the legislation 216 laying down its implementation. In the European Community, this concerns Birds Directive (79/409/EEC) and Habitat Directive (92/43/EEC), whereas in Slovenia, the Nature Conservation Act. This effect results in the maintenance of favourable state of preservation of endangered species and habitat types, particularly in the ecologically important areas (Decree on ecologically important areas) and within them the Natura 2000 sites (Decree on special protection areas – Natura 2000 sites) being in agricultural use and designated to achieve favourable conditions for the existence of grassland habitat types, in particular the sites of Orchids (Orhidaceae), Marsh Gladiolus (Gladiolus palustris), Meadow Squill (Scilla litardierei), Corncrake (Crex crex), White Stork (Cicionia ciconia), Lesser Grey Shrike (Lanius minor) and Red-Backed Shrike (Lanius collurio). Ecologically important areas are areas with preserved or characteristic biodiversity. Within the framework of this submeasure the use of agricultural land shall be sustainable which contributes to a high biodiversity of the area and preserves habitats (living environment) of ecologically demanding species. In Slovenia, the habitats of numerous endangered species and habitat types are also late mown humid and dry meadows on poor mineral soils. The expected effect of implementing the submeasure is the preservation of a specific targeted scope and quality of these meadows within the designated areas. In numerous ecologically important areas these meadows are subject to changes into more intensive forms of agricultural use (intensively fertilised meadows or fields). Therefore the preservation of these special grassland habitats is of great importance. Payments are aimed at the maintenance of meadows for mowing or pasture and/or their renewed establishment. The integral part of this submeasure is mowing after full flowering which enables the survival of plant species that bloom late, and successful breeding of progeny to nesting birds and certain other animal species. Such land use is more specific and causes a certain loss of income to the owner, mainly the income of the first and second mowing. Therefore there is a need to provide a certain financial support for farmers adjusting their activities in order to preserve habitats of ecologically demanding plant and animal species. An appropriate payment provides income equality of farmers who decide to implement this submeasure with those farmers who do not implement such a submeasure and, consequently, do not suffer any loss of income. Payments are granted to beneficiaries the land of which is located in areas referred to in Annex 11, point 11.1. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation is based on the meadow mown three times. Considered was lower hay price on the meadow mown once due to lower hay quality, as well as the costs of machinery work (mowing, turning, and swathing of hay, transport), manual labour costs, costs of trimming the stripe under the trees, time spent on training and keeping of records on work tasks, lower income as a result of lower yield (by about 62 percent) and lower hay price (by about 40 percent). The calculation methodology is shown in Annex 6. Submeasure 214-III/3 Preservation of grassland habitats of butterflies - Measure description Content 217 Objective • Mechanism • Implementation activity • Indicators • · · · • · · · • • • • • • Increased grassland area, allowing successful reproduction of endangered plant and animal species and targeted reproduction of endangered grassland butterfly species in internal zones of ecologically important areas Per area payment to defray costs of extra work required by environmental and landscape requirements Conservation of extensive grassland and border strips (tree and bush growth) within ecologically important areas Control: Grassland areas on which the submeasure is being implemented (ha) Areas within the ecologically important areas mown or grazed in accordance with the conditions (ha) Recorded use of fertilisers Long-term: Conservation of typical landscape and habitats of numerous plant, bird and other animal species Population count of indicator butterfly species Population count of indicator plant species Requirements for final beneficiaries under the submeasure in comparison to the baselines Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Different types of meadows are utilised identically, regardless of the area where they are situated. • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. Agricultural holding or individual areas of agricultural holding must be situated in ecologically important areas as specified in the official register (Annex 11, Point 11.2). 218 • • • • • Baseline Regulatory requirements on operations, Standard on animal species and habitat conservation: In accordance with Annex I of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) land must be utilised at least once per year. Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. - Agricultural land must be managed every year. Regulatory requirements on operations, Standard on animal species and habitat conservation: Trimming and thinning of hedgerows is allowed only during a certain season. Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Application of mineral fertilisers is allowed. • • • Requirements for final beneficiaries Between 1.7. and 20.8., during the butterfly development on nutritional grassland plants, mowing and pasture are not allowed. Pasture or mowing and gathering may be carried out before 1.7. and after 20.8. In implementing the submeasure the existent border tree strips and hedgerows shall be trimmed and thinned every second year. In implementing the submeasure: - stocking density on agricultural holding must be 0.21.9 LU/ha of utilised agricultural area; - agricultural holding may not produce livestock manure surplus. • Application of mineral fertilisers is not allowed. 219 • • - Baseline Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. • Requirements for final beneficiaries The application of plant protection products is not allowed. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities To preserve the high biodiversity in Slovenia, the implementation of this submeasure is aimed at the preservation of meadows being natural habitats to endangered butterfly species listed in Annex II of the Habitat Directive (92/43/EC) and for which Natura 2000 sites were designated. Mowing or pasture right after the conclusion of the conditions under submeasure 214-III/2 Preservation of special grassland habitats, does not secure the habitat of these butterfly species due to various ecological requirements of endangered butterfly and bird as well as plant species. The submeasure requires adjusted mowing or pasture enabling the butterflies to successfully develop to fully grown animals, in particular the following butterfly species: Large copper butterfly (Lycaena dispar), Scarce Large Blue Butterfly (Maculinea teleius), Dusky Large Blue Butterfly (Maculinea nausithous), and Marsh Fritillary Butterfly (Euphydryas aurinia). The submeasure also contributes to the maintenance of favourable preservation conditions of other butterfly species listed in Annex II of the Habitat Directive, grassland habitat types listed in Annex I of the same directive, and White Stork (Cicionia ciconia), Red-Backed Shrike (Lanius collurio) and some other bird species referred to Article 4 of the Birds Directive (70/409/ES) (providing a food basis of amphibians, insects and other animals). Expected effects of implementing the submeasure derive from the provisions of the Convention on Biological Diversity ratified by both Slovenia and the European Community and the legislation laying down its implementation. At the EU level these are the Birds Directive (79/409/EC) and the Habitat Directive (92/43/EC) and at the national level the Nature Conservation Act. These effects maintain the favourable conditions of the preservation of endangered species and habitat types, especially in ecologically important areas (Decree on ecologically important areas) and the Natura 2000 sites (Decree on special protection areas (Natura 2000 sites), which are agriculturally used and designated to achieve favourable conditions of grassland habitat types and butterflies, i.e. Large Copper Butterfly (Lycaena dispar), Scarce Large Blue Butterfly (Maculinea teleius), Dusky Large Blue Butterfly (Maculinea nausithous), and Marsh Fritillary Butterfly (Euphydryas aurinia). The aim is to preserve the target-oriented amount and quality of meadows within the aforementioned areas. In numerous areas these meadows are subject to changes into more intensive forms of 220 agricultural use (intensively fertilised meadows or fields). Therefore the preservation of these special grassland habitats of butterflies is of great importance. Payments are aimed at the maintenance of meadows by mowing or pasture and/or their renewed establishment. The main issue of this submeasure is a loss of hay harvest in the period during which the butterfly development is dependent on the nutrition supplied by plants on meadows (July and August). Such land use is far more specific and means a certain loss of income for the owner, in principle the loss of the second and third mowing. Therefore, farmers should be given a certain financial encouragement to adjust the farming method aimed at the preservation of ecologically demanding plant and animal species. Appropriate payment provides income equality of farmers who decide to implement this submeasure with those farmers who do not implement such a submeasure and, consequently, do not suffer any loss of income. Payments are granted to beneficiaries the land of which is located in areas referred to in Annex 11, point 11.2. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation is based on the meadow mown three times. Considered was lower hay price on the meadow mown once due to lower hay quality, as well as the costs of machinery work (mowing, turning, and swathing of hay, transport), manual labour costs, costs of trimming the stripe under the trees, time spent on training and keeping of records on work tasks, lower income as a result of lower yield (by about 62 percent) and lower hay price (by about 40 percent). The calculation methodology is shown in Annex 6. Submeasure 214-III/4 Preservation of litter meadows - Measure description Objective Mechanism Implementation activity Indicators Content • Increased grassland share, allowing successful reproduction of endangered plant and animal species and targeted reproduction (nesting) of ecologically most demanding endangered bird and butterfly species in ecologically important areas • Per area payment to defray costs of extra work required by environmental and landscape requirements • • · · · • · · · · Conservation of extensive grassland and border strips (tree and bush growth) within ecologically important areas Control: Grassland areas on which the submeasure is being implemented (ha) Areas within the ecologically important areas mown or grazed in accordance with the conditions (ha) Recorded use of fertilisers Long-term: Conservation of typical landscape and habitats of numerous plant, bird and other animal species Population count of indicator bird species Population count of indicator butterfly species Population count of indicator plant species 221 • • • • • • Requirements for final beneficiaries under the submeasure in comparison to the baselines Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Different types of meadows are utilised identically, regardless of the area where they are situated. • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. Agricultural holding or individual areas of agricultural holding must be situated in ecologically important areas as specified in the official register (Annex 11, Point 11.3). 222 • • • • • Baseline Regulatory requirements on operations, Standard on animal species and habitat conservation: In accordance with Annex I of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) grassland must be maintained at least once per year. Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. - Agricultural land must be managed every year. Regulatory requirements on operations, Standard on animal species and habitat conservation: Trimming and thinning of hedgerows is allowed only during a certain season. Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Application of mineral fertilisers is allowed. • • • Requirements for final beneficiaries Pasture and mowing not allowed by 25.8. Obligatory is pasture or mowing and gathering after 25.8. In implementing the submeasure the existent border tree strips and hedgerows shall be trimmed and thinned every second year. In implementing the submeasure: - stocking density on agricultural holding must be 0.21.9 LU/ha of utilised agricultural area; - agricultural holding may not produce livestock manure surplus. • Application of mineral fertilisers is not allowed. 223 • • - Baseline Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. • Requirements for final beneficiaries The application of plant protection products is not allowed. Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities The submeasure is aimed at the preservation of litter meadows. Litter meadows are meadows mown once a year in late summer or in autumn, whereby the mown grass is used as litter for animals, and are a natural habitat for most demanding endangered grassland birds referred to in Article 4 of the Birds Directive (79/409/EC), and grassland butterfly species, habitat types and grassland plant species listed in Annexes I and II of the Habitat Directive (92/43/EC) and for which the Natura 2000 sites were designated. The submeasure requires adjusted mowing and pasture providing for a successful butterfly development, i.e. Danube Clouded Yellow (Colias myrmidone) and False Ringlet (Coenonympha oedippus), and simultaneously providing the existence of grassland habitat types and Orchids (Orhidaceae) growing in these areas, successful nesting and breeding of progeny, especially of Corncrake (Crex crex), and successful development of butterflies to fully adult animals, i.e. Large Copper Butterfly (Lycaena dispar), Scarce Large Blue Butterfly (Maculinea teleius), Dusky Large Blue Butterfly (Maculinea nausithous), and Marsh Fritillary Butterfly (Euphydryas aurinia). Expected effects of implementing the submeasure derive from the provisions of the Convention on Biological Diversity ratified by both Slovenia and the European Community and the legislation laying down its implementation. In the European Community, this concerns Council Directive 79/409/EEC on the conservation of wild birds and Council Directive 92/43/EEC on the conservation of natural habitats and of wild fauna and flora, whereas in Slovenia, the Nature Conservation Act. These effects maintain the favourable conditions for the preservation of endangered species and habitat types, especially in ecologically important areas (Decree on ecologically important areas) and the Natura 2000 sites (Decree on special protection areas (Natura 2000 areas)), which are agriculturally used and designated to achieve favourable conditions for the existence of grassland habitat types, in particular the sites of Orchids (Orhidaceae), Corncrake (Crex crex), Danube Clouded Yellow (Colias myrmidone), Large Copper Butterfly (Lycaena dispar), Scarce Large Blue Butterfly (Maculinea teleius), Dusky Large Blue Butterfly (Maculinea nausithous), and Marsh Fritillary Butterfly (Euphydryas aurinia). The habitat for these species in the described areas of habitat overlapping with the submeasures 214-III/2 Preservation of special 224 grassland habitats and 214-III/3 Preservation of grassland habitats of butterflies cannot be secured if the beneficiaries mow or graze right after the conclusion of the conditions under the submeasure 214-III/2 Preservation of special grassland habitats. The implementation of the submeasure is aimed at the preservation of the specific amount and quality of these meadows within the aforementioned areas. In numerous areas litter meadows are subjected to changes into more intensive forms of agricultural use (intensively fertilised meadows or fields), therefore their preservation is of great importance. Payments are aimed at the maintenance of litter meadows by mowing or pasture and/or their renewed establishment. The integral part of this submeasure is mowing or pasture in the late summer (after August) to provide for a successful development of butterflies and nesting birds. Such land use is more specific and causes a certain loss of income to the owner, mainly the income of the first, second and third mowing. Therefore there is a need to provide a certain financial support for farmers adjusting their activities in order to preserve habitats of ecologically demanding plant and animal species. Appropriate payment provides income equality of farmers who decide to implement this submeasure with those farmers who do not implement such a submeasure and consequently do not suffer any loss of income. Eligible for payments are beneficiaries the land of which is situated in areas designated in Annex 11, point 11.3. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation is based on the meadow mown three times. Considered was lower hay price on the meadow mown once due to lower hay quality, as well as the costs of machinery work (mowing, turning, and swathing of hay, transport), manual labour costs, costs of trimming the stripe under the trees, time spent on training and keeping of records on work tasks, income foregone as a result of lower produce which, due to the late mowing (after 25 August), can be used only for litter. The calculation methodology is shown in Annex 6. Submeasure 214-III/5 Bird conservation in humid extensive meadows in Natura 2000 sites - Measure description Objective Mechanism Implementation activity Content • Providing favourable population status of endangered birds species and habitats in humid extensive meadows • • Per area payment to defray income forgone and additional costs of performing special farming methods Conservation of humid extensive grassland, border strips and other structural elements of agricultural landscape (individual trees and bushes and waterside vegetation) and implementation of special agricultural practices 225 Indicators • · · · · • · · · • • • • • • Control: Total permanent grassland area on which the submeasure is implemented (ha) Areas within the Natura 2000 sites managed in accordance with the conditions Total area and share of structural elements in landscape Area of humid extensive meadows within ecologically important areas mown or grazed in accordance with the conditions (ha) Long-term: Population count of indicator bird species in humid extensive meadows Population count of indicator plant species Conservation of typical landscape and habitats of numerous plant and animal species Requirements for final beneficiaries under the submeasure in comparison to the baselines Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Different types of meadows are utilised identically, regardless of the area where they are situated. • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure and not only a record on the application of livestock manure. Land application of sewage sludge, silt and residues from fish farms is not allowed; applied may be only compost produced on agricultural holdings. Agricultural holding or individual areas of agricultural holding must be situated in central areas of appearance of birds of humid extensive meadows in the Natura 2000 sites as specified in the official register (Annex 12). 226 • • • • • • Baseline Regulatory requirements on operations, Standard on animal species and habitat conservation: In accordance with Annex I of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) land must be utilised at least once per year. Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. - Agricultural land must be managed every year. Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Application of mineral fertilisers is allowed. Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. • • • • Requirements for final beneficiaries Obligatory is minimum one mowing and gathering annually. First mowing is possible only after 1.8. Pasture is not possible. Mowing is done from meadow centre outwards (applies for GERK over 1 ha in size). In implementing the submeasure: - stocking density on agricultural holding must be 01.9 LU/ha of utilised agricultural area; - agricultural holding may not produce livestock manure surplus. • • Application of mineral fertilisers is not allowed. The application of plant protection products is not allowed. 227 Recommendations: - use of scythe mower at reduced speed, - mowing at minimum altitude 10 cm above the ground, - leaving 3-5 m wide unmown stripes (suitable for GERK over 5 ha), - equally left and maintained individual bushes and trees within GERK, 5-15 m wide (total area of elements may not amount to more than 3 percent of the total GERK). Monitoring shall be carried out within the CBI/FBI indicator. Indicator species are: - Corncrake (Crexcrex), - Northern Harrier (Circus cyaneus), - Lapwing (Vanellus vanellus), - Curlew (Numenius arquata), - Barred Warbler (Sylvia nisoria), - Quail (Coturnix coturnix), - Whinchat (Saxicola rubetra), - Whitethroat (Sylvia communis), - Grasshopper Warbler (Locustella naevia), - Red-Backed Shrike (Lanius collurio). - Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities In the last decade (1990-2000 period) a decline in the number of at least 52 nesting birds species in Slovenia was registered, which is approximately one quarter of all nesting bird species in this area. Of the declining population species 27 species are farmland birds. About one half of these species accommodate the rich structured, mosaic-like cultural landscape and the other half are birds specialised for various extensive grassland types. Most endangered are species in humid extensive meadows, e.g. Corncrake (Crex crex), Curlew (Numenius arquata), Common Snipe (Gallinago gallinago) and others populations which have declined as much as by over 50 percent in the last ten years. Today, larger areas of humid extensive meadows are preserved only on flooded plains by the rivers and in karstic fields in the central part, and to the South and Southeast of Slovenia. For birds most important humid extensive meadow areas were designated as Special protection areas (SPA) based on the provisions of the Bird Directive (79/409/EEC) and integrated into the European network of the Natura 2000 protection sites based on the Decree on special protection areas (Natura 2000 sites). Slovenia is bound to provide a favourable preservation situation of protected species populations in the Natura 2000 sites. For long term preservation of the populations of ecologically demanding bird species in humid extensive meadows it is necessary to secure further land management in areas which are less interesting from economic viewpoint due to difficult conditions for farming. It is important that the period of mowing and the conduction of certain agricultural techniques, particularly in central areas of humid meadows, be adapted to the habits and features of birds living in humid extensive meadows. The submeasure is aimed at preserving the species populations listed in Article 4 of Bird Directive (79/409/EC). Payments are therefore granted to beneficiaries in areas laid down in Annex 12. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). 228 - Detailed description of calculation methodology The calculation is based on the meadow mown three times. Considered was lower hay price on the meadow mown once due to lower hay quality, as well as the costs of machinery work (mowing, turning, and swathing of hay, transport), manual labour costs, costs of trimming the stripe under the trees, time spent on training and keeping of records on work tasks, lower income as a result of lower hay yield (by about 62 percent) and lower hay price (by about 40 percent). The calculation methodology is shown in Annex 6. Submeasure 214-III/6 Permanent green cover in water protection areas - Measure description Objective Mechanism Implementation activity Indicators - Content • Maintaining utilised and settled landscape with special status to maintain and improve groundwater quality • Per area payment to defray costs of extra work due to environmental and landscape requirements as well as the conservation of traditional farming methods • Preservation of green soil cover in water protection areas throughout the year • Control: · Acreage on which the submeasure is being implemented (ha) · Green cover throughout the year (ha) · Recorded application of fertilisers and plant protection products • Long-term: · Reduction of groundwater pollution · Conservation and improvement of groundwater quality Requirements for final beneficiaries under the submeasure in comparison to the baselines Payments are granted for: - fields, - perennial crops, - grassland (grass and grass-clover mixes in the fields, extensive grassland). Baseline Requirements for final beneficiaries 229 • • • • • • • • Baseline In the RS no additional education of farmers is required. Pursuant to Article 24 of the Agricultural Land Act (OJ RS No 55/03 - official consolidated text) a farmer is competent to perform agricultural activity if he/she has an agricultural education of IV. degree or any other IV. degree education and an exam in accordance with the applicable programme of agricultural technical or secondary schools on the agricultural activity he/she performs or shall perform, or by obtaining the national vocational qualification in agriculture in accordance with the act governing the national vocational qualifications. Additional minimum requirements on the use of plant protection products: In accordance with the Rules on professional training and assessment of knowledge in phytomedicine (OJ RS No 36/02, as amended) all plant protection operators must pass an exam in phytomedicine Keeping of records on work tasks is not mandatory. Additional minimum requirements on the use of fertilisers: Agricultural holdings must keep a record on the application of livestock manure, which must indicate at least the quantity and type of livestock manure, application time and information on the area on which the manure was applied. Additional minimum requirements on the use of plant protection products: In accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended) it is required to keep a record on the use of plant protection products, which must contain information on the areas and crops where these products are used. These records must be saved for at least 5 years. Regulatory requirements on operations, standard on sewage sludge: Land application of mud, silt or compost on agricultural holdings is allowed. For these areas agricultural holding must draw up an annual operational plan of mud, silt or compost distribution with a limited application as set out in Article 7 of the Decree on the limited input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05). Different types of agricultural land are utilised identically, regardless of the area where they are situated. • • • • • • Requirements for final beneficiaries During the commitment period a beneficiary eligible for payments under the submeasure shall participate in an educational programme taking at least 4 hours annually. After concluding the education process the beneficiary receives a certificate on contents, operator and the number of hours of the training. Keeping of records is mandatory for all producers engaged in the submeasure. The producers must keep records on all work tasks carried out within the range of the submeasure not only the records on the application of livestock manure and the use of plant protection products. Applied may be only organic mass (waste) produced on agricultural holdings. Only fertilisers allowed in organic farming may be applied, in accordance with Annex II, Part A and B of Regulation 2092/91. Agricultural holding or certain areas of thereof must be situated in narrowest water protection areas from the official register (Annex 13). The submeasures capture the whole agricultural holding if it is situated in a narrowest water protection zone or those utilised agricultural areas which are situated in a narrowest water protection zone (Annex 13). 230 • • • Baseline Regulatory requirements on operations, standard on plant protection products: - Pursuant to Articles 3 and 8 of the Plant Protection Products Act (OJ RS No 98/04 official consolidated text) only the use of registered plant protection products is allowed, or products for which an exceptional permission has been given, or a permission for extended application in the RS, or a permission for trade of identical plant protection products from other EU Member States. - Registered plant protection products must be appropriately used in accordance with the package leaflet, label indication or information in the permission and by considering the principles of good agricultural practice in plant protection and the Rules on the responsibilities of users of plant protection products (OJ RS No 62/03, as amended). Additional minimum requirements on the use of plant protection products: Only appliances which are regularly checked and have a regular check mark, to be obtained every two years, may be used. Standard on good agricultural and environmental conditions, organic matter in the soil: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) the 3-year crop rotation is mandatory on at least 50 percent of arable areas of the entire agricultural holding. Grasses, clovers, grassclover mixtures and clover-grass mixtures on arable areas are a part of crop rotation and may be on the same area longer than three years. • • • • Requirements for final beneficiaries Applied may be only plant protection products and other plant protection preparations allowed in organic production, in accordance with Annex II, Part A and B of Regulation 2092/91. The five year crop rotation shall include at least 3 different crops. Subsequent crops are considered as one of the three different crops to be included into the five year crop rotation. The crop rotation must be designed at entering the submeasure. In case of force majeure or changed market conditions the potential change of the crops in the rotation may not have negative impacts on the environment nor diminish the performance of the submeasure. 231 • • • Baseline Standard on good agricultural and environmental conditions, soil structure: In accordance to Annex II to the Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) it is required to apply adequate mechanisation. Standard on good agricultural and environmental conditions, soil erosion: In accordance with Annex II to the Regulation about cross compliance (OJ RS No 34/07, as amended) agricultural land need be utilised in a manner minimising the erosion risk and agritechnical measures applied which reduce the erosion effect. Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended) the grower acts with due care and attention if on utilised agricultural area he: - regularly utilises and maintains agricultural land; - provides for the conservation or improvement of soil fertility by an adequate use method, - does not cause land degradation (erosion, compaction, pollution) with inadequate technology, - maintains land exemplary and regularly, - utilises land to enable optimal and economical production by applying appropriate agricultural technology, - manages all areas belonging to agricultural holding to avoid the endangerment of the holding vitality, - provides for adequate land utilisation in case of his/her disability or longer absence, - maintains olive groves in good vegetative condition, - maintains olive groves and olive tree groups where these represent traditional growing of olive trees in the Mediterranean areas of Slovenia. • • • Requirements for final beneficiaries Mandatory is year-round green cover. Suitable for the year-round green cover are grass, clover, alfalfa crops, as well as grass-clover mixtures, clover-grass mixtures, winter cereals, and other winter crops. Utilisation must be suitable to crops, soil conditions and timing. 232 • Baseline Standard on good agricultural and environmental conditions, minimum maintenance level: In accordance with Annex II of Regulation on statutory management requirements and good agricultural and environmental conditions for farming (OJ RS No 34/07, as amended): - Minimum livestock density if livestock is kept on an agricultural holding. Where no livestock is produced, grassland is maintained through mowing. - Ensuring grassland management through pasture, mowing or combination of pasture and mowing; - Conserving agricultural land, which preserves traditional cultural landscape; - In cases of extensive land operations the conservation of elements of landscape features is ensured; whereas in olive growing areas olive tree groups are also deemed elements of landscape features. - Agricultural land must be managed every year. - Olive groves must be maintained/ managed in accordance with the established technological practice. Regulatory requirements on operations, standard on nitrates: - Pursuant to Article 4 of the Decree on the limit input concentration values of dangerous substances and fertilisers in soil (OJ RS No 84/05) the annual nitrogen input in the application of livestock manure may not exceed 170 kg/ha. - Agricultural holding with livestock manure surplus must have a receipt on the relinquishment or sale of the exceeded quantity of livestock manure. Tree density in orchard is not specified. • Meadow orchard need not be recorded in the register. - Payment entitlement based on anticipated impacts on the environment with regard to environmental requirements and priorities • • • Requirements for final beneficiaries Mowing and gathering in grassland is obligatory at least twice per year. In implementing the submeasure: - stocking density on agricultural holding may not exceed 1.9 LU/ha of utilised agricultural area; - agricultural holding may not produce livestock manure surplus. - single rate of nitrogen shall not exceed 30 kg/ha. • • Tree density must be 50-200 trees/ha in high-trunk meadow orchards and minimum 150 trees/ha in olive groves, at least 100 trees/ha with walnut and chestnut, and at least 200 trees/ha with other fruit varieties. Meadow orchard must be recorded in the register of fruit producers in extensive and meadow orchards. Slovenia has rich water resources, groundwater and water springs, which yield clean drinking water of the highest quality. Groundwater resources, which are the source of drinking water, are mostly shallow and located in alluvial river valleys. Most of these are agricultural areas under intensive agricultural production. In 2000, one third of the investigated groundwater sources were clean and, according to the Slovenian and European conditions for drinking water, of sufficient quality to be used as source of drinking water. In other two-thirds, at least one substance was found to damage the quality of groundwater and be the cause of deviation from the EU guideline values. Most frequently, these were atrazine and desethylatrazine. Other contaminants that exceeded the limit values for drinking water are: nitrates, chlorinated solvents, pesticides, metals (Fe, Mn, Cr, Pb, Zn, Cd), ammonium and nitrites. It is not always easy to determine the share that the agricultural sector contributes to the pollution; however, the use of mineral fertilisers in areas with intensive land cultivation represents the main 233 source of pollutants (mainly nitrates) in the environment. The damaging effects of agriculture on water sources, especially the quality of groundwater, are most visible in the basins of the Drava and Mura rivers. In the eastern part of Slovenia (Mursko plain, Ptujsko plain and Dravsko plain), the quality of groundwater is directly influenced by intensive crop production. The lowlands of the Pomurje and Maribor regions with intensive production of cereals and in the Celje region with hop plantations are polluted with nitrates. The quality of the groundwater at the Krško-Brežiško polje is also influenced by intensive farming; however, in 2000 nitrate concentrations did not considerably exceed the limit value. In the Pomurje and Celje regions, the increase in the contents of nitrates in groundwater is also influenced by manure surplus from large livestock production farms. In the western part of Slovenia (Vipava valley), the quality of groundwater is relatively good. In the Alpine hinterland sources are much cleaner than elsewhere. With regard to the European standards, water quality of most underground sources in Slovenia is still appropriate for drinking. In recent years, the quality of groundwater shows a trend of improvement with regard to the contents of nitrates and pesticides in samples taken, whereas the quality of waters in Slovenia is also better than decades ago. Nevertheless, measures to preserve and improve groundwater quality are necessary. The entire Slovenia is defined as a vulnerable zone; however, the restrictions to the pollution of groundwater with pesticide and nitrate residues apply in water catchments areas. Along with environmental protection regulations, which shall not be violated under any circumstances, additional restrictions and limitation are set out in the present submeasure. Green soil cover throughout the year and recorded application of fertilisers and plant protection agents reflect in reduction of groundwater pollution and conservation as well as improved groundwater quality. In order to maintain and improve groundwater quality and at the same time preserve utilised and populated landscape with special status, payments are granted to beneficiaries located in narrowest water protected areas listed in Annex 13. - Combinations with other agri-environmental submeasures Combination options are given in chapter A. Requirements related to all agri-environmental submeasures (Details on eligibility conditions, point 7). - Detailed description of calculation methodology The calculation considered costs for: • fields: wheat production costs, greening costs, costs of the year-round green cover (costs of ploughing, harrowing, machinery application, sowing of clover-grass mixture, and mulching – applied twice), maize production costs, potato production costs, and time spent on training and keeping of records on work tasks; • perennial crops: production costs, costs of maintenance of surface under the trees (total green cover), and time spent on training and keeping of records on work tasks; • grassland: production costs on the meadow mown twice, time spent on training and keeping of records on work tasks, lower income due to lower hay yield (by about 39 percent). The calculation methodology is shown in Annex 6. Methodology, prerequisites and parameters for calculating the support amounts for the measure agri-environmental payments - Baselines 234 The existing methodology for calculating payment amounts for agri-environmental measures under the Rural Development Programme of the RS 2004-2006 (OJ RS No 116/04, 45/06) – the “Computer programme SKOP 1.0” (Rozman et al., 200237) (hereafter referred to as SKOP model 1.0) is based on “partial budget”, the so called assessment of the difference between the sum of additional costs and the income foregone and the sum of reduced costs and the additional income arising as a result of the implementation of an agri-environmental measure on agricultural holding. Whereas, as regards the costs, the so called “public utilities” emerging as a result of the measure implementation are quantified in different ways. As regards the model development, the main problem was a lack of basic input data, i.e. costs of individual sustainable production methods (integrated crop, vegetable and fruit production, organic farming and sustainable rearing of domestic animals). The lack of basic cost studies to provide basic input data for a regular application and the update of the SKOP 1.0 model, as well as further upgrades thereof, shows the need for a basic methodological tool for assessing the sustainable production method costs. The currently applied approaches are based on the technologically economic simulation models (Rednak, 199738; Rozman, 200439, Rozman et al., 200640; Pažek et al., 200641). For the programming period 2007-2013 it is thus required to design a model calculation system enabling an assessment of the cost and income differences emerging as a result of the implementation of individual agri-environmental submeasures. The assessed differences shall represent the basis for determining the payments for each agri-environmental submeasure. - Methodology The basis for further development of the methodology is the existing SKOP 1.0 model, which is to be upgraded and adjusted in accordance with the relevant EC regulations covering the area concerned. The basis – reference rate for calculating payment amounts – shall be the standard good agricultural practice (conventional practice). Since payments for agri-environmental submeasures can represent only the amount of costs exceeding the costs of implementing the conventional practice principles, also covering the cross compliance requirements, the basis for the proposed methodology is the direct comparison of cost calculations of conventional production/rearing (intensive production/rearing considering all principles of the standard agricultural practice) and the production/rearing calculations under agri-environmental submeasures. Payment calculation is thus based on the cost and income comparison of conventional production/ rearing with production/ rearing under each agri-environmental submeasure. The most important decision in methodology development of calculating payment amounts was the application of the model calculation system of the Faculty of Agriculture, University of Maribor. Computerised and integrated simulation model provides comparative cost analysis of individual productions/rearing with different input parameters. The model development is based on applied knowledge of the system theory, whereas agricultural holding represents a system and the individual productions and types of rearing the subsystems. Thereby, the corresponding technologically economical models for conventional productions/rearing were developed (covering Rozman, È, Tojnko, S., Turk, J., Par, V., Pavloviè, M., 2002. Die Anwendung eines Computersimulationsmodells zur Optimierung der Erweiterung einer Apfelplantage unter den Bedingungen der Republik Slowenien. Berichte über Landwirtschaft 80/4: 632-642. 