Institute of Agricultural Economics and Information

CAP as a suport for young farmerCzech experience

The project has received funding from the European Union.

Czech agriculture – basic Czech agriculture – basic informationinformation

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• 2 groups of farms

- private (including family) farms cultivate 26 % of

agriculture land, with an average area of 29 ha

- companies and cooperatives cultivate 74 % of agriculture

land, with an average area of 1006 ha

•Average area of Czech farm – 89 ha

-resp. 241 ha according to FADN

• Average area of EU 25 farm – 33 ha

• Share of organic farms in Czech Republic 10% (mostly on grassland)

The structure of worker in The structure of worker in agriculture and national agriculture and national economyeconomy

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11,4 11,3 11,8 9,8 11,1

22,3 21,2 20,7 20,2 19,5

29,1 31,7 33,834 32,8

37,9 38,8 39,5 40,2 40,7

54,7 51,3 48,348,5 48,5

36,3 36,2 35,6 35 34,6

4,8 5,6 6,1 7,7 7,73,6 3,8 4,1 4,7 5,1

0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008 2004 2005 2006 2007 2008

Zemědělství NH

Podíl

60 a starší

45-59

30-44

15-29

Support negotiated under Support negotiated under the EU accesion treatythe EU accesion treaty

2004 – 25% of EU 15 direct payment

2007 – 40% of EU 15 direct payment

2008 – 2013: every year + 10% till 100% of EU 15

Possibility of Top-Ups:

◦ + 30% from national resources, max. up to 100% of EU 15

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Direct payment Direct payment

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Nataional resourcesEU fund

Support of young Support of young farmers till 2007farmers till 2007

Decline of the direct support to young (starting) farmers

after Czech access to EU

2001-2003: 350 mil. Kč

2004-2006: 80 mil. Kč

In 2007 – 2009 were supported within the measure more

than 900 young farmers, even the lower alocation (i.e. 23%

of financial support of the previous period)

Allocation 8,21 mil. Euro in 2010 – possibility to support

about 200 new young farmers

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Condition of support Condition of support toto young farmers young farmers EAFRD axis I – I.3.2 Setting up of young farmers

(code of measure: 112)

◦ Single support 40 000 € (i.e. 1 100 000 CZK)

◦ Support to start agriculture business for the first time for

farmers below 40 years

◦ Necessary to have business plan – investment subsidy

◦ Sustainability 5 years – liability to provide minimum

economic criteria Often completed with the measure I.3.3.

◦ Early retirement from farming (code of measure: 113)

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Other supports to young Other supports to young farmersfarmers

Higher support rates and preferences in investment

measures:

◦ 121 – Modernisation of Agricultural Holdings

+10 percentage points (50% in Non-LFA and 60% in LFA)

◦ 124 – Development of new products

+10 percentage points (50% in Non-LFA and 60% in LFA)

Young Agrarian Society of Young Agrarian Society of the Czech Republicthe Czech Republic (SMA) (SMA)

Mission

◦ To advocate and support needs and interests of young farmers

and young people living in the country

Participation in EU organisations (CEJA, CERYC, ECYF4H)

Members must have less than 40 years of age

Established in 1999

NGO

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SMA ActivitiesSMA Activities

Educational and information activities Policy and lobbying activities Consultancy activities Social activities Foreign activities / cooperation, exchange of experience

Number of members in:◦ 2001 – cca 150 members

◦ 2003 – cca 250 members

◦ Till 2006 – cca 500 members

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SMASMA recommendation for recommendation for futurefuture

Investments oriented to standards of cross compliance (especially

investments in animal welfare, nitrate directive);

Target to cut-down of administration load;

Full decoupling;

Restructuring of production; farmers orientation on market;

Small farm orientation on diversification, agrotourism, bioenergy etc.

and hobby farming;

Large farm orientation on high productivity of production (incl. some

kind of environmental services);

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Our recommendationOur recommendation

Higher preferences (points) in the evaluation of the application for

support according to the „certificated“ education training activities

(i.e.workshops on the farms abroad, further education, the best

practice).

Higher preferences (suplement of wage) points in evaluation of the

administrator according to the practical experience (i.e. practical visit

on the farm).

Further and stonger support of cooperation among the farmers, locals

and institutions.

The stable rules and longer time for implementation of new changes.

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Thanks for your attentionThanks for your attention

Institute of Agricultural Economics and Information

www.uzei.cz konecna.marta@uzei.cz

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