The programme is worth E33.6 million, from which the EU finances E26.9 million for the period 2004-2006. The remaining contribution will come from Malta.
The plan aims to tackle specific handicaps Maltese agriculture is facing due to its geophysical status and to ensure that the agriculture sector does not only provide fresh and quality produce, but also enhances conservation of Malta’s unique rural landscape.
By specific appropriate measures the plan should ensure a smooth transition from protected agriculture (based on high import levies), to a modern agriculture which will be able to compete and trade within an integrated European market. The European Commission will formally adopt the plan in the coming weeks.
EU agriculture, rural development and fisheries commissioner Franz Fischler said: “This rural development plan will help Maltese farmers to integrate agriculture and the environment as an essential element for the evolving tourism sector and to meet EU quality standards. The future strategy for Maltese farmers is to build a new and direct relationship with the consumers, through a high quality supply and to widen their horizons by opting for alternative crops and export”.
The main elements of the plan:
1) Producer groups: The main objectives for this measure are to remedy the structural deficiencies affecting supply and marketing of agricultural products, to protect and increase market share and to provide producers with market data and new marketing activities.
To tackle the specific situation in Malta, this measure has been divided between normal sectors, which should apply general rules, and sectors experiencing a small output, for which minimum aid levels were established.
2) Agri-environment: This measure is the sole compulsory measure for implementation and it has been divided into sub-measures, including reduction of the incidence of soil erosion, increasing bio-diversity, enhancing local indigenous species and promoting “organic farming” as a new alternative type of cropping.
3) Less-favoured areas: The entire territory of the Maltese Islands will be considered as a “less-favoured area” (LFA). This means the agricultural sector in Malta and Gozo will automatically qualify for additional EU support.
4) Ad-hoc or full-time farmers measure: Another specific case for Malta is the “ad-hoc” proposed measure to help full-time farmers address the gaps in farm income and cash flow during the period following accession when Maltese farmers must restructure their business in terms of technology, management and husbandry systems
5) Complements to state-aid: To enable farmers and food processors to gradually implement the Common Agriculture Policy measures, Malta requested the adoption of a Special Market Policy Programme for Maltese Agriculture (SMPPMA) which entails the removal of levies and their replacement with direct income support for farmers and restructuring assistance for the processing industry.
6) Meeting standards: The objective of this measure is to provide support to help farmers to adapt to the standards based on EU legislation in the fields of the environment, public health, animal welfare and occupational safety.
7) Technical assistance: The aim of this measure is to build and reinforce the institution building and administrative capacity of the national, regional and local level institutions which are responsible for formulating and implementing the plan.