37 Rednak, M. 1997. Modelne kalkulacije - Splošna izhodišèa in metodologija izdelave modelnih kalkulacij za potrebe kmetijske politike. Agricultural Institute of Slovenia, Prikazi in informacije 189: p. 15. 38 Rozman, È. 2004. Aplikacija simulacijskih modelov in pozitivnega matematiènega programiranja pri ekonomski analizi sadjarske proizvodnje: doktorska disertacija. Unoversity of Maribor – Faculty of Agriculture. 39 Rozman, È., Pažek, K., Bavec, M., Bavec, F., Turk, J., Majkoviè, D., 2006. The Multi-criteria Analysis of Spelt Food Processing Alternatives on Small Organic Farms. Journal of Sustainable Agriculture 28/2: 159-179. 40 Pažek, K., Rozman, È., Borec, A., Turk, J., Majkoviè, D., Bavec, M., Bavec, F., 2006. The Multi criteria models for decision support on organic farms. Biological Agriculture and Horticulture 24/1: 73-89. 41 235 only the conventional practice) as well as for productions/rearing for the implementation of each agri-environmental submeasure. Agricultural management often requires research on production costs where lack of data is present, disabling a calculation settlement design. In such cases it is possible to apply methods of simulation modelling to ascertain (simulate) the anticipated costs of new agricultural production or costs of newly introduced technology. In this context, the mathematical system model (in this case the system investigated is an agricultural production or a farm or an agricultural business system) represents technical relationships between the inputs and outputs. Based on the specific model developed the computer programme calculates technological parameters of agricultural production as a basis for the technological map including the calculations of the total costs. Therefore the following calculation systems of the Faculty of Agriculture, University of Maribor, were applied: KARSIM 1.0, KARSIM EKO 1.0 (Pažek et al., 200642) and SIMSAD 1.0 (Rozman, 200443). Hence, basic input parameters in conventional production/rearing and production/rearing under each agri-environmental submeasure were selected and processed by adequate model. Cost assessments in the calculations for agri-environmental submeasures are thus a result of succeeding processing by the calculation system. A detailed description of methodology and model calculation is shown in Annex 6. Minimum requirements on the use of fertilisers and plant protection products and other obligatory requirements Agri-environmental payments relate only to those commitments exceeding adequate mandatory standards laid down on the basis of Articles 4 and 5 and Annexes III and IV of Regulation 1782/2003, Regulation on statutory management requirements and good agricultural and environmental conditions for farming as well as additional minimum requirements on the use of fertilisers and plant protection products and other adequate mandatory requirements laid down in the national legislation and EU regulations. The minimum requirements on the use of fertilisers and plant protection products mean that farmers must carry out at least the minimum technological production procedures which would be carried out by a farmer acting with due care by considering the agricultural legislation. This means he shall carry out economic activities in a manner ensuring the economical treatment of agricultural land without any long-term negative impacts on the environment, in particular soil, water and plants. The minimum requirements on the use of fertilisers and plant protection products also mean a responsible handling to ensure soil fertility, crop health and clean environment and to provide for quality food production. - Minimum requirements on the use of fertilisers Considering the minimum requirements on the use of fertilisers means a technically founded application of plant nutrients which: • reduces a risk of pollution of agricultural soil and waters by nutrient residues, • protects natural resources from potential agricultural pollution, • enables economical agricultural production, Pažek, K., Rozman, È., Borec, A., Turk, J., Majkoviè, D., Bavec, M., Bavec, F., 2006. The Multi criteria models for decision support on organic farms. Biological Agriculture and Horticulture24/1: 73-89. 42 Rozman, È. Aplikacija simulacijskih modelov in pozitivnega matematiènega programiranja pri ekonomski analizi sadjarske proizvodnje: doktorska disertacija = Application of simulation models and positive mathematical programming for the economic analysis of fruit production : Ph.D. Thesis, (Doktorske disertacije podiplomskega študija Fakultete za kmetijstvo, št. 2). Maribor: [È. Rozman], 2004. XI, 151 f., [8] f. pril., graf. prikazi. [COBISS.SI-ID 2074924] 43 236 which is accomplished through: • cross compliance requirements set out in the Regulation on statutory management requirements and good agricultural and environmental conditions for farming; • minimum requirements on the use of fertilisers related to the livestock manure application record to be kept by agricultural holding and which must contain at least the quantity and type of livestock manure, time of fertilisation and information on areas on which the manure was applied, as well as fertilisation with mineral nitrogen, whereby the amount applied may not exceed 250 kg/ha annually, • fertilisation prohibition on coastal land in the surface width of 15 metres off banks of the first rank waters and in the surface width of 5 metres off banks of the second rank waters as laid down in the Water Act. - Minimum requirements on the use of plant protection products The minimum requirements on the use of plant protection products lay down that these products need to be used in a manner, so that: - the biodiversity of the broader biotope is not endangered, - the environment is affected as little as possible, - drinking water sources are not endangered, - the health of people implementing the plant protection measures and of consumers is not endangered, as they are implemented through • the cross compliance requirements laid down in Regulation on statutory management requirements and good agricultural and environmental conditions for farming, • as well as minimum requirements on the use of plant protection products referring to: - keeping of records on the use of plant protection products in accordance with Annex 1 of the Rules on the responsibilities of users of plant protection products which must contain information on areas and crops where these products were applied, whereby the records are to be saved for at least five years, - course and exam in phytomedicine to be concluded by plant protection operators in accordance with the Rules on professional training and assessment of knowledge in phytomedicine, - application of devices which are regularly checked and have a label confirming periodic inspection to be obtained by device owners every two years; • the prohibition of the use of plant protection products on coastal land in the surface width of 15 metres off banks of the first rank waters and in the surface width of 5 metres off banks of the second rank waters as laid down in the Water Act. - Phosphorous pollution To avoid environmental pollution by phosphorous of agricultural origin, in phosphorous fertilisation it is necessary to consider the following: • expert recommendations on phosphorous fertilisation; • phosphorous fertilisation is possible only on the basis of soil analysis and fertilisation plan; • in accordance with the Decree on the limit input concentration values of dangerous substances and fertilisers in soil the annual phosphorous input through livestock manure fertilisation may not exceed the limit value of 120 kg P2O5/ha. 237 Rates of aid Rates of aid for agri-environmental submeasures amount: Table 48: Rates of aid for agri-environmental submeasures Submeasure group Group I: Reduction negative impacts of agriculture on the environment Submeasure 214-I/1 Preservation of crop rotation 214-I/2 Greening of arable land 214-I/3 Integrated crop production 214-I/4 Integrated fruit production 214-I/5 Integrated vine production 214-I/6 Integrated horticulture 214-I/7 Organic farming - Fields - crops: - Vegetables: grown outdoors: - Vegetables: grown indoors: - Olive groves with at least 150 trees/ha, orchard plantations with at least 100 trees/ha for walnut and chestnut and at least 200 trees/ha for other fruit varieties: - High-trunk meadow orchards with density 50-200 trees/ha: - Vineyards, hop gardens, tree nurseries: - Grassland**: Calculated payment amount under model calculation €224 per hectare Maximum possible payment under Annex to Regulation 1698/2005 €600 per hectare Single payment per area* Maximum possible payment Target payment value Anticipated ha (number of animals) (2013) - €224 per hectare €91.84 per hectare 12,000 ha €420 per hectare €600 per hectare - €420 per hectare €172.2 per hectare 20,000 ha €481 per hectare €600 per hectare - €481 per hectare €197.21 per hectare 25,000 ha €821 per hectare €900 per hectare - €821 per hectare €336.61 per hectare 3,200 ha €931 per hectare €900 per hectare - €900 per hectare €381.71 per hectare 8,000 ha €451 per hectare €600 per hectare - €451 per hectare €184.91 per hectare 1,000 ha 60,000 ha** €727 per hectare €1,345 per hectare €1,190 per hectare €1,353 per hectare €600 per hectare €600 per hectare €600 per hectare €900 per hectare €600 per hectare €600 per hectare €600 per hectare €900 per hectare €298.07 per hectare €551.45 per hectare €487.90 per hectare €554,73 per hectare €580 per hectare €900 per hectare - €580 per hectare €237.80 per hectare €1,412 per hectare €900 per hectare - €900 per hectare €578.92 per hectare €555 per hectare €450 per hectare - €450 per hectare €227.55 per hectare - 238 Submeasure group Group II: Conservation of natural conditions, biodiversity, soil fertility and traditional cultural landscape Group III: Maintenance of protection areas Submeasure Calculated payment amount under model calculation Maximum possible payment under Annex to Regulation 1698/2005 Single payment per area* Maximum possible payment Target payment value Anticipated ha (number of animals) (2013) €282 per hectare €450 per hectare €133 per hectare €149 per hectare 61,09 €/ha 500 ha €310 per hectare €450 per hectare €133 per hectare €177 per hectare €72.57 per hectare 5,500 ha €353 per hectare €450 per hectare €133 per hectare €220 per hectare €90.20 per hectare 16,000 ha €480 per hectare €450 per hectare €133 per hectare €347 per hectare €142.27 per hectare 6,000 ha €457 per hectare €450 per hectare €133 per hectare €324 per hectare €132.84 per hectare 100 ha €229 per hectare €900 per hectare - €229 per hectare €93.89 per hectare €218 per LU €200 per LU - €200 per LU €89.38 per LU €251 per hectare €600 per hectare - €251 per hectare €102.91 per hectare 8,500 ha €206 per hectare €450 per hectare - €206 per hectare €84.46 per hectare 65,000 ha €251 per hectare €450 per hectare €133 per hectare €118 per hectare €48.38 per hectare 10,000 ha €71 per hectare €450 per hectare - €71 per hectare €29.11 per hectare 8,000 ha €296 per hectare €450 per hectare €133 per hectare €163 per hectare €66.83 per hectare 1,000 ha 214-II/1 Mountain pastures - Mountain pastures without herdsman: - Mountain pastures with herdsman: 214-II/2 Steep slopes mowing - Steep slope inclination 3550%: - Steep slope inclination over 50%: 214-II/3 Humpy meadows mowing 214-II/4 Meadow orchards 214-II/5 Rearing of autochthonous and traditional domestic breeds 214-II/6 Production of autochthonous and traditional agricultural plant varieties 214-II/7 Sustainable rearing of domestic animals 214-II/8 Extensive grassland maintenance 214-III/1 Animal husbandry in central areas of appearance of large carnivores 214-III/2 Preservation of special grassland habitats 1,000 ha 20,000 animals 239 Submeasure group Submeasure 214-III/3 Preservation of grassland habitats of butterflies 214-III/4 Preservation of litter meadows 214-III/5 Bird conservation in humid extensive meadows in Natura 2000 sites 214-III/6 Permanent green cover in water protection areas - Fields: - Permanent plantations: - Grassland***: Calculated payment amount under model calculation Single payment per area* Maximum possible payment Target payment value €296 per hectare Maximum possible payment under Annex to Regulation 1698/2005 €450 per hectare Anticipated ha (number of animals) (2013) €133 per hectare €163 per hectare €66.83 per hectare 500 ha €484 per hectare €450 per hectare €133 per hectare €351 per hectare €143.91 per hectare 200 ha €336 per hectare €450 per hectare €133 per hectare €203 per hectare €83.23 per hectare 1,000 ha 1,000 ha €204 per hectare €450 per hectare €210 per hectare €600 per hectare €900 per hectare €450 per hectare €133 per hectare €204 per hectare €450 per hectare €77 per hectare €83.64 per hectare €184.50 per hectare €31.57 per hectare *: Single payment in the amount of €133 per ha is set out in the Decree on implementing direct payments in agriculture (OJ RS No 99/06 as amended) and is subtracted from the calculated payment amount with those submeasures where animal husbandry is not obligatory (submeasures: 214-II/2 Steep slopes mowing, 214-II/3 Humpy meadows mowing, 214-II/8 Extensive grassland maintenance, 214-III/2 Preservation of special grassland habitats, 214-III/3 Preservation of grassland habitats of butterflies, 214-III/4 Preservation of litter meadows, 214-III/5 Bird conservation in humid extensive meadows in Natura 2000 sites, 214-III/6 Permanent green cover in water protection areas – grassland) or where animal are related to the primary agricultural holding (submeasure 214-II/1 Mountain pasture) obtaining only single per area payment. **: UAA included in the implementation of the submeasure 214-I/7 Organic farming ***: Grasses and grass-clover mixtures on fields, permanent grassland. The annual payment amounts for each individual agri-environmental submeasure are laid down by a regulation governing the payments for measures under axis 2. Measures, objectives and conditions applied in case of beneficiaries selection based on a public tender in accordance with the second subparagraph of Article 39(4) of Regulation 1698/2005: Not relevant. Proof as referred to in Article 48(2) of the implementing rules enabling the Commission to check the compliance and credibility of the calculations The methodology and model calculations for setting payment amounts for agri-environmental submeasures were designed and confirmed by an independent institution: University of Maribor, Faculty of Agriculture, Vrbanska 30, SI 2000 Maribor. Model calculations are shown in Annex 6. Conservation of endangered animal and plant genetic resources 240 Endangered animal and plant genetic resources shall be conserved within the framework of two agri-environmental submeasures: • 214-II/5 Rearing of autochthonous and traditional domestic breeds; • 214-II/6 Production of autochthonous and traditional agricultural plant varieties. - List of autochthonous and traditional domestic breeds The list of autochthonous and traditional domestic breeds is shown in chapter B. Requirements related to individual agri-environmental submeasures (Group II, Submeasure 214-II/5 Rearing of autochthonous and traditional domestic breeds); the description, together with the number of purebred females for every individual breed, is shown in Annex 8. The number of breeding females of individual autochthonous and traditional domestic breeds is the following: Table 49: Slovenian autochthonous and traditional domestic breeds count in the RS Year Estimation of pure bred animals count Number of pure bred females recorded in breeding book* Number of pure bred females recorded in gene bank (In situ) Cika cattle 2005 1,083 450 300 Lipizzan horse 2005 822 225 84 Posavje horse 2005 478 415 - Slovenian cold-blooded horse 2005 1,393 1,198 - Krško Polje pig 2005 404 84 30 2005 2005 2005 2005 17,500 3,600 1,100 800 4,583 1,623 703 699 990 837 432 404 2005 600 389 201 2005 1,300 - 236 Ljutomer trotter Haflinger 2005 2005 500 274 262 249 - Slovenian landrace (Line 11) Slovenian landrace (Line 55) Large white (Line 22) 2005 2005 2005 13,471 331 2,584 4,055 255 869 - 2005 80,000 7,569 - Slovenian Saanen goat Slovenian Alpine 2005 2005 2,500 4,500 484 1,440 - Slovenian barred hen Slovenian silver hen Slovenian brown hen Slovenian early feathering hen Slovenian late feathering hen Slovenian heavy weight hen 2005 2005 2005 2005 2005 2005 1,359 654 2,570 322 333 277 - 1,129 579 2,254 293 305 254 Breeds AUTOCHTHONOUS BREEDS Jezersko-Solèava sheep Bovec sheep Istrian pramenka - Istrijanka Bela kraina pramenka Drežnica goat Styrian hen - Štajerka TRADITIONAL BREEDS Improved Jezersko-Solèava sheep *: Pure bred animal is an animal the parents and grandparents are recorded in the main part of the breeding book of the same breed. 241 - List of autochthonous and traditional agricultural plant varieties The list of autochthonous and traditional agricultural plant varieties is shown in chapter B. Requirements related to individual agri-environmental submeasures (Group II, Submeasure 214II/6 Production of autochthonous and traditional agricultural plant varieties), whereas the variety description is shown in Annex 9. - Conservation of genetic resources in agriculture: type of beneficiaries, activities and details on eligible costs Beneficiaries, activities and details on eligible costs for the conservation of genetic resources are laid down in chapter B. Requirements related to individual agri-environmental submeasures (Group II, Submeasure 214-II/5 Rearing of autochthonous and traditional domestic breeds, Submeasure 214-II/6 Production of autochthonous and traditional agricultural plant varieties). Financing - Community co-financing rate Agri-environmental submeasures are publicly financed, whereby up to 80 percent of the resources are allocated from the EAFRD and minimum 20 percent from the budget of the RS. - Minimum/maximum eligible costs Maximum amounts of per-hectare payments obtainable by a combination of agri-environmental submeasures account to: Table 50: Maximum payment amounts under agri-environmental submeasures combinations Area - crop Fields Permanent plantations Grassland (permanent grassland) Amount €600 per ha €900 per ha €450 per ha If the total amount of utilised agricultural area on agricultural holding under agri-environmental submeasures exceeds 100 hectares, the payment amount under these submeasures decreases by 50 percent for the areas exceeding 100 hectares. Operating costs defrayed by agri-environmental payments for the submeasure 214-I/7 Organic farming are calculated for the whole duration of the commitment and may not exceed 20 percent of the income foregone and additional costs emerging from the commitment undertaken. Transitional provisions - Shift from the agri-environmental payments scheme 2004-2006 to the agri-environmental payments scheme 2007-2013 Pursuant to Article 11 of Regulation 1320/2006 agri-environmental commitments undertaken in accordance with Regulation 1257/1999 (hereafter: existing commitments) shift to new five-year commitments set out by Regulation 1698/2005 (hereafter: new commitments), which shall be upgraded with the cross compliance requirements and the minimum requirements on the use of fertilisers and plant protection products. Thus the existing commitments shall significantly strengthen and enhance the benefits to the environment and animal welfare. As a result of these 242 requirements some agri-environmental measures under programming period 2004-2006 shall be terminated, some shall be amended or even introduced anew. Therefore the beneficiaries implementing agri-environmental measures in 2004-2006 shall be able to substitute them with agrienvironmental submeasures for 2007-2013 (Table 51). Thus, 2007 onward new five-year commitments for the implementation of agri-environmental submeasures shall start running. This way, the fulfilment of the objectives set shall be ensured and the current beneficiaries shall be able to continue implementing the agri-environmental payments scheme and in 2007 new beneficiaries shall be able to enter the scheme. Table 51: Possible substitutions of agri-environmental measures 2004-2006 with agri-environmental submeasures 2007-2013 Programming period 2004-2006 Programming period 2007-2013 Group I - reduction of negative impacts of agriculture on the environment • I/1 Reduction of erosion in fruit and vine • 214-I/4 Integrated fruit production production* • 214-I/5 Integrated vine production • 214-I/7 Organic farming • 214-II/6 Production of autochthonous and traditional agricultural plants • 214-III/6 Permanent green cover in water protection areas - perennial plantations • I/2 Preservation of crop rotation • 214-I/1 Preservation of crop rotation • 214-I/3 Integrated crop production • 214-I/6 Integrated horticulture (in open air and protected indoor areas) • 214-I/7 Organic farming • 214-III/6 Permanent green cover in water protection areas • I/3 Greening of arable land • 214-I/1 Preservation of crop rotation • 214-I/2 Greening of arable land • 214-I/3 Integrated crop production • 214-I/6 Integrated horticulture (in open air and protected indoor areas) • 214-I/7 Organic farming • 214-III/6 Permanent green cover in water protection areas • I/4 Integrated crop production • 214-I/3 Integrated crop production • 214-I/4 Integrated fruit production • 214-I/5 Integrated vine production • 214-I/6 Integrated horticulture (in open air and protected indoor areas) • 214-I/7 Organic farming • 214-III/6 Permanent green cover in water protection areas • I/5 Integrated fruit production • 214-I/3 Integrated crop production • 214-I/4 Integrated fruit production • 214-I/5 Integrated vine production • 214-I/6 Integrated horticulture (in open air and protected indoor areas) • 214-I/7 Organic farming • 214-III/6 Permanent green cover in water protection areas 243 Programming period 2004-2006 • I/6 Integrated vine production Programming period 2007-2013 • 214-I/3 Integrated crop production • 214-I/4 Integrated fruit production • 214-I/5 Integrated vine production • 214-I/6 Integrated horticulture (in open air and protected indoor areas) • 214-I/7 Organic farming • 214-III/6 Permanent green cover in water protection areas • I/7 Integrated horticulture (in open air and • 214-I/3 Integrated crop production protected indoor areas) • 214-I/4 Integrated fruit production • 214-I/5 Integrated vine production • 214-I/6 Integrated horticulture (in open air and protected indoor areas) • 214-I/7 Organic farming • 214-III/6 Permanent green cover in water protection areas • I/8 Organic farming • 214-I/7 Organic farming Group II - conservation of natural conditions, biodiversity, soil fertility and traditional cultural landscape • II/1 Mountain pastures without herdsman • 214-II/1 Mountain pastures without herdsman • 214-II/1 Mountain pastures with herdsman • II/1 Mountain pastures with herdsman • 214-II/1 Mountain pastures without herdsman • 214-II/1 Mountain pastures with herdsman • II/2 Steep slopes mowing with inclination 35• 214-I/7 Organic farming 50% • 214-II/2 Steep slopes mowing with inclination 35-50% • 214-II/2 Steep slopes mowing with inclination over 50% • 214-II/4 Meadow orchards • 214-II/7 Sustainable rearing of domestic animals • 214-II/8 Extensive grassland maintenance • 214-III/1 Animal husbandry in central areas of appearance of large carnivores • 214-III/2 Preservation of special grassland habitats • 214-III/3 Preservation of grassland habitats of butterflies • 214-III/4 Preservation of litter meadows • 214-III/5 Bird conservation in humid extensive meadows in Natura 2000 sites • 214-III/6 Permanent green cover in water protection areas 244 Programming period 2004-2006 • II/2 Steep slopes mowing with inclination over 50% • II/3 Humpy meadows mowing • II/4 Meadow orchards • • • II/5 Rearing of autochthonous and traditional domestic breeds II/6 Production of autochthonous and traditional agricultural plants II/7 Sustainable rearing of domestic animals Programming period 2007-2013 • 214-I/7 Organic farming • 214-II/2 Steep slopes mowing with inclination over 50% • 214-II/4 Meadow orchards • 214-II/7 Sustainable rearing of domestic animals • 214-II/8 Extensive grassland maintenance • 214-III/1 Animal husbandry in central areas of appearance of large carnivores • 214-III/2 Preservation of special grassland habitats • 214-III/3 Preservation of grassland habitats of butterflies • 214-III/4 Preservation of litter meadows • 214-III/5 Bird conservation in humid extensive meadows in Natura 2000 sites • 214-III/6 Permanent green cover in water protection areas • 214-I/7 Organic farming • 214-II/3 Humpy meadows mowing • 214-II/7 Sustainable rearing of domestic animals • 214-II/8 Extensive grassland maintenance • 214-III/1 Animal husbandry in central areas of appearance of large carnivores • 214-III/2 Preservation of special grassland habitats • 214-III/3 Preservation of grassland habitats of butterflies • 214-III/4 Preservation of litter meadows • 214-III/5 Bird conservation in humid extensive meadows in Natura 2000 sites • 214-III/6 Permanent green cover in water protection areas • 214-I/7 Organic farming • 214-II/4 Meadow orchards • 214-III/6 Permanent green cover in water protection areas • 214-II/5 Rearing of autochthonous and traditional domestic breeds • 214-II/6 Production of autochthonous and traditional agricultural plants • 214-I/7 Organic farming • 214-II/7 Sustainable rearing of domestic animals • 214-III/1 Animal husbandry in central areas of appearance of large carnivores • 214-III/2 Preservation of special grassland habitats • 214-III/3 Preservation of grassland habitats of butterflies • 214-III/4 Preservation of litter meadows • 214-III/5 Bird conservation in humid extensive meadows in Natura 2000 sites • 214-III/6 Permanent green cover in water protection areas 245 Programming period 2004-2006 • II/8 Extensive grassland maintenance Group III - maintenance of protection areas • III/1 Maintaining utilised and settled landscape in protection areas* • III/2 Animal husbandry in central areas of appearance of large carnivores Programming period 2007-2013 • 214-I/7 Organic farming • 214-II/2 Steep slopes mowing • 214-II/3 Humpy meadows mowing • 214-II/7 Sustainable rearing of domestic animals • 214-II/8 Extensive grassland maintenance • 214-III/1 Animal husbandry in central areas of appearance of large carnivores • 214-III/2 Preservation of special grassland habitats • 214-III/3 Preservation of grassland habitats of butterflies • 214-III/4 Preservation of litter meadows • 214-III/5 Bird conservation in humid extensive meadows in Natura 2000 sites • 214-III/6 Permanent green cover in water protection areas - Supplementation not possible • • • • • o o • III/3 Preservation of special grassland habitats • • • • • • • III/4 Permanent green cover in water protection areas III/5 Grassing and green fallow* • • • • • • • • • • • 214-I/7 Organic farming 214-III/1 Animal husbandry in central areas of appearance of large carnivores 214-III/2 Preservation of special grassland habitats 214-III/3 Preservation of grassland habitats of butterflies 214-III/4 Preservation of litter meadows 214-III/5 Bird conservation in humid extensive meadows in Natura 2000 sites 214-III/6 Permanent green cover in water protection areas 214-II/8 Extensive grassland maintenance 214-III/2 Preservation of special grassland habitats 214-III/3 Preservation of grassland habitats of butterflies 214-III/4 Preservation of litter meadows 214-III/5 Bird conservation in humid extensive meadows in Natura 2000 sites 214-I/3 Integrated crop production 214-I/7 Organic farming 214-III/6 Permanent green cover in water protection areas 214-I/7 Organic farming - grassland 214-II/7 Sustainable rearing of domestic animals 214-III/1 Animal husbandry in central areas of appearance of large carnivores 214-III/2 Preservation of special grassland habitats 214-III/3 Preservation of grassland habitats of butterflies 214-III/4 Preservation of litter meadows 214-III/5 Bird conservation in humid extensive meadows in Natura 2000 sites 214-III/6 Permanent green cover in water protection areas - grassland 246 Programming period 2004-2006 Programming period 2007-2013 * Measure shall no longer be implemented in 2007-2013. The beneficiaries who entered the agri-environmental measures 2004-2006 in accordance with Regulation 1257/1999 shall be able to continue with their existing commitments in 2007-2013 until the conclusion of their five-year commitments, if they should decide not to change the existing for the new commitments due to the introduction of the cross compliance requirements and the minimum requirements on the use of fertilisers and plant protection products commitments pursuant to Article 11 of Regulation 1320/2006. The procedure of the shift from the existing to new commitments shall be set out in the regulation governing the payments for measures under axis 2. Objectives and indicators OBJECTIVES RESULT AND OUTPUT INDICATORS VALUES Baseline Specific Increasing the share of areas under organic production. Increasing the extent of sustainable farming in Natura 2000 sites. Increasing the extent of agricultural land under sustainable farming methods. Share of areas under submeasure organic farming with regard to UAA Areas within Natura 2000 sites on which AE submeasures are implemented Area under successful land management contributing to: Biodiversity, Water quality, Climate change, Soil quality Number of agricultural holdings under in Operational Increasing the number of agricultural holdings engaged AE payments in AE payments. Increasing the extent of areas Hectares supported under AE payments under AE payments. Increasing physical area under Net number of hectares, where at least one AE payments. AE submeasure is implemented Increasing total number of Number of commitments undertaken for commitments undertaken for AE submeasures AE submeasures. Increasing the extent of Number of commitments undertaken for commitments undertaken for AE submeasures related to genetic submeasures related to resources genetic resources. Increasing the number of Number of agricultural holdings engaged in agricultural holdings engaged submeasure organic farming in submeasure organic farming Anticipated (2013) 4% 10% 57,200 ha 60,000 ha 55,700 ha 131,300 ha -82,800 ha 73,600 ha 132,200 ha 65,000 ha 96,000 ha 22,400 26,500 361,000 ha 365,000 ha 199,500 ha 204,000 ha 48,200 52,000 3,100 4,400 1,650 5,000 247 5.3.3 Axis 3: Quality of life in the countryside and diversification or rural economy Rationale The rural areas fall behind the urban centres as regards the development and are therefore at greater risk of depopulation on one hand and of marginalisation on the other, having negative economic, environmental and social consequences. The main factors hampering a faster development of these areas are as follows: - limited employment opportunities and simultaneously poorly utilised labour potential in rural areas, and lack of business and management skills as a factor hampering a faster entrepreneurship development; - poorer infrastructure development in villages and underexploited natural and cultural features as a factor reducing the attractiveness of villages as a living environment and as a development potential of other activities in the rural areas, in particular tourism. Objectives By supporting the investments the measures and activities under this axis are aimed at enhancing the employment and job creation in the non-agricultural and agriculture related activities and by supporting the arrangement of the rural settlements and their cultural heritage at enhancing the development of the rural areas, and thus raising the income level and the living standard of the rural communities. Measures and activities Code 31 311 312 32 322 323 Measure Measures to diversify the rural economy Diversification into non-agricultural activities Support for the creation and development of micro enterprises Measures to improve the quality of life in the rural areas Village renewal and development Conservation and upgrading of the rural heritage Regulation 1698/2005 Article 52(a) (ii), Article 53 Article 52(a)(i), Article 54 Article 52(b)(i)(ii), Article 56 Article 52(b)(iii), Article 57 Next to the specific conditions for each measure, for the measures under axis 3 the following provisions shall apply as appropriate: - The measures shall be implemented through the entire programming period outside the settlements with the status of a town. Settlements with the status of a town are set out with a Decision of the National Assembly of the RS on granting the status of a town to settlements in the RS, OJ RS No 22/00 and 121/05 (Annex 1, Figure 7). - The measures shall be implemented as one or multiannual commitments in accordance with the criteria set. - The beneficiary shall fulfil all conditions in accordance with the applicable legislation and the specifications under the call for tender. - The beneficiaries shall not apply the funds contrary to the purpose for which the funds were granted. - Based on the investment and technical documentation a beneficiary applying for funds for a part of an investment must provide an inventory of works and costs for the entire investment, in case of a phased construction he must provide a proof of the works completed and the value thereof. - In case the measures are related to activities affecting the environment for which appropriate administrative approval is required, it is necessary to draw up an adequate assessment of impacts on the environment in accordance with the regulations. - Co-financed shall be eligible costs arising after the date the decision was issued. Acknowledged shall also be preliminary arising general costs related to the preparation and implementation of the investment or activities, 01.01.2007 onward. - The payment of customs and levies, the operational, bank and guarantees costs, as well as the 248 - purchase of used machinery and equipment shall not be deemed eligible costs of an investment. The investment is to be completed prior to the last disbursement of the funds. In case of investments in new constructions or a reconstruction of facilities and the purchase of the corresponding equipment located or to be located in the buildings constructed for other purposes as well, only the costs, of the total construction or reconstruction costs of the entire building, in the proportional share with regard to the net surface of the building covered by the facilities concerned (common use areas, roof, façade, etc.) shall be deemed eligible costs. Demarcation Measures and activities under axis 3 are defined by specific conditions providing that the purposes supported under this axis shall not be supported within the range of other axes of the RDP. The demarcation with the measures under other Operational programmes with similar objectives and measures is defined by the territorial coverage, purpose and/or the maximum total investment value. The maximum total investment value does not apply for micro enterprises, except for micro enterprises investing in renewable resources. The maximum total investment values are indicatively outlined under each measure, whereby the value can be changed in agreement between both Managing Authorities (GOLSGRP and MAFF) during the implementation. Before approving any project the MAFF shall check the information on the amount of public resources already received for the same project under other OPs. Target group The measures and activities are intended for micro economic operators on farms and broader rural areas, local communities and the rural population by considering the conditions and restrictions within the framework of each activity. Financial provisions Measures under axis 3 are financed from public resources, whereby up to 75 percent are confinanced by the EAFRD and 25 percent from the national budget of the RS. The share of public resources for each measure shall be set by the regulation governing the payments for measures under the RDP axes 1, 3 and 4 and by calls for tender. The commitments for granting funds to the beneficiaries may be made up to the amount of opened resources for each measure. The restriction criteria as a safety mechanism preventing the available resources from being exceeded shall be outlined by the implementing rules. Common objectives and indicators OBJECTIVES BASELINE INDICATORS Promoting selfemployment and the diversification of activities in rural areas Share of farmers with non-agricultural sources of income Employment in secondary and tertiary sector Number of self-employed persons GVA in secondary and tertiary sector Tourism infrastructure in rural areas (number of bed places) Share of services GVA (of the total GVA) Raising the living standard in rural communities and reducing the risk of marginalisation and migrations Net migration (index) Share of households with Internet access Share of training participants aged between 25 and 64 years VALUES Baseline Target (2013) 74.4% 76 (2005) 824,000 869,000 (2005) 96,000 120,000 (2005) €23,463 Mio. (2005) €31,000 Mio. 78,960 82,000 (2005) 63.4% 64.8% (2005) 100 95 48% 65 15.2% 17 (2005) 249 5.3.3.1 Measures to diversify the rural economy 5.3.3.1.1 Diversification into non-agricultural activities Legal basis: Regulation 1698/2005; Article 52 (a) (i), Article 53 Measure code: 311 Rationale: Farms and the resources on them offer opportunities for new forms of making income and employment. By diversifying economic activities on farms the utilisation of human resources in particular is improved as well as the improvement of the economic situation of agricultural holdings and indirectly of the entire countryside is ensured. Considering the physical (ha of UAA, LU) and economic indicators (SGM-ESU) the farm structure in Slovenia is very unfavourable. In comparison to other European countries Slovenia is among the countries in the EU with the lowest average farm size. At the same time the labour input on Slovenian farms, measured in the PMWU coefficient, is at the level of the EU average. Hence, compared to the EU average Slovenian farms use too much labour force. Due to the smallness of the farms their labour potential remains unutilised. Farm size and on-farm labour force make them uncompetitive. Furthermore, in future intense conditions in the labour market may be expected and thus the importance of self-employment shall increase. The development of new, non-agricultural on-farm activities opens numerous opportunities for self-employment and thus for the optimisation of labour force and new sources of income for farm households. Farms have many advantages, which can be used for the development of new activities. Tourism represents an important business opportunity for farms as well as for Slovenia as a whole. Considering the development level of Slovenian tourism and the existing development potential tourism could in the coming years become one of the leading branches of Slovenian economy and simultaneously the leading additional on-farm activity. Currently, 458 farms44 are engaged in tourism on farm. However, there are still opportunities and conditions for further development, particularly in the specialisation of the tourist offer on farms. Handicraft is an important part of the traditional skills on farms and in the countryside. It represents a part of the overall tourist offer and the promotion of Slovenia as well as one of the key conditions for the conservation of the Slovene cultural heritage on one hand and of the commercial applicability on the other. Handicraft is also an important factor of the social policy in the sense of the self-employment on farms. New job and income opportunities are possible through the processing of the products outside Annex I to the Treaty as well as the production of energy from renewable resources, marketing of tourism products and marketing of products of the surrounding farms. Objective Support is aimed at ensuring the initiation or modernisation of performing non-agricultural activities and thus at creating new jobs and additional source of income on farms as well as at contributing to the improvement of social and economic conditions on farms. Measure description The measure is aimed at creating the conditions and opportunities for the creation of new jobs and the realisation of business ideas of the members of farm households. It is mainly intended for investments required for the initiation of performing a non-agricultural activity or for the modernisation of already existing non-agricultural activity. 