Local Action Groups and Rural Sustainable Development. A spatial multiple criteria approach for efficient territorial planning

Rural Sustainable Development is a very important topic under the European Union policy, and it is currently promoted through the European Agricultural Fund for Rural Development 2014–2020. This fund is managed at sub-regional level by the Community-Led Local Development approach that involves Local Action Groups in order to promote the objectives of Rural Sustainable Development within rural municipalities. Each Local Action Group applies the Strengths, Weaknesses, Opportunities and Threats analysis in order to identify for its own rural municipalities the strategic elements to which it will allocate the European Agricultural Fund for Rural Development budget. Nevertheless, this analysis has some general shortcomings, including difficulties in managing a large number of Strength and Weakness factors. In addition, the importance of each factor cannot be measured quantitatively, and the same factor may be characterized both as a Strength and a Weakness. Further difficulties may occur in the case of partnerships between different Local Action Groups, such as disagreement about whether a given factor is a Strength or a Weakness, lack of information about the relationships between Strength and a Weakness factors and decision alternatives, as well as impossibility of ranking the decision alternatives.Thus, this research aims to overcome the drawbacks of the Strengths, Weaknesses, Opportunities and Threats analysis and to support Local Action Group partnerships in the sustainability evaluation of their rural municipalities, and therefore to aid the identification of a common Rural Sustainable Development strategy to allocate the European Agricultural Fund for Rural Development budget. This decision problem was tackled by applying a Multiple Criteria Spatial Decision Support System that integrates a Geographic Information System with the Multiple Criteria Decision Aiding methods “Technique for Order Preference by Similarity to Ideal Solution” and “Dominance-based Rough Set Approach”.In order to demonstrate the validity of this methodological approach, this Multiple Criteria Spatial Decision Support System was applied to a study area of thirteen rural municipalities located in Apulia Region (Southern Italy); these municipalities belong to the same landscape unit, but they are managed by five different policy makers that represent the Local Action Groups. The results provided the maps of environmental, economic and social sustainability rankings of rural municipalities as well as their overall sustainability value. Based on these rankings, a specific Rural Sustainable Development strategy was identified for the allocation of the European Agricultural Fund for Rural Development. This methodology provided a common decision making framework that can also be applied to Local Action Group partnerships within the European Union.     

The failure of agri-environment measures to promote and conserve grassland biodiversity in Slovenia

The effectiveness of four grassland-specific agri-environment measures (AEM), implemented in the frame of the European Agricultural Fund for Rural Development (EAFRD) in the period 2007–2013 in Slovenia was studied. We questioned whether the measures – “extensive grassland maintenance”; “preservation of special grassland habitats”; “preservation of grassland habitats for butterflies” and “bird conservation in humid extensive meadows in Natura 2000 sites” did genuinely support the conservation (maintenance or improvement) of high nature value (HNV) grasslands in Slovenia. The HNV grasslands were defined on the basis of national fine-resolution field mapping of habitat types. Two main outcomes emerged: AEM did not reach the vast majority of HNV grasslands in Slovenia (only 3%); the proportion of HNV grassland area included in AEM was negligibly low (1). Moreover, even this very limited interest in AEM did not target only grasslands of HNV, but any permanent grasslands regardless of their conservation value: forty-one percent (41%) of the grassland areas included in the AEM were actually non-HNV grasslands (2). The absence of pre-selection criteria for grasslands along with an absence of monitoring of the effectiveness and efficiency of the measures and low interest in the subsidies among farmers, led to almost complete failure of the AEM to promote and conserve species-rich extensive grasslands in Slovenia between 2007 and 2013. Even with some minor differences, the same concept was maintained for the currently running EAFRD 2014–2020, which raises serious concern.     

