Member states step up funding for rural development
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CTA. 2002. Member states step up funding for rural development. Agritrade, December 2002. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/52546
The German state of Bavaria was authorised to finance a new farm ...
The German state of Bavaria was authorised to finance a new farm investment programme worth €335 million on October 30th 2002. While this scheme could have been co-financed by the EU under the rural development programme, the Bavarian authorities decided to finance the programme entirely from their own resources. The aid will be provided in the form of direct grants or interest rate subsidies for loans on the capital market. A maximum of 40% of the eligible costs can be covered by this scheme (45% in the case of young farmers) The main objectives of the programme are to promote: environmentally friendly production methods; more ethologically sound livestock management; a diversification of farm incomes. Comment: This Bavarian-financed farm-investment programme is illustrative of the extent to which EU financed programmes are but the tip of the iceberg when it comes to public aid to European agriculture. Actual agricultural support in the EU far exceeds the funds allocated in the agricultural envelope of the EU budget. These member states' expenditures need to be included in the calculation of the overall level of public support which European agriculture receives within the framework of the CAP, since the rules for this national aid are established at the level of the EU.