44 MAFF, Register of subsidiary occupations 250 Types of purposes: - production activities related to traditional on-farm skills; - production activities related to the processing of products outside Annex I to the treaty and other non-agricultural products on farms; - production of energy from renewable resources for on-farm sale; - sales activities related to on-farm production activities (specialised stores for sale of products from own production and the surrounding farms); - on-farm service activities (tourism, childcare, care of older people, care of persons with special needs). The beneficiaries must meet all conditions for performing certain activities in accordance with the applicable legislation and submit a business plan which must contain economic parameters of the investment. In case of social-protection services in the countryside a special programme must be submitted. If at the application submission a beneficiary does not fulfil the requirements set referring to appropriate vocational skills and qualifications, he must fulfil these requirements before the investment conclusion. Based on the submitted business plan or programme the beneficiary may obtain support for training, provided it is relevant for the performance of the activity supported and the application is accompanied by education or training plan. Mere training without the investment is not an eligible cost. Training must be verifiable by a proof on concluded training and may not be a part of the regular education system. For support to investments in renewable resources of energy for sale projects may apply the estimated value of which does not exceed EUR 480,000. The operator of subsidiary occupation or the majority owner of an enterprise must be a member of farm household and must have permanent address at the address of the farm. As eligible costs are acknowledged all costs related to building construction, purchase of new machinery and equipment, purchase of ICT equipment and the costs of obtaining appropriate skills as well as general costs directly related to the preparation and implementation of projects. For an application to be approved the beneficiaries must, in accordance with the criteria, exceed the minimum number of points, which shall be laid down in public tender. Target group Target group are legal and natural persons which are at the application submission registered45 as individual independent entrepreneur, company, cooperative, or a farm engaged in subsidiary occupation, and do not exceed the criteria on micro enterprises specified in the Commission Recommendation 2003/361/EC (less than 10 employees and less than EUR 2,000,000 turnover annually) and have registered office and perform the activity outside the settlements with the status of a town according to the Decision of the National Assembly of the RS. Operator of the subsidiary occupation on farm or legitimate representative of the independent entrepreneur, cooperative or company must be a member of the farm household in accordance with Article 35 of Regulation 1974/2006 laying down detailed rules for the application of Regulation (EC) No 1698/2005. Delimitation RDP 2007-2013 Measure Diversification into non-agricultural activities is delimitated from the measures under axes 1 and 2 through support to different activities. Under axes 1 and 2 agricultural, food and forestry activities are supported, whereas under measure Diversification into non-agricultural activities nonagricultural activity is supported. In case of wood processing under measure 122 Improving the economic value of forests wood processing is supported under the statistical classification of 45 In case of a registered activity the enterprise is registered at a competent administrative authority (farms engaged in subsidiary occupation at the MAFF, independent entrepreneurs in the register of independent entrepreneurs at the Tax Administration of the RS and legal persons at the competent district court) and has acquired tax and registration number (independent entrepreneurs and legal persons). 251 activities (SCA) SORS 20.1, while the remaining wood processing is supported within the range of this measure. In case of investments in the production of energy from renewable resources under axis 1 investments are supported which use the energy for the performance of agricultural, food processing or forestry activity or for obtaining raw material for renewable resources (wood biomass, biodiesel, bioethanol). Under this measure the energy produced is sold on the market. The measure is delimited from measure Support for the creation and development of micro enterprises in regard of the location of the investment. Measure Diversification into non-agricultural activities is implemented only on farms. On-farm investment is deemed an investment implemented on the area or facilities belonging to farm household and the beneficiaries are the members of this farm household. Farms are entered in the register of agricultural holdings and have a KMG-MID. Other Operational programmes The measure is delimited from other operational programmes in the following manner: - supported shall be only micro enterprises with registered office and operation in settlements which do not have the status of a town; - in case of investments in renewable resources the maximum estimated value of the investment may be EUR 480,000; - supported shall be training within the range of the investment which is necessary for successful performance of the activity; - investments in fisheries and fishery services shall not be supported. Financial provisions Financial aid is ensured as non-repayable funds. The maximum aid rate amounts up to 50 percent of the acknowledged investment value. Minimum aid amount granted is EUR 3,500 per beneficiary. A beneficiary may obtain maximum EUR200,000 in the period of the last three budget years. Objectives and indicators OBJECTIVES Specific Accelerating the creation of new jobs and searching of new sources of income in the countryside Operational Promoting the diversification of activities in the countryside and supporting their development VALUES RESULT AND OUTPUT INDICATORS Baseline Anticipated (2013) 0 720 GVA in supported projects (Index) 100 130 Additional number of tourists (Index) 100 120 Number of inhabitants in rural areas enjoying the improved basic services in rural areas 0 20,000 Number of beneficiaries 0 360 Number of supported tourism-related projects 0 200 Number of participants who successfully completed training 0 50 Total volume of investments 0 €63 Mio. Total number of jobs created in supported projects 252 5.3.3.1.2 Support for the creation and development of micro enterprises Legal basis: Regulation 1698/2005, Article 52 (a) (ii), Article 54 Measure code: 312 Rationale of the measure: In the light of the labour market Slovenian rural areas have experienced a fast and extensive transformation in the past ten years. The restructuring of agriculture and the bankruptcy of large industry establishments, which employed predominantly rural population, resulted in structural unemployment of the rural population. Certain disparities remain present requiring greater flexibility of the labour force and the introduction of flexible employment types and entrepreneurship activities. It may be anticipated that the intensified global competitiveness and the relatively expensive domestic labour force shall create additional pressures on the labour market in the coming years. Entrepreneurship therefore plays the key role in the national economic development as the generator of new activities and thus the creation of new jobs. The development of micro enterprises is particularly important for areas outside the cities and in smaller settlements with limited employment opportunities. Successful diversification of the economic activities in the rural areas and the entrepreneurship development require appropriate qualification to perform a certain activity as well as the acquisition of business and management skills. New enterprises and better employment opportunities, in particular for members of farm households, women and young people, ensure the creation of a new value added in the rural areas, bring a new impetus and thus contribute towards the preservation of populated countryside. Objective By supporting the creation and development of micro enterprises enabling the start or modernisation of performing an activity, the measure is aimed at accelerating the creation of new jobs, raising the business and management skills as well as improving the situation in entrepreneurship in the rural areas, where the conditions for economic development are limited, and thus contribute towards the improvement of the social and economic conditions in the countryside as a whole. Measure description This measure shall support investments in already operating as well newly established micro enterprises located and operating in the rural areas and providing or maintaining the already existing jobs and increasing the income of the rural population. Supported shall mainly be the diversification of activities performed by the rural population, e.g. production activities utilising the advantages of the rural areas, energy production from renewable resources for sale, sales activities related to the production activities, social security services (childcare, care of elderly people and persons with special needs, etc.) as well as other activities performed by micro enterprises in accordance with the provisions of the regulation and tender conditions. The support for investments in renewable energy resources for sale shall be granted for projects the estimated value of which does not exceed EUR 480,000. The beneficiaries must meet all conditions for performing a certain activity in accordance with the applicable legislation and submit a business plan which must contain the economic parameters of the investment. In case of social security services in the rural areas a special plan shall be submitted. If the beneficiary, at the time of submitting the application, does not fulfil the requirements set regarding the adequate vocational skills and qualifications, he shall fulfil these requirements prior to the completion of the investment. Based on the submitted business plan or programme the beneficiary may also obtain support for training if it is relevant for the performance of the activity supported and if the application is accompanied by an education or a training plan. Mere training 253 without an investment is not considered an eligible cost. Training must be ascertainable by a proof on completed training and may not be a part of the regular education system. As eligible costs shall be deemed all costs related to the construction or reconstruction of a building, the purchase of new machinery and equipment, the purchase of ICT equipment and the costs of acquiring appropriate skills as well as general costs directly related to the preparation and implementation of projects. For an application to be granted the beneficiaries must reach, in accordance with the criteria set, a minimum amount of points. Target group The beneficiaries are legal and natural persons which are, at the time of submitting the application, registered46 as an individual independent entrepreneur, a company, or cooperative and do not exceed the criteria on micro enterprises defined in the Commission Recommendation No 2003/361/EC (less than 10 employees and under EUR 2,000,000 of annual turnover) and have registered office and operate outside the settlements with the status of a town in accordance with the Decision of the National Assembly of the RS. Demarcation RDP 2007-2013 The measure Support for the creation and development of micro enterprises is delimited from the measures under axis 1 and 2 by the designation of different activities. Axes 1 and 2 support agricultural, food industry and forestry activity, while the measure Support for the creation and development of micro enterprises supports non-agricultural activity. As regards wood processing under the measure 123 Adding value to agricultural and forestry products the processing of wood is supported by the statistical classification of activities (SCA) SORS 20.1, while the remaining wood processing is supported within the range of this measure. In case of investments in energy production from renewable resources under axis 1 support is devoted to investments which use the energy to perform agricultural, food or forestry activity or to obtain raw materials for renewable resources (biomass, biodiesel, bioethanol), while this measure support the sale of the produced energy on the market. The measure is delimitated from measure Diversification into nonagricultural activities in regard of the location of the investment. Measure Support for the creation and development of micro enterprises is not implemented on farms. Other Operation Programmes The measure is delimitated from other operational programmes in the following manner: - Supported shall be only micro enterprises located and operating in settlements which do not have the status of a town. - In cases of investments in renewable resources the maximum estimated value of the investment may be EUR 480,000. - Supported shall be training within the range of an investment, necessary for successful performance of the activity. - Investments in fisheries and fishery services shall not be supported. Financial provisions The financial aid is provided in the form of non-repayable funds. Maximum aid rate amounts up to 50 percent of the acknowledged investment value. Minimum aid amount granted is EUR 20,000 per beneficiary. The beneficiary may obtain a maximum amount of EUR 200,000 in the period of the last three budget years. 46 Registered activity means that the enterprise is recorded at the competent administrative body (self-employed persons in the register of self-employed persons at the Tax Administration of the RS and legal persons at the appropriate local court) and have a tax and ID number. 254 Objectives and indicators OBJECTIVES Specific Operational Enhancing the creation of new jobs and looking for new sources of income in the countryside Promoting the diversification of activities in the countryside and supporting the development thereof RESULT AND OUTPUT INDICATORS Baseline Total number of created jobs in enterprises supported GVA in enterprises supported (index) Additional number of tourists (index) Number of inhabitants in rural areas enjoying the improved basic services in rural areas Number of micro enterprises supported Number of supported tourism-related projects Number of participants who successfully completed the training Total investment value 0 VALUES Anticipated (2013) 2,000 100 130 100 120 0 20,000 0 900 0 150 0 50 0 € 111 Mio. 255 5.3.3.2 Measures to improve the quality of life in the rural areas 5.3.3.2.2 Village renewal and development Legal basis: Regulation 1698/2005, Article 52(b) (i) (ii), Article 56 Measure code: 322 Rationale of the measure The disparities between the urban and rural lifestyle are becoming less apparent, although the key specifics of each remain clearly recognisable. Compared to the city areas the countryside has certain specific developmental needs, problems and opportunities requiring a different developmental approach. Very important is the infrastructure development and accessibility for rural population and enterprises. In infrastructure development the rural areas are underprivileged in comparison to the cities and thus more exposed to depopulation. The decline in the settlement of the countryside may lead to the socially unwelcome depopulation and the loss of the cultural landscape value. Rural settlements do dispose of a building stock which is, however, very poorly exploited and has often no explicit use function. These facilities ought to be used for various activities, e.g. crossgenerational associating, cultural and art activities, sports and other leisure activities of the local population. Objectives of the measure By supporting the investments in village renewal and development the measure is aimed at improving the living conditions in rural communities and thus contributing towards the attractiveness of the villages as a living environment and the development potential for other activities, in particular tourism. Measure description Several activities are joined under this measure, but prevailing are those aimed at village renewal and development. Activities belonging to basic services shall be allocated 20 percent of public resources under this measure. Through the implementation under this measure, activities which could belong to other measures (e.g. event platform) shall contribute to village revival and encourage the arrangement of other parts of village as well. The activities are very related and by constructing and renewing facilities to improve the quality of life in the rural areas they shall also animate the development and access to various services and goods, which shall together with territorial accessibility ensure the actual shift of the rural areas to a higher level of living. Supported shall be the investments the estimated value of which does not exceed EUR 600,000 and which are aimed at: - arranging the surface serving to the common purposes and needs of the rural areas; - arranging the village cores; - arranging the infrastructure and connections within the settlements; - reconstructing and constructing multipurpose buildings of common importance for intergenerational gathering, cultural and art, sports and other leisure activities of the local population. Together with the application the beneficiaries shall submit a programme and fulfil other conditions set in the call for tender. As eligible costs are deemed all costs related to the construction or reconstruction of a building, the purchase of new equipment, and other general costs, directly related to the preparation and implementation of projects. For an application to be granted the beneficiaries must reach, in accordance with the criteria set, a minimum amount of points. Target group 256 The measure is intended for the local population in settlements which do not have the status of a town in accordance with the Decision of the National Assembly of the RS. Operating as beneficiaries are local communities. Demarcation RDP 2007-2013 The measure Village renewal and development differs from the measures under axis and 2 in purposes and well as beneficiaries, therefore no potential overlapping is present. Other Operational Programmes The measure is delimitated from other operational programmes in the following manner: - The projects are of local importance. - Support is granted to settlements without the status of a town. - The maximum estimated investment value may be EUR 600,000. - All plans on Natura 2000 are excluded from the RDP 2007-2013 since they shall be co-financed from other operational programmes. Financial provisions The financial aid is provided as non-repayable funds. Maximum aid rate amounts up to 50 percent of acknowledged investment value. Minimum aid amount granted is EUR 10,000 per beneficiary. A beneficiary may obtain a maximum amount of EUR 750,000 in the programming period. Objectives and indicators OBJECTIVES Specific Operational Improving the living conditions in rural communities Arranging common surface and facilities for various purposes RESULT AND OUTPUT INDICATORS population in rural areas benefiting from improved basic services in rural areas Number of villages supported Baseline 0 Total investments value VALUES Anticipated (2013) 300,000 0 550 €48.5 Mio. 0 Objectives and indicators linked to basic services OBJECTIVES RESULT AND OUTPUT INDICATORS Specific Improving the living conditions Population in rural areas benefiting from in rural communities improved basic services in rural areas Operational Arranging common surface and Number of projects supported facilities for various purposes Total investments value VALUES Baseline Anticipated (2013) 0 75,000 0 200 0 €12 Mio. 257 5.3.3.2.3 Conservation and upgrading of the rural heritage Legal basis: Regulation 1698/2005, Article 52(b)(iii), Article 57 Measure code: 323 Rationale of the measure Cultural heritage is an important economic opportunity, therefore it is necessary to identify these potentials and increase the importance of cultural heritage as development factor. Rural heritage covers the natural as well the cultural heritage. The nature value areas and the conservation of the rural cultural heritage need to be cherished as a part of the national identity and as an opportunity to promote tourism and the corresponding activities. The conservation of the rural cultural identity is particularly important for a country as Slovenia - having a relatively high degree of preservation in a relatively small territory. Objective of the measure By supporting the projects the measure is aimed at conserving the rural heritage and ensuring the networking of cultural heritage, natural values and cultural landscape by developing tourism and spending leisure time, improving the quality of life in the countryside and indirectly having positive effects on greater economic vitality of the rural areas. Measure description Supported shall be projects the estimated value of which does not exceed EUR 360,000 and which have a special meaning for the heritage conservation. The support shall be granted for: - renewal of cultural and ethnological rural heritage; - open-air museums; - eco-museums; - facilities for arranging permanent exhibitions of the ethnological heritage; - arrangement and construction of thematic trails; - other. Together with the application the beneficiaries shall submit a drawn up programme and fulfil other conditions set in the call for tender. As eligible costs are deemed all costs related to the construction or reconstruction, purchase of new equipment, and other general costs, directly related to the preparation and implementation of projects. For an application to be granted the beneficiaries must reach, in accordance with the criteria set, a minimum amount of points. Target group (beneficiaries) Beneficiaries are natural and legal persons as well as local communities. Demarcation RDP 2007-2013 The measure Conservation and upgrading of the rural heritage differs from the measures under axis and 2 in purposes and well as beneficiaries, therefore no potential overlapping is present. The measure 125 Improving and developing the infrastructure related to the development and adaptation of agriculture supports the tracks and access to agricultural land in land consolidation areas, thematic trails however are not supported under the measure 125 but under this. Other Operational Programmes The measure is delimitated from other operational programmes in the following manner: - Support is granted to settlements without the status of a town. - The maximum estimated investment value may be EUR 360,000. 258 Financial provisions The financial aid is provided as non-repayable funds. Maximum aid rate amounts up to 50 percent of the recognised investment value. Minimum aid amount granted is EUR 3,000 per project. A beneficiary may obtain maximum amount of EUR200,000 in the period of the last three budget years. Objectives and indicators OBJECTIVES Specific Operational Improving the quality of life of rural communities Raising the attractiveness of rural communities RESULT AND OUTPUT INDICATORS Population in rural areas benefiting from improved basic services in rural areas Number of projects supported Total investments value Baseline 0 0 0 VALUES Anticipated (2013) 150,000 250 €29.4 Mio. 259 5.3.4 Axis 4: Implementation of the LEADER approach Rationale The lag of rural areas in the development and the changed role of the rural area indicate a need for the implementation of local development strategies based on the LEADER principles and are evident in: - the exactly defined rural areas for which the strategies have been designed; - the implementation of the strategies through the local action groups (public private partnerships); - the “bottom-up” approach in the drawing up and the implementation of the strategy; - the multisectoral drawing up and implementation of the strategy, whereby the complexity of the development strategy is accomplished; - the strategy innovation (approach, method, product, project, market innovation, etc.); - the implementation of cooperation projects; - the networking of local partnerships. The local population itself shall decide on the development of its environment and realise the development ideas. This way only effective development and the implementation of the measures under the remaining axes at the local level can be accomplished. Objectives The LEADER initiative and its measures are aimed at encouraging the decision-making on the development of individual rural areas under the bottom-up approach. The measures shall contribute to the accomplishment of the general objective under axis 4, i.e. building local capacities and simultaneously towards the achievement of the objectives under axes 1, 2 and particularly axis 3. Measures and activities Code 41 (411, 412, 413) 421 421 431 431 Measure Implementation of local development strategies Implementation of local development strategies Promoting inter-territorial and transnational cooperation Promoting inter-territorial and transnational cooperation Running local action groups, skills acquisition and animating the territory Running local action groups, skills acquisition and animating the territory Regulation 1698/2005 Article 63(a), Article 64 Article 63(b), Article 65 Article 63(c) Measures and activities under this axis are aimed at establishing and operating local action groups as well as the implementation of projects under the LEADER approach. Next to the specific conditions for each measure, for the measures under axis 4 the following provisions shall apply as appropriate: - The measures shall be implemented in the RS throughout the programming period. - The measures shall be implemented as one or multiannual commitments in accordance with the criteria set. - The beneficiary shall fulfil all conditions in accordance with the applicable legislation and the specifications under the call for tender. - Co-financed shall be eligible costs arising after the date of the confirmation of the local development strategy. Acknowledged shall also be preliminary arising general costs related to the establishment of the local action group, regardless of the date they arose. - The beneficiaries shall not apply the funds for investments contrary to the purpose for which the funds were granted. 260 - - - Based on the investment and technical documentation a beneficiary applying for funds for a part of an investment must provide an inventory of works and costs for the entire investment, in case of a phased construction he must provide a proof of the works completed and the value thereof. The payment of customs and levies, the operational, bank and guarantees costs, as well as the purchase of used machinery and equipment shall not be deemed eligible costs of an investment. The investment is to be completed prior to the last disbursement of the funds. In case of investments in new constructions or a reconstruction of facilities and the purchase of the corresponding equipment located or to be located in the buildings constructed for other purposes as well, only the costs, of the total construction or reconstruction costs of the entire building, in the proportional share with regard to the net surface of the building covered by the facilities concerned (common use areas, roof, façade, etc.) shall be deemed eligible costs. A beneficiary who has already obtained funds from the national budget of the RS or EU funds for the same purpose he is applying for under the RDP is not eligible for the RDP funds. Target group Beneficiaries are local action groups in rural areas including the settlements with less than 10,000 inhabitants. Financial provisions The measures under axis 4 are financed from the public resources, whereby up to 80 percent are cofinanced by the EAFRD and at least 20 percent from the national budget of the RS. The share of public resources for each measure shall be set by the regulation governing the payments for measures under axes 1, 3 and 4 and calls for tender. The commitments for granting funds to the beneficiaries may be made up to the amount of opened resources for each measure. The restriction criteria as a safety mechanism preventing the available resources from being exceeded shall be outlined by implementing rules. Objectives and indicators OBJECTIVES Integrating local partnerships into rural development BASELINE INDICATORS Population share in LAG areas Number of inhabitants in LAG areas Number of operating LAGs Baseline 0 0 0 VALUES Anticipated (2013) 70% 1.4 Mio. 20 261 5.3.4.1 Implementing local development strategies Legal basis: Regulation 1698/2005, Article 63 (a), Article 64 Measure code: 41 (411, 412, 413) Rationale of the measure: Slovenia has long-year experience in the “bottom-up” approach and the drawing up of the innovative development programmes for rounded up rural areas, which, however, have not been implemented by effective local development partnerships and which has reflected mainly in the difficulties of realising the development projects. Objectives of the measure The measure is aimed at the implementation of the projects under the LEADER principles based on the local development potentials and reflecting the needs of the local population as well as contributing towards the improved quality of life and job creation in the countryside. Measure description Supported shall be the innovative projects which are compliant with the local action strategy and are implemented in the areas where an operating local action group (LAG) exists. Eligible for support under this measure are all LAGs local development strategies of which were confirmed in a public tender and shall thus be accorded the status of operating LAGs. The first call for tender shall be published after the adoption of the RDP 2007-2013. LAGs which shall not be selected in the first call for tender shall be able to apply in the second call for tender which is expected to be published by 2009. The local development strategies shall be evaluated for their innovation, feasibility, sustainable stance and consistency with other development programmes. Evaluated shall also be the contribution of the strategy to the creation of new jobs and the integration of the marginal rural population groups (women, young people) into the drawing up and implementation of the strategy. Confirmed shall be those local development strategies which shall reach a sufficient number of points in the call for tender. Only a LAG with confirmed local development strategy shall award a contract with the MAFF setting out mutual relations and indicative resources for all purposes of the measures under axis 4. The implementation of the projects shall be devoted 70 percent of the resources allocated in the RDP 2007-2013 for axis 4. They shall be allocated on the basis of the LAG population count, LAG surface and the quality of the local development strategy. It is envisaged that by the end of the programming period the entire rural space of the RS shall be covered by local development strategies, with the exemption of the settlements with over 10,000 inhabitants. On about 80 percent of the territory approximately 20 LAGs shall operate. Based on its own standards and criteria set the LAG or its decision-making body shall select the projects and submit them to the LEADER Office for confirmation. The LEADER Office checks if the selected projects are compliant with the local development strategy and the amount of allocated financial resources for each LAG. The projects must contribute to at least one of the priorities of the RDP 2007-2013. In addition thereto, the implementation and financing of the projects must involve also private partners. In case a LAG is not the project holder, the LAG and the project holder enter a contract for cofinancing the project. After the project completion or its individual phases the LAG submits a claim for reimbursement with all required evidence at the MAFF. After checking the claim entitlement the ARSAMRD shall reimburse the funds to the LAG bank account. 262 As eligible costs are deemed the material costs47 for the implementation of the projects, costs of obtaining the documentation and approvals, project promotion costs and other general costs directly related to preparation and implementation of projects48. If the projects match the measures under other three axes of the RDP 2007-2013 they shall be implemented under the conditions and in a manner as set for these measures. Target group Beneficiaries under this measure are operating LAGs implementing local development strategies and having a confirmed annual implementation plan. Demarcation RDP 2007-2013 The projects under this measure are related to a specific selection based on confirmed development strategy of a LAG and the annual implementation plan and differ from the projects selection for other axes. Beneficiaries under this measure are LAGs. Other Operational Programmes The measure is delimitated from other operational programmes in the following manner: - The projects are of local importance. - Support is intended for investments in settlements with less than 10,000 inhabitants. - In the projects selection the LEADER principles are considered. Financial provisions The aid rate amounts to minimum 50 percent of the value of eligible costs for each project. In case of non-profit projects the co-financing rate may amount up to 100 percent of the value of eligible costs for a project. The contribution in kind may amount up to 20 percent of the total project value. Minimum aid amount granted for each project amounts to EUR 2,000 and the maximum amount EUR 70,000. Objectives and indicators OBJECTIVES Specific Operational Accelerating creation of new jobs and opportunities of new sources of income in rural areas* Promoting LEADER approach in the rural development programming Contribution to the realisation of the RDP goals by implementing local development strategies under the LEADER approach RESULT AND OUTPUT INDICATORS Total number of created jobs Baseline 0 VALUES Anticipated (2013) 20 Beneficiaries supported 0 Increase Number of LAGs 0 20 Total size of LAG area 0 16,000 km2 Population in LAG areas 0 1.4 Mio. Number of projects covered by LAGs axis 1 axis 2 axis 3 0 650 0 0 0 30% 10% 60% * Within the framework of the implementation of local development strategies projects no significant direct increase of new jobs is expected. However, through its indirect impact the LEADER approach shall contribute to the creation of new jobs within the framework of other measures under axes 1 and 3. 47 All costs for material without costs of services and work. 48 The costs shall be outlined in more detail in implementing documents. 