Farmers in a deregulated dairy regime: Insights from Ireland's New Entrants Scheme

While the impending review of the European Union (EU) Common Agricultural Policy (CAP) is set to have an impact on all farming sectors across Europe, particularly transformative change is sought by policies relating to dairy farmers. EU milk quota abolition in 2015 will fundamentally revise the terms of dairy production, transitioning from policies of subsidy and protection to a scenario where farmers will produce milk on the open market. Dairy quota abolition essentially represents an economic but also socio-cultural disruption for a sizeable cohort of farmers, requiring adaptation to more market-driven production strategies. Agricultural policy-makers in EU member states are demonstrably preparing for this imminent change and dairy farmers are considering and strategising their responses at farm-level. Our focus in this paper is the interplay between quota abolition and farm-level decision-making in the pre-abolition period. Drawing from a broader mixed-methodological and multi-disciplinary research project, this paper uses qualitative narrative analysis to identify the key determinants arising in dairy farmers’ decision-making processes. How are farmers currently strategising their responses to dairy quota deregulation? Using the qualitative Biographic Narrative Interpretive Method (BNIM), we examine the range of factors determining how a particular group of dairy farmers are strategising their positions on the impending open dairy market. Our analysis highlights how, in the advent of a deregulated dairy production regime, dairy farmers are carefully deliberating their responses at farm level, drawing from policy and market related information, their own personal speculations, and conventional wisdom shared with other members of the farming community. We find that the dairy farmers are influenced not only by motivations to increase productivity and scale but by a tenacious approach to farm sustainability and resilience that is informed by past experiences of farming and seeks to preserve and promote socio-cultural farming values. The paper is of particular interest to policy makers and academics interested in the interchange between policy and farmer behaviour, particularly in the context of current CAP reform.     

Book Reviews

GARDNER, B.L. and RAUSSER, G.C. (Eds) (2002). Handbook of Agricultural Economics: Volume 2A. Agriculture and its External Linkages. ROMERO, C. AND REHMAN, T. (2003). Multiple Criteria Analysis for Agricultural Decision FAFCHAMPS, M. Rural Poverty, Risk and Development VAN HUYLENBROECK. G. and DURARD G. (eds.) (2003) Multifunctional Agriculture: a New Paradigm for European Agriculture and Rural Development. The Welfare Economics of Public Policy. ANDREOSSO‐O'CALLAGHAN, B. (2003). The Economics of European Agriculture.     

A rural typology for strategic European policies

The role that the agricultural sector plays in rural areas has considerably changed in the last five decades, and is reflected in a major shift towards multi-dimensional, multi-sectoral land use. Existing European rural typologies are mostly one-dimensional, based on a rather coarse administrative scale data and are unable to define adequately the diversity of the regions involved. The rural typology presented in this paper has been produced as a response to a new policy need for typologies addressing the diversity in regional rurality. This paper describes the method developed and explores the relevance of the results for future rural policies. This new rural typology incorporates two dimensions identified by statistical screening of a range of geographical and socioeconomic data related to the territorial variation of European rural land. The use of high-resolution raster data at 1 km² resolution provides large flexibility for the construction of individual classifications, with a variable number of classes for a variety of objectives. In the example presented, nine divisions were produced, which were subsequently summarised into three rural classes termed Peri-urban, Rural and Deep Rural. The rural typology enables the consistent identification of comparable rural areas and intergradations with urban land in the European territory, and describes the degree of generalisation that is possible. In addition, it provides a spatially explicit framework for scientific analysis and communication to both European policy makers and local stakeholders.     

