Opinion of the Committee of the Regions on "Young people in European farming - a blueprint"

(2001/C 357/08)

THE COMMITTEE OF THE REGIONS,

having regard to the decision taken by its Bureau on 10 November 2000, under the fifth paragraph of Article 265 of the Treaty establishing the European Community, to draw up an opinion on the subject and to direct Commission 2 for Agriculture, Rural Development and Fisheries to undertake the preparatory work;

having regard to Council Regulation (EC) No 1257/1999(1) on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF), which defined the Community framework for sustainable rural development from January 2000;

having regard to Commission Regulation (EC) No 1750/1999(2) laying down detailed rules for the application of the abovementioned regulation;

having regard to the Commission report on Young farmers and the problem of succession in European agriculture (COM(96) 398 final) and the CoR opinion on that report (CdR 457/96 fin)(3);

having regard to the draft opinion (CdR 417/2000 rev. 2) adopted by Commission 2 on 20 April 2001 (rapporteur: Mr Gonzi, councillor for Albareto, I, PPE),

adopted the following opinion by a majority vote at its 39th plenary session of 13 and 14 June 2001 (meeting of 13 June).

The Committee of the Regions

1. Is concerned at the ageing situation of the EU's farmers. Such a situation has dangerous implications at a time when fewer and fewer young people are entering or remaining in the sector to guarantee the succession.

In many areas, this situation is threatening proper development of the sector, stewardship of the land, and environmental and landscape protection. In upland and disadvantaged areas in particular, it is jeopardising effective implementation of the new rural development policy. Rural areas are faced with the risk of fullscale decline.

2. Considers it vital, in view of the steadily worsening situation, to have on hand a variety of instruments which, from different angles, analyse the various elements, pinpoint reasons and help to provide solutions.

The Commission should therefore prepare:

- a statistical system for monitoring farmers leaving the sector and young farmers (by sex) entering it, so that annual comparisons can be made;

- instruments for evaluating current European policies - agricultural and otherwise - and their effects on young people entering the agriculture sector;

- a special taskforce, within the Agriculture DG, to devise appropriate practical solutions.

3. Considers it a matter of vital urgency that data be acquired regarding young farmers in the CEEC, and that an agreement be reached with the CEEC authorities that Community aid should, as a matter of priority if not essentially, focus on investment to help young people set up as farmers, provide training and technical assistance, and facilitate the restructuring of holdings.

4. Considers that there is insufficient awareness of the seriousness of the phenomenon, and of the complexity of the necessary solutions, both within the Community and the individual Member States.

Considers, therefore, that the Commission should, at an early opportunity, convene a conference on young people in rural society. Just as the Cork conference put the topic of sustainable rural development on the European agenda and suggested the relevant implementing policies, so the conference on young people in rural society should draw the attention of the EU public and the various tiers of government to this subject, kindling interest, suggestions and appropriate policy responses. The CoR considers that it should play an important role in the preparation and holding of the conference, not least because the regional and local authorities have more direct experience of the situation of young farmers in different regions.

5. Proposes that the conference aim to sketch out a blueprint for young people in European farming which should include:

- objectives for bringing young people into farming;

- measures to fine-tune or flesh out existing provisions in agricultural and rural development policy;

- a consistent framework for establishing guidelines for action by national, regional and local authorities, in their various spheres of responsibility, to achieve the desired objectives throughout the EU;

- approaches and measures to encourage similar action in the CEEC;

- specific measures to be included in EU training, cultural, education, research, welfare, information/media and tourism policies.

6. Wishes, as of now, to draw the attention of the Commission and the Member States to what are widely accepted as being some of the main factors discouraging young people from farming:

- lack of reliable economic prospects, the feeling being that rural development is not treated as a political priority in Europe;

- no streamlining of urbanisation procedures for land earmarked for agricultural use;

- decline in personal, household and business services in rural areas and hence decline in overall quality of life. Young people - and young women in particular - are thus unwilling to establish a family in these areas;

- perception that social conditions are inadequate, compared with the attractions of other sectors of activity and other living and working environments;

- land prices and rents are too high compared with income prospects;

- high cost of start-ups, machinery, and farm improvements;

- large amount of red tape and legal and fiscal obstacles for starting up, and a web of regulations which is difficult to disentangle without proper help;

- lack of training, given the environment in which a modern farm must operate (technically sound, mindful of production and sales problems, able to expand activities and income by diversifying judiciously);

- difficulty (or often impossibility) of acquiring production quotas, because of lack of market or prohibitive costs. The problem is particularly acute in upland and disadvantaged areas, where the market is affected by demand from stronger farming areas.

7. Stresses the need for complementary, integrated action at EU, national, regional and local level to address the question of young people in farming. Where necessary (e.g. in the case of immediate start-up aid for young farmers), these measures should be mandatory in all Member States.

8. Calls on the Commission, as of now, to reach agreement with the Member States on a policy for young farmers that provides:

- succession arrangements designed to keep the farm intact;

- a tax system for farmers in general that guarantees fair treatment and is not more favourable for other economic sectors. The Commission should set up a survey to ascertain details of the tax systems for farmers in the various Member States;

- adequate pre- and post-natal allowances for young women.