263 5.3.4.2 Promoting inter-territorial and transnational cooperation Legal basis: Regulation 1698/2005, Article 63 (b), Article 65 Measure code: 421 Rationale of the measure For effective formation and implementation of the local development strategies it is important that individual rural areas showing similar developmental opportunities, needs and challenges connect and exchange experience. The implementation of joint or cooperation projects contributes to the networking of LAG areas, accomplishment of the common development goals and common development orientations of individual LAGs. Objective of the measure The measure is aimed at grouping rural areas with similar development opportunities and needs to jointly implement development projects, exchange the knowledge and experience and thus contribute to a more effective implementation of the local development strategies. Measure description Support under this measure shall be aimed at promoting the cooperation, which is one of the main characteristics of the LEADER approach and enables the exchange of experience, transfer of good practices and information flow between the local action groups. The inter-territorial cooperation shall be implemented between individual LAG areas in Slovenia, whereas the transnational cooperation relates to the cooperation with LAG areas of other Member States and the cooperation with areas of third countries. LAGs themselves select cooperation projects. The readiness of a LAG for project cooperation must be clearly expressed in the Local development strategy. Proposed cooperation projects are confirmed by the LEADER Office. At least one LAG, together with other LAG or similarly formed groups, draws up a joint cooperation project, which shall be coherent with the goals set up in the LAG development strategies. Prior to the selection the cooperation projects must be confirmed by all cooperating LAGs implementing the project. The cooperation project is registered by the leading LAG. The application shall clearly show the tasks and responsibilities allocation as well as the financial participation of each partner. Experience, information and knowledge exchange necessary to implement the inter-territorial and transnational cooperation projects between individual LAGs is the basis for the implementation of joint project. For this purpose mainly the data bases and tools of the national as well as the European rural network shall be applied. Cooperation projects shall be implemented by considering all instructions and procedures set out by the European Commission. As eligible costs are deemed material costs arising from the implementation of the cooperation projects, experience exchange and information actions between the cooperating LAGs. Support shall be granted only for expenses related to the areas within the Community. Each cooperating LAG may claim the support only for its own expenses. Target group (beneficiaries) Supported shall be operating LAGs with confirmed local development strategies and which implement cooperation projects. Demarcation Activities under this measure neither overlap with the measures of other axes under the RDP 2007264 2013 nor with other OPs. Financial provisions Ten percent of the resources earmarked for axis 4 of the RDP 2007-2013 shall be devoted to the cooperation projects. The indicative allocation of the resources for the cooperation projects per individual LAG shall be set on the basis of the number of inhabitants, LAG surface (km2) and the quality of the development strategy. Maximum aid rate for the implementation of the cooperation projects shall amount to 80 percent of the value of eligible costs. Minimum aid amount granted for individual cooperation project shall be EUR 2,000 and maximum amount EUR 30,000. Objectives and indicators OBJECTIVES Specific Operational Accelerating creation of new jobs and opportunities of new sources of income in rural areas* Promoting inter-territorial and transnational cooperation RESULT AND OUTPUT INDICATORS Total number of created jobs Number of cooperation projects supported Number of LAGs implementing cooperation projects Baseline VALUES Anticipated (2013) 0 0 0 75 0 10 * Within the framework of the implementation of inter-territorial and transnational cooperation projects no direct increase of new jobs is expected, but an indirect creation of new jobs within the framework of other measures under axes 1 and 3. 265 5.3.4.3 Running local action groups, skills acquisition and animating the territory Legal basis: Regulation 1698/2005, Article 63 (c) Measure code: 431 Rationale of the measure: Since in Slovenia public private partnerships have not yet been developed sufficiently to implement the projects successfully under the LEADER approach and since at the local level there is lack of interest and knowledge for development, it is necessary to animate the local population to participate as much as possible in the processes of development planning and decision-making. Present is an immense lack of self-initiatives and independence in the introduction of new activities in the rural areas. Therefore, in the new programming period it is necessary to animate the local population for the participation in the local action groups (LAGs) and to support the operation thereof. For a successful LAG operation and involvement of the rural population in the process of designing and realisation of the development programmes (local development strategies) it is necessary to promote the education and skills acquisition as well. Objective of the measure The measure is aimed at animating the rural population to join into the local action groups and qualification for running the local action groups as well as at successful implementation of the local development strategy under the LEADER principles. Measure description A LAG must fulfil the requirements referred to in Article 62 of Regulation 1698/2005, and particularly considering paragraph 1b. Supported shall be the management and operation of LAGs, the activities of the rural population animation, and skills acquisition for successful implementation of the local development strategy. Support for the running and operating is intended for the LAG responsible for the implementation of the local development strategy. The LAG selects an manager who designs the LAG operation, animates the local population, collects project ideas, provides for the education of the local population, prepares reports and performs other tasks entrusted to him by the LAG. Animation activities shall be intended for rural population and its grouping into LAGs. The animation activity is aimed at promoting the LEADER approach, local action groups, and local development strategies in the area concerned of each LAG. Regarding the skills acquisition the LEADER Office (MAFF) shall organise training for the LAG operators, which shall be carried out by qualified education operators. Co-financed shall also be the preparation of appropriate promotion and study materials. As eligible costs are deemed the costs for the administrative establishment of a LAG, the operational and running costs (material and operational costs, co-financing the salaries) as well as the costs of training and animation organisation (organisation and preparation of workshops, seminars, materials). Target group Eligible for support for the running of the local action groups, the skills acquisition and animation of the territory are LAGs with confirmed local development strategies. Demarcation Activities under this measure neither overlap with the measures of other axes under the RDP 20072013 nor with other OPs. 266 Financial provisions Maximum aid rate for the running the LAGs, skills acquisition and animation of the territory shall amount up to 50 percent of the value of eligible costs and may not exceed 20 percent of the total public expenditure of the local development strategy (Article 38 of Regulation 1974/2006). Support for running and operating costs for each LAG shall be set up on the basis of the number of the inhabitants and the LAG surface (km2). Objectives and indicators OBJECTIVES Specific Operational Accelerating creation of new jobs and opportunities of new sources of income in rural areas* Establishing LEADER approach in the rural development planning and raising interest and competence for the implementation of LEADER RESULT AND OUTPUT INDICATORS Total number of created jobs Number of supported training/animation actions Baseline VALUES Anticipated (2013) 0 15 0 250 *Within the framework of running local action groups no significant direct increase of new jobs is expected. It is envisaged that through its indirect impact the LEADER shall contribute to the creation of new jobs within the framework of other measures under axes 1 and 3. 267 6 6.1 FINANCIAL PLAN Annual contribution by EAFRD Table 52: Annual contribution by EAFRD (EUR) Year Total EAFRD Convergence regions 2007 2008 2009 2010 2011 2012 2013 TOTAL 149,549,387 139,868,094 129,728,049 128,304,946 123,026,091 117,808,866 111,981,296 900,266,729 149,549,387 139,868,094 129,728,049 128,304,946 123,026,091 117,808,866 111,981,296 900,266,729 At the NUTS 2 level Slovenia is one region and is entirely entitled to aid under the Convergence objective. 6.2 Financial plan by axes Table 53: Financial plan by axes (in EUR – entire period) Public resources Total Grade of EAFRD co-financing (%) EAFRD contribution Axis Axis 1 399,487,151 75.00% 299,615,363 Axis 2 587,640,844 80.00% 470,112,675 Axis 3 132,039,136 75.00% 99,029,352 Axis 4 33,760,006 80.00% 27,008,005 Technical assistance 6,001,779 75.00% 4,501,334 Total 77.68% 900,266,729 1,158,928,916 * For better transparency the EAFRD percentage in this table is rounded to two decimal places and the amounts by individual axes are set on the basis of rounding to seven decimal places. 268 7 FRAMEWORK ALLOCATION BY RURAL DEVELOPMENT MEASURE Table 54: Framework allocation by measure for rural development (in EUR, entire period) Measure/axis Public expenditure Private expenditure Total 111 13,570,600 0 13,570,600 112 35,253,235 0 35,253,235 113 38,097,939 0 38,097,939 121 82,334,549 82,334,549 164,669,098 122 24,939,252 24,939,252 49,878,504 123 93,171,965 133,934,701 227,106,666 125 43,633,948 0 43,633,948 131 40,400,000 0 40,400,000 132 18,570,337 0 18,570,337 133 6,619,268 2,836,829 9,456,097 142 2,896,057 0 2,896,057 Total axis 1 399,487,151 244,045,331 643,532,482 211 236,924,109 0 236,924,109 212 45,464,579 214 305,252,156 0 305,252,156 Total axis 2 587,640,844 0 587,640,844 311 31,551,000 31,551,000 63,102,000 312 55,520,136 55,520,136 111,040,272 322 323 30,259,000 14,709,000 30,259,000 14,709,000 60,518,000 29,418,000 132,039,136 132,039,136 264,078,272 23,632,002 23,632,002 47,264,004 411 7,089,601 7,089,601 14,179,202 412 2,363,200 2,363,200 4,726,400 413 14,179,201 14,179,201 28,358,402 421 3,376,002 1,446,858 4,822,860 431 6,752,001 6,752,001 13,504,002 33,760,006 31,830,861 65,590,867 Total axis 3 41 Total axis 4 Total axes 1, 2, 3 and 4 Technical assistance 1,152,927,137 45,464,579 407,915,328 5,401,601 1,560,842,465 5,401,601 National rural network 600,178 Running costs 120,036 120,036 Action plan 480,142 480,142 511 Technical assistance Total 6,001,779 1,158,928,916 0 0 407,915,328 600,178 6,001,779 1,566,844,244 269 8 DDITIONAL NATIONAL FINANCING AT DISTINCTION OF MEASURES CONCERNED, AS LAID DOWN BY REGULATION 1698/2005 For measures under the RDP 2007-2013 Slovenia has not envisaged to allocate aids exceeding the maximum amounts set out by Regulation 1698/2005. 270 9 ELEMENTS REQUIRED FOR THE ASSESSMENT IN THE LIGHT OF COMPETITIVENESS RULES AND AID SCHEME APPROVED PURSUANT TO ARTICLES 87, 88 AND 89 OF THE TREATY, APPLIED FOR THE PROGRAMME IMPLEMENTATION A) Slovenia does not plan additional national financing of measures and activities under the RDP 2007-2013 falling under the scope of Article 36 of the EC Treaty. B) For measures and activities under the RDP 2007-2013 which do not fall under the scope of Article 36 of the EC Treaty and represent public financial contribution of Slovenia as a complement to Community aid, Slovenia shall in favour of activities or measures, based on Article 28 and Article 52 of Regulation 1698/2005, apply the provisions of Regulation 1998/200649. Table 55: State aid schemes included in the programme implementation Code 123 Adding value to agricultural and forestry products (processing and marketing of other products, the raw material of which are agricultural products; first stage of wood processing and marketing) Article 28 311 Diversification into nonagricultural activities Article 52 312 Support for the creation and development of micro enterprises Article 52 322 Village renewal and development Article 52 323 Conservation and upgrading of the rural heritage Article 52 Aid scheme Indication of the scheme lawfulness Duration of scheme By 31.12.2013 Adding value to agricultural and forestry products Any aid for activities under this measure which do not fall under the scope of Article 36 of the EC Treaty shall comply with Regulation 1998/2006. Diversification into nonagricultural activities Any aid under this measure shall comply with Regulation 1998/2006. By 31.12.2013 Support for the creation and development of micro enterprises Any aid under this measure shall comply with Regulation 1998/2006. By 31.12.2013 Village renewal and development Any aid under this measure shall comply with Regulation 1998/2006. By 31.12.2013 Conservation and upgrading of the rural heritage Any aid under this measure shall comply with Regulation 1998/2006. By 31.12.2013 aid Any cases of application of the schemes enumerated above for which under State aid rules or under conditions and commitments laid down in the respective State aid approval decision, individual notifications are required, shall be notified individually pursuant to Article 88 (3) of the Treaty. 49 Commission Regulation (EC) No 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid (OJ L 379, 28.12.2006, p. 5–10 ) 271 10 INFORMATION ON COMPLEMENTARITY WITH MEASURES FINANCED BY OTHER INSTRUMENTS UNDER THE COMMON AGRICULTURAL POLICY, COHESION POLICY AND COMMUNITY AID FOR FISHERIES The requirement of complementarity, consistency and conformity is set out as a basic principle in Article 5 of Regulation 1698/2005. The RDP 2007-2013 provides for conformity and complementarity within the individual axes and also among them, as well as with the Common Agricultural Policy, Cohesion Policy and Community fisheries funding instruments. Internal consistency is confirmed by the synergies that the proposed goals and activities contained in individual axes are to have in relation to the goals and measures contained in other axes. 10.1 Complementarity with Community activities, policies and priorities The RDP 2007-2013 has been designed in line with Community Strategic Guidelines that regulate conformity of the priorities of Member States with Community priorities in areas of sustainable development goals from Gothenburg and the renewed Lisbon Strategy for Growth and Jobs. The basic motive of the RDP 2007-2013 is enhancing the economic competitiveness and promoting economic growth, which is one of the foundations of the Lisbon Strategy. This objective is pursued by means of axis 1 measures, which are aimed at enhancing the efficiency and value of agriculture, agri-food and forestry, as well as by means of conserving production resources and raising qualifications. Implementation of axis 3 measures, which are dedicated to improving the quality of life in rural areas and the diversification of economic activities with a view to promote micro enterprises and create jobs are also important from the viewpoint of achieving Lisbon Strategy goals. Moreover, the planned measures provide for sustainable rural development, the underlying objectives of the decisions adopted by the European Council in Gothenburg. Complementarity within and among axes Conformity, the potential for synergies and clarity of individual measures are the key elements for enhanced rural development. These principles, along with the specific needs and requirements of the objectives in the respective axes, were kept in mind in devising the measures. This applies for measures within individual axes as well as those among the axes, which should provide for increased efficiency in achieving the set objectives. Complementarity with the measures of the first pillar of the Common Agriculture Policy The rural development policy promoted by the RDP 2007-2013 through its objectives and measures are complementary with the measures under the first pillar of the CAP. The most important features in this respect for Slovenia are direct payments, for which potential synergies and demarcation issues are dealt with in a separate section. In 2007 Slovenia introduced the system of single payments in line with CAP reforms adopted between 2003 and 2005. The new system of direct payments shall help Slovenia to achieve a more market-oriented, competitive and sustainable agricultural sector, which should in turn contribute to the achievement of competitiveness, growth and employment goals under the Lisbon Strategy. The renewed direct payments scheme also promotes the European agricultural model, which places emphasis on the sector's multi-purpose role. The RDP 2007-2013 and CAP resort to different instruments in seeking to achieve the same principles and goals. The proposed direct payments scheme in Slovenia includes regionally-uniform area payments coupled with various historic supplements and certain production payments. Agricultural holdings shall be able to bid for additional payments for special breeding methods and quality 272 enhancement irrespective of their participation in the regional direct payment scheme. This is part of "multi-purpose" measures aimed at promoting the upkeep and promotion of environmentfriendly extensive breeding that provides for the conservation of agriculture whilst promoting production of prime quality beef. The measures in the RDP 2007-2013 upgrade the measures under the first pillar of the CAP. Reform of the direct payments scheme lessens the importance of production criteria in the distribution of aid thereby placing greater emphasis on the market and promoting care for the environment, which requires the continuation of intensive restructuring of agriculture and the countryside. The RDP 2007-2013 strongly promotes such restructuring. Prior to granting and distributing aid, the ARSAMRD is to carry out checks - including on-thespot visits - in order to avoid duplication of funds for measures funded from CAP instruments. Beneficiaries eligible for aid under axis 1 who have already received grants from Slovenia or the EU for a project shall not be entitled to aid under the RDP 2007-2013 for the same project. Bidders for aid under axis 2 of the RDP 2007-2013 must file independent claims that shall be checked by the Agency for the fulfilment of aid criteria. There is a link between per area payments under the first pillar of the CAP and axis 2 instruments related to the implementation of cross-compliance. The decision not to carry out the payment scheme for Natura 2000 measures in Slovenia means that there is no risk for duplication of payments with those under the first pillar of the CAP, nor with those in axis 2 of the RDP 2007-2013. The measures and activities of the RDP 2007-2013 conform fully with Article 5(6) of Regulation 1698/2005 on support for rural development by ensuring that areas subject to support measures outlined in Annex I of Regulation 1974/2006 dealing with fruit and vegetables, wine, olive oil, hops, cattle and calves, small livestock, beekeeping, sugar and direct payments are not also supported as part of the RDP measures. The measures have been demarcated according to their purpose, while entitlement criteria have been designed so as to exclude the duplication of aid. The following section outlines the criteria and rules established in order to avoid the duplication of support under the first pillar of the CAP, contained in Annex 1 of Regulation 1974/2006 with the measures and activities contained in the RDP 2007-2013. A more detailed presentation of the measures is contained in Chapter 5.3. The activities in axis 1 of the RDP 2007-2013 shall, by means of various measures, contribute to the modernisation and enhancement of the competitiveness of the whole food processing chain. This should be congruent with the renewed goal under the first pillar of the CAP to focus on improvements in market-based operations and subsequently mitigate the negative economic effects that are expected to be caused by the introduction of per area payments. In addition, axis 1 measures complement the goals of selected structural measures (wine, beekeeping) carried out as part of common organisation of the market, resulting in synergies in efforts to enhance the competitiveness of the agricultural sector. Although certain activities of the RDP 2007-2013 under axis 1 complement the objectives of the common organisation of the market the RS shall ensure that no overlapping of the resources between the measures for rural development under axis 1 and the measures of the common organization of the market shall occur. Fruit and vegetables (Articles 14(2) and 15 of Regulation 2200/9650) The contents of the one-year operational programmes of the recognised producer organisations are not yet known, while reforms of the sector were being drawn up at the time of writing. National regulations laid down that operational programmes of producer organisations cannot be included in environmental measures or aid schemes (e.g. area payments) for the additional work 50 Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organization of the market in fruit and vegetables (OJ L 297, 21.11.1996, p. 1–28) 273 that is required of them to ensure compliance with stricter environmental rules even if for this purpose no financing from other public sources is possible. Recognised producer organisations and producer groups with preliminary recognition or their members are not eligible for support to investments under measures of axis 1 for the same purpose, except in case of exemptions outlined under measure 121 Modernisation of agricultural holdings. Overlapping with investments under axis 1 of the RDP 2007-2013 shall be avoided through appropriate control prior to granting and disbursement of funds. The promotion of quality indications as well as special costs of enhancing quality are not related to products included in food quality schemes, which is why there is no duplication with measures in axis 1 of the RDP 2007-2013 in the field of quality of agricultural production and products. Wine (Title II, Chapter III of Regulation 1493/1999). Under the Decree on the Vine Production Potential (OJ RS No 23/07) producers are entitled to aid for the discontinuation of winegrowing, as well as grants for the restructuring of winegrowing areas on the basis of restructuring plans for the costs of basic planting activities. There is no overlapping with investments as part of axis 1 of the RDP 2007-2013 in new buildings or the reconstruction of buildings and facilities for processing, storage and preparation of wine, the purchase of new agricultural machinery and equipment, the purchase of new hail netting, etc. as the launch of winegrowing or restructuring of vineyards is not eligible for such aid. Hops (Article 6 of Regulation 1952/200551, Article 68a of Regulation 1782/2003) Slovenia has not earmarked the 25 per cent share of production-linked payments for the implementation of work programmes by producer organisations. Hops producer organisations are not funded under the first pillar of the CAP. As part of axis 1 measures of the RDP 20072013, measure 121 Modernisation of agricultural holdings, aid shall be granted to investments in buildings and facilities for production, storage and drying of hops and the preparation of hops for sale, first planting of hops and restructuring of existing hops plantations, the purchase of agricultural machinery, etc. as well as for activities related to food quality schemes. Olive oil and table olives (Article 110i (4) of Regulation 1782/2003, Article 8 of Regulation 865/200452, and Article 8 (1) of Regulation 865/2004). Measures under the first pillar are intended to support market monitoring and management, enhancement of olive oil and table olive production, improvements in traceability, certification and the protection of the quality of olive oil and table olives by state authorities, and support measures in disseminating information among members of producer groups. The listed activities under the first pillar of the CAP do not apply to products in food quality schemes, which is why there is no overlapping with axis 1 measures in the area of quality of agricultural production and products. Under axis 1 measures aid shall also be distributed for investments in the purchase, construction or renovation of buildings and equipment intended for the production and sale of olive oil, as well as for the general costs of projects for which there is no overlapping with measures under the first pillar. 51 Council Regulation (EC) No 1952/2005 of 23 November 2005 concerning the common organisation of the market in hops and repealing Regulations (EEC) No 1696/71, (EEC) No 1037/72, (EEC) No 879/73 and (EEC) No 1981/82 (OJ L 314, 30.11.2005, p. 1–7 ) and Corrigendum to Council Regulation (EC) No 1952/2005 of 23 November 2005 concerning the common organisation of the market in hops and repealing Regulations (EEC) No 1696/71, (EEC) No 1037/72, (EEC) No 879/73 and (EEC) No 1981/82 (This text annuls and replaces that published in Official Journal L 314 of 30 November 2005) (OJ L 317, 3.12.2005, p. 29–35 ) 52 Council Regulation (EC) No 865/2004 of 29 April 2004.on the common organisation of the market in olive oil and table olives and amending Regulation (EEC) No 827/68 (OJ L 161, 30.4.2004, p. 97–127) 274 Beekeeping (Article 2 of Regulation 797/200453) A special attention will be made to the amount of support given for honey ensuring there is no overlapping with aid granted on measures improving general conditions for the production and marketing of apiculture products following Council Regulation (EC) Nº 797/2004. Technical assistance for beekeepers shall be implemented under the Apiculture programme of Slovenia for the period 2008-2010, which was adopted on 19.06.2007 by the Management Committee for Poultry meat and Eggs (co-financing of development and modernisation of bee farms with investments in fixed assets - smaller investments in equipment required for enhancing production and marketing - is demarcated from investments under measure 121 Modernisation of agricultural holdings through a clearly defined list of equipment). No aid is envisaged under the RDP 2007-2013 for purposes of renewing bee populations (direct testing of bee families, monitoring and assessment of the quality of bred queen bees) and applicative research (research of apiculture products and the carrying of results into practice, environmental effects on apiculture products). Therefore there can be no duplication of funds. Sugar (Regulation 320/200654) It has not yet been decided whether Slovenia shall approve restructuring aid under Article 3 of Regulation 320/2006 and subsequently distribute EU aid also to producers of sugar beet and sugar cane (for up to five years) as permitted under Article 110q of Regulation 1782/2003. A Programme for Diversification Measures is to be drawn up on the basis of Article 3 of Regulation 320/2006 that shall respect the need for demarcation from measures under the RDP 2007-2013. Aid measures in axis 1 of RDP 2007-2013 do not envisage the distribution of aid in this area. Axis 2 measures in the RDP 2007-2013 for strengthening the environmental aspect of farming significantly complement the environmental care under the first pillar of the CAP. The measures and submeasures of axis 2 have been set as to allow a clear outlining of the synergies with measures under the first pillar, as well as to prevent any duplication of payments. In order to avoid duplication of payments as part of agri-environmental measures, direct payments have been taken into account in total payments for individual agri-environmental submeasures for grasslands (mountain pastures, steep slopes mowing, humpy meadows mowing, extensive grassland maintenance, preservation of special grassland habitats, preservation of grassland habitats of butterflies, conservation of litter meadows, bird conservation in humid extensive meadows in Natura 2000 sites and permanent green cover in water protection areas). There is no duplication between additional premiums for sheep breeding in less-favoured areas (Small Livestock, Articles 114 (1) and 119 of Regulation 1782/2003) and less-favoured area compensations envisaged in Axis 2 of the RDP 2007-2013. Payments under the "extensification premium« (Cattle and calves, Article 132 of Regulation 1782/2003) shall be phased out after 1 January 2007, meaning there can be no overlapping with measures in axis 2 of the RDP 20072013. Activities under axis 3 of the RDP 2007-2013 promote the diversification of income sources and creation of jobs in rural areas. This should assist agricultural holdings that have been affected financially by the introduction of production-related measures. 53 Council Regulation (EC) No 797/2004 of 26 April 2004 on measures improving general conditions for the production and marketing of apiculture products (OJ L 125, 28.4.2004, p. 1–3) 54 Council Regulation (EC) No 320/2006 of 20 February 2006 establishing a temporary scheme for the restructuring of the sugar industry in the Community and amending Regulation (EC) No 1290/2005 on the financing of the common agricultural policy (OJ L 58, 28.2.2006, p. 42–50) 275 10.2 Complementarity of RDP 2007-2013 with Cohesion Policy The implementation of the Convergence objective under EU Cohesion Policy is planned in the National Strategic Reference Framework (NSRF) 2007-2013, which contains three operational programmes for speeding up the Convergence: - Operational Programme for Strengthening Regional Development Potentials (European Regional Development Fund) - Operational Programme for Development of Human Resources (European Social Fund) - Operational Programme of Environmental and Transport Infrastructure Development (Cohesion Fund and European Regional Development Fund) Along with the listed operational programmes, transnational operational programmes (5), transnational operational programmes (4), the Rural Development Programme and the Fisheries Development Programme shall contribute to the general objectives of the NSRF (promoting economic growth, creating jobs and strengthening human capital and ensuring balanced development, especially among the regions). The NSRF is also a basis for drawing up the National Development Programme (NDP) 20072013. The NDP is to contain all development and investment programmes and projects planned in Slovenia for the 2007-2013 period that shall be financed fully or in part from the state budget and municipality budgets, including rural development programmes. In line with the Operational programme for Strengthening Regional Development Potentials for the period 2007-2013 (OP RR), resources from the European Regional Development Fund shall be allocated for Slovenia's economic convergence by criteria of sustainable development. This applies foremost to improving conditions for economic growth and job creation through investment in physical and human resources, innovation promoting a knowledge-based society, economic and social adaptability measures, environmental protection and good governance. The goal of the operational programme is to support all measures that improve competitiveness, economic and territorial cohesion (i.e. bridging of regional differences), in line with the principles of sustainable development. It is meant to improve economic competitiveness and enhance economic growth, although its primary objective is to strengthen entrepreneurial development and the growth of small- and medium-sized companies. The operational programme pursues four development priorities: enterprise competitiveness and research excellence, economic-developmental infrastructure, networking of natural and cultural potentials, and development of regions. The RDP 2007-2013 contains measures and activities that are related to: development priority Enterprise competitiveness and research activity: - Support for the creation and development of micro enterprises in rural areas (axis 3) is complementary with the priority promoting enterprises. - Grants for new production practices (e.g. organic farming), new products and new operating configurations (axis 1) constitute efforts in the field of innovation and technological development that are complementary with goals of the Enhancing the competitiveness of enterprises and research excellence priority. development priority Economic-developmental infrastructure: - Axis 3 measures (with support for purchase and use of ICT technology); support to investments in purchase and modernisation of technological and ICT equipment on agricultural holdings and enterprises (axis 1) is complementary with the information society priority. development priority Networking of natural and cultural potentials: - Measures in the framework of grants for improving the quality of rural life (axis 3) are 276 complementary with actions in the area of investment grants in the tourism sector, management of cultural monuments and cultural heritage sites, other cultural buildings and sports buildings. The RDP 2007-2013 contains measures and activities under axis 4 that are related to: development priority Development of regions: - the Implementing local regional strategies priority is complementary with the activities of the grants scheme for regional development programmes. The following demarcations shall be observed in order to achieve synergies and avoid duplication between the RDP 2007-2013 and other funds: Axis 1 of the RDP 2007-2013 supports activities in farming, agri-food and forestry, which are not subject to aid in the OP RR. Axis 1 measures associated with the production and sale of agricultural products are investment-linked (purchase of equipment, licenses and patents also), while the OP RR endorses research and development projects (the result of which are also patents), hence there is no risk of overlapping. Axis 3 measures in the RDP 2007-2013 shall be carried out in extra-urban areas. The demarcation shall also be based on the purposes and/or the highest common value of the investment. Under axis 4 of the RDP 2007-2013 grants are earmarked for the creation and running of Local Actions Groups (LAGs). In implementing axis 4 projects limitations set for other axes must be applied. Complementarity with Cohesion Policy shall be achieved by ensuring that OP RR measures are intended for companies larger than micro size in urban settlements as well as micro enterprises headquartered and operating in urban areas. Generally, large projects shall be financed from Cohesion Policy measures, while small, local projects shall be financed in the framework of rural development measures. In the field of ICT the OP RR is to provide funding for the establishment of multi-band ICT networks (system networks), with access provided for specific users (educational, research and cultural institutions), avoiding overlapping with rural development measures in this area. The rural development measures shall be limited to ICT equipment. The same applies to projects of invigorating village centres and construction of multi-purpose buildings that are inherently local, while projects supported under the development of regions shall be regional in nature. Precise demarcation of activities supported under the RDP 2007-2013 and activities supported under ERDF is set out in Chapter 5.3 under the relevant measures. The Operational programme for Development of Human Resource for the period 20072013 (OP ESF), which is backed with ESF funds, focuses on promoting enterprise and adaptability, improving the employability of job-seekers, developing human resources and lifelong learning, promoting social inclusion and institutional and administrative qualifications. The RDP 2007-2013 supports training for national professional qualifications in agriculture, agri-food and forestry (axis 1), training for successful operations in specific activity branches as part of related investments (axis 3), and training of the local population in rural development (axis 4). Axis 1 measures related to raising qualifications and employability in agriculture, agri-food and forestry are intended for individuals that are involved in the production and processing of agricultural and forestry products listed in Annex 1 of the EC Treaty as well as private forestland owners and specific groups of confirmed national vocational qualifications and skills catalogues. Qualification training under the RDP 2007-2013 is not entitled to support from the ESF funds, 277 except in cases of training of unemployed persons not entitled to rural development grants. No overlapping shall occur between measures under axis 4 and the OP ESF and the development priority Strengthening the development of non-governmental organisations, and civil and social dialog, which also includes measures for promotion of NGO development and civil dialog. The RDP 2007-2013 shall support education and training aimed at promoting development in local environment and at local level, i.e. programmes particularly aimed at strengthening organisational and institutional competence at the local level. Hence, there is no danger of overlapping with the OP ESF. The Operational programme of Environmental and Transport Infrastructure Development for the period 2007-2013 (OP ETID) aims to enhance the reliability, efficiency and safety of the transport system through the development and upgrading of transport infrastructure. The priorities in the environmental protection development priority are municipal waste management, drainage and treatment of municipal waste water, the distribution of drinking water and the reduction of the negative impacts of waters, as well as sustainable use of energy. Due to the emphasis on environmental component of development, which together with social and economic aspects contributes to Slovenia's sustainable development, the RDP 2007-2013 has a closer connection to the objectives of environmental protection. The RDP 2007-2013 is expected to contribute with its priorities and measures to achievement of the environmental protection priority: Axis 1 activities related to the modernisation and restructuring of agriculture: - the modernisation of agricultural holdings, agri-food and processing establishments (arrangement of manure pits, waste treatment facilities, industrial waste treatment facilities at beneficiary level); - adapting agriculture to standards; - improving and developing infrastructure associated with the development and adaptability of agriculture and forestry (arranging public hydro-amelioration infrastructure as well as building and arranging new infrastructure which is necessary in land consolidation and envisaged in the idea design of land consolidation area arrangement and is directly related to agriculture; arranging private irrigation systems, private water infrastructure (house connection) and road infrastructure on agricultural holdings and private farmland and forestland); shall produce synergy effect on objectives of the OP related to the improvement of the quality of the environment and appropriate infrastructure. Overlapping between the funds is not expected as activities within the RDP are to be limited to the implementation at the level of individual agricultural holdings and enterprises involved in agricultural processing and production. More detailed divisions among planned measures are to be defined in the implementing documents. Measures under axis 2 of RDP 2007-2013 are carried out mostly in the form of per area payments and do not overlap with the Cohesion Policy activities. There shall also be no overlapping with axis 3 and axis 4 measures. The RDP 2007-2013 is expected to contribute with its priorities and measures to the achievement of the sustainable energy use priority: RDP 2007-2013 activities promote the use of renewable energy under axis 1 (grants earmarked for improving efficiency in supplying renewable energy sources, more efficient production and use of renewable energy sources as well as increasing energy efficiency). It also contributes directly to reduced CO2 emissions (grants for the purchase of wood biomass furnaces for the heating of business and production facilities). 278 Axis 3 measures envisaging a possibility for supporting micro enterprises in the production of electricity and district heating shall raise the share of renewable energy (limited to up to EUR 480,000), which is one of the objectives of the OP ETID. The demarcation between the OP ETID and axis 3 and LEADER Axis measures shall be defined according to the investment location and type of beneficiary. There is a weaker link between the goals under the RDP and transport infrastructure goals supported by the European Regional Development Fund. RDP 2007-2013 measures are aimed foremost at maintaining access to farmland, fields and forest roads under axis 1. The demarcation is based on the type of beneficiaries (agricultural holdings) on private land. The ERDF earmarks aid for local roads that are part of the public infrastructure network. Axis 3 measures related to the improvement of the quality of rural life (theme trails) have an inherent local nature, whereas the estimated value of the investment may not exceed EUR 360,000 (project limit value between the programmes). In case of axis 4 of the RDP 2007-2013 support is intended for establishment and operation of LAGs exclusively under the RDP 2007-2013 conditions and relates to smaller projects which cannot overlap with the contents of the OP ETID. OP ETID supports building of infrastructure which is under the responsibility of state institutions (railways, freeways, state and regional roads, and cycle tracks) or municipalities in the field of environment, which relates to widerange investments which cannot be financed within LAGs. As regards the projects related to sustainable energy, the same demarcation shall apply as for axis 3, i.e. based on project size. The exact demarcation measures among the RDP and Cohesion Fund and ERDF activities are outlined in Chapter 5.3 under the relevant measures. 