European Agricultural Fund

Apart from structural and cohesion funds, there are two separate European agricultural funds that finance agricultural policy and investments in conservation and rural development in Europe.

European Agricultural Guarantee Fund (EAGF)

This fund finances market activities in connection with agricultural production, direct payments to farmers, information campaigns, specific veterinary measures, etc.

European Agricultural Fund for Rural Development (EAFRD)

This fund finances the national programs of member states for rural development. This is a fund that subsidizes investments in agriculture, processing and forest industries. In rural communities, the fund supports projects to improve infrastructure, to start small business, rural tourism and other alternative activities. The total amount of EAFRD funds for the period 2007-2013 amount to 3242 million EUR. National co-financing is 20%. EAFRD funds may be utilized by applying for:

Rural Development Programme (RDP) 2007-2013

Rural Development Programme (RDP) is the successor to the SAPARD program. The majority of existing measures under SAPARD will continue to apply with a slight change in conditions. The program subsidizes investments in agriculture, manufacturing, forestry, such as the purchase of agricultural farm machinery, modern production equipment, technological lines, machines, construction of warehouses, water treatment plants, creation of animal farms, orchards, greenhouses, vineyards, etc. Projects that will be supported in rural communities include of infrastructure construction, road repair, street paving, plumbing, starting a small business, rural tourism and other alternative activities. The program detached four priority axes corresponding to the main support areas:

Axis 1: Improving competitiveness of agriculture and forestry sectors;

The axis includes measures for agricultural producers (Measure 121), and companies in the food and processing industries, and forestry sector (Measure 123), etc;

Axis 2: Improving the environment and the countryside (land management);

Some measures under this axis specify particular areas of the country and are associated with compensatory payments. Funding is provided for organic farming, afforestation and other environmental activities;

Axis 3: Quality of life in rural areas and diversification of the rural economy;

The third axis includes areas of rural municipalities. It will finance infrastructure projects, the development of rural, cultural and ecological tourism, and the startup of small family businesses (Measure 311, 312).

Axis 4: The Leader initiative;

This axis will develop projects for regional development of local communities - local action groups. It includes areas of rural municipalities.