Transatlantic Similarities and Contrasts in Rural Development PoliciesTransatlantische Ähnlichkeiten und Gegensätze bei den Politiken zur Entwicklung des ländlichen RaumsPoints communs et divergences transatlantiques sur le développement rural

Transatlantic Similarities and Contrasts in Rural Development Policies
The United States (US) and European Union (EU) share many general policy aims for rural areas, but they differ in the ways in which they try to achieve these aims. The principal difference lies in the role envisioned by agriculture in overall rural development. EU policies treat agriculture as a provider of public goods, and many of its 'rural' programmes target agriculture. In the US, very few Federal rural development programs are focused solely on agriculture. Differences of approach may be linked to different farm distributions, population densities, historical settlement patterns, and the historical policy process per se . In particular, in the US rural development policy does not cover the environment or income support to farmers; these are addressed through other programmes. In contrast, the EU classifies its agri-environmental programmes as rural development, claiming that more environmentally-friendly farm practices bring benefits to the broader rural economy. US State and local initiatives emphasize many themes found in the EU's Pillar II programmes, such as value-added or sustainable agriculture. Overall, although there are marked differences in the ways in which policies are implemented, the coverage of these policies in the EU and US is rather similar.     

An evolutionary approach to the study of rural tourism: The case of Tuscany

Rural tourism (RT) has moved into a more complex phase and today it is possible to point out different stages of development within European regions. In order to encompass the evolutionary processes of tourism development within rural areas, an evolutionary approach is proposed. If the attention moves from a static analysis of RT within a region, to the transition from a basic rural economy to a new economic specialisation, then the evolutionary economic geography (EEG) may be a useful framework. The EEG explains economical transitions as a shift from a historically predominant configuration to a new one, by the interplay of processes at three different levels: micro (local), meso (regional) and macro (European). The aim of this paper is to adapt the EEG approach to the study of RT. In this paper, the framework is applied to the case study of RT in Tuscany. We argue that in Tuscany the rural transition towards a tourism development was fostered by the weakness of the established rural configuration and its heritage of a large availability of empty buildings, which has been a primary input for tourism development. New trends at the macro-level fostered the transition towards RT, in particular the European funding for multifunctionality within agriculture and urban people seeking for natural life-style.     

REVIEWS

Book reviews in this article: BIL, A. (1990). The Shieling - 1600–1840: The Case of the Central Scottish Highlands BULLER, H. and WRIGHT, S. (1990). Rural Development: Problems and Practices BURRELL, A. (ed.) (1989). Milk Quotas in the European Community CHAMBERS, R., PACEY, A. and THRUPP, L. A. (eds.) (1989) COLLIER, P., RADWAN, S. and WANGWE, S. with WAGNER, A. (1990.) Labor and Poverty in Rural Tanzania: Ujamaa and Rural Development in the United States Republic of Tanzania COLLINS, E. J. T., GILES, A. K. and MALLESON, J. G. K. (eds.) Innovation and Conservation JOHNSON, P. M. (1989) Redesigning the Communist Economy: The Politics of Economic Reform in Eastern Europe KRUEGER, A. O., MICHALOPOULOS, C. and RUTTAN, V. W. (1989). Aid and Development Baltimore: Johns Hopkins CHATHIE, J. (1989) Food Aid and Industrialisation. Aldershot: Gower LOWE, P. and BODIGUEL, M. (eds.) (1990). Rural Studies in Britain and France ROMERO, C. and REHMAN, T. (1989). Multiple Criterion Analysis for Agricultural Decisions. Amsterdam: Elsevier ADAMOLEKUN, L. (1989). Issues in Development Management in Sub-Saharan Africa. EDI Policy Seminar Report, No. 19 Economic Development Institute of the World Bank CURRAN, T. (1990). The Theory and Practice of Agricultural Policy. EDI Policy Seminar Report, No. 24. Economic Development Institute of The World Bank ISLAM, N. (1990). Horticultural Exports of Developing Countries: Past Performance, Future Prospects, and Policy Issues. Research Report 80. Washington, D. C NATIONAL RESEARCH COUNCIL (1989). Investing in Research: A Proposal to Strengthen the Agricultural Food, and Environmental System. Washington, D.C NATIONAL RESEARCH COUNCIL (1989). Food Aid Projections for the Decade of the 1990s. Washington D.C.: National Academy Press (marketed and distributed by John Wiley VAN DEN NOORT, P. C. (1990). Costs and Benefits of Agricultural Policies and Projects. Proceedings of the 22nd Symposium of the European Association of Agricultural Economics, October 1989, Amsterdam, The Netherlands PLUSQUELLEC, H. (1990). The Gezira Irrigation Scheme in Sudan: Objectives, Design and Performance SHAWKI, B. and LE MOIGNE, G. (eds.) (1990): Irrigation in Sub-Saharan Africa: The Development of Public and Private Systems WORLD BANK (1990). Agricultural Marketing: The World Bank's Experience, 1974–85. Washington: The World Bank, Operations Evaluation Department     