10.3 Demarcation from fisheries development instruments The RDP 2007-2013, whose priorities are funded from the EAFRD, does not overlap with the priorities of the European Fisheries Fund (EFF). The Slovenian operational programme for the development of fisheries sets out the following objectives: Providing for sustainable and competitive fisheries, Modernising and expanding aquaculture, Modernising and expanding processing, Promoting fish, fish products and the fisheries sector, Providing suitable conditions for the work and safety of fishermen by means of establishing suitable infrastructure and the maintenance of piers and unloading docks, Promoting the development of coastal fishing areas and achieving long-term prosperity through diversification and integration of fishing with tourism, cultural heritage and national heritage. The strategic goals of fisheries policies set down in the operational programme for fisheries development complement the goals contained in the rural development policies. The demarcation between fisheries and rural development is based principally on fishery policy measures targeting a select group of beneficiaries (fishermen, aquaculture and the fish processing industry). This group is not entitled to rural development policy aid. For cases of proven and justified complementarity, demarcations shall be set during the process of drafting public tenders under the Managing Authority. For the 2007-2013 programming period Slovenia intends to carry out 11 measures across 4 279 priority axes together with measures of technical assistance as part of the Operational Programme for Fisheries Development that is funded with the aid of the EFF: - - - - - Axis 1 - Sustainable use of fishing resources with the aim of ensuring sustainable and competitive fishing, including by the division of vessels according to type and activities that are not related to fisheries, investment in fishing vessels and equipment. The measures are complementary with those contained in Axis 1 of the RDP. The measures and target beneficiaries of this axis are not entitled to aid from Axis 1 of the RDP, which is why no additional demarcation is required, Axis 2 – Aquaculture, processing and sale with the aim of enhancing and expanding fish farming, enhancing and expanding processing, promoting fish, fish products and the fisheries sector. Activities and beneficiaries registered for fisheries activities and/or fisheries processing and fish sales, including farmers who have registered fish farming as a supplementary activity, are entitled to grants for investment in commercial fisheries only as part of the OP for Fisheries Development and not as Axis 1 measures in the RDP. Grants related to actions that improve and protect the environment (protecting natural habitats) are entitled to RDP grants, Axis 3 – Short-term measures of common interest with the goal of ensuring suitable conditions for the work and safety of fishermen by means of establishing suitable infrastructure and maintaining piers and unloading docks. Activities in this set of measures do not overlap with RDP measures, Axis 4 - Promoting the development of coastal fishing areas and achieving long-term prosperity through diversification and integration of fishing with tourism, cultural heritage and national heritage. A Coastal Action Group (CAG) is expected to be selected for overseeing the implementation of axis 4 measures. Transparent demarcation rules for measures and financing would be devised in the case that the CAG area and partners were to overlap with the area and partners involved in LAGs under axis 4 of the RDP and the same partners were chosen to implement local strategies in coastal and rural areas, The accompanying technical assistance measure in the fisheries operational programme is intended for providing administrative support for implementing the programme and does not overlap with the technical aid offered as part of the RDP. 10.4 Complementarity of RDP 2007-2013 with other policies and instruments LIFE III Programme In 2007 the third phase of the European Commission's LIFE financial programme (LIFE III) shall be replaced by LIFE+. The new programme is divided into three sections: nature and biodiversity, implementation of environmental policies and enhancing governance, and environmental information and communication. The first two priorities are to be earmarked 78 per cent of the total funds that member states shall bid for with programmes and tenders, while the third priority aims to integrate small and fragmented programmes from the previous programming period. Slovenia is set to get around EUR4.5 million according to LIFE+ criteria in 2007, with the amount of annual funds increasing gradually to EUR5.5 million by the end of the programming period. The country can secure the funds by registering strong projects that shall get Commission backing. It is impossible to assess possible areas of overlapping between the RDP 2007-2013 and projects that shall be entitled to LIFE+ funds at this time as the LIFE+ Directive is expected to be published by the summer, while tenders for the projects are to be released by the European Commission by the end of 2007. 280 Complementarity with national documents Co-financing of insurance premiums for the protection of crops and fruits The measures of the RDP in axis 1 related to the modernisation of agricultural holdings envisage investments in hail netting. This is complementary with the national scheme for co-financing insurance premiums for crops and fruits that was introduced by Slovenia in 2006. Forestry instruments Activities in axis 1 of the RDP shall contribute to enhancing the economic efficiency of forest management, improving the competitiveness of the forestry sector, and enhancing the value and improving the quality of forestry products as well as in increasing the use of wood biomass for energy purposes that shall benefit efforts to combat climate change (Kyoto Protocol). These activities are related to and aid the implementation of the national forestry strategy set down in the National Forest Development Programme (MAFF, 1996). Forestry activities included in the RDP 2007-2013 do not overlap with activities planned as part of the national forestry scheme that is focused on conserving, enhancing, developing and maintaining private forests for their ecological, protective and recreational purposes. The scheme includes: the implementation of a part of care and protection of forests maintaining the ecological balance of forests; protective measures in forests (to protect against pests, to conserve protected beasts), conservation of wild animal habitats, maintenance and development of infrastructure for preventing forest fires; renewal of forests damaged by natural phenomena or fires, and the association of forest owners. Under the scheme all measures ensuring the conservation and planned development of forests shall be financed and co-financed in 2007-2013. Co-financing shall predominantly be implemented to the extent to which a measure contributes to the enhancement of common benefits of forests. The same has been notified on state aids for 2007-2013. Training and information actions The RDP 2007-2013 includes activities in the field of training and education: Aimed at the professional training and education of beneficiaries that work in agriculture and forestry and the agricultural and forestry processing sectors (axis 1); Related to training and informing actions for entrepreneurship in rural areas (axis 3); Intended for permanent training and the promotion of leadership of local partnerships (axis 4). The listed measures do not overlap with the training and information activities in the field of agriculture and forestry that are carried out in Slovenia by a joint public body managed by the Chamber of Agriculture and Forestry and the Slovenian Forest Service. Internal consistency of the EU Cohesion Policy operational programmes with the Rural Development Programme and the Fisheries Development Programme is provided for by the National Development Programme 2007-2013 and other activities by the Slovenian Government Office for Local Self-Government and Regional Policy. A Council for Structural Policy has been established as an inter-departmental government coordination body under the 2005 Act on the Promotion of Balanced Regional Development. The Council is responsible for ensuring the consistency of development documents and development grants from various sources. In order to implement the principle of partnership in drafting development documents and to promote wide debate on issues related to sustainable development among the stakeholders, the government established in 2003 the Council for Sustainable Development, which acts as an advisory body. The Secretariat of the Council for Sustainable Development is also responsible for conformity and consistency among activities in the field of sustainable development. Conformity of the NSP and the RDP 2007-2013 with Cohesion Policy and the Fisheries Development Programmes as well as other documents shall additionally be checked by the Rural 281 Development Supervisory Committee, an interdepartmental body associating officials of responsible authorities for agriculture, cohesion and fisheries policy. Furthermore, conformity and prevention of overlapping shall also be based on a mutual exchange of information on individual tenders among the responsible Managing Authorities. The Republic of Slovenia is drawing up Operational Programme Natura 2000 which shall set out the rules on implementation and designing of management plans for Natura 2000 sites. The programme shall be financed from the national budget. 282 11 DESIGNATION OF COMPETENT AUTHORITIES AND BODIES RESPONSIBLE The Ministry for Agriculture, Forestry and Food (MAFF) is the responsible authority for drawing up the Rural Development Programme and monitoring and gauging its effects as set down in Article 16 of Regulation 1698/2005. The draft RDP 2007-2013 was subjected to harmonisation among the relevant ministries (the environment; finance; culture; health; labour, the family and social affairs; economy; educations and sports), government bodies (local self-government and regional development) and the social partners, including the Government Office for Equal Opportunities, the Association of Slovenian Rural Youth, and the Association of Women Farmers. During drafting of the RDP 2007-2013 special consultations were held with the Ministry of the Environment and Spatial Planning. The organisation chart displays the structure of MAFF, including its internal bodies that have been included in the drafting, monitoring and implementation of the Slovenian Rural Development Programme. MINISTRY OF AGRICULTURE, FORESTRY AND FOOD INTERNAL AUDIT SERVICE MINISTER'S OFFICE EU COORDINATION AND INTERNATIONAL AFFAIRES SERVICE DIRECTORATE FOR AGRICULTURE STRUCTURAL POLICY AND RURAL DEVELOPMENT SECTION PUBLIC RELATIONS AND PROMOTION SERVICE DIRECTORATE FOR FOOD SAFETY DIRECTORATE FOR FORESTRY, HUNTING AND FISHERIES FOOD AND FEED SAFETY AND QUALITY SECTION SUSTAINABLE AGRICULTURE SECTION LEGAL AFFAIRS SERVICE SECRETARIAT BUDGET AND FINANCE SERVICE INVESTME NT AND GENERAL AFFAIRS SERVICE HUMAN RESOURCE SERVICE INFORMATICS TECHNOLOGY SERVICE BODIES OF MINISTRY VETERINARY ADMINISTRATION OF RS AGENCY OF RS FOR AGRICULTURAL MARKETS AND RURAL DEVELOPMENT VETERINARY ADMINISTRATIO N OF RS INSPECTORATE OF RS FOR AGRICULTURE, FORESTRY AND FOOD MAFF is responsible for implementing the provisions of Regulation 1290/2005. It is also responsible for establishing suitable governance and control mechanisms for balanced implementation of the RDP 2007-2013. To ensure effective protection of financial interests of the EU Slovenia implements all the administrative measures set down in Article 9(1) of Regulation 1290/2005 – they have been defined precisely in the national body of legislation. In accordance with Regulation 1848/2006, Slovenia shall report regularly on the established financial consequences of irregularities and on suspected cases of fraud. 11.1 Managing Authority 283 MAFF shall be responsible for carrying out the tasks of the managing authority set down in Article 74(2) of Regulation 1698/2005. The tasks of the managing authority include: - - approving criteria for the selection of projects financed under provisions of the RDP, drafting national implementation regulations, taking part in the governance committee for the RDP 2007-2013, establishing suitable systems for collecting and keeping statistical and other data required for monitoring and gauging of the programme, informing all beneficiaries in the RDP of: their responsibilities to apply a separate accounting system or to use suitable accounting codes for all transactions related to the support measures. requirements on providing and keeping data on effects of the programme. implementation of all monitoring activities required to ensure the timely implementation of the Significant Impact Assessment, forwarding of monitoring and assessment results to the Monitoring Committee and the European Commission, formation of a Monitoring Committee and drafting of materials for the required monitoring of the programme's implementation under the Monitoring Committee’s rules of procedure, dissemination of public information, as defined by Article 76 of Regulation 1689/2005, compiling annual progress reports, forwarding it to the Monitoring Committee and, subsequently, to the European Commission, providing all required information to the payment agency prior to the approval of payments, including on the procedures and controls being carried out for support activities. The Director of the Directorate General is the head of the Managing Authority and is as such responsible for all contents related to the RDP 2007-2013. Directly responsible to the head of the Managing Authority shall be the Secretariat, which shall be tasked with coordination at programme and axis level, and administrative support as well as secretariat functions for the Monitoring Committee. Given the current organisation scheme at MAFF the Managing Authority shall operate at various levels. The top level shall represent the Guidance Committee - composed of representatives from the office of the Minister of Agriculture, Forestry and Food, the directors of the Directorate for Food Safety and the Directorate for Forestry, Hunting and Fisheries. A key role in the Guidance Committee shall also belong to the representatives of sectors responsible for individual measures and support bodies, such as the Finance Office and Legal Affairs Office. The Managing Authority shall approve criteria for project selection, monitor the implementation of the collection of data for monitoring and assessment, inform beneficiaries of their obligations stemming from the RDP 2007-2013, inform the public about the benefits of the RDP 2007-2013 and ensure balanced information flow between MAFF and the Payment Agency with a view to ensure effective implementation of the RDP 2007-2013. The Managing Authority is tasked with compiling annual and other reports for the Monitoring Committee, including documents related to monitoring of the implementation of the RDP 2007-2013. The individual working groups for monitoring and guiding the implementation of the RDP 20072013 are located at second level. They are responsible for: providing technical aid and information, SFC2007 and programming support, data collection and reporting, deciding on appeals and responding to financial questions and questions related to grant allocation. A special group incorporating individual operators for the axes shall be formed to provide assistance in the implementation of the RDP 2007-2013. Written rules shall be drawn up outlining the activities of the Managing Authority. 284 The Managing Authority shall sign with the Payment Agency an agreement determining the obligations of each institution, issues of data flow and the division of tasks with a view to ensure balanced implementation of the RDP 2007-2013. The measure Technical assistance and activities of the Rural Network shall be carried out in the framework of the Managing Authority, while the payments are made by the Payment Agency. MANAGING AUTHORITY Head: Director of the Directorate for Agriculture Secretariat SFC2007 IT Support Legal issues Financial issues GUIDANCE COMMITTEE MEMBERS: - Minister's Office - Directorate for Food Safety - Directorate for Forestry, Hunting and Fisheries - Sustainable Agriculture Section - Structural Policy and Rural development Section - Finance Service - Legal Affair Service Head of Axsis/ Measures axsis 1 axsis 2 axsis 3 axis 4 - LEADER Monitoring and Reporting indicators, reports, analyses Technical Assistance information, assistance Figure 15: Organisation chart for the Managing Authority 11.2 Paying Agency The ARSAMRD is the only accredited payments agency for implementing measures of the Common Agricultural Policy (CAP) in the country. The Agency was established in 1999 for implementing the pre-accession SAPARD programme, CAP and national measures. The first national accreditation was issued to the agency in July 2001 and the first European Commission accreditation in November 2001. The MAFF, as the body authorised to issue and revoke accreditations for payments and to monitor the agency's payments from the Guarantee Section of the European Agricultural Guidance and Guarantee Fund, gave the agency full accreditation in October 2004 for carrying out CAP measures, financed by the fund. The move also confirmed the suitability of the agency's organisational structure and activities. The criteria for accrediting the Payment Agency are in line with the provisions set in Regulation 1663/9555 and Regulation No 885/200656. 55 Commission Regulation (EC) No 1663/95 of 7 July 1995 laying down detailed rules for the application of Council Regulation (EEC) No 729/70 regarding the procedure for the clearance of the accounts of the EAGGF Guarantee Section (OJ L 158, 8.7.1995, p. 6–12) 285 The Agency is organised in accordance with the above listed criteria and carries out the following basic tasks: - Authorisation of payments, - Execution of payments, - Accounting for payments. The structure of the Agency guarantees the implementation of all measures of the RDP 2007-2013. DIRECTOR GENERAL INTERNAL AUDIT SECTION Franc KEBE Darja BERLIÈ AGRICULTURAL MARKETS SECTION M.Sc. Franc MUHIÈ FOREIGN TRADE DEPARTMENT Dijana Pirc INTERVENTION MEASURES DEPARTMENT Vegetable part DIRECT PAYMENTS SECTION Benedikt JERANKO DIRECT PAYMENTS DEPARTMENT Nikolaj CELEC AREA UNIT Franc HORVAT M.Sc. Andrejka ZNOJ INTERVENTION MEASURES DEPARTMENT Animal part Marjan DVORNIK MARKET INFORMATION SYSTEM DEPARTMENT Robert KAISERSBERGER ANIMAL UNIT Helena MEGLIÈ SUSTAINABLE AGICULTURE DEPARTMENT Majda POTOÈNIK TECHNICAL SUPPORT DEPARTMENT M.Sc. Robert FABIJAN NATURAL DISASTERS DEPARTMENT RURAL DEVELOPMENT SECTION FINANCIAL SECTION Mateja NEMANIÈ CONTROL SERVICE GENERAL AFFAIRS SERVICE Valdij PERIC M.Sc Dušan VERBIÈ SERVICE FOR INFORMATION, MANAGEMENT AND TECNOLOGY Hermina OBERSTAR RESTRUCTURING OF AGRICULTURE, FOOD AND FISHERIES DEPARTMENT PAYMENTS DEPARTMENT mag. Aneta ABSEC Janez LUŠIN ACCOUNTING DEPARTMENT RURAL DEVELOPMENT DEPARTMENT Alenka ŠURK MATERIAL TECHNICAL AFFAIRS DEPARTMENT Bojan Bajde LEGAL AFFAIRS SERVICE DATA ACCESS DEPARTMENT Jože MOŽGAN INFORMATION SYSTEM DEPARTMENT Renata KOLARIÈ Janja ZUPAN NOVAK Ariana LIBERTIN MAIN OFFICE Vida KAPUŠIN PERSONNEL AFFAIRS DEPARTMENT Katarina HOÈEVAR PODGORŠEK EU AFFAIRS DEPARTMENT Štefka VIDEÈNIK PUBLIC RELATIONS M.Sc. Suzana BREŽNIK The Agency has adequate internal controls and especially controls for payments in line with eligibility conditions confirmed by the Managing Authority. The controlling service at the Agency is responsible for carrying out on-site checks and to draft risk analyses in cooperation with regional units which carry out the RDP 2007-2013 measures. The controlling service is also tasked with monitoring of the on-site checks. Its organisation allows for carrying out additional controls. The Agency moreover ensures harmonised implementation of the Community’s executive legislation, hands out the Community’s documents and guidelines, and reports to the European Commission. The Agency has a controlling system in place for sending requests for reimbursements and the required reports to the Commission. The Agency’s internal auditing department meanwhile monitors the implementation of internal controls of administrative and executive procedures based on an audit trail. The Agency has a comprehensive system in place for uncovering, preventing and reporting on irregularities and suspicions of fraud. The system works according to the guidelines and a reporting system that was created in accordance with Regulation 1848/2006. The central unit for launching procedures in the event of a discovery and for preventing and reporting irregularities and suspicions of fraud is the controlling service, which reports to the European Anti-Fraud Office and the Budget 56 Commission Regulation (EC) No 885/2006 of 21 June 2006 laying down detailed rules for the application of Council Regulation (EC) No 1290/2005 as regards the accreditation of paying agencies and other bodies and the clearance of the accounts of the EAGF and of the EAFRD (OJ L 171, 23.6.2006, p. 90–110) 286 Supervision Office at the MF. The agency has in place a procedure for a timely recovery of unduly paid amounts. A completely computer-based system of monitoring shall be launched at the Agency in September 2007. The institution’s finance department is tasked with recoveries and their monitoring. 11.3 Certification body The certification body for carrying out the Rural Development Programme measures is the Finance Ministry’s Budget Supervision Office. Certification of EU payments is defined in the Public Finance Act (OJ RS, nos 79/99, 124/00, 79/01, 30/02, 56/02, 110/02). The office has a special department for the Common Agricultural Policy. The certification body uses the provisions of the auditing programme for all CAP measures and ensures that the IT systems at the agency are secure, as laid down in Regulation 885/2006. Contact points Ministry of Agriculture, Forestry and Food Dunajska 56, 58 SI 1000 Ljubljana Phone: + 386 1 478 9000 Fax: + 386 1 478 9021 E-mail: [email protected] National SFC2007 coordinator for EAFRD Leon Ravnikar Ministry of Agriculture, Forestry and Food Dunajska 56, 58 SI 1000 Ljubljana Phone: + 386 1 478 9309 Fax: + 386 1 478 9056 E-mail: [email protected] Agency of the RS for Agricultural Markets and Rural Development Dunajska 160 SI 1000 Ljubljana Phone: + 386 1 580 7617 Fax: + 386 1 478 9206 E-mail: [email protected] Budget Supervision Office Glinška 3a SI 1000 Ljubljana Phone: + 386 1 369 6900 Fax: + 386 1 369 6914 E-mail: [email protected] 11.4 Description of the management structure and financial flow for payments to final beneficiaries Beneficiaries for aid under axes 1, 2 and 3 of the rural development programme file their applications and claims at the Agency. The agency has in place written guidelines, control sheets 287 and reporting systems to process the applications, approve of and calculate the amount of aid in line with Regulation 885/2006. Measures of Axis 2 The measures “compensatory payments in less-favoured areas” and “agri-environmental payments”, require the beneficiaries to file the claims on an application form which is also used for submitting claims per unit of surface as parts of the first pillar of the CAP. The Department for Environmental Programme and Less-Favoured Areas for Agriculture as part of the Direct Payments Section at the Agency (hereinafter: Department for Environmental Programme and Less Favoured Areas for Agriculture) processes the single applications in line with Regulations 796/2004 and 885/2006. Detailed administrative checks are carried out prior to approving an application to determine its completeness and whether the conditions for approving the payment are met. Administrative checks and supervision of obligations that span several years are recorded with the aid of special software. The Agency set up a complete IACS system with software administrative checks for processing the single applications for compensatory payments in less-favoured areas for agriculture; for agrienvironmental payments; and for agricultural subsidies. These checks include: - Cross-linked checks of reported crops and animals, - Cross-linked checks with databases to ascertain whether aid would be justified. The software support for implementing the agricultural policy measures (IACS) is checked in detail before data is transferred from the applications and the amount of aid is calculated. The checks are documented on special control sheets during the testing. The amount of aid is calculated after the administrative and on-site checks are completed by the controlling service. The finance section transfers the recorded amounts of aid to a joint order for payment which is then sent to the Ministry of Finance. The finance section also checks whether the joint payments correspond to the list of approved claims by beneficiaries. The payment is made directly to the beneficiary’s bank account. Additional information for approved claims ensures that an audit trail links the received application for the payment to the beneficiary and the corresponding application for reimbursement, drafted in line with Regulation 885/2006. Measures of axes 1 and 3 Application claims for measures under axes 1 and 3 are filed by beneficiaries on set forms in line with the demands of a public call for tenders. Detailed administrative checks are carried out prior to approving an application to determine whether it was filed on time, was complete and whether the conditions for approving the payment were met. The checks are documented on detailed standardised check lists. The applicants whose forms arrived on time, are complete and in line with the provisions of an individual public tender have preferential treatment. The amount of aid is calculated after the administrative and on-site checks are completed by the controlling service. The finance section transfers the recorded amounts of aid to a joint order for payment which is then sent to the Ministry of Finance. The finance section also checks whether the list of payments corresponds to the list of beneficiaries entitled to monthly payments. The payment is made directly to the beneficiary’s bank account. Additional information for approved claims ensures that an audit trail links the received application for the payment to the beneficiary and the corresponding application for reimbursement, drafted in line with Regulation 885/2006. 288 Measures of axis 4 - LEADER The LEADER Office (operates within the framework of the MAFF) is responsible for carrying out the measures under axis 4. The office performs activities needed for establishing Local Action Groups (LAGs) on the basis of detailed conditions, set forth in at least two calls for the period 2007-2013. The LAGs submit Local Development Strategies to the MAFF. The LEADER Office checks whether the Local Development Strategies meet the goals set in the NSP and the criteria demanded by the call. It also drafts a list of LAGs, including a framework financial plan for carrying out the activities in a LEADER area. The list of selected LAGs, the submitted Local Development Strategies and the financial framework are sent to the Managing Authority. This body also confirms the yearly amount of funds for individual activities on an annual basis. The LEADER Office is moreover tasked with monitoring the implementation of the projects as part of the yearly financial framework for an individual Local Action Group and for reporting on all levels. LAGs are meanwhile responsible for carrying out all the activities in the area (promoting interest, drafting and selecting suitable projects for funding, overseeing the execution and reporting). LAGs are also tasked with carrying out administrative checks before an individual project is approved, onsite checks before payments are approved, monitoring the implementation of the project and issuing reports to the Managing Authority. The LEADER Office can approve the expenses for an individual LAG based on the data sent by the group. Approved claims for reimbursement are sent by the LEADER Office to the Agency which carries out the payment to beneficiaries under the procedure, detailed above. 11.5 Monitoring system The Agency carries out administrative and on-the-spot checks in line with Regulation 885/2006. The Agency has handbooks for measures with detailed standardized control sheets to aid it in carrying out the checks. The Agency observes the rule that expenses that were not paid out correctly have to be recovered. This rule applies to all measures of the rural development programme. The agricultural policy measures (IACS) also sets out sanctions (reductions and cessation of payments) and is used for all irregularities regarding payments for crops and/or animals. The Agency controlling service has already drafted guidelines for that purpose. The document is in line with Regulation 796/2004. Any other irregularities – such as other specific conditions for RDP measures – are covered in the Agency’s List of Irregularities and Sanctions. The list is defined in more detail in a national act that dealing with the reduction or cessation of payments. Independently from the IACS demands for sanctions and reimbursing wrongly paid amounts, the beneficiaries shall need to return any other aid if irregularities are discovered. When an irregularity is detected, the controlling service informs the department responsible for carrying out individual measures. The department then launches a procedure in line with the national legislation to recover the funds. The applicants are not required to reimburse the aid if conditions for approving the funds were not met because of the following: - Force majeure, - Special provisions in adopted regulations, - Right to cancellation due to unforeseen circumstances that could not have been influenced by the beneficiary, 289 - - Changes that impact the implementation of the measure and were unknown when the agricultural and environmental commitment was made, as described in more detail in chapter 5.3.2, and Other similar circumstances. The beneficiaries who are eligible for funds from the early retirement measure and do not inform the Agency of joining the National Pension Scheme are penalised or excluded from the measure. Every beneficiary receives a list of irregularities and sanctions before signing the contract. The sanctions include the return of already paid amounts and cessation of payments. Conducting physical inspections On-the-spot controls are the responsibility of the agency’s controlling service. The organisational structure of the Agency provides for a separation of administrative from on-the-spot controls. The controlling service is tasked with preparing a risk analysis in cooperation with the agency’s departments which are responsible for carrying out individual rural development programme measures as well as for monitoring the implementation of the measures entrusted to it. The risk analysis is drafted in phase one and is based on random sampling of a quarter of applications. Phase two involves sampling on the basis of key risk criteria such as: - Amount of aid, - A major increase in the surface area, - The first aid application by a beneficiary, - Irregularities discovered in previous years (for the measures already carried out), - The investors is near to the threshold for granting aid, - Facts known about the beneficiary. On-the-spot controls of applications and claims shall be carried out in any year by visits to farms and shall include at least 5 per cent of approved applications for each of the measures in axis 2 of the rural development programme, linked to surface areas, and at least 5 per cent of approved applications in axes 1 and 3. Investments that require payments in several phases necessitate on-thespot controls at least once before the investment is completed. These controls on agricultural holdings also verify the use of best agriculture practices, cross compliance and other specific conditions for approving aid for an individual measure. The cross compliance check shall involve at least 1 per cent of approved applications. On-the-spot controls have to examine all those obligations of a beneficiary from the RDP 20072013 that can be verified during a visit to an agricultural holding. On-the-spot controls checks have to be recorded on detailed and standardised sheets. The Agency shall carry out additional controls after on-the-spot controls have been completed in the amount of 1 per cent. Supervising good agricultural practice Good agricultural practice demands, as part of agricultural and environmental obligations, are transferred from the previous programming period. They are based on several national regulations on the environment and farming. The Slovenian Inspectorate for Agriculture, Forestry and Food monitors the implementation of these obligations on the basis of indicators. The inspectors carry out on-site checks. Checks on the bases of indicators in the RDP 2004-2006 are carried out during every inspection of an agricultural holding. The IACS control procedures demand that inspectors submit reports of the checks to the Agency for future procedures. 290 12 MONITORING AND EVALUATION SYSTEMS AND ENVISAGED FORMATION OF THE MONITORING COMMITTEE 12.1 Monitoring and evaluation systems The quality of the Programme implementation is monitored by the Managing Authority and the Monitoring Committee by way of financial indicators as well as output and result indicators. The monitoring of the programme implementation enables a review of the programme performance as regards the accomplishment of the objectives set with regard to the financial resources spent. It is an ongoing procedure during the programme implementation aimed at correcting the programme in case of deviations from the operational objectives accomplishment, at improving the implementation quality and the optimisation of the budgetary resources allocation. The limited number of common indicators applied in every programme is set with the common monitoring and evaluation framework drawn up in cooperation between the Commission and the Member States and adopted in accordance with the procedure referred to in Article 90(2) of Regulation 1698/2005. The approach towards the monitoring and evaluation of the Programme implementation in 20072013 is founded on the regulation from the previous programming period. It is however more systematic and adapted to the new needs of Regulation 1698/2005. The monitoring of the results, impacts and the accomplishment of objectives in individual intervention areas shall additionally be carried out through indicators which are not part of the common framework and shall be carried out by institutions competent therefore. The changes in the environment status shall additionally be monitored through a set of agrienvironmental indicators and environmental indicators, for monitoring of which the ARSE is responsible. Some of the mentioned indicators are quantitatively included into the baseline analysis. Responsible for the status monitoring of the nature conservation, data gathering on plant and animal species as well as their habitats and ecosystems and the monitoring of biodiversity is the Institute of the RS for Nature Conservation (Nature Conservation Act, OJ RS No 41/04). The impacts emerging from the implementation of the measures under the Programme shall be evaluated in more detail through the monitoring systems and the data on the status of the nature conservation. Indicators The progress, performance and successfulness of the RDP 2007-2013 with regard to its objectives are measured by means of indicators related to the baseline analysis and the financial implementation, the outputs, results and impacts of the programmes. Common and additional baseline indicators and result and output indicators are listed in Chapter 5 under each axis and corresponding measures and Annex 2. All indicators comprise an evaluated baseline state and anticipated value at the end of the implementation of the RDP 2007-2013. Impact indicators are evaluated in the light of the anticipated impact of the implementation of the RDP 2007-2013 on individual areas comprised by the indicators. All indicators shall be described and outlined in a document which shall in detail set out the monitoring of the measure implementation under the RDP 2007-2013. The RDP 2007-2013 defines a limited number of additional indicators which are typical for it. The data related to the indicators may be additionally divided by gender and age of the beneficiaries. Annual progress report The Managing Authority implements the activities of data gathering necessary for drawing up the annual progress report pursuant to Article 82(2) of Regulation 1698/2005. The Managing Authority 291 sends the annual report, after a preliminary confirmation by the Monitoring Committee, to the Commission by 30 June 2008 for the first time and then each year by the end of June. Each annual progress report shall contain the following elements: a) any changes of general conditions which would directly affect the conditions of the Programme implementation, as well as any changes of the national or Community policies which would affect the consistency of the EAFRD and other financial instruments; b) Programme progress in accordance with the objectives set, as set out on the bases of result and output indicators; c) data on financial implementation of the programme showing expenditure disbursed to the beneficiaries for each measure; if the programme relates to regions under the Convergence Objective the expenditure is shown separately; d) summary of ongoing monitoring activities; e) measures of the Managing Authority and Monitoring Committee to ensure quality and efficiency of the Programme implementation, in particular: (i) monitoring and evaluation measures; (ii) summary of major difficulties which emerged from running the Programme and measures adopted, including those related to the remarks referred to Article 83 of Regulation 1698/2005; (iii) use of technical assistance; (iv) measures providing for public information pursuant to Article 76 of Regulation 1698/2005; (f) statement of conformity with Community policies in the field of support, including difficulties which emerged and actions to solve them; (g) where necessary, reuse of recovered funds pursuant to Article 33 of Regulation (EC) No 1290/2005. The Managing Authority shall send the last annual progress report on the implementation of the Programme to the Commission by 30 June 2016. Annual examination of programmes Each year, on presentation of the annual progress report the Commission and the Managing Authority shall examine the main results of the previous year, in accordance with procedures to be determined in agreement with the Member State and Managing Authority concerned. Following that examination the Commission may make comments to the Member State and to the Managing Authority, which shall inform the Monitoring Committee thereof. The Member State shall inform the Commission of action taken in response to those comments. Strategic monitoring The Managing Authority shall submit to the Commission a summary by 1 October 2010 pursuant to Article 13(2) of Regulation 1698/2005. The report sets out the progress made in the implementation of the National Strategy Plan and the accomplishment of the objectives as well as the contribution to the achievement of the Community strategic guidelines. The Managing Authority shall submit the summary report no later than 1 October each second year, the last one in 2014. Evaluation The RDP 2007-2013 shall be subject to ex ante, midterm and ex post evaluations in accordance with Articles 85, 86 and 87 of Regulation 1698/2005. The aforementioned evaluations shall aim to improve the quality, efficiency and effectiveness of the implementation of the Rural Development Programme. They shall assess the impact of the 292 Programme as regards the Community strategic guidelines and the rural development problems, taking into account sustainable development requirements and environmental impact as well as meeting the requirements of applicable Community legislation. The evaluations shall be carried out by independent evaluators. The results shall be available in accordance with Regulation 1049/200157. Member State shall provide the human and financial resources necessary for carrying out the evaluations, organise the acquisition and gathering of the data required and shall make use of different information provided by the monitoring system. Ex ante evaluation Ex ante evaluation is a part of the drawing up of each rural development programme and is intended for the optimisation of the budgetary resources allocation and improvement of the Programme quality. Its aim is to ascertain and assess mid- and long-term needs and objectives to be achieved, anticipated results, evaluated results, particularly in the light of the impact on the baseline situation, Community value added, to what extent the Community priorities have been considered, knowledge gained from previous programming, as well as the quality of implementation, monitoring, evaluation and financial management procedures. Pursuant to Article 85 of Regulation 1698/2005 the ex ante evaluation was carried out under the responsibility of the Managing Authority. The ex ante evaluation was conducted by independent evaluators from the Biotechnical Faculty of the University of Ljubljana in cooperation with the Danish company Orbicon. The ex ante evaluation is a part of the RDP, as a summary in chapter 3.3 and as a whole in Annex 16 to the Programme. Midterm and ex post evaluation The Managing Authority shall conduct all necessary activities for carrying out the midterm and ex post evaluation of the RDP 2007-2013 as regards the evaluation of the Programme progress in relation to its objectives by means of result indicators and, where appropriate, impact indicators. After the conducted midterm evaluation the Managing Authority shall assess the needs for possible amendments to the RDP 2007-2013, in particular as regards the improvement of the quality of the programme and the implementation thereof. In 2010, ongoing evaluation shall take the form of a separate midterm evaluation report. That midterm evaluation shall propose measures to improve the quality of the programme and the implementation thereof. In 2015, ongoing evaluation shall take the form of a separate ex post evaluation report. The midterm and ex post evaluations shall examine the degree of the resources utilisation, the effectiveness and efficiency of the programming of the EAFRD, its socioeconomic impact and its impact on the Community priorities. They shall cover the objectives of the Programme and aim at drawing the lessons concerning the rural development policy. They shall identify the factors which contributed to the success or failure of the programmes’ implementation, including their sustainability, and identify good practices. Ongoing evaluation Ongoing evaluation is a process comprising a set of evaluation tasks. It is aimed at continuous monitoring of the Programme implementation and the changes achieved outside the Programme in the sense of better understanding and outlining of accomplished outputs and results as well as the 57 Regulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission documents (OJ L 145, 31.5.2001, p. 43–48) 293 progress in achieving long-term impacts. It provides for the overview of the Programme progress as regards the objectives set through monitoring and evaluation of the result indicators and, where appropriate, of the impact indicators (Article 86(2)(a) of Regulation 1698/2005). The findings of the ongoing evaluation may be applied to improve the Programme quality and its implementation, to analyse the proposals of essential Programme changes and data preparation for midterm and ex post evaluation. The summary of the ongoing evaluation activities is included into the annual progress report. Ongoing evaluation is organised on the initiative of managing authorities in cooperation with the Commission. It is organised on multiannual basis and comprises the period 2007-2015. 