MINISTRY OF AGRICULTURE OF THE REPUBLIC OF LITHUANIA Rural Development Plan 2004-2006 Lithuania NOVEMBER 7, 2008 Consolidated version as of 7th November, 2008 1 Table of contents ABBREVIATIONS........................................................................................................ 7 1. INTRODUCTION...................................................................................................... 8 2. MEMBER STATE AND ADMINISTRATIVE REGION ........................................ 8 3. GEOGRAPHICAL AREA COVERED BY THE PLAN........................................... 8 4. PLANNING AT THE RELEVANT GEOGRAPHICAL LEVEL............................. 9 5. QUANTIFIED DESCRIPTION OF THE CURRENT SITUATION ........................ 9 5.1. Lithuania’s geographic position...................................................................... 9 5.2. Administrative structure, rural areas and settlements .................................... 10 5.3. Rural population.................................................................................................. 14 5.4. Employment and income in rural areas ............................................................ 16 5.5. Social and physical infrastructure in rural areas............................................. 21 5.5.1. EDUCATION AND TRAINING.................................................................................. 21 5.5.2. RURAL INFRASTRUCTURE .................................................................................... 23 5.5.3. RURAL CULTURE ................................................................................................. 24 5.6. Agriculture ........................................................................................................... 24 5.6.1. SIGNIFICANCE OF THE SECTOR IN THE NATIONAL ECONOMY ............................... 24 5.6.2. LAND REFORM AND UTILIZATION OF THE LAND ................................................... 26 5.6.3. LESS FAVOURED AREAS ...................................................................................... 29 5.6.4. FARMING STRUCTURE, NUMBER OF FARMS AND SIZE ........................................... 30 5.6.5. AGE STRUCTURE OF FARMERS.............................................................................. 32 5.6.6. PRIMARY PRODUCTION AND PROCESSING INDUSTRY............................................ 33 5.7. Forestry................................................................................................................. 51 5.7.1. FOREST COVER..................................................................................................... 51 5.7.2. FORESTRY IN THE NATIONAL ECONOMY............................................................... 53 5.7.3. FOREST OWNERSHIP............................................................................................. 54 5.7.4. LEGAL BASIS........................................................................................................ 55 5.7.5. MULTIPLE USE OF FORESTS .................................................................................. 57 5.7.6. AFFORESTATION OF AGRICULTURAL LAND .......................................................... 58 5.8. State of the environment – agriculture and forestry........................................ 60 5.8.1. SOIL..................................................................................................................... 61 5.8.2. WATER ................................................................................................................ 73 5.8.3. AIR AND CLIMATE................................................................................................ 77 5.8.4. BIODIVERSITY...................................................................................................... 78 5.8.5. LANDSCAPE AND PROTECTED AREAS ................................................................... 84 5.9. SWOT analysis..................................................................................................... 89 5.9.1. EXTERNAL ANALYSIS........................................................................................... 90 5.9.2. INTERNAL ANALYSIS............................................................................................ 91 5.10. Key problems in agriculture and rural development..................................... 97 Consolidated version as of 7th November, 2008 2 5.11. Impact from the previous programming period (title) .................................. 98 5.11.1. LESS FAVOURABLE AREAS ................................................................................. 99 5.11.2. AGRI-ENVIRONMENT........................................................................................ 101 5.11.3. AFFORESTATION OF AGRICULTURAL LAND ...................................................... 103 6. DESCRIPTION OF THE STRATEGY PROPOSED, ITS QUANTIFIED OBJECTIVES, THE RURAL DEVELOPMENT PRIORITIES SELECTED AND THE GEOGRAPHICAL AREA COVERED............................................................. 107 6.1. The objectives hierarchy for Rural development ........................................... 108 6.2. Overall Rural Development Strategy and Priorities..................................... 112 6.2.1. SINGLE PROGRAMMING DOCUMENT .................................................................. 119 6.2.2. SPECIAL RURAL SUPPORT PROGRAMME ............................................................ 124 6.2.3. RURAL DEVELOPMENT PLAN............................................................................. 130 6.3. Extent to which the Strategy takes into account the specific features of the areas concerned and compliance of the strategy with other EU policies ............ 139 6.3.1. INTEGRATION OF WOMEN AND MEN IN THE STRATEGY..................................... 140 6.3.2. FUTURE ENVIRONMENTAL OBLIGATIONS .......................................................... 141 6.4. Areas covered by Specific Territorial Measures ............................................ 148 6.5. Timetable and uptake........................................................................................ 148 7. INDICATIVE OVERALL FINANCIAL ALLOCATIONS.................................. 149 8. APPRAISAL SHOWING THE EXPECTED ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACT............................................................................................ 150 9. DESCRIPTION OF THE MEASURES................................................................. 150 10. NEED FOR ANY STUDIES, DEMONSTRATION PROJECTS, TRAINING OR TECHNICAL ASSISTANCE OPERATIONS .......................................................... 151 11. DESIGNATION OF COMPETENT AUTHORITIES AND BODIES RESPONSIBLE.......................................................................................................... 151 11.1. Ministry of Agriculture................................................................................... 152 11.2. National Paying Agency .................................................................................. 153 11.3. Monitoring Committee................................................................................ 154 12. MONITORING AND CONTROL, EVALUATION AND PUBLICITY ........... 155 12.1. Controls and Sanctions ................................................................................... 155 12.1.1. ADMINISTRATIVE CHECKS ............................................................................... 155 12.1.2. ON-THE-SPOT CHECKS ..................................................................................... 156 12.1.3. CONTROL OF MEASURES .................................................................................. 156 12.1.4. SANCTIONS ...................................................................................................... 157 Consolidated version as of 7th November, 2008 3 12.2. Financial circuits.............................................................................................. 168 12.3. Publicity............................................................................................................ 169 12.4. Evaluation......................................................................................................... 170 12.4.1. EX-ANTE EVALUATION..................................................................................... 170 13. RESULS OF CONSULTATIONS AND DESIGNATION OF ASSOCIATED AUTHORITIES AND BODIES AS WELL AS ECONOMIC AND SOCIAL PARTNERS................................................................................................................ 172 14. BALANCE BETWEEN THE DIFFERENT SUPPORT MEASURES............... 177 15. COMPATIBILITY AND CONSISTENCY WITH EU POLICIES..................... 178 16. ADDITIONAL STATE AID................................................................................ 178 Annexes Annex 1: Technical sheets per measure.................................................................. 179 Annex 2: Good Farming Practice............................................................................ 239 Annex 3: Details on Less Favoured Areas.............................................................. 243 Annex 4: Details of the Code of Good Agricultural Practice and the Action programme for implementation of EU Nitrate Directive ............................. 255 Annex 5: Physical and financial indicators of the measures (cumulative data per year) ................................................................................................................... 262 Annex