9. Agrees that multifunctional agriculture is essential for rural development; considers, therefore, that the EU, Member States and regions, each in their respective areas of competence, must urgently ensure conditions that enable farmers and farmworkers to exercise a range of activities, both in order to increase overall per capita incomes and, especially in upland and marginal areas, to allow activities in such fields as forestry, care and management of protected areas and parks, maintenance of rural and civil infrastructure, management of cultural assets, services and seasonal tourism.

- The most advantageous conditions must be devised for streamlining insurance, social security, tax and other statutory contributions for farmers who engage in supplementary activities.

- A new statute for diversified rural enterprises must be drawn up, in which each authorised activity fits in with the main rationale of the undertaking, namely farming.

10. Thinks that when setting up the blueprint for young people in European farming, the following aspects must be considered:

- direct aid for young farmers, with funding for overall start-up and farm development plans. The European Social Fund should also provide direct employment and self-employment aid at least for the first four years of activity;

- special support measures for young women, to help them achieve a greater degree of independence and equality in the workplace, encouraging them to set up and remain in rural areas;

- start-up aid for eight years, as proposed by the European Parliament;

- additional loans for investments, particularly in upland and disadvantaged regions;

- early retirement incentives, offering appropriate economic assistance if the farm is being transferred to a young person, so as to provide a fullscale "pension package" in such cases, and harnessing, as far as possible, the expertise the retiree has built up through hands-on experience, and, of course, facilitating his social rehabilitation;

- provision of guarantees for farm credit;

- special loans to encourage farm restructuring schemes;

- elimination of the speculative production quota market and encouragement for the acquisition and priority transfer of production quotas. Given the small quantities involved, spare national quotas should be allocated by the state to upland and marginal areas;

- education and information for young people interested in a future in farming from the EU and the candidate countries, and encouragement for young farmers to take part in schemes involving practical experience on a farm in another country;

- improvement of infrastructure in rural areas as regards services, and especially education and health;

- revitalisation of the rural environment by encouraging residential clusters.

11. Deems it vital that any measures adopted to help young farmers be treated by the candidate countries as an integral part of the Community acquis.

12. Proposes that the Commission, Member States and local and regional authorities reach agreement on programmes for identifying local development agencies to be entrusted with the following tasks:

- promotional campaigns to attract young people into farming (for example: inside the agricultural sector itself with already established farmers who need to keep a positive attitude about their profession, and outside it by conducting an image-boosting campaign targeted at young people with or without an agricultural background);

- vocational training and refresher courses for farmers, farmworkers, technical staff and officials from local government;

- providing business people with information on prices, costs, products, market possibilities, alternative innovative and complementary production, modern technologies, and ways of accessing Community, national and regional assistance;

- technical back-up, and help with business management;

- use of information technologies;

- information on legal and tax affairs;

- creation and maintenance of a database with details of farmers who would like to retire and the people who would like to set up, facilitating an understanding between the two parties.

It should be borne in mind that, very often, there are already agencies and other public or private bodies that could be given a specific national or regional remit for this. It may simply be a matter of giving them some detailed practical instructions.

Checks should be made on the capacities of these agencies, who would then be given the role of "tutoring" young farms over a number of years. The arrangement could take the form of a contract between the agency, the young farmer and the public body sponsoring the "adoption of a young farmer" for at least a three-year period. The adoption package would include a plan for the farm's areas of activity and development, and public co-financing for the running costs.

13. Considers that, when further developing schemes involving agri-environmental measures, organic farming, agri-tourism and rural tourism, support for promotion and marketing of local speciality products, and the exploitation, processing and marketing of woodland produce, priority attention should be given to the presence of young farmers or groups of young farmers.

Considers that, as the demands which society makes of farmers have changed, with farmers being the focus of debates on consumer information about where their food comes from, farmers should be offered courses to help them explain their practices to the public.

Considers that the European Commission, together with the national, regional and local authorities and in collaboration with young farmers, should launch a wide-ranging rural information campaign encouraging the further development of rural tourism, open farm days, educational farms and agricultural teaching paths.

14. Calls on urban authorities to forge new links with neighbouring rural areas, with a view to fostering their social, cultural and economic development and to helping to make the public more aware of the special values and characteristics of rural areas; notes that urban authorities also need to recognise the beneficial social role that rural areas play for city residents who visit them regularly.

15. Considers that the European Investment Bank should also be involved in the implementation of the blueprint for young people in European farming, given its strategic importance.

16. Asks all the authorities involved in the implementation of the Leader+ initiative to concentrate funding on projects that involve young farmers, who should be given a central role in a "bottom-up" approach for rural areas.

Brussels, 13 June 2001.

The President

of the Committee of the Regions

Jos Chabert

(1) OJ L 160, 26.6.1999, p. 80.

(2) OJ L 214, 13.8.1999, p. 31.

(3) OJ C 215, 16.7.1997, p. 31.