12.2 Envisaged formation of the Monitoring Committee Based on the MAFF proposal the Government of the RS shall appoint the members of the Monitoring Committee for RDP 2007-2013 within a maximum of three months following the decision approving the programme. The Monitoring Committee shall draw up its rules of procedure within the institutional, legal and financial national framework and adopt them in agreement with the Managing Authority in order to perform its duties in accordance with Regulation 1698/2005. The chair of the Monitoring Committee shall take the State Secretary of the MAFF. The Managing Authority shall set up the formation of the Monitoring Committee, including the partners referred to in Article 6(1) of Regulation 1698/2005. The Monitoring Committee members are representatives of ministries, government offices, public agencies, economic and social partners and non-governmental organisations. It is of particular importance that the Monitoring Committee shall have representatives of governmental bodies and organisations responsible for environmental protection (Ministry of Environment and Spatial Planning, non-governmental organisations for environmental protection, association of non-governmental organisations for environmental programmes, public institutions for protection areas management, and social partners related to the environment). All members must respect the objectives of the Monitoring Committee and the partnership principle. The Monitoring Committee must be assured of the effectiveness of the RDP 2007-2013 implementation. For this purpose and pursuant to Article 77 of Regulation 1698/2005 it shall carry out the following activities: - within four months following the decision approving the programme it shall advise in the criteria for selecting the activities to be financed. The criteria on the selection are revised with regard to programme needs; - it shall periodically assess the progress of achieving the special programme objectives based on documents submitted by the Managing Authority; - it checks the implementation results, in particular the achievement of objectives set out under each axis and the results of the ongoing evaluations: - it considers and adopts the annual and the last progress report before they are sent to the Commission: - it may suggest to the Managing Authority programme adaptation or revision which could contribute to the accomplishment of the EAFRD objectives referred to in Article 4 or to management improvement, including the financial management; - it considers and takes every proposal of content amendments from the Commission Decision on the contributions from EAFRD. 294 13 PROVISIONS FOR ENSURING PUBLIC INFORMATION ON THE PROGRAMME Efficient informing of the public is important for the general awareness-raising of the public and the transparency of the EAFRD operation as well as for increased interest in benefiting from the financial aid available. Consequently, the absorption of the EU funds mentioned should increase. Complete and understandable information on particular issues establishes confidence between the directly involved groups (public) and the competent authorities. Information actions are an essential prerequisite for the participation of the interested public in the procedure of adopting and implementing public policies, which leads to greater legitimacy of the decisions adopted. For the purposes of reporting the MAFF has established a system for recording all activities and monitoring of indicators in order to measure the effects of public information. The correspondents at the INFO points shall record all public information activities organised as well as all client questions. For easier and faster data recording a computer base has been established. It shall contain all activities and indicators used to monitor the public information efficiency. The realisation of the action plan shall be monitored by means of the data base analyses. This way an insight in the number of particular activities in individual regions in Slovenia and the contents released shall be provided. The indicators for public information efficiency and public response are: - Number of instructions for partners in the information system; - Number of press releases; - Number of press conferences; - Number of media publications (clippings); - Number of published publications (booklets, brochures); - Number of homepage visits; - Number of seminars and workshops; - Number of INFO points; - Number of contacts (visits, calls, e-mails) at INFO points. The Managing Authority shall provide help of external experts for efficient implementation of the communication plan. A study or research on the impacts of the communication measures on different target groups shall be ordered. During the preparation of the programme several workshops and seminars for informing the public on the main EAFRD guidelines were organised. At the beginning of the RDP 2007-2013 implementation the information actions for the public shall be increased. Workshops and seminars shall be organised, different publications published (booklets, leaflets) which shall represent the measures of the Programme to potential recipients in more detail. Appearance in the media and press conferences shall be aimed at raising the interest of potential recipients and general public. During the implementation of the Programme the information actions shall continue by applying different communication tools to ensure the best possible recognisability of the Programme and the Community contribution. At the conclusion of the Programme a brochure "Examples of good practices RDP 2007-2013" shall be published showing the best projects. In 2007-2013 at least 10 percent of resources under technical assistance are devoted to communication tools and the corresponding supporting activities. The EU shall cover 75 percent of eligible costs and the RS the remaining 25 percent. 295 13.1 Envisaged measures for informing potential beneficiaries, professional organisations, economic, social and environmental partners, bodies involved in promoting equality between men and women and non-governmental organisations of the possibilities offered by the Programme and the rules for obtaining financial resources under the Programme The Managing Authority provides clear information to potential beneficiaries on: administrative procedures to be considered, system for application processing, information on criteria applied in selection procedure and evaluation mechanisms as well as the names of persons or contact points at the national, regional or local level who can explain the operation of the aid programmes and the criteria for obtaining aids. This group includes all potential groups of final recipients and final recipients of funds under all measures: - agricultural holdings; - food processing industry (enterprises, self-employed persons, cooperatives); - forest owners and their associations, private forest leaseholders; - local communities; - companies; - institutes; - non-governmental organisations (associations). Within the framework of the project, next to the entire coordination of public information and reporting actions on the RDP 2007-2013, the MAFF shall set up: - logo and the overall image; - homepage, including the part of the homepage related to EAFRD; - public information and promotion in appropriate media (radio, television, newspapers); - printed and audio-visual promotion material; - establishment of info points; - seminars, workshops and round tables; - fairs and exhibitions. Homepage The fast growth of the Internet access underpins the importance of the homepage as a tool for the key messages of organisations and as a source of up-to-date information. The homepage shall be the main communication tool of the communication plan. The entire RDP 2007-2013 shall be presented in the web. There, the potential final aid recipients shall be able to find all necessary information on individual measures (aim, eligible activities and costs, beneficiaries, financial provisions and special conditions). The calls for tender shall also be published in the homepage, including the tender documentation ready for print and all INFO points which shall provide all additional information. In the homepage at least once per year the lists of the final recipients and the amount of (public) financial resources granted under each measure shall be published. Presented shall be cases of good agricultural practices in Slovenia and the operators designing business plans and projects shall find all necessary instructions for their preparation. Forum The ARSAMRD homepage shall provide e-forum for all interested persons. There, they shall be able to exchange opinions, ask questions and receive answers on EAFRD measures and drawing up of business plans as well as the documentation preparation for calls for tenders, and receive information on the implementation of the measures. INFO points 296 The so called INFO points shall be information offices where all interested persons shall be able to receive a wide range of information on obtaining funds from EAFRD. Publications During the programming period the issuing of numerous publications is foreseen. They shall be used for various presentations of the RDP 2007-2013 (round tables, seminars, workshops, press conferences, fairs). Next to flyers on EAFRD booklets on individual measures shall be published. Press releases and explanations They shall serve to inform the public through the media on all novelties and to answer all topical questions regarding the activities of the implementation of the RDP 2007-2013. Press conferences They are intended for wide-ranged presentations of news to the media on key events. They shall be organised at the MAFF, ARSAMRD and at locations of selected cases of good agricultural practice. This way, successful investments in the rural areas shall be actively presented. Simultaneously, they shall bring such investments closer to the target public. Appearance in the media The MAFF and ARSAMRD representatives shall actively be involved in radio and TV shows as well as the printed media. We shall seek for live contact shows where listeners and viewers have the opportunity to ask their questions. This way we shall be able to solve on-the-spot dilemmas and problems of potential beneficiaries in obtaining EU funds. Seminars and workshops Organisation of seminars in the early phase is aimed at giving general information to the expert public on the RDP 2007-2013 measures, tender conditions, documentation preparation, procedure of obtaining funds and the information system throughout Slovenia. These seminars are firstly intended for regional development agencies, municipalities and other technical services (Agricultural advisory service, various project and business plan operators) which are directly interacting with the potential beneficiaries. Lectures On invitation of other institutions and organisations we shall participate in different events, e.g. round tables, technical consultations. Promotion materials For better EAFRD recognisability promotion materials shall be prepared. They shall be practically applicable and visually appealing and shall contain useful information. They shall be used at different events (seminars, workshops, press conferences, training). 297 Schedule of activities Activities 2007 2008 2009 2010 2011 2012 2013 2014 2015 Design of overall graphical image Homepage X X X X X X X X X X Forum X X X X X X X X X Info points X X X X X X X Publications X X X X X X X X X X X X X X X X X X X X X X X X X Appearance in the media X X X X X X X Seminars and workshops X X X X X X X Lectures X X X X X X X Promotion material X X X X X X X Advertising in the mass media Call centres X X X X X X X X X X X X X X X X Press releases explanations Press conferences and Information actions are designed as a cooperation model between different organisations at the regional and local level as well as with social partners, non-governmental organisations and experts. Next to the MAFF the information system includes the following partners: Agency of the RS for Agricultural Markets and Rural Development, Chamber of Agriculture and Forestry of Slovenia (with its regional institutes), Slovenia Forest Service (with its local institutes), Chamber of Commerce and Industry of Slovenia – Food Industries Association, Slovenian Rural Development Network, local and regional authorities, non-governmental organisations engaged in the promotion of the equality of men and women as well non-governmental organisations engaged in environmental protection, Centre Europe and Commission representative office in Slovenia. Rural network shall operate within the framework of the MAFF and shall group governmental, nongovernmental as well as private organisations and structures involved in the rural development. 13.2 Envisaged measures for informing beneficiaries on Community contribution A very important aspect of communication are information actions for the beneficiaries on the Community contribution. The Managing Authority ensures that at granting the funds the beneficiaries are informed that the measure is financed from the Programme which is partially financed by the EAFRD and priority axis of the RDP 2007-2013. 13.3 Measures for information of general public on Community role in programmes and their results For public information on the RDP a wide range of communication tools (homepage, info points, publications, press releases, press conferences, media appearance, seminars, and promotion 298 materials) shall be applied with focus on the national media, e.g. TV, radio newspapers and web media. In the homepage at least once per year the lists of the final recipients and the amount of (public) financial resources granted under each measure shall be published. Schedule of activities Activities 2007 2008 2009 2010 2011 2012 2013 2014 2015 X X X X X X X X X Info points X X X X X X X Publications X X X X X X X X X X X X X X X X X X X X X X X X X Appearance in the media X X X X X X X Promotion material X X X X X X X Advertising in the mass media X X X X X X X Design of overall graphical image Homepage X Press releases explanations Press conferences and 299 14 THE DESIGNATION OF THE PARTNERS CONSULTED AND THE RESULTS OF THE CONSULTATION 14.1 Designation of consultation partners The basic element of modern democracy is participation in decision making. The quality, suitability and effectiveness of EU policies depend on guaranteeing broad participation in the process of drafting and implementing public policies. The partnership principle requires the use of decentralised decision-making procedures as it needs close cooperation between the EU, national, regional and local bodies, social partners, non-governmental organisations and other civil society institutions. The partnership necessitates the cooperation of as many of partners as possible in drafting individual policies. Cooperation of partners in the decision-making processes and carrying out public policies gives an important boost to legitimacy of institutions and adopted decisions, even if talks and agreements prolong the decision-making process. Partnership is widely spread in Slovenia and is used in drafting all long-term development plans and programmes, including the RDP 2007-2013. By acting in line with the principles of European governance58 and national regulations, we wanted to attract as many interest groups into drafting and implementing the RDP 2007-2013 as possible. Article 6 of Regulation 1698/2005 states that a member state has to designate the most representative partners at national, regional and local level and in the economic, social, environmental or other sphere who are involved in drafting, implementing, monitoring and evaluating rural development programmes. The MAFF has staged numerous presentations, consultations, workshops and meetings as part of drafting the fundamental development documents for the National Strategic Plan and the RDP 2007-2013. These institutions included national bodies (MESP, ME, MLFSA, GOLSGRP); regional development agencies, local and other public institutions (Municipalities Association of Slovenia, Association of Municipalities and Towns of Slovenia); economic and social partners (CAFS, Farmers’ union, CCIS, CC, association of cooperatives); non-governmental organisations (Ecosocial Forum, Sustainable Development Coalition, association for countryside development); organisations tasked with promoting gender equality (government’s Equal Opportunities Office, association of women farmers); and interest groups. A public discussion and separate meetings on the draft RDP 2007-2013 only served to increase the level of cooperation. Compliant to the legislation the MAFF carried out all necessary activities for a comprehensive impact assessment, including public display of the RDP 2007-2013, environmental assessment of the RDP 2007-2013 and its revision, which lasted 30 days. Within the framework of the public display public discussion was organised. Within the framework of the public display no remarks on the documents displayed were submitted. Drafting the RDP 2007-2013 took place in several phases. Expert working groups were formed to draft strategic documents dealing with rural development between 2007 and 2013. These groups helped in drafting the first proposals for individual parts of the RDP 2007-2019. The MAFF then decided on 18 October 2005 to appoint six expert working groups that would include MAFF personnel and representatives of the following bodies: MESP, MLFSA, MH, ME, National Forestry Service, National Forestry Institute, AIS, ARSAMRD, Employment Service, Public Agency for Entrepreneurship and Foreign Investment, local administrative units and GOLSGRP. The working groups were established to perform the following tasks: - Analyse the situation from the standpoint of advantages and deficiencies, results achieved so far by individual measures and the strategy, selected to tackle them; - Explain the selected priorities while taking into account the strategic guidelines of the Community and the National Strategic Plan as well as the impact of ex-ante evaluation; 58 European Governance, A White Paper; European Commission, Brussels, 25 July 2001, COM (2001) 428 final 300 - - - Compile information and describe the priorities for each axis, alongside verifiable special goals and indicators that allow evaluation of the programme’s progress, efficiency and successfulness; Draft a detailed financial plan, broken down by priorities and sources of money for the entire duration of the programme, including technical assistance (tables); Compile information on differentiation from measures from other CAP instruments, cohesion and fisheries policies; Outline executive measures (implementation), including defining all the bodies involved in the programme's implementation and certification (managing authority, payments body, certification authority, supervisory body); the entire system of monitoring and evaluation; description of supervising systems, linked to the implementation of the programme; a detailed system of carrying out the LEADER approach; measures that ensure the public is informed; describe the procedures for exchange of computer data linked with payments, monitoring and evaluation; Determine the partners and state the results of consultations held with them (i. competent regional, local and other public authorities; ii. economic and social partners; iii. all other civil society organisations and non-governmental organisation (especially environmental) and organisations the task of which is to promote gender equality); Prepare the positions for an ex-ante evaluation of the programme; Other tasks connected to drafting strategic rural development documents. The MAFF informed the public on each amended RDP proposal and published it on its homepage. At the same time the MAFF opened an e-mail address where the public could send their questions and proposals on the RDP 2007-2013 content. Received were also written questions and proposals. Prior to each new proposal the amendments were also coordinated with social partners and other relevant stakeholders. Expert groups organised numerous workshops linked with drafting the RDP 2007-2013. The first workshop for drafting the National Strategic Plan for Rural Development 2007-2013 (21 – 22 July 2005) The first workshop took place between 21 and 22 July at Ig. The participating project team members and experts produced a SWOT analysis for measures of individual axes, which are slated to be carried out in the following programming period. The workshop was attended by 62 participants. The second workshop for drafting the National Strategic Plan for Rural Development 2007-2013 (27 October 2005) The second workshop for drafting the National Strategy Plan and the RDP 2007-2013, organised by the MAFF, took place on 27 October at Ig. The participants included MAFF personnel, members of the extended project team and experts. The workshop presented the proposed goals and priorities alongside implementation measures in line with the priorities for axis 1 "Improving the competitiveness of the agriculture and forestry sector", axis 2 “Improving the environment and the countryside” and axis 3 “The quality of life in rural areas and diversification of the rural economy”. The workshop was attended by over 100 participants and was divided into the plenary part and group activities. The “LEADER Approach within the Framework of the New Rural Development Policy 2007-2013” seminar, Portorož, 30 November – 1 December 2005 The MAFF and the TAIEX service of the European Commission held the “LEADER Approach within the Framework of the New Rural Development Policy 2007-2013” seminar in Portorož on 1 December 2005. The LEADER programme is a novelty in the programming development period, meaning that Slovenia does not have any experience nor do implementation structures (Local Action Groups) exist in the country. One of the country’s long-term goals is also a successful implementation of the LEADER programme in Slovenia, also helped by the seminar. The event was attended by 210 representatives of various 301 institutions and organisations, interested in implementing local development strategies and measures for the wider rural economy and population. Participating at the seminar was a representative of the European Commission (DG AGRI), a foreign expert from the field and representatives of the MAFF. The presentations were followed by a debate with numerous participants asking tangible questions. The debate shed light on numerous problems and opportunities presented by the implementation of the LEADER approach in 2007. Workshop: Preparing Materials for the Slovenian RDP, Strahinj, 4-6 July 2006 A workshop for representatives of ministries and the group tasked with drafting the Ex-ante Evaluation of the RDP 2007-2013 took place in Strahinj between 4 and 6 July. The event was split into two parts. The first day was taken by a plenary on which the evaluation group presented the role evaluation plays in the RDP 2007-2013 programme and the EU’s formal demands regarding the evaluation. Group work took place in the following two days with representatives of the MAFF, other ministries and social partners carrying out a revision of the proposed measures. The workshop was attended by 42 participants. Public discussion MAFF wanted to include the interested public in drafting the RDP 2007-2013 as soon as possible. It published a draft RDP 2007-2013 on 10 November on its website (http://www.mkgp.gov.si/) and sent it to members of the project group for drafting strategic documents of rural development for the 2007-2013 period and several key partners. The interested parties were given until 30 November 2006 to submit remarks regarding the proposal to the [email protected] mail address, created specifically for collecting the opinions and proposals for the RDP 2007-2013. Over 50 remarks were sent by individuals and organisations. Communication with interest groups went both ways as the MAFF responded in writing to all initiatives, proposals and questions. The RDP 2007-2013 proposal was also available on a CD, on paper and could be sent by email. The launch of public scrutiny of the proposal was also published by media which enabled all interested parties to take part in drafting the RDP 2007-2013. The MAFF's website also contains a forum where interested parties can address questions to MAFF official. Special meetings with interested parties on the draft RDP 2007-2013 were held between 29 November and 6 December. After the public discussion was concluded, MAFF published on its website a new draft RDP 2007-2013, amended in line with the public discussion. Table 56: List of key coordination meetings DATE ORGANISATION 29 November 2006 - Sustainable Development Coalition, - Ecosocial Forum of Slovenia, - Cooperatives Association of Slovenia. - Beekeepers Association of Slovenia - Society for the Development of the Slovenian Countryside - Chamber of Agriculture and Forestry of Slovenia - Association of Women Farmers of Slovenia, - Equal Opportunities Office, - Association of Slovenian Rural Youth, - Association of Municipalities and Towns of Slovenia, - Municipalities Association of Slovenia. - Chamber of Commerce and Industry of Slovenia - Chamber of Craft of Slovenia - Slovenian Consumers' Association, - Farmers’ Union of Slovenia, - Slovenian Tourist Board, - Ministry of Environment and Spatial Planning. - Ministry of Health, 30 November 2006 1 December 2006 4 December 2006 5 December 2006 302 6 December 2006 14 December 2006 13. February 2007 28. March 2007 29. March 2007 25. April 2007 26. April 2007 18. May 2007 18. June 2007 - Health Protection Institute - Ministry of Culture, - Ministry of Finance, - Ministry of Labour, the Family and Social Affairs, - Ministry of Economy, - Government Office for Local Self-Government and Regional Policy, - Government Development Office, - Ministry of Education and Sport. Agency of the RS of Agricultural Markets and Rural Development. Ministry of Environment and Spatial Planning - Ministry of Labour, the Family and Social Affairs, - Government Office for Local Self-Government and Regional Policy, - Slovene Enterprise Fund, - Ministry of Economy, - Chamber of Agriculture and Forestry of Slovenia, - Farmers’ Union of Slovenia, - Chamber of Agriculture and Forestry of Slovenia, - Ministry of Finance Numerous presentations of countryside development in Slovenia in the 2007-2013 programming period were aimed at various target groups throughout the period of drafting the RDP 2007-2013. Table 57: List of presentations of the RDP 2007-2013 PARTICIPANTS Regional development agencies, municipalities, Chamber of Agriculture and Forestry of Slovenia Ministries, government offices The Posoški razvojni center development centre, municipalities Performers of rural development programmes, municipalities Agricultural Advisory Service Biotechnological Faculty at the University of Ljubljana, Slovenian Agriculture Institute, environmental protection NGOs, performers of the RDP, municipalities RDP drafting workgroup, ministries, social partners Entrepreneurs, interest groups Representatives of agricultural holdings, cooperatives, members of the Chamber of Agriculture and Forestry of Slovenia Chamber of Agriculture and Forestry of Slovenia – Kranj regional unit Agriculture Faculty at the Maribor University DATE 20 April 2005 PLACE Žalec SUBJECT Meeting of cooperatives, presentation of the rural development policy 24 June 2005 Ljubljana 29 September 2005 Idrija Managing the countryside in Slovenia as part of the RDP 2007-2013 Presenting the LEADER Axis in the new programming period 2007-2013 28 October 2005 28 and 29 November 2005 1 December 2005 Ljubljana January 2006 Brdo pri Kranju 19 January 2006 Maribor 7 March 2006 Portorož 10 March 2006 Kranj Presentation of the rural development policy 3 April 2006 Maribor Presenting the rural development strategy to students from various EU Bled Portorož Presenting the LEADER approach The 20th traditional meeting of AAS, Presenting the National Strategic Plan 2007-2013. TAIEX seminar, drafting the National Strategic Plan. Presentation of implementing the LEADER initiative in Wales, transfer of best practices, presentation of own initiatives. Drafting the RDP Entrepreneurship conference. Importance of entrepreneurship for rural development Meeting of cooperatives, presentation of the rural development policy 303 countries as part of the Socrates Erasmus programme. Members of various associations 4 April 2006 Strahinj Panel of the association for rural development Representatives of municipalities, locals and other interest groups Chamber of Agriculture and Forestry of Slovenia – Krško regional unit Representatives of agricultural holdings, fruit growers 6 April 2006 Brda Presenting the rural development strategy 2007-2013 10 April 2006 Krško Presenting the rural development strategy 2007-2013 20 April 2006 Krško Presenting the rural development strategy 2007-2013 Chamber of Agriculture and Forestry of Slovenia – Murska Sobota regional unit Chamber of Agriculture and Forestry of Slovenia– Ptuj regional unit, interest groups 17 May 2006 Murska Sobota Debate on the National Strategic Plan 2007-2013 22 May 2006 Ptuj Chamber of Agriculture and Forestry of Slovenia – Koper regional unit Chamber of Agriculture and Forestry of Slovenia– Murska Sobota regional unit, association for protecting the produce of the Prekmursko region. Chamber of Agriculture and Forestry of Slovenia– Kranj regional unit Performers of rural development programmes National Assembly 5 June 2006 Sežana Panel on the future challenges for the countryside. The rural development strategy was outlined at the event that presented the produce of Slovenian farms in 2006. Presenting the rural development strategy 2007-2013 7 June 2006 Murska Sobota 10 June 2006 Šenèur pri Kranju 13 June 2006 Ig 15 June 2006 Ljubljana 4 and 5 July 2006 28 August 2006 Strahinj Ministries, government offices, ex-ante evaluators Interest groups, visitors to the 44th International Fair of Agriculture and Food Representatives of ministries (agriculture, environment, helath), organic farmers, nongovernmental organisation, companies, experts and educators MAFF, MESP, CAFS, Municipality Solèava, Alpine Association of Slovenia Cooperatives Association of Slovenia Participants of the 44th conference on agriculture Cooperatives Association of Slovenia Gornja Radgona 4 September 2006 Ljubljana 11. December 2006 Solèava 16 January 2007 16 February 2007 6 March 2007 Ljubljana Žalec Portorož Presenting the rural development strategy 2007-2013. A working meeting with agriculture chamber representatives, association members and a Greek delegation Presenting the National Strategic Plan 2007-2013 Workshop, presenting the LEADER Axis Presenting the National Strategic Plan 2007-2013 Workshop, drafting the RDP 20072013 Lecture entitled “National Strategic Plan for Rural Development in the 2007-2013 Period”. Panel entitled “Organic Farming in Slovenia in 2013”. Within the framework of the international day of mountains the RDP 2007-2013 was presented under the title Biodiversity conservation – Opportunity for development of mountain areas RDP 2007-2013 and possibilities for cooperatives to apply for funds Presentation of RDP 2007-2013 Presenting the RDP 2007-2013 304 Mayors of six municipalities Mayors of municipalities Regional development agencies, municipalities, CAFS, representatives of future LAGs Association of the Mislinja farm women, producers of must, Koroška bread and other products Interested public Interested public Producers and processors of the extra virgin olive oil – Association of olive-growers of Slovenian Istra Participants of the 11th conference of rural tourism association Visitors of the event Treats of Slovene farms 20 March 2007 28 March 2007 13 April 2007 Brezovica Raèe Ljubljana 20 April 2007 Mislinja 21 April 2007 9 May 2007 11 May 2007 Brežice Polhov Grades Ljubljana 11 May 2007 Žalec 21 May 2007 Ptuj Dairy factory KREPKO 23 May 2007 Ljubljana Municipalities, Regional development agencies, CAFS, representatives of future LAGs CAFS, interested public Mislinja and Drava Valley LAG 19 June 2007 Ljubljana 20 June 2007 27 June 2007 Bohinj Slovenj Gradec 6 July 2007 Dobrovnik 7 July 2007 Trebnje Municipalities representatives, interested public in Dobrovnik and its surrounding Interested public LEADER and the role of municipalities LEADER and the role of municipalities Presenting the LEADER Axis 20072013, workshop Opportunities for the Koroška agricultural products and foodstuffs National quiz “Youth and agriculture” Round table Presentation of RDP 2007-2013 measures related to quality schemes Presentation of RDP 2007-2013 RDP 2007-2013 – opportunity to raise the quality of life in rural areas and creation of new jobs Presentation of RDP 2007-2013 measures related to quality schemes LEADER – opportunity for development of Slovenian countryside Round table RDP 2007-2013 Forms of LAG organisation in Slovenia and EU experience Forms of LAG organisation in Slovenia and EU experience Round table “Does the new RDP 20072013 encourages young people to take over a farm” 14.2 The results of the consultation Cooperation with government institutions MAFF cooperated with numerous government institutions in drafting the RDP 2007-2013. The draft RDP 2007-2013 was made available for public scrutiny as well as sent to the representatives of the following institutions: GOLSGRP, MF, Government Development Office and the ARSAMRD. MAFF invited the following institutions for talks on the document: MESP, MC, MH, Health Protection Institute, MF, MES, MLFSA, ME, GOLSGRP, Government Development Office, Government Equal Opportunities Office and the ARSAMRD. Remarks and proposals sent beforehand by the institutions largely dealt with complementary issues with other environmental programmes and development policies and only some dealt with the contents of the RDP (MC, MESP, Government Equal Opportunities Office). All proposals and comments were considered by working groups and the relevant ones were taken into account with due care. Cooperation with regional and local institutions A vertical partnership between the EU and national, regional and local structures is becoming increasingly important as the quality of the programmes and their implementation often depends on cooperation of partners on a sub-national level. Slovenia does not (yet) have regions and regional development agencies have bridged this gap. Municipalities as self-governed local communities are relatively small, meaning they have a poorer institutional, financial and personnel position. 