Agriculture/rural development policy (Matera)

Editor's note 6Jun14: Sources D342-3

Italian national and regional rural development policies in the last decades have been closely related to the European Union CAP and Rural Development Policies. Policy can be divided into periods according to the different CAP reforms, ranging from the early years to the reform of 1992 and up to Agenda 2000 and the 2003-2004 reform. The last reform, focused on rural development, introduced a financial instrument, the European Agricultural Fund for Rural Development (EAFRD), which has been established by Council Regulation (EC) no. 1698/2005 for the period from 2007 to 2013.

According to the Italian administrative structure, each region is responsible for the implementation of the EU’s rural development policy through the Rural Development Programmes (PSR) under the coordination at a national level by the Ministry of Agriculture Food and Forestry Policy (MIPAAF), which is responsible for the drafting of a National Strategy Plan. Other national laws complement the Strategy including development and improvement of the agri-food chains and networks, the National Irrigation Plan, standards for agricultural scientific research etc.

The objectives of the RDP coincide with those of the NSP (National Strategic Plan) covering: competitiveness of agriculture and forestry; environment preservation; diversification of agricultural activities and improvement of the quality of life in rural areas; improvement of skills and knowledge. The priorities of the National Strategy Plan for Rural Development (2007-2013) are:

1. Preservation of biodiversity
2. Qualitative and quantitative protection of surface and sub-surface water resources
3. Reduction of greenhouse gases
4. Territory Conservation

The main actors for rural development policy implementation are represented by the Ministry of Agriculture Food and Forestry Policy (MIPAAF) at a national level and by the Regional Administration at a local level, playing a key role in the implementation of the development programmes (PSR). In particular, the MIPAAF is responsible for drawing up the National Strategy Plan (PSN) for the period 2007-2013, defining the strategic guidelines within the Community Strategies. Other national level actors are the National Institute of Agricultural Economics (INEA), the Institute of Services for the Agro-Food Markets (ISMEA) and the National Information System (SIN) for drafting and monitoring PSN and of National Rural Network (NRN).

The other main actor at the regional level is represented by the Regional Administration, which is in charge of the implementation of the Rural Development Plan. The implementation process involves a series of other actors at the regional, national and European levels represented by all the members of the surveillance committee, including the EAFRD Management Authority, the MIPAAF, the ARBEA (Regional Agency For The Funds Provision In Agriculture Sector), Ministry of Economy and Finances, the ARPAB (Basilicata Region Agency for the Environment Protection), municipality administration, province administration and NGO organizations as the representatives of all of the productive categories in the agriculture sector, representatives of protected areas and environmental associations.

At the national level, an important role is also played by the Union of Farmers and the National Association of Reclamation, Irrigation and Land Improvement (ANBI), representing the interests of their members to the high level institutions (i.e. the Ministry of Agriculture). The main instrument for implementing rural development policy at the regional level is represented by the Rural Development Plan (PSR). In the context of the PSN, the National Rural Network within the European Network for Rural Development (ENRD) facilitating interaction and exchange of expertise between the stakeholders, institutions and those working and living in rural areas is also important.

To improve the quality and the effectiveness of the rural development policy the PSR are evaluated during the implementation path (ex ante, mid-term and ex post).

Main policy instruments related to Agricultural/Rural development

Source: Authors

Implementation, impacts, effectiveness

Rural development policy has been widely applied in the Basilicata region, and thus also in the Matera SES. The basic needs in the rural areas of the Matera SES are generally related to maintaining the population in rural areas and thereby reducing depopulation. From this perspective, rural development policy has mainly addressed the improvement of generation renewal.

Following the implementation of the PSR, the impacts of rural development policy at the Matera SES have been related to several sectors. Starting with regional level interventions, the main impacts relate to the SES through the implementation of measures addressing agricultural issues, such as farm modernization and innovation, improvement of physical and information technology infrastructures, promotion of knowledge and best practices and improvement of the quality of agricultural productions. Other measures addressed that impacted the Matera SES are the support provided for diversification into non-agricultural activities, the development of local micro-enterprises and activities related to rural tourism and the advisory services for farms and forestry.

Other policy impacts relate to the regional environmental system and thus to the Matera study site through the implementation of measures related to the conservation, protection and safeguarding of the rural territory, conservation of biodiversity, reduction of greenhouse gases and protection of water resources. These measures have impacted the territory through the funding provided for the implementation of measures, such as the drafting of Natura 2000 site management plans, the Triennial Forestry Plan including the funding of Forest Management Plans, forest activities, Triennial Fire Protection Plan and land desertification protection actions. These measures contributed to improved environmental conditions, increased forest distribution and productivity, biodiversity conservation and soil protection. These measures also impacted the economic and social systems through the employment of professionals and workers in the environmental sector and in particular in forestry.

A negative impact related to the implementation of the CAP policies during the 1990s in Italy regards the availability of funding for cereal productions (especially durum wheat subsidies). This policy produced an increase of cultivated areas that included low productive marginal areas usually covered by shrubs along very steep slopes, leading to environmental degradation from soil erosion and soil stability decrease.

From an environmental perspective, the policy has been effectively implemented with concrete environmental improvements occurring due to the implementation of Forest Triennial Plans, Forest Management Plans and the Triennial Fire Protection Plan. The implementation of the Natura 2000 site Management Plans represent a crucial action towards the improvement of biodiversity and, more generally, of environmental protection. The effectiveness of these measures can also be evaluated by looking at the impact of the policy on the employment of local workers in the forest sector and the subsequent reduction in land abandonment.

From an economic point of view, the efforts of the rural development policy for the agriculture sector have been partially limited by the international economic crisis taking place in the last few years. The possibilities offered by the financial instruments of the PSR for young farmers to develop and improve their activities have been reduced as a result of increasing costs of production and distribution due to increased energy costs and reduced product demand. However, the rural development policy positively affected the social sector through a generalized improvement of knowledge, valorisation of cultural and rural heritage of local communities and reduction of land abandonment.

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