REVIEWS

Book reviewed in this article: Investment Projects in Agriculture. By McDONALD P. BENJAMIN. Longman Group, Harlow. A Rural Policy for fhe EEC? By HUGH CLOUT. Methuen A Theory of Adaptive Economic Behaviour. By JOHN G. CROSS Agriculture and Economic Development. By SUBRATAG HATAK and KEN INGERSENT. Rural Land Uses and Planning: A Comparative Study of the Netherlands and the United Stales. By R. BURNELLH ELDa nd DIRK W. VISSER. An Introduction to Agricultural Geography. By DAVID GRIGG. Rural Britain: A Social Geography. By DAVIDP HILLIPS and ALLAN WILLIABM. The Common Agricultural Policy; Past, Present and Future. By BRIAN E. HILL. Economics of African Agriculture. By JOHNL EVI and MICHAELH AVINDEN Beef in Japan: Politics, Production, Marketing and Trade. By JOHN W. LONGWORTH Issues in Third World Development. Edited by KENNETH C. NOBE and RAJAN K. SAMPATH Agricultural Trade with Developing Countries International Finance for Food Security. By BARBARAH UDDLESTOND,. GALE JOHNSONS, HLOMOR EUTLINGER and ALBERTOV ALDES Agriculture: Foundations, Principles and Development. By J. R. RAEBURN Protecting Farmlands. Edited by FREDERICRK. STEINER and JOHN E. THEILAC Price and Market Policies in European Agriculture. Edited by K. J. THOMSON and R. M. WARREN Selected Writings on Agricultural Policy and Economic Analysis. By FREDERICVK. WAUCH. Edited by JAMES P. HOUCK and MARTIN E. ABEL The Common Fisheries Policy of the European Community. By MARK WISE     

A PROPOSED SIMULATION METHOD FOR MEASURING STRUCTURAL CHANGE AND RURAL DEVELOPMENT PROGRAM IMPACTS*

A number of agricultural development programs have been designed in Canada to increase agricultural productivity and improve incomes of low income farms in marginal agricultural areas. These programs include the Agricultural and Rural Development Act, 1967 (ARDA), the Fund for Rural Economic Development, 1966 (FRED), and the Canada Department of Agriculture, Small Farm Development Program (SFDP). The various programs have unique elements and represent alternative approaches to resolving the Rural Development Problem. However, models of the agricultural development process which permit an analysis of the potential impacts of such programs on the changing structure of agriculture and the relationship between agricultural and non-agricultural sectors are not available. In this paper a dynamic regional model of agriculture with an explicit linkage between the development programs and the regional economy (including rural and urban dimensions) is proposed. Plusieurs programmes du développement d'agriculture ont étéétablis au Canada pour augmenter la production d'agriculture et améliorer les revenus des fermes de rendements économiquement faibles dans les régions marginales d'agriculture comprenant I‘“Acte du Développement Agricole et Rural” [Agricultural and Rural Development Act, 1967 (ARDA)], les “Fonds pour le Développement Economique Rural” [Fund for Rural Economic Development, 1966 (FRED)], et le “Programme de Développement des Petites Fermes” [Small Farm Development Program (SFDP)] du départment d'agriculture du Canada. Ces divers programmes ont des éléments uniques et représentent des manières alternatives d'aborder la question pour résourdre le Probleme du Développement Rural. Cependant, les modèles du processers du développement agricole qui permettent une analyse du choc potentiel de tels programmes sur la structure mobile de I'agriculture et les relations entre les secteurs agricoles et nonagricoles ne sont pas disponibles. Nous proposons, dans cette étude, un modèle dynamique et régional de I'agri-culture avec une liaison explicite entre les programmes de développement et I'economie regionale (comprenant les dimensions rurales et urbaines).     