305 Implementing the European structural policy was what launched cooperation between local authorities, mainly because of a lack of the aforementioned resources. Local communities have become irreplaceable in carrying out European structural policies because of their acquaintance with the problems in their area and the means and ways of solving them. The draft RDP 2007-2013 was sent to the MAS and AMTS. Representatives of the two organisations also took part at a special meeting on the issue. Individual municipalities also sent some remarks, mainly dealing with measures as part of axis 4 that deal with determining the settlements that are entitled to aid and the setting of LFA and carrying out measures in axis 2. The debate served to clear up critical points and resulted in the remarks being considered. Cooperation with economic and social partners and non-governmental and expert organisations MAFF placed a lot of stress on cooperation with economic and social partners. Close cooperation with the CAFS resulted in the institution taking part in a coordinating meeting and sending an extensive list of remarks. The remarks dealt with situation analysis, measures, beneficiaries and justifiable expenses. All remarks and proposals were carefully studied at the coordinating meeting and those that were found justifiable were taken into consideration. Some remarks shall be considered for documents of a lesser importance. Also important was cooperation with the Trade Union of Farmers, the CCIS, the Association of Cooperatives and the CC. Their remarks mainly dealt with the contents of measures and beneficiaries. However, as the Regulation 1698/2005, setting the contents and the beneficiaries of individual measures, was used as the basis for drafting the RDP 2007-2013, the remarks were only partially taken into consideration. Various phases of drafting the RDP 2007-2013 also saw cooperation with the following nongovernmental organisations: the Slovenian Association of Consumers, the Coalition for Sustainable Rural Development, the Ecosocial Forum, the Association for the Development of the Slovenian Countryside, the Association of Slovenian Rural Youth, the Association of Societies of Organic Farmers, the Association of Women Farmers, the Beekeepers Association and many others. The NGOs praised the endeavours of the MAFF for developing the countryside and the contents of the RDP 2007-2013. Their remarks were mainly aimed at contents of the measures and the beneficiaries. The majority of the remarks were taken into consideration or explained, while some of them shall be used accordingly in drafting documents at lower levels. The MAFF is also cooperating heavily with experts in the area of agriculture and rural development in drafting the development documents. Numerous studies were carried out for the National Strategic Plan and the RDP 2007-2013. Cooperation with the Biotechnological Faculty at the University of Ljubljana was of key importance. The faculty carried out an ex-ante evaluation of the RDP 2007-2013 in cooperation with the Danish Orbicon company and submitted its views on the National Strategic Plan as well as the RDP. The Agriculture Faculty at the Maribor University was also heavily involved, especially in drafting Axis 2 of the RDP 2007-2013. Public discussion on the RDP 2007-2013 proposal allowed participation of all interested parties regardless of their sex, ethnicity, religious belief or any other affiliation. The MAFF also placed great stress on cooperation with government and non-governmental organisations that are involved in the area of gender equality. The Association of Women Farmers, the Association of the Slovenian Rural Youth and the Government Equal Opportunities Office were invited to the meeting. While the office did not take part in the meeting it nevertheless submitted its remarks. Such cooperation is also planned in implementing, monitoring and evaluating the RDP 2007-2013. Cooperation with the European Commission The first presentation of the “Commission Guidelines for Drafting National Strategic Plans” took place on 19 November 2005 in Brussels. The Commission presented the strategic rural development 306 plans for the period 2007-2013 in Ljubljana on 8 December 2005. This meeting also saw a debate on the open issues and potential problems as member states informally harmonised their draft national strategic rural development plans for 2007-2013 with the Commission even before they formally submitted them. Close cooperation was maintained with the Commission also during the drafting of the National Strategic Plan and the RDP 2007-2013. Several bilateral meetings were held with Commission representatives, responsible for the area. A TAIEX workshop was meanwhile organised in the coastal town of Portorož on 12 May 2005. The workshop presented the LEADER programme that was hitherto not yet used in Slovenia. Commission representatives submitted their findings, proposals and corrections of the RDP 2007-2013. The workshop was attended by many people and provided answers to numerous open questions. Close cooperation with the Commission is expected to continue. Close cooperation with the Commission, relevant national authorities, local authorities, social partners, NGOs and other interested parties is far from over and shall continue during the implementation and monitoring of the RDP 2007-2013. 307 Table 58: List of remarks and proposals to the RDP 2007-2013 proposal, addressed in the public discussion INSTITUTION/ORGANI SATION Slovenian Haflinger Breeders’ Association The Kokra Hunting Association REMARKS/PROPOSALS ANSWER BY MAFF Adding Slovenian Haflinger Breed to the List of Autochthonous and Traditional Breeds (recognised by the MAFF Decision 2006). Right to and from hunting as well as income from this activity, special-purpose hunting districts (Ibex). Taken into account. Institute Mrest Draft of guidelines for the future of small farmers Association for the Conservation of the Cika Breed in Slovenia Rearing abandonment (in particular by smaller and older farmers) as a result of strict requirements obligatory entrance into A-E scheme; consideration of technical criteria by the gene bank. A separated measure suggested which would not be bound by the A-E scheme. The remark shall not be taken into account. The guidelines lay down three pillars of successful development of Slovenian agriculture which also covered in individual measures of the RDP 2007-2013. Projects suggested in the study most certainly are innovative, but cannot be a general development course of Slovenian rural areas, which is the purpose of the RDP 2007-2013. Entrance into the A-E scheme is not obligatory; the farmers are free to enter the scheme or not. In accordance with Regulation 1698/2005 the measure capturing endangered breeds belongs to the A-E scheme. The remark shall not be taken into account. The remark shall not be taken into account. The purpose of energy production and sale from renewable resources under measure 311 complements with the measure 312 (Support for the creation and development of micro enterprises) as well as with other operational programmes (OP) of the RS (see AURE). Considering the demarcation between measures and OPs the beneficiary must apply for the appropriate purpose (measure). - Axis 2: Litter meadows are included under Group III. - Stating all forms of thematic trails in this phase is irrelevant. The remark shall not be taken into account. The text is corrected accordingly. CAFS – Institute NM Ministry of Culture Production and sale of on-farm energy from renewable resources, in particular with regard to the heat sales – pointing out the problem. - - Slovenian Cooperatives Association Classifying litter meadows into Group II. Under operational objectives and description and scope of the measure 322 another indent is to be added: drawing up appropriate developmental and spatial documents on village development and renewal; under the activities foreseen cultural trails are to be explicitly stated. Under the measure 111 Vocational training and information actions is to contain also vocational training for art and traditional handicraft. - The introductory chapter should include a short passage on cooperatives in Slovenia. - The cooperatives should be more actively participating in the rural development. Coalition for Sustainable Development - The RDP proposal is too focused on the support for integrated production. There are no arguments for integrated production under axis 2. - Focus on organic farming is insufficient. - The issue on the minimum stocking density (0.5 LU/ha) in the Karst and other arid areas. Ministry of Economy Association of Slovenian Forest Owners Consistency of the NSP and the RDP with the Development Plan and the Orientations of Slovenian Tourism as well as the Programme of the Promotion Measures for Entrepreneurship and Competitiveness in 2007-2013. - Support for thinning and forest conversion is not captured in the RDP. The remark shall not be taken into account. Wild Game and Hunting Act (OJ RS No 16/04) does not specify particularly that a farmer as a forest owner is eligible for any pecuniary compensation for hunting conducted on his/her property. - Axis 1 - Vocational training for art and traditional handicraft does not fit under measure No 111. The remark shall not be taken into account. - The introductory chapter shall include a short passage on cooperatives. - The possibility of including cooperatives into RDP 2007-2013 measures shall be checked. - There are technical arguments for setting the integrated production into the RDP proposal as well as for payment calculations. Integrated products are marketed similarly to organic products on markets and have their own logo. - The target share of organic farms by 2013 in the RDP 2007-2013 proposal was designed based on financial circumstances and coordination with other measures. - Possible solution on minimum stocking density is payment for as many areas as many would be permissible by the livestock count per agricultural holding with regard to the minimum stocking density requirement. The demarcation between the RDP 2007-2013 measures and other OPs as well as information on complementarity with other measures financed by other instruments is outlined in Chapter 10. - The measure is development-oriented. The public discussion so far showed that the construction of forest roads and investments in the purchase of felling mechanisation and equipment are the key elements in improving the economic value of forests. The 308 - The total amount of felled wood must be felled in private forests. - Purchase of used forestry mechanisation Slovenian Beekeeping Association Slovenian Farmers’ Association at SLS (Slovenian People’s Party) - Organic beekeeping is insufficiently considered as in practice an upward trend is evident. - The requirement of 1 hectare in the measure 112 is disputed since the majority of beekeepers does not own any land. - The investments in beehives and bee families are not emphasised sufficiently. The purchase of used vehicle also not possible. - The infrastructure of forest roads leading to the standing spots is not arranged properly. - Endangerment of the Carniolan bee (Apis mellifera Carnica) and the preservation of its genetic potential - Disagreeing with the reduction of resources for payments under axis 2 in 2007- 2013, in particular for LFA and A-E payments. - Eliminating the inconsistency between the designation of LFAs and payments. Urban municipality Novo mesto Office for Equal Opportunities Slovenia Forest Service - Additional measures to preserve Slovenian vine growing and cultivation should be set into LFA and A-E payments. - The RDP does not remedy the problems related to LFA. Certain areas of cadastral municipalities predominantly located in the area of the Gorjanci and partially in higher areas of the urban municipality Novo mesto were not designated as LFA. - The measure Implementation of local development strategies does not define the beneficiaries specifically enough. Under target group the concept of the end-user should be defined as the recipient of funds for a certain project (e.g. investor). Additional explanation is required for the concept “project of greater importance for the region or other broader area” as the diction is very plain. - In chapter 5.3.1.4. “Raising the competence level and increasing the employment in agriculture, food industry and forestry” special attention should be paid to measures for vocational training of women. - The measure “Support for the creation and development of micro enterprises” should pay special attention to the promotion of female entrepreneurship. - The measure “Village renewal and development” should include an assessment of the impacts on the gender equality. - The measure “Vocational training and information actions” should pay special attention to the promotion of female entrepreneurship development. - The measure “Skills acquisition and animation of rural population” needs to consider the differences in the vocational education grade between men and women. - The indicators should be recorded, where relevant, also by sex. - Measure 122: In the description and scope of the measure the following text should be added in the first indent “and preparation of forest tracks”; new indent is to be added – thinning of saplings and thinner pole crops. - Measure 111: After the word phrase “agricultural products” in the section target group the word “forestry” is to be added. measures of forest thinning and conversion shall continue to be implemented at the national measures level. Should an increased need for the implementation of thinning and conversion in private forests arise, shall the RDP 2007-2013 be amended accordingly. - In principle, the measure is aimed at investments in forests in private property. - Purchase of used mechanisation and equipment is questionable with regard to a high number of accidents with forestry mechanisation. - In general, the agreement on the exclusion of the requirement of 1 hectare under the measure 112. - In the measure 121 the investments in beekeeping have already been included in the investments stated. - The arrangement of accesses to beehives in forests can be an additional reason to plan and construct forests trails but not the only one. The arrangement of trails to access beehive standing spots for mobile apiary units on own agricultural holding can be supported within the range of the measure 121. The arrangement of beehive standing spots in own forest may be supported under the measure 122. The arrangement of accesses to beehive standing spots to be managed by the Slovenian Beekeeping Association is out of the range of the axis 1 measures. - The possibility of supporting the preservation of the Carniolan bee genetic potential shall be reviewed. - The amount of resources for measures depends on the total amount of resources available. - All details on the designation of LFAs have been presented publicly on several occasions together with all necessary calculations and facts. - No agricultural production type has been excluded from the LFA support. - All details on the designation of LFAs have been presented publicly on several occasions together with all necessary calculations and facts. - The definition of the end-user under the measure Implementation of local development strategies is a subject of a lower ranked document. The concept “project of greater importance for the region or other broader area” – the remarks shall be taken into account and the diction has been amended. - The implementation of the measure No 111 shall probably be carried out by the principle “First come, first served”, therefore no special mechanisms are foreseen to give advantage to women in obtaining funds. - The remarks related to axis 3 shall be meaningfully considered in lower ranked documents. - The indicators should be recorded, where relevant, also by sex. - See the answer to the Association of Slovenian Forest Owners. - The remark shall be taken into account; the text is amended accordingly. 309 Slovenian Association for Management in Grassland SCAF – Institute Gorica; Association of Slovenian vine and wine growers Municipality Sv. Andraž in Slovenske gorice Slovenian Eco-Social Forum Biotechnical Faculty - Measure 142: In the description and scope of the measure in the second indent the words “and forestry” are to be deleted and a new indent added: Common implementation of forestry management measures and marketing of forestry products. - Submeasure 214-III/2 Preservation of special grassland habitats: change of the third paragraph in describing the conditions, as follows: The use of sod and land is not allowed prior to the flowering of grasses and raising of the Corncrake offspring by 15.7. in the areas referred to in chapter 8.1.1 and by 1.8. in the areas referred to in chapter 8.1.2; as well as amendment of the submeasure conditions by adding: The stay (pasture) of domestic animals (livestock) in the land captured in the submeasure concerned is allowed by 30. April. - LFA payments for vineyard land and queen cells lying in LFA areas. - Submeasure proposal: Utilisation of steep vineyards. - The highest payment amount for integrated vine production should be equalised with the one for integrated fruit production (€821 per ha) - Organic farming – vineyards: Change of the ratio for the highest possible payment amount between vineyards and permanent grassland in favour of vineyards or increase of the highest possible payment for vineyards. - Agri-environmental payments: Decrease of perennial crops payments exceeding 100 ha by 30 percent. - Simplification of renewal subsidies as in wine growing. The current procedure is completely inappropriate. - Renewal subsidies should be enabled to smaller fruit producing farms as well. - Orchard renewal should no longer continue in accordance with the current birocratic subsidies system – the esblished system of Austria should apply. The simplified procedure of renewal subsidying should ensure as quick substitution of fruit varieties as possible, setting up of protection nets agains hail and setting up of irrigation systems. - Sustainable rearing should be added to quality schemes. - Baseline analysis: In the data review in chapter 3 it would be appropriate to make more comparisons between rural areas and the rest Slovenia. - The importance of the SWOT analysis should be made more evident in outlining the objectives of the programme. - Connection between objectives, priorities and measures of the RDP is unclear. - Missing contents: Model calculations for setting of agri-environmental payments and assessment of impacts on the environment. - Measure 123: Controversial decision on including all legal and natural persons registered for food processing activity as final aid recipients (beneficiaries). - Measure 122: Support for thinning and conversion in private forests should be included. - Measure 211: Remedy of anomalies in payment amounts which were so far linked to the location of agricultural holding (KMG-MID). A more fair solution would be to link LFA payments to agricultural parcel (GERK). - Measure 214: Payment amounts are relatively high; disagreement regarding the programme diction on linear reduction of payment amounts in the first two years and further changes of payment amounts in accordance with the annual decree. - Measure 311: Retail trade is mentioned as one of the reasons for intervention, but is not stated as eligible activity. - Measure 312: Social activities are mentioned as one of the reasons for intervention, but are not stated as eligible activity. - Measure 331: It would be more reasonable to implement a part of the activities under group A - The measure is aimed at the improvement of the common marketing of agricultural and forestry products and not to the common implementation of all forestry measures. - The proposal is being reviewed together with the MESP. - LFA: already treated in the RDP proposal. - The proposals are being reviewed. - The List of Autochthonous and Traditional Varieties of Agricultural Plants has already been amended. The varieties are being checked whether they fulfil the requirements for incorporation into the List. - Support shall be granted to large as well as smaller fruit producing farms for large and small investments. - A certain procedure simplification shall be provided in case of smaller investmetns. More detailed conditions and provisions shall be laid down in implementing regulations. - Sustainable rearing cannot be included into food quality schemes. - Statistical data to provide data comparison between rural areas and rest Slovenia do not exist. - Food processing activity is not conducted only within the range of the food processing industry. - Regarding the thinning and conversion see answer to the Association of Slovenian Forest Owners. - MAFF already conducts certain activities in this area and shall be operational in the next years. - 311 – remark taken into account, retail trade is no longer mentioned. - 312 – remark taken into account, social services are no longer mentioned. - 331 – The remark shall be meaningfully considered in lower ranked documents. 310 (handicraft and similar activities) within the framework of the national vocational qualifications. - In addition to subsidies for sustainable farming Slovenian breeders should be enabled to obtain also subsidies under the measure animal welfare. - All autochthonous and traditional domestic breeds meeting the conditions laid down in Annex I to the Regulation 817/2004. - Considered should be the calculated proposals for support amounts for rearing of autochthonous and traditional domestic breeds. Slovenian Farmers’ Union - In the section on the amount of resources it should be clearly stated how much is devoted for defraying of the commitments from previous years and the programme should thus be drawn up only for the amount that retains after abstracting previous commitments. - Measure 112: The amount per transferee at the national level is nearly one half less than the maximum possible support amount. - Cessation of measure 113 (early retirement) and transfer of resources to measure 112. - Measure 121: Reduction of maximum aid granted from €500,000 to €250,000 and division of investments. - Measure 123: The proposal on division of resources. - Measure 122: It should include also the thinning of saplings and pole crops; maximum support amount granted should reduce to 250,000 EUR, and minimum support amount granted should reduce from 1000 to 500 EUR; the condition regarding the minimum annual harvest of 300 m3 should be reconsidered. Municipalities Association of Slovenia Slovenian Rural Development Network - Measure 214: The table should be added another column which should contain support amount for individual measures in the first two years (60 percent of the maximum amount possible). - Measure 311: Minimum aid granted is to be reduced from 5000 to 2000 EUR. Axis 4: Proposal for correction of geographical coverage since the current statement indicates that settlements with over 10,000 inhabitants are excluded - settlements with over 10,000 inhabitants must be included as well. - The situation in the forestry sector should be improved within the framework of the RDP. - The measure structure to promote a faster growth of organic farming is insufficiently stimulating and does not contribute towards the accomplishment of the APOF. - Measures should promote local application of local resources and encourage the public sector to convert to the application of local resources. - Promoted should be the creation of local supply chains and orientation to local markets. - To co-finance projects a possibility to obtain loans through the Slovenian Rural Development Fund should be ensured. - The share of resources allocated to axis 3 and 4 is too low. - Cooperatives are not stated as beneficiaries under individual measures and it is not clearly enough specified whether they shall be able to apply or not. - Measure 311: Under the purposes additional indent is to be added: other innovative on-farm activities. - Measure 312: Proposal that the activities list be broad enough to enable the realisation of different business projects by inhabitants and micro enterprises which shall create new jobs and strengthen rural - Model calculations for setting payment amounts were designed by an independent institution. Payment amounts are set with regard to the model calculations and the resources allocated for agri-environmental payments under the RDP. - Measure 112: The amount of resources is in correlation with the resources for axis 1 and the allocation of resources within the axis. Certain smaller corrections of resources allocation per measures are still possible. - Measure 113 remains in the RDP. - Measure 121: The proposal on reducing the maximum support amount granted from 500,000 to 250,000 EUR shall be reviewed and the investments divided wherefore a proposal shall be drawn up. - Measure 123: Foreseen is a division of resources in three sets. Measure 122: Thinning of saplings and pole crops is a part of the regular forest management and as such not eligible for payments. The proposal on reducing the maximum support amount granted to €250,000, and minimum support amount granted from 1000 to 500 EUR shall be reviewed as well as the condition regarding the minimum annual harvest of 300 m3. - Measure 214: The proposal is being reviewed. - Measure 311: The reduction of maximum aid from 5000 to 2000 EUR is not possible. Settlements with over 10,000 inhabitants can be a part of a LAG area, but cannot be eligible for support for the implementation of measures and projects. The remark shall be taken into account. - Forestry sector is equally represented within the framework of the axis 1 measures. - RDP 2007-2013 does not exclude the local application of local resources and the exploitation thereof. The remark shall be meaningfully considered in lower ranked documents. - Under measure 142 the networking and common market occurrence of primary producers shall be promoted and thus the creation of local marketing chains as well. - Combinations of loans and non-repayable funds, as was applied prior to 2004 within the framework of common tenders of the MAFF and the Regional Development Fund of Slovenia, are not envisaged within the range of the RDP 2007-2013 since granting duplicate aid is not allowed. - The allocation of the resources by individual axes and measures shall be amended during the implementation of the RDO 2007-2013 with regard of the absorption and evaluation results, if a need therefore shall become evident. The remark shall not be taken into account. - Cooperatives are included in all relevant measures, but are not explicitly stated. - 311 – due to the delimitation with other measures, particularly 312 and other Ops, the remark shall not be taken into account. - 312 – a more detailed list of activities shall be a subject of a lower ranked document. 311 Municipality Oplotnica & Kozjansko Agency for Development CCIS MESP business projects by inhabitants and micro enterprises which shall create new jobs and strengthen rural capacity. - Measure 322: Under the section target group municipalities, local communities, public institutes and non-governmental organisations are to be stated. The contribution in kind may represent up to 20 percent of the total project value. - Measure 323: Under the section target group legal and natural persons, municipalities, local communities, and non-governmental organisations are to be stated. The contribution in kind may represent up to 20 percent of the total project value. - Measure 331: Who shall apply at public tenders: individual inhabitants and individual micro enterprises or providers of educational and training programmes for these target groups? The total amount of resources under this measure for 2007-2013 is not stated. - Measures 41 (411, 412, 413): Target group: legal and natural persons, municipalities, local communities and non-governmental organisations; the project implementation and financing must include local partners as well; in case a project is of greater importance for a LAG area and significantly contributes to the development of the entire area the aid rate may be higher, however, not higher than 80 percent. - Measures 421, 431: Section “Eligible costs”: does not cover: employee salaries (co-financed by up to 70 percent). - Restrictions in measures 321, 322 and 323: Proposal that an investment may be co-financed from one measure under the RDP. - Remark to the “Geographical coverage” in measures 321 and 322: additional criteria should me clarified as soon as possible as municipalities are already preparing or are in the procedure of adopting municipal budgets for the next year, which must contain all projects to be co-financed. - Measure 322: Under the section target group municipalities, local communities, public institutes and non-governmental organisations are to be stated. - Measure 323: Under the section target group legal and natural persons, municipalities, local communities, and non-governmental organisations are to be stated. - Measures 41 (411, 412, 413): Target group: legal and natural persons, municipalities, local communities and non-governmental organisations; the project implementation and financing must include local partners as well; in case a project is of greater importance for a LAG area and significantly contributes to the development of the entire area the aid rate may be higher, however, not higher than 80 percent. - Measures 421, 431: Section “Eligible costs”: does not cover: employee salaries (co-financed by up to 70 percent). - Technical assistance resources should be devoted to a greater extent for the training of municipal authorities employees in charge of the implementation of the rural development policy. The first indent in page 179 should contain also “and construction of facilities for storing firm livestock excrements. - As baseline value of the HNV utilisation indicators the number 222,500 hectares should be used. - In the A-E submeasure Rearing of domestic animals in the central area of the appearance of large carnivores the payment for sheep and goats should be lower by 20 percent as payment for livestock. Slovenian Vine Association - In conditions for the submeasure Preservation of special grassland habitats an amendment to the indents 3 and 4 was proposed, as follows: Pasture or mowing and gathering after the flowering of grasses and raising of the corncrake offspring (after 15.7. in areas referred to in chapter 8.1.1 and after 1.8. in areas referred to in chapter 8.1.2). - Equal payments for agri-environmental submeasure of integrated fruit and vine production proposed. - LFA measure does not refer to vine growing and queen-cell areas located in LFAs, therefore the introduction of payments for the abovementioned areas was proposed. - 322 – all proposed beneficiaries shall be taken into account. The contribution in kind shall be outlined in lower ranked documents. - 323 - all proposed beneficiaries shall be taken into account. The contribution in kind shall be outlined in lower ranked documents. - 331 – In training the applicants shall be individuals, in information actions providers. The total amount of resources allocated for this measure is stated in chapter 7. - The proposed target group are partners of a LAG which is a beneficiary. The second part of the remark shall be meaningfully taken into account. - The remark shall be meaningfully taken into account in lower ranked documents. - General RDP 2007-2013 provisions lay down that resources for the same purpose may be obtained only under one axis and one fund. - The remark shall not be taken into account. - Additional criteria are to be outlined in lower ranked documents. However, data without a limit shall be made public in shortest time possible. - 322, 323 – All proposed beneficiaries have been included. - The remark shall not be taken into account. - Proposed target group are partners of a LAG which is a beneficiary. The second part of the remark shall be meaningfully taken into account. - The remark shall be meaningfully considered in lower ranked documents. - Technical assistance is intended for the implementation of the RDP 2007-2013, eligible for the resources is the Managing Authority. The proposal is not suitable; in place of “arrangement of manure pits” the term “arranging facilities for storing livestock excretions” is used. - The number of the HNV mentioned shall be included into the RDP proposal and the value in the National Strategy Plan shall be corrected as well. - The calculation for the submeasure Rearing of domestic animals in the central area of appearance of large carnivores has a basis in additional work which is more extensive with sheep and goats, therefore the reduction of the payment is not possible. - The proposed diction in conditions for the submeasure Preservation of special grassland habitats shall be taken into account. - The proposal on equal payments is still open. - No agricultural sector has been excluded from the LFA support. The proposal on including the measure Utilisation of steep vineyards into the RDP is being reviewed and 312 Furman Breeders’ Association of ColdBlooded Horses Ilirska Bistrica Karst and Istra Breeders’ Association of Small Ruminants - Agri-environmental payments: Reduction of payments for perennial crops exceeding 100 ha by 30 percent and introduction of direct payment covering the utilisation of vineyards in steep slopes (payment should amount to 300 EUR per ha for inclination 30 to 50 percent and 500 EUR per ha for inclination over 50 percent) In organic farming the stocking density is to remain at 0.2 LU/ha. - Reduction of the minimum stocking density from 0.2 to 0.1 LU/ha for organic production and from 0.5 to 0.25 LU/ha for sustainable breeding in absolute karst pastures. Ministry of Health - Subsidies disbursement in due time. - Measure 431 (b), indent 5 should be succeeded by indent 6: Awareness actions for farmers in public procurement procedures to stimulate them to take the role of providers at the local level. Municipality Metlika - Regarding the consistency of the RDP 2007-2013 with other policies and instruments under point 10.4 all relevant policies which have been harmonised with the RDP during the process of its preparation should be stated, among them also the Resolution on the national nutritional policy programme 2005 – 2010. - Financial resources for measure 322 are to be increased from the envisaged 25,696,000 to 35,000,000 EUR. - Financial resources for measure 323 are to be increased from the envisaged 7,709,322 to 15,000,000 EUR. - The resources are secured by an internal reallocation of financial resources under axis 3. CAFS 1. The role of agricultural and forestry cooperatives is not defined. 2. Explicitly outlining the role of cooperatives in the development of agriculture and rural areas. 3. Under opportunities another indent should be added: adoption of stimulative tax legislation for the development of subsidiary activities. 4. Detailed definition of “first ownership takeover of entire farm”. First ownership takeover is deemed every first takeover of the entire agricultural holding in the manner that the transferee acquires the exclusive ownership right. The entire holding is taken over also when the transferor retains up to 0.5 ha comparable agricultural areas and/or for exempted areas of an individual smaller joint owner the address of which cannot be determined. 5. In case of bee bearing and honey production no land need be owned as this activity is not related to land. 6. Legal lease should be substituted with lease listed in land register. 7. Accomplishing goals from business plan. The realisation of envisaged profitability should be considered the realization of the envisaged profitability. 8. What about other activities not linked to land? Meaningfully the same conditions as for beekeepers. 9. Early retirement - Duration of obtaining support up to 10 years does not enable an earlier farm transfer. 10. Early retirement - Practicing farming for the 10 years preceding the transfer is irrelevant since the minimum retirement age for entering the measure is set. 11. Early retirement - The definition of indent 5 is partially contradictory to the definition of indent 2, 12. Early retirement - Amount of support - The proposed amount of support is lower than set out in the RDP 2004-2006. 13. Modernisation of agricultural holdings – too daring GVA/PMWU goals data checked. - Given the resources allocated for the measure agri-environment payments under the RDP the proposal shall not be taken into account and payments for areas exceeding 100 ha are reduced by 50 percent. Setting up of stocking density is still open. Setting up of stocking density is still open. Measure 431b is related to information actions on the initiative LEADER. Public procurements are governed by a sector-specific act, which in the process of adoption, and are a matter of the implementing level. The remark shall not be taken into account. The resources under individual measures shall be reallocated during the implementation of the RDP 2007-2013, if necessary. Inasmuch it shall become evident that there are too many or too few resources for an individual measure, adequate actions shall be taken. 1. Initiated by the association of Slovenian cooperatives a section on the role of cooperatives in Slovenia was included in the RDP 2007-2013. 2. In some measures under the RDP 2007-2013 cooperatives are defined as beneficiaries, they may also be members of LAGs, but their role cannot be emphasises or pointed out nor explicitly mentioned. 3. The RDP has neither goal nor possibility to guide tax legislation. 4. MAFF cannot interfere with ownership relations. The remark shall be reviewed from the legal viewpoint. 5. The condition 1 ha shall be deleted. 6. The remark shall be considered. 7. The remark shall be considered at the implementing level. 8. The remark shall be reviewed. 9. The remark shall be reviewed. Simultaneously, the balance in relation to other measures shall be reviewed. 10. The remark shall not be taken into account since this condition is laid down in Article 27(2)(c) of Regulation 1698/2005. 11. The inconsistency shall be corrected. 12. The remark shall be renewed. A new calculation shall be made. 13. The figures shall be corrected. 313 14. Modernisation of agricultural holdings - Economic size in ESU - Due to the reform of direct payments the methodology of the SGM calculation is changing 15. Modernisation of agricultural holdings - Number of supported agricultural holdings in 7 years must be significantly higher, kept separated by large and small investments. 16. Modernisation of agricultural holdings - First setting up or restructuring of existing perennial crops, including fixing trellis wires. 17. Modernisation of agricultural holdings - Due to the nature of works in renewing hop gardens we are in favour of a specific, simplified and adjusted tender for perennial crops, suitable for less extensive renewals as well. 18. Modernisation of agricultural holdings - An indent on beekeeping is missing, although honey is mentioned among the sectors. 19. Modernisation of agricultural holdings - An indent on animal and bee queen purchase missing. 20. Modernisation of agricultural holdings - General efficiency of an agricultural holding and business plan - Given the extent of investments aid shall be granted for large and small investments (no business plan required for small investments.) 21. Modernisation of agricultural holdings - Gross income from agricultural activities – extended by “and forestry activities”. 22. Modernisation of agricultural holdings - Cost of agricultural land purchase up to 10 percent of their market value - Such a low share of eligible costs (4 or 5% of actual support) is not enough to apply in a tender. 23. Modernisation of agricultural holdings - Animal purchase and purchase of annual seedlings cannot be a non-eligible cost. 24. Modernisation of agricultural holdings - Higher support should be obtained also by young farmers meeting the required conditions, but did not apply for funds for young transferees, or they have not been granted. 25. Modernisation of agricultural holdings - Higher support for young farmers also for investments on organic farms. 