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Support to generational renewal

Rationale

Young people play a vital role in shaping the future of agriculture and rural areas in the EU. However, the aging farmer population presents a significant challenge, as the proportion of in 2005, 7.3 % of EU farm managers under the age of 35 years old (a ceiling taken in order to enable comparisons) declined from 7.3% in 2005 to 6.5% in 2020. To address these issues, a comprehensive approach is needed, particularly in tackling the knowledge divide across different regions. Generational renewal goes beyond merely reducing the average age of farmers; it also involves understanding the needs and aspirations of rural youth and creating an environment that fosters attachment to rural areas. Achieving this requires not only encouraging participation in diverse networks and communities, empowering the next generation to adapt to challenges and seize new opportunities, but also addressing significant barriers, such as access to land and capital, that hinder young people from entering the farming sector.

In previous programming periods, CAP generational-renewal measures improved farm business performance, resilience, and secure transfers between generations. However, these measures emphasized enhancing the socio-economic sustainability of businesses after young farmers established their operations, rather than facilitating farm succession, and were less effective for off-family farm transfers.

The CAP 2023-2027 establishes a strengthened and more comprehensive support framework for young farmers, promoting employment, growth, and local development to attract young people to rural areas, improve working and living conditions, and reduce the exodus of rural youth.

Interventions for young farmers include:

  • Direct Payments: EU countries must allocate at least 3% of their direct payments budget to support young farmers. This support can take the form of income support, investment assistance, or start-up aid. Additionally, EU countries can establish Complementary Income Support for Young Farmers (CISYF), which offers enhanced income support to newly established young farmers eligible for basic income support.
  • Rural Development: (i) Support for the installation of young farmers, new farmers, and rural business start-ups; (ii) Cooperation schemes in the context of farm succession.

Beyond CAP funding, EU countries are also required to assess how national policies—such as tax relief schemes, farmers' pension programs, loan initiatives, and regulations on land leasing, purchasing, and inheritance—interact with CAP interventions. This ensures that national and CAP measures are aligned and mutually reinforcing, creating a cohesive framework that effectively addresses the needs of young farmers.

Box 1: Young farmer definition

The Regulation (EU) 2021/2115 on CAP Strategic Plans sets the minimum necessary common elements defining the criteria to qualify as “young farmer” at EU level. This definition includes the requirements for all relevant interventions under income support and rural development. This ensures consistency when EU countries address the objective of generational renewal in their CAP Strategic Plans.

Firstly, a young farmer must be a “farmer” as per the definition stipulated in Article 3(1) to Regulation (EU) 2021/2115. EU countries must take into consideration the following mandatory elements when drawing up their definition of a young famer as stipulated in Article 4(6) to Regulation (EU) 2021/2115:

  • A young farmer can be maximum 35-40 years old (EU countries are to set the exact upper age limit).
  • A young farmer must be a 'head of the holding' (i.e. must have an effective control over the holding, and EU countries must detail the specifications).
  • A young farmer must have appropriate training and/or skills (EU countries must detail the
    specifications).

How can the strengthening AKIS strategies contribute to achieving generational renewal?

Agricultural Knowledge and Innovation Systems (AKIS) play a crucial role in modernizing the agricultural sector while contributing to generational renewal in agriculture.

AKIS interventions should be seen as a body of accompanying measures providing comprehensive support for young farmers. These measures range from building proper technical and entrepreneurial skills to enhancing functional and innovative capacities that boost not only the competitiveness of the agricultural sector but also drive its ecological transition. Furthermore, these interventions should facilitate young farmers' integration into a system of qualified relationships and horizontal networks among economic, territorial, and