REVIEWS

Book reviews in this article: KJELDAHL, R. and TRACY, M. (eds.) (1994). Renationalisation of the Common Agricultural Policy? Copenhagen TRACY, M. (ed.) (1994). East-West European Agricultural Trade: The Impact of Association Agreements. La Hutte (Genappe) MARCHANT, M. A. (1993). Political Economic Analysis of US Dairy Policies and European Community Dairy Policy Comparisons O'DONNELL, C. (1993). Commodity Price Stabilisation: An Empirical Analysis PHIMISTER, E. (1993). Savings and Investment in Farm Households: Analysis Using Life Cycle TIFFEN, M., MORTIMORE, M. AND GICHUKI, F. (1994). More People, Less Erosion. Environmental Recovery in Kenya POATE, C.D. and DAPLYN, P. F. (1993). Data for Agrarian Development. Wye Studies in Agricultural and Rural Development RUTTAN, V. W. (ed.) (1993). Why Food Aid? VAN ATTA, D. (ed.) (1993). The “Farmer Threat”: The Political Economy of Agrarian Reform in Post-Soviet Russia     

Factors Affecting Farmers’ Participation in Agri‐environmental Measures: A Northern Italian Perspective

Agri‐environmental measures play an important role in Italian rural areas, as shown by the financial commitment to the Rural Development programmes. However, in contrast with other European Union (EU) countries, policy‐makers still have limited experience on how farmers approach environmental incentive schemes. This paper casts new light on this issue from a northern Italian perspective. The rationale of the farmers’ decision‐making process is explored using two multinomial models. The first explains the probability of non‐participation or participation in one of three specific agri‐environmental measures. The model outcomes show that labour‐intensive farming types and high dependency of household income on farming activity constrain farmers’ participation, whereas previous experience, easy‐to‐implement environmentally friendly farm practices and adequate compensation of extra costs encourage participation. The second model explores the effect of farmers’ attitudes and beliefs on their predispositions towards participation in any of the schemes. The results highlight that, besides income factors, the farm's future in the business, and the relationship with neighbouring farmers and their opinions on environmentally friendly practices all have significant effects on adoption of agri‐environmental measures. The paper concludes by suggesting that farmers’ attitudes and beliefs, as well as the local behavioural influences, have to be taken into account when designing and communicating agri‐environmental measures.     