26. Modernisation of agricultural holdings - Maximum aid amount granted (500,000 EUR) is too high. A lower amount would enable a larger number of farms to obtain investment support. 27. Modernisation of agricultural holdings - Target groups - suggested a separate treatment for natural and legal persons. 28. Modernisation of agricultural holdings - It is impossible to conclude whether the tenders shall be open or closed. 29. Modernisation of agricultural holdings - FADN - axis 1 should be run in accordance with the FADN system. 30. Infrastructure improvement and development - Necessary to introduce the renewal of existing irrigation systems. 31. Infrastructure improvement and development - Small irrigation systems missing. 32. Infrastructure improvement and development - Investment in the construction of small accumulations is missing. 33. Meeting standards - Plant protection - The Rules on professional training and assessment of knowledge in phytomedicine have been amended. 34. Meeting standards - Shall Slovenia not support the implementation of newly introduced standards? 14. The remark shall not be taken into account. This is one of the baseline indicators set out by the EU. 15. The remark shall not be taken into account. The values in the table were drawn up based on the implementation of the measure so far. Any different forecast is a pure speculation. 16. The remark shall be taken into account at the implementation level. The general diction contains all eligible costs. Therefore we see no need for additional division at this level. 17. The problem shall be solved at the implementation level within the framework of simple and demanding investments. 18. The remark shall not be taken into account. The beekeeping investments mentioned have already been included in the current description of purposes. 19. Not allowed according to Council Regulation (EC) No 1698/2005, the remark shall therefore not be taken into account. 20. The remark shall be taken into account. 21. The remark shall be reviewed – separate measures are intended for forestry. 22. The error shall be corrected: The new diction is as follows: “Cost of agricultural land purchase up to 10 percent of the total investment value”. 23. The remark shall not be taken into account. Animal purchase and purchase of annual seedlings are no eligible cost under Council Regulation (EC) No 1698. The restriction does not apply for perennial crop seedlings. 24. The remark shall be partially taken into account. The diction shall be amended. 25. The remark shall be taken into account at the implementation level. Additional share for supporting investments of organic farms is nearly impossible. In investments of organic farms the maximum acknowledged cost could potentially be increased. 26. There shall be no separate tenders. The maximum aid amounts granted shall be partially corrected. 27. There shall be no separate tenders. Investments shall be divided into simple and sophisticated. 28. Applied shall be open tender and the applications shall be treated in the order of submitted complete applications. Granted shall be applications which shall pass a certain minimum threshold. 29. The problem is being solved. Due to the European requirements on monitoring of measure outputs a certain monitoring system of on-farm management shall have to be established. It is not necessary this to be FADN. 30. This has already been included in indent 4, although the European Commission is not in favour thereof. 31. The construction of small irrigation systems and associated water sources has already been captured within the framework of measure No 121. 32. The construction of small irrigation systems and associated water sources has already been captured within the framework of measure No 121. 33. The remark shall not be taken into account. Conditions may not be changed. 34. Within the framework of this measure only commitments under the implementation of the RDP 2004-2006 shall be disbursed. Inasmuch a need for the implementation of 314 35. Meeting standards -The introduction of new standards needs to be included. 36. Meeting standards - Eligible costs - Costs of documentation acquisition not stated. 37. Adding value to agricultural and forestry products - Necessary separate tenders for subsidiary activities. 38. Adding value to agricultural and forestry products - Required detailed definition of evidence on financial situation of the applicant - proof on ability to recover the proposed annual investment share. 39. Adding value to agricultural and forestry products - The list of beneficiaries in brackets is misleading - added must be also natural persons. 40. Adding value to agricultural and forestry products - Enabling smaller producers and quality product producers to apply as well. 41. Supporting producer groups - Considering the role of cooperatives which they play in food quality schemes. 42. Supporting producer groups - Promotion of trademarks, except trademarks which simultaneously promote an indication under the quality scheme, and vice versa. 43. Improving the economic value of forests - Conditions are not entirely realistic. 44. Raising the competence level - Confirmed annual activities plan - unclear what fore: information or training. 45. Raising the competence level - of other trainings which would positively affect the competitiveness of farms engaged in primary production in the economical and technological sense, social relations of people living in the countryside, as well as trainings which positively affect on the computer application on farms, practical use computers and application of information accessible via web. 46. Raising the competence level - Eligible costs - Added should be a new indent covering costs of the preparation of educational programmes, tools and materials. 47. Raising the competence level - Very ambiguously and unclear defined target groups. 48. Supporting setting up of producer groups - The beneficiaries should also be cooperatives 49. Diversification into non-agricultural activities - It would be sensible to complement target groups. 50. Diversification into non-agricultural activities - Among eligible costs there are no costs related to the documentation acquisition. 51. Diversification into non-agricultural activities - Extension of purpose types. 52. Diversification into non-agricultural activities - Maximum aid rate for young farmers need be raised. newly introduced standards should occur after 2009, the RDP 2007-2013 shall be amended accordingly. 35. Support for metting newly introduced standards, particularly for adaption to stondards under the heading animal welfare, shall be applied for within the range of measure 121. 36. We agree, but there is no point in listing all types of costs. Therefore we shall simplify the diction, as follows: “General costs related to the preparation and carrying out of projects.” 37. The remark shall not be taken into account. Already, there is a problem with the absorption of resources put out to tender for investments in subsidiary occupations. 38. Shall be arranged in implementing regulations. It must be pointed out that this conditions does not relate to proving own share. Evidence on financial situation of the applicant must show that the beneficiary has no financial problems. 39. The remark shall be taken into account; the text is amended accordingly. 40. The remark shall be reviewed and meaningfully considered. But there is no need for fear. There shall be an open tender. If smaller investors prepare their applications in accordance with the public tender conditions they shall be able to obtain resources as well. 41. Beneficiaries under this measure are “natural and legal persons registered as producer group and are engaged in one of the eligible quality schemes” If the producer group is registered as a cooperative, it is a potential beneficiary for funds under the measure. 42. We agree, but based on the requirements of the Council Regulation (EC) No 1698/2005 trademarks may not be supported under this measure. The text shall be corrected, as follows: “promotion of agricultural product indications as well as legal and natural persons the name of which does not relate to the name of protected products.” 43. The remark shall not be taken into account. 27. Article 27 of Council Regulation (EC) No 1698/2005 related to this measure set out in paragraph 2 that investments must be based on forest management plans. 44. The remark shall be added. The activity are information actions. 45. We agree, it was related only to training under the National vocational qualification system. The remark relates partially to measure 331. It shall be reviewed and added, if possible. 46. The beneficiaries under this measure are persons engaged in production and first stage of processing of agricultural products and the associations of natural and legal persons. It is about reimbursement of education or training costs to the participants. The measure is aimed at improving the qualification and awareness of people performing the activities of the primary production and processing as well acquisition of certificated under the NVQ and other qualifications. 47. The remark shall be reviewed. However, one must consider that natural persons area eligible for refund of costs for different types of training; their associations shall be eligible for co-financing of information programmes of their members. 48. Cooperatives are mentioned as beneficiaries. 49. Beneficiaries are individual persons. The remark shall not be taken into account. 50. The remark has already been considered and the costs included. 51. The remark cannot be taken into account due to the delimitation of measures under RDP axis 3 and other OPs. 52. The remark cannot be taken into account. 315 53. Diversification into non-agricultural activities - Adding clubs, associations, etc to the target group. 54. Diversification into non-agricultural activities - Investment co-financing - Investment may be financed also from other public resources, but the total amount of co-financing may not exceed the regulatory set maximum amount. 55. Diversification into non-agricultural activities - In the maximum aid rate “up to” should be deleted. 56. Support for the creation and development of micro enterprises - The measure should include also the creation and development of micro enterprises engaged in social services. 57. Support for the creation and development of micro enterprises - Supporting diverse service activities in the countryside. 58. Support for the creation and development of micro enterprises - Unclear interpretation of set C 59. Support for the creation and development of micro enterprises - Newly created micro enterprises have not received SAPARD - The explanation needs to be extended. 60. Support for the creation and development of micro enterprises - Investment co-financingInvestment may be financed also from other public resources, but the total amount of co-financing may not exceed the regulatory set maximum amount. 61. Basic services for the economy and rural population - The measure is implemented within the framework of measure 311 and 312. 62. Basic services for the economy and rural population - General eligibility conditions and eligible costs - Are the conditions for a farm interested in carrying out the care of older residents set out? 63. Basic services for the economy and rural population - Equal treatment of cooperatives. 64. Village renewal - Thematic trails ought to be added. 65. Vocational training and information actions - Preservation of traditional values of agriculture Innovation can be also tradition. 66. LEADER - Necessary to introduce cooperation with AAS. 67. LEADER – AAS included into the Rural development network. 68. Axis 2 – Suggested that a new measure be introduced: Vineyard utilisation on slopes 30-50% and over 50%. 69. Axis 2 – Proposed that RDP 2007-2013 contains sanction methods related to the fulfilment of cross compliance requirements. 70. Axis 2 – “Certain A-E submeasures need to be implemented on the same area throughout the commitment period.” Since this is very difficult to accomplish, we have a new proposal: “Certain A-E submeasures must be implemented on the same area throughout the commitment period within agricultural holding or on area compliant with the allowed reduction and increase of area”. 71. Axis 2 – Obligations emerging from the general condition on compliance with the minimum requirements on the use of fertilisers and provision of permanent soil fertility should not apply for all measures. 72. Axis 2 – Diction “The amount of applied organic nitrogen must not exceed 170 kg/ha annually”, is not right. 73. Axis 2 – We disagree with shortened time for communicating changes to 10 work days. It should be prolonged to 20 days, during which farmer is to inform the ARSAMRD from the day he is able to do so. 74. Axis 2 – Wrong S50 combinations. 75. Axis 2 – Additional combinations IPS and IVG in VVO. 76. Axis 2 – Combination S35 and S50 with VVO should be added. 77. Axis 2 – We suggest that beneficiaries be allowed to quit a measure as stated in paragraph 2 on page 137. 53. The beneficiaries are laid down in Article 53 of the Regulation No 1698/2005. Therefore the remark shall not be taken into account. 54. The remark shall be taken into account. 55. The remark shall not be taken into account as different aid percentages can be set for individual eligible costs. 56. Social services are transferred to measure 321. 57. Services are included in set B. 58. The remark is no longer relevant as set C was deleted from RDP 2007-2013. 59. General provisions lay down that investment must be carried out within the RS. 60. The remark shall be taken into account. 61. The remark shall not be taken into account. 62. The remark shall be reviewed and meaningfully considered in lower ranked documents. 63. The cooperatives have the opportunity of getting engaged. 64. The remark shall not be taken into account as we shall not list individual thematic trails. 65. The remark shall be taken into account. 66. Responsible for carrying out of training shall be the MAFF. Operators shall be selected in accordance with general rules. SCAF is not excluded as a potential operator, but it cannot be given an advantage or exclusive right to carry out training. The remark shall not be taken into account. 67. The tasks of the national rural network shall be performed the MAFF. 68. The remark shall be reviewed. 69. The remark shall be reviewed. 70. The remark shall not be taken into account. The commission shall refuse any measure where no GIS control per area is possible. 71. The remark shall be taken into account. The provision shall be set out in detail by a decree. 72. The remark shall be taken into account. 73. The remark shall not be taken into account as required by the implementation regulation. 74. Shall be corrected. 75. The remark cannot be considered as it would mean doubling of payments. 76. The remark cannot be considered as it would mean doubling of payments. 77. The remark shall be reviewed. 316 78. Axis 2 – Possibility of changing the measures REJ and ETA (ETA into REJ or REJ into ETA). 79. Axis 2 – Some calculations for IP are too low, therefore we would like to see the calculation which served MAFF as the basis for such amounts. 80. Axis 2 – Changing the ratio between maximum payments vineyards-permanent grassland in favour of vineyards or raising the maximum amount for vineyards where it is very difficult to produce organic grapes due to natural conditions. 81. Axis 2 – The list of autochthonous and traditional plant varieties is missing. 82. Axis 2 – A-E payments - The payment should be defined for the entire programming period. 83. Axis 2 – In case of agricultural land under perennial crops exceeding 100 ha, we suggest that the payments for these measures reduce by 30% and not 50%. 84. Axis 2 – A detailed definition of “Economically acceptable use of means of production” is necessary. 85. Axis 2 –In integrated fruit production it would be necessary to adjust the measure in a manner which would enable orchard renewal in spite engagement in the measure. 86. Axis 2 – The measure does not cover smaller areas of different fruit tree varieties in individual intensive orchards. If its content does not change small orchard areas of other fruit varieties shall again be excluded. Example: in case of 0.29 ha peach, 0.29 ha plum and 0.29 cherry no payment entitlement under 214/I/4 can be claimed. 87. Axis 2 – What do veterinary-pharmaceutical measures mean? 88. Axis 2 – Integrated fruit production is not equal lesser application of PPP as regards the number of spreading. IPS is aimed at controlled use of fertilisers and PPP. 89. Axis 2 – Regular Nmin analyses prior to N fertilisation in fruit production is not priority. Assessed is the visual state of a plant. 90. Axis 2 – We propose amendment of the diction: “Establishment of integrated production contributes to a reduced use of chemical substances and thus protects the environment and public health and at the same time offers fruit with better internal and external characteristics.” 91. Axis 2 – Integrated vine growing does not envisage that during vineyard renewal the engagement in the measure could be frozen for one or more years and after the renewal the implementation continued. 92. Axis 2 – Controlled use of fertiliser substrates and PPP in horticulture. 93. Axis 2 – Minimum agricultural land area of the same use for the purposes of protected areas should be diminished from 0.1 ha to 300 m2. 94. Axis 2 – Diction “network of organic farmers was established” is not suitable. 95. Axis 2 – Increase of stocking density in organic farming is proposed (from 0.2 to 0.5 LU/ha). 96. Axis 2 – Why is the indication of the stocking density not contained in the table “Measure description” as in other measures? We suggest that indent 10 be deleted. 97. Axis 2 – The statement “active organic market in Ljubljana and Maribor” is not complete. 98. Axis 2 – We suggest detailed definition as to which PPP may not be used on these areas. 99. Axis 2 – Minimum stocking density for grazing animals has increased from 0.2 to 0.5 LU/ha. 100. Axis 2 – What happens to the beneficiaries after the reorganisation of the measure if their eligible area should reduce, but all measurements of steep slopes were made according to the published rules? 101. Axis 2 – We disagree with the new requirement that the use of mineral fertilisers is prohibited. 102. Axis 2 – The comparison with intensive plantations is incorrect as meadow orchards have an important function in the conservation of the traditional cultural landscape, biodiversity, preservation of genetic material and relation to the tradition in rural areas. 103. Axis 2 – We propose that the MAFF reviews the possibility of including the Carniolan bee into 78. The shift from REJ to ETA is not possible due to the required stocking density for REJ. The shift from ETA to REJ on the other hand is possible. 79. The calculations were made by the Faculty for Agriculture, Maribor (Èrtomir Rozman, PhD). A presentation of the model calculations and a meeting with the operator shall be organised. 80. The remark shall not be taken into account. Payments for EK cannot be increased. 81. The list of autochthonous and traditional varieties of agricultural plants has already been amended. The varieties are being checked whether they meet the requirements for being included on the list. 82. Payment amounts depend on the number of beneficiaries which can be different each year. 83. Financial resources are limited and a decision on payment amounts had to be made. 84. The remarked is being checked with the proposer of the text. 85. The remark shall not be taken into account. 86. The remark shall be reviewed and considered is possible. 87. Error in the text that has been corrected. 88. The remarked is being checked with the proposer of the text. 89. The remarked is being checked with the proposer of the text. 90. The remarked is being checked with the proposer of the text. 91. The remark shall not be taken into account. 92. Technological guidelines must be harmonised. 93. The remark shall be reviewed. 94. The remarked is being checked with the proposer of the text. 95. The issue of the common stocking density in the Karst, which shall relate to all forms of area linked aid is being reviewed. 96. The remark shall not be taken into account. 97. The text shall be rephrased. 98. The point of PPP shall be outlined clearer. 99. The remark shall not be taken into account since there are no problems in practice. 100. In 2009 there shall be a new register, it is merely a reminder. 101. The remark shall be reviewed once again with the MESP. 102. The remarked is being checked with the proposer of the text. 103. Payments under this measure are granted for rearing of autochthonous domestic 317 the list of autochthonous breeds. 104. Axis 2 – The list does not contain the Haflinger horse. 105. Axis 2 – The condition: “minimum 70% of fodder produced on own agricultural holding”. What does on own agricultural holding mean? 106. Axis 2 – Stocking density for this measure is 0.5-1.9 LU/ha all 365 day per year. What happens to AH which graze animals during summer period and the stocking density falls below 0.5 LU/ha. 107. Axis 2 – What does the diction “may claim payment only for the period during which the animals are actually grazing”? 108. Axis 2 – In conditions the indents 3 and 4 do not clearly outline the conditions of mowing and pasture. Indent 3 does not make clear if mowing is allowed and was excluded by mistake. 109. Axis 2 – In conditions the indents 3 and 4 are stated twice. SCAF Foresters 110. Axis 2 – Exclusion of certain CC from the list of LFA with regard to that list in 2003. 111. Axis 2 – Prohibition of composting on composting heaps without foil is not technically founded. 112. Axis 2 – LFA payment should be set with regard to the GERK location and not to the seat of the agricultural holding. - Page 23, third paragraph, the amendment as follows: Most evident are the split-up forestry parcels, unconnected forest owners in conducting forestry works and wood sales, weak and inadequate infrastructure, insufficient competence and equipment of forest owners for forestry works as well as inadequate organisation and too weak efficiency of existing advisory services. - Page 23, chapter 3.1.3, the amendment as follows: Agricultural land and forests in Slovenia represents nearly 92 percent of land use and have an important environmental, aesthetic and spatial function. The nature and environmental protection have a general social importance in Slovenia, which is evident from the current policies dealing with these issues. Slovenia applies sustainable and multifunctional forest management methods and has a high standard in this area as it is often used an example for others. In agriculture a wide-ranged implementation of agri-environmental submeasures helps to maintain the utilisation of agricultural land in less favoured areas and to preserve the multifunctional role of agriculture. So far, these measures have been the most important component of the rural development policy and have been positively accepted by the beneficiaries as well by the public. - Page 24, the coverage of ecologically important areas in forests is to be added. - Page 28, chapter State of Waters, the following text is added: Forests have an impact on the water quality and quantity and the quantity distribution within space. Well-preserved forests and forest soil are natural water “filter and mitigate soil and water acidification and eutrophication. Due to extreme weather phenomena the preservation of forests plays an enormous role in balancing and mitigating the water discharge rate, particularly in karst areas. - Page 32, chapter Greenhouse Gases, the following text is added: Forests are a dominant and most preserved natural ecosystem. They protect the landscape and secure ecological balance therein. For the time being, since they are well preserved, the forests successfully mitigate negative impacts of the civilisation on the environment. They are an important CO2 and carbon sinks. Given the data the annual CO2 accumulation in Slovenian forests in 1990-2005 amounted to 9.867 Mt CO2 on average, which means that in Slovenian forests over 60 percent of annual CO2 emissions in Slovenia are being accumulated. - Page 39, Advantages, human resources and the quality of life, in the last indent the following text is added: established enterprise information, agricultural advising, educational and training network throughout Slovenia and the awareness of its importance. - Page 89, measure 125: description of the problem is extended to forestry as well and the measure is also aimed at the implementation of land consolidation in forestry. - Page 108 and 109, forestry measures: A clear delimitation of how much resources are allocated for measure A and measure B should be drawn, as well delimitation between forest owners – natural and legal persons. breeds: horses, cattle, sheep, goats, pigs and hens. 104. The breed has already been put on the list, but is being checked if it meets all requirements 105. The remark shall be reviewed and redefined. 106. Exemption is added “when animals are grazing”. 107. Shall be reviewed. 108. The remarked is being checked with the proposer of the text. 109. Shall be checked and clearly laid down that mowing is conducted twice – once obligatory and additionally due to the cross compliance requirements. 110. The remark shall be reviewed. 111. The remark shall be reviewed. 112. Payment calculation methodology is presented in the RDP 2007-2013. - Baseline analysis – remark taken into account. - Conducting land consolidation in forestry is an extremely demanding measure, which has not yet been implemented in Slovenia in particular due to the configuration of the forestry property. It is feasible only in cases of large forestry property in a plain area, which do not exist in Slovenia. Legal groundwork for the implementation of such a measure is also problematic, even though the Agricultural Land Act outlines forests as the subject land consolidation, however, the sector-specific Act on Forests does not set out land consolidation specifically. Considering that land consolidation under the measure 125 shall be conducted on the bases of the Agricultural Land Act, land consolidation in forestry is generally possible. - The proposal on lower production volumes for mechanisation and equipment purchase for forestry works shall be taken into account. - The delimitation of resources shall be laid down in implementing regulations. - Limitation of resources with regard to the legal status of a beneficiary has no legal basis. Therefore the proposal cannot be taken into account. - Measure 111 – the remark shall be taken into account. -The inclusion of the measure vine production is still open, as well as the amendment of payment amounts. 318 Measure “thinning and conversion” is added. Conditions for obtaining resources under B should be lowered: ► the condition for the purchase of mechanisation, except for machinery felling, is harvest of 150 m3, ► the condition for the purchase of new equipment for forestry works is forest property at least 3 ha large or minimum harvest of 150 m3, limited co-financing rate of up to 25 percent of the investment value is set for forest owners – legal persons, the minimum aid amount granted should be reduced to 500 EUR and the maximum aid amount granted to 200,000 EUR, financial provisions, intervention rate from wrong 6 percent is corrected to 60 percent. - Page 114, target group, the following text is added: Target group (end-users) are persons engaged in production and the first processing phase of agricultural products, forest production and primary processing of forestry products and associations of natural and legal persons in the RS and meet the conditions set for granting of resources. - Page 131, Group III, first indent is amended, as follows: rearing of domestic animals in central and peripheral area of appearance of large carnivores. - Page 196, seminars and workshops, the amendment as follows: These seminars are foremost intended to experts of the Slovenian Chamber of Agriculture and Forestry, regional development agencies, municipal authorities and other professional services (various project and business plan designers) which are in direct contact with potential end-users. - 319 15 EQUALITY BETWEEN MEN AND WOMEN AND NON-DISCRIMINATION In the RS equal opportunities are provided by the following documents: - Constitution of the RS (OJ RS No 331/1991-I), Article 14 states that in Slovenia everyone shall be guaranteed equal human rights and fundamental freedoms irrespective of national origin, race, sex, language, religion, political or other conviction, material standing, birth, education, social status or any other personal circumstance; - Equal Opportunities for Women and Men Act (OJ RS No 59/02) sets out common guidelines and groundwork for the creation of equal opportunities and promotion of equality of genders in different areas of life which are important in the light of gender equality (e.g. in political, economic and social and education area, etc.). Under this Act the Government and individual ministries are obliged to draw up regulations and other measures intruding upon the equal opportunities of genders with regard to equality of genders; - National programme on gender mainstreaming (OJ RS No 90/05) was drawn up within the framework of the cooperation between the MAFF and FAO. It is a strategic document laying down the key directions, goals, measures and activities as well as policy operators necessary to ensure equal opportunities of both genders and different age and social groups in agriculture and in rural areas as well as for the implementation of the envisaged activities; - Implementation of the Principle of Equal Treatment Act (OJ RS No 50/04) lays down that based on other personal circumstances other than gender (age, race, ethnic or national origin, or sexual orientation) discrimination is not allowed and it is necessary to ensure equal treatment. 15. 1 Promotion of equality between men and women Protection of individual’s rights with regard to human rights and freedoms and the equality before the law is provided directly and by the institute of the Ombudsman as an independent body and by the Office for Equal Opportunities. The drawing up of the RDP, which systematically promotes equal opportunities and accessibility to all measures regardless of the gender, ethnical, religious or any other origin, the provisions of the national legislation were taken into account. Equal opportunities are and shall be considered during all stages. Special promotion is devoted to activities in accessibility of education, training, employment and other activities in human resources development for women. Activities shall also be aimed at better integration of certain groups threatened by social exclusion. During the preparation of the RDP 2007-2013 the MAFF worked together with organisations responsible for promotion of equal opportunities between men and women. The representatives of the Government Office of the RS for Equal Opportunities stated their remarks in the public discussion on the RDP proposal and were also invited to a special coordination meeting. Their remarks related mainly to the monitoring of indicators by gender and positive discrimination of women. Invited to a special coordination meeting were also two important organisations, i.e. Association of Slovenian Farm Women and Association of Slovenian Rural Youth. The gender mainstreaming principle and promotion of equal opportunities shall be included into the selection criteria. In certain axes and measures the “positive discrimination" of women is envisaged (e.g. axis 1: investments on farm and setting up of young farmers; axis 3: entrepreneurship in rural areas) based on which female beneficiaries may obtain a higher number of points. The national rural network under axis 4 involves the national youth and women organisations. All reports must also state the structure of involvement and the implementation separately by gender, where possible. Within the framework of axis 3 under the measure “Support for the creation and development of micro enterprises", which is aimed at the diversification of the rural population activities, also supports the social security services in the rural areas, among them childcare, care of older people and people with special needs. 320 15.2 Non-discrimination Discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation is regulated under the Implementation of the Principle of Equal Treatment Act (OJ RS No 50/04). This act lays down common grounds and baselines for securing equal treatment of every person in asserting their rights and obligations as well as in implementing their fundamental freedoms in any area of social life, in particular in the area of employment, employment relations, participating in unions and interest associations, education and schooling, social security, access to goods and services and their supply, regardless of their personal circumstances such as nationality, race or ethnic origin, sex, health, disability, language, religion or belief, age, sexual orientation, education, financial situation, social position or other personal circumstances. In drawing up the RDP 2007-2013, which systematically promotes equal opportunities and accessibility to all measures, regardless of sex, ethnic origin, religion or any other circumstance and prohibits any discrimination, the national legislation has been considered. 321 16 THECHNICAL ASSISTANCE 16.1 Description of drawing up, running, monitoring and evaluation of information and control activities and aid programmes financed under Technical assistance Technical assistance is aimed at providing efficient programme implementation /development priorities / priority orientations/ projects. Activities to be implemented under technical assistance shall increase the recognisability of the programme and its integral components, the quality of its implementation, monitoring and surveillance over implementation and provide for better coordination between partners. Within the framework of technical assistance numerous activities shall take place, i.e. drawing up project proposals, carrying out different studies and evaluations, information and communication activities to support project activities as well providing staff support for the implementation of activities. The technical assistance projects shall cover the following activities: - preparation and selection of projects; - studies for the implementation of development priorities /priority orientations / projects; - evaluations / reports / technical assessments; - measures intended for partners, beneficiaries, general and expert public, including public information and communication activities, measures supporting the coordination and promotion of cooperation between partners; - activities for establishment, upgrading and networking of information systems for running, monitoring, evaluation, reporting and surveillance of the implementation of projects / priority orientations / development priorities; - supporting activities in the implementation of the RDP 2007-2013 and activities for raising the administrative competence of its beneficiaries (additional jobs, training, experience exchange, Monitoring Committee operation). 16.2 National rural network A detailed list of organisations and managing authorities participating in rural development, procedures and time schedule for the establishment of the rural network Organisations: - - educational and expert institutions in the field of agriculture, forestry and food industry, spatial planning and environmental protection, natural and cultural heritage and similar activities; associations, chambers and unions of farmers, farm women and youth, forest owners, economic interest associations, municipality associations and similar organisations at local and national level; other institutions engaged in rural development; local action groups; national institutions operating in the field of rural development; European rural network and national networks of other Member States; interested public. Time schedule: The national rural network shall be established not later than by the end of 2008 and shall be gradually widened and upgraded, in accordance with the needs and requirements of the partners. Detailed list of organisations and administrative authorities participating in rural development, procedures and time schedule for the establishment of the national rural network are described in detail in Annex 15 – Action plan of the rural network. 322 Objectives and activities Regulation 1698/2005, Article 68 refers to the establishment, operation and financing of a national rural network grouping all organisational structures of rural development. The establishment and operation of the network shall contribute to successful information actions on objectives and measures of the rural development policy and other development policies at the national as well as the EU level. Good information actions shall enhance efficient implementation of the measures, rural operators networking, experience exchange and cooperation. The network shall work in both ways, which shall provide feedback information on the approach and implementation of the rural development policy set and ensure more efficient evaluation and analysis. The establishment and operation objectives of the national rural network are aimed at: 1. Providing information on rural development at the national and inter-territorial level. 2. Information actions on activities under rural development policy. 3. Promoting inter-municipal and international cooperation, networking and exchange of good practices. 4. Providing feedback information on the effectiveness of the implementation of the national development policies in individual areas and at the national level. 5. Increasing transparency of the measures and the realisation of the rural development policy set. To accomplish the objectives set the following activities shall be implemented under the national rural network: a) Information actions for rural population and other organisational structures in rural areas on the measures under the developmental rural policies (periodicals, promotion materials, homepage, seminars, meetings, forum, contact points). b) Enhancing the cooperation between the rural development operators at the inter-municipal and international level (established and accessible data base of organisational structures in the countryside, meetings and seminars, visits of good practices). c) Collecting and forwarding information on the development of the rural areas and the implementation of the measures under rural policies. Organisation and structure The rural network shall connect governmental, non-governmental and private organisations and structures engaged in the rural development. The national rural network shall operate under the MAFF. The implementation of individual tasks of the network may be subcontracted on the basis of calls for tender to different competent organisations and individuals. The control over the operation and implementation of the network shall be conducted by the MAFF. The national rural network is also a supporting measure to the tasks of technical assistance, particularly as regards the information actions for the public and data gathering for evaluation. Financing Financial resources for the network are devoted under the measure Technical assistance. For the operation of the network minimum 10 percent of the technical assistance resources shall be allocated, thereof maximum 20 percent for the management. Eligible for support shall be organisations which shall, based on call for tender, provide for the implementation of the network tasks. Financing rate shall be 100 percent. The amount for running the national rural network structure shall not increase unjustly during the programming period. 323
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