Ministry of Food, Agriculture and Fisheries The Danish Rural Development Programme 2007-2013 November 8, 2012 The European Agricultural Fund for Rural Development Contents 2. The member state and administrative units...................................................................................... 8 2.1 The geographical area covered by the programme ........................................................................ 8 Supplementary designation of rural areas .......................................................................................... 10 2.2 Convergence regions, where applicable ....................................................................................... 14 3. SWOT analysis, the national strategy and the ex ante evaluation ................................................. 15 3.1. The rural areas’ strengths, weaknesses, opportunities and threats .............................................. 15 3.1.1 The general socio-economic situation....................................................................................... 15 3.1.2 Definition of rural areas ............................................................................................................ 16 3.1.3 The food sector.......................................................................................................................... 19 3.1.4. Nature and environment ........................................................................................................... 30 3.1.5. The socio-economic situation in the rural areas ....................................................................... 46 3.1.6. SWOT and objectives .............................................................................................................. 54 3.2 The national strategy .................................................................................................................... 59 3.2.1. The four main priorities ........................................................................................................... 59 3.2.1 Axis 1: Strong competitive force in the food and forestry sector ............................................. 59 3.2.2 Axis 2: Improvement of the landscape and environment; a rich nature and clean environmt .. 61 3.2.3 Axis 3: Quality of life in the rural areas and diversification of the economy; .......................... 62 3.2.3.1 Entrepreneurship and new jobs in the rural areas .................................................................. 62 3.2.3.2 Attractive living conditions .................................................................................................... 63 3.2.4 Axis 4: The Leader method ....................................................................................................... 64 3.3 The strategy per Axis ................................................................................................................... 64 3.3.1. Integrated approach in the national application schemes ......................................................... 64 Axis 1: Improvement of the competitiveness of the agriculture and forestry .................................... 66 Axis 2: Improvement of the environment and landscape .................................................................. 69 Axis 4: The Leader method ................................................................................................................ 75 3.3.2. All axes: Initiative as a result of the Health Check and Recovery Package ............................ 77 3.3.3 Allocations following the new Health Check challenges ......................................................... 80 3.4 Ex ante evaluation and environmental assessment ...................................................................... 81 3.4.1 Ex ante evaluation and strategic environmental assesment 2007 ............................................. 81 3.4.2 Strategic environmental assessment 2009................................................................................. 84 3.5 Results from previous programme periods and programmes supplementing the rural development programme.................................................................................................................... 84 4. Review of the programme’s priorities in the light of national and EU strategy ............................ 88 4.1 Account of the priorities, correlation with the national strategy and EU strategic guidelines .... 88 4.2 Expected effects based on the ex ante evaluation ........................................................................ 92 5. Description of measures and axes ................................................................................................ 105 5.1 The action areas of the programme ............................................................................................ 105 5.1.1 Cross-compliance and nationally set minimum requirements ................................................ 107 5.1.2 Measures to compensate for loss of set-aside areas ................................................................ 114 5.2 The individual measures ............................................................................................................ 115 2 5.2.1 The individual measures – Axis 1. .......................................................................................... 116 5.2.1.1 Vocational training and information actions (Code 111)..................................................... 116 5.2.1.2 Use of advisory services (Code 114) ................................................................................... 126 5.2.1.3 Modernisation of agricultural holdings (Code 121) ............................................................. 129 5.2.1.4 Adding value to agricultural and forestry products (Code 123) .......................................... 142 5.2.1.5 Cooperation for development of new products, processes and technologies in the agriculture and food sector and the forestry sector (Code 124) ......................................................................... 150 5.2.1.6 Improving and developing infrastructure related to the development and adaptation of agriculture and forestry (Code 125) ................................................................................................. 155 5.2.1.7 Restoring agricultural production potential damaged by natural disasters and introducing appropriate prevention actions (Code 126) ...................................................................................... 157 5.2.1.8 Participation of farmers in food quality schemes (Code 132) ............................................. 160 5.2.1.9 Supporting producer groups for information and promotion activities for products under food quality schemes (Code 133)..................................................................................................... 164 5.2.2 The individual measures – Axis 2. .......................................................................................... 169 5.2.2.1 Payments to farmers in areas with handicaps, other than mountain areas (Code 212) ........ 183 5.2.2.1.a. Mandatory establishment of cultivation-free buffer zones (Code 213a).......................... 185 5.2.2.2 Conservation by grazing or cutting on pasture and natural areas (Code 214a) ......................... 5.2.2.3 Conversion to organic agricultural production (Code 214b) ............................................... 201 5.2.2.4 Extensive production on agricultural land (Code 214c) ...................................................... 207 5.2.2.5 Establishment and management of set-aside border strips (Code 214d) ............................. 214 5.2.2.6 Management of wetlands and restoration of natural hydrological conditions (Code 214e) 220 5.2.2.7 Plant genetic resources for food and agriculture (Code 214f) ............................................. 233 5.2.2.8 Non-productive investments in connection with protection of environment, nature and animal welfare (216a) ...................................................................................................................... 237 5.2.2.9 Non-productive investments - establishment of wetlands, periodical flooding of farmland, nature conservation projects and restoration of natural hydrological conditions (Code 216b) ....... 244 5.2.2.9b Non-productive investments in connection with protection of environment, nature and animal welfare (code 216c) .............................................................................................................. 252 5.2.2.10 First afforestation of agricultural land (Code 221a) ........................................................... 260 5.2.2.10b First afforestation of agricultural land to establish new public forests. (Code 221b) ...... 268 5.2.2.11 Forest-environment payments (sustainable forestry payments) (Code 225) .................... 275 5.2.2.12 Restoring forestry potential and introducing prevention actions (Code 226) .................... 283 5.2.2.13 Non-productive investments, forestry (Code 227) ............................................................. 287 5.2.3 The individual measures – Axis 3. .......................................................................................... 294 5.2.3.1 Diversification into non-agricultural activities (Code 311) ................................................. 295 5.2.3.2 Support for business creation and development (Code 312) ............................................... 301 5.2.3.3