REVIEWS*

Book reviewed in this article: BURGER, K., DE GROOT, M., POST, J. and ZACHARIASSE, V. (eds.) (1991). Agricultural Economics and Policy: International Challenges for the Nineties: Essays in Honour of Prof. Jan de Veer HINTON, W. L. (1991). The European Market for Fruit and Vegetables JUSSAUME, R. A. JR. (1991). Japanese Part-Time Farming: Evolution and Impacts PORTER, D., BRYANT, A. and THOMPSON, G. (1991). Development in Practice POTTER, C., BURNHAM, P., EDWARDS, A., GASSON, R. and GREEN, B. (1991). The Diversion of Land: Conservation in a Period of Farming Contraction ROMERO, C. (1991). Handbook of Critical Issues in Goal Programming WINTER, L. A. and SAPSFORD, D. (eds.) (1991). Primary Commodity Prices: Economic Models and Policy ANSELL, D. J., GILES, A. K. and RENDELL, J. (1991). Very Small Farms: ‘A Distinctive Role?’ Special Studies in Agricultural Economics Report No. 16 ARKLETON TRUST (RESEARCH) LTD. (1991). Rural Change in Europe: Structural Policies and Multiple Job Holding in the Rural Development Process. Papers from the second review meeting at Braemar, 1989 BOWERS, J. (1990). Agriculture and Rural Land Use: Into the 1990s CRAMER, G. L. and JENSEN, C. W. (1991). Agricultural Economics and Agribusiness GREELEY, M. (1991). Postharvest Technologies: Implications for Food Policy Analysis. EDI Development Policy Case Series, Analytical Case Studies, Number 7 MINISTRY OF AGRICULTURE, FISHERIES AND FOOD. (1991). Fifty Years of the National Food Survey. 1940–1990 VAN OORT, G. M. R. A., VAN DEN BERG, L. M., GROENENDIJK, J. G. and KEMPERS, A. H. H. M. (eds.) (1991) TRACY, M. (ed.) (1991). Farmers and Politics in France WARREN, D. M. (1991). Using Indigenous Knowledge in Agricultural Development. World Bank Discussion Papers No. 127 WISE, T. E. (ed.) (1991). Agricultural and Food Research - Who Benefits? CAS Paper 23 YOUNG, M. D. (ed.) (1991). Towards Sustainable Agricultural Development     

The impact of collaboration on research about rural buildings and landscape: A case study in Italy

The importance of collaboration among peers in science is widely investigated: an essential issue is the relevance of credits shared among scholars for the good faith and cooperation in research projects. Despite its significance, so far in Italy the usefulness of collaboration in research activities is not taken in due consideration by both scientific community and research assessment bodies. In this study, the main aim is at investigating the actual up today extent of scientific collaboration among colleagues belonging to the Italian Scientific Disciplinary Sector (SDS) “AGR10 Rural buildings and agro-forest land planning”. We focus on research projects dealing with territory, landscape and rural buildings with the scope of raising consciousness on the key role of collaboration with other SDSs, international institutions or organizations. We harvested data through an on-line questionnaire about several research projects, scrutinized the responses, and found that the core area of current research developed by AGR10 colleagues includes topics concerning the analysis and planning of landscape. Furthermore, we found that the design of international project proposals attains mostly rural buildings and rural heritage analysis, reuse and enhancement, rural buildings and landscape integration, and rural buildings design. While the size of partnerships on international research activities is still limited, as for external synergies the SDS AGR01 ‘Agricultural Economics and Rural Appraisal’ is the most representative, and other SDSs involving ‘Ecology’ and ‘Informatics’ deserve to be mentioned. So, this study has been designed with the secondary aim of stimulating Italian -as well as other international- scientific communities in promoting similar investigations concerning the importance of collaboration and cross-fertilization for successful research activities. As a major output, official national or international research assessment authorities would be provided by a method for better appreciating the usefulness of collaboration and interdisciplinarity.     

A multicriteria model for the assessment of rural development plans in Greece

In the last decades rural communities face the problems of ageing of population, high share of elder farmers and imbalanced distribution of farmers across age classes. The Rural Development Plans (RDPs) of Common Agricultural Policy (CAP) in European Union (EU) are the policy instruments that affect agriculture and the people living in rural areas. The RDP measure “Setting up Young Farmers” aims to fight the demographic problems of these areas. This study is an attempt to highlight the role and the impacts of RDPs and especially of the “Setting up Young Farmers” measure in the prefecture of Thessaloniki in Greece. To this end, a multicriteria mathematical programming model was implemented. This methodology was chosen using the Knowledge Brokerage Approach in the context of the LIAISE project, which proposes a set of support modules that are linked to the impact assessment process with a final goal to support future policies and design. The results showed that the “Setting up young farmers” measure achieved its goals to transfer land to young, trained farmers, to offset the set-up costs faced by young people when establishing themselves in farming.     

Future Changes in British Agriculture: Projecting Divergent Farm Household Behaviour

The recent decline in farm incomes has focused attention on farmers' uneven propensity to adjust and adapt. Changes in farm policies are slowly redirecting the support paid to farmers in Europe, and further reforms are envisaged. This paper argues that farmers in Britain are likely to pursue highly diverse strategies in this changed context, according to their individual circumstances, values and attitudes. These groups (essentially ideal types) are derived both from in‐depth qualitative interviews and from a cluster analysis of variables relating to the farm and to the farm household's socialisation and attitudes. The paper seeks to draw out the implications of divergent farm household behaviour for future structural change, and for agricultural and rural policy. Opportunities are identified for the UK government to implement the EU Rural Development Regulation in ways that would suit the varied circumstances of British farmers in the postproductivist transition.     

The impact of farm credit in Pakistan

Both informal and formal loans matter in agriculture. However, formal lenders provide many more production loans than informal lenders, often at a cost (mostly loan default cost) higher than what they can recover. For example, the Agricultural Development Bank of Pakistan (ADBP), providing about 90% of formal loans in rural areas, incurs high loan default costs. Yet, like other governments, the Government of Pakistan supports the formal scheme on the grounds that lending to agriculture is a high risk activity because of covariate risk. Hence, such policies are often based on a market failure argument. As farm credit schemes are subsidised, policy makers must know if these schemes are worth supporting. Using a recent large household survey data from rural Pakistan (Rural Financial Market Studies or RFMS), we have attempted to estimate the effectiveness of the ADBP as a credit delivery institution. A two‐stage method that takes the endogeneity of borrowing into account is used to estimate credit impact. Results reveal that ADBP contributes to household welfare and that its impact is higher for smallholders than for large holders. Nevertheless, large holders receive the bulk of ADBP finance. The ADBP is, thus, not a cost‐effective institution in delivering rural finance. Its cost‐effectiveness can be improved by reducing its loan default cost and partially by targeting smallholders in agriculture where credit yields better results.     

Investing in Bulgarian Agriculture Investir dans l’agriculture bulgare Investitionen in die bulgarische Landwirtschaft

Investing in Bulgarian Agriculture The Programme for European Development of Bulgaria has set agricultural development as a basis for economic growth. The first strategic objective of the Programme is to make agriculture an attractive industry and to guarantee a high standard of living for people working in the sector by stabilising and increasing their incomes. The priorities of the Bulgarian government regarding agriculture follow the priorities of the Common Agricultural Policy (CAP) and we strictly adhere to the two pillars of the CAP. A Food Safety Agency is being established to guarantee the safety and increase the quality of food and a legislative base is being created to allow producers to supply directly to consumers thus enhancing market opportunities. Bulgaria is in the middle of the first programming period of the Rural Development Programme (2007–2013) and expectations of the programme are high. It has the largest budget in Bulgaria and the fund absorption rate of about 20 per cent is the highest in the country. Bulgarian government priorities are consistently focused on the goal of increasing the competitiveness of Bulgarian agriculture through technical and technological modernization of the sector and on the sustainable development and stabilization of rural areas under the conditions of EU membership.     

Agri‐environmental Instruments for an Integrated Rural Policy: An Economic Analysis

The new Rural Development Regulation of the EU reflects the shift of attention within rural areas from agricultural production towards rural development and embraces both farmers and non‐farm residents. While agricultural production is required to comply with environmental standards, rural areas also have to fulfil the growing demand for landscape, outdoor recreation and wildlife conservation. This paper develops a model of a rural area where farmers and non‐farm residents live together. A central government uses a combination of two‐policy instruments ‐ direct compensation payments and public services ‐ aimed at encouraging farmers to adopt environmentally beneficial practices and at the same time to increase the provision of countryside amenities and the sustained vitality of the rural area. The optimal mix of the policy instruments is evaluated under various governmental objectives. The analysis suggests that a combination of direct payments to farmers with the supply of local public services is a promising tool for rural policy development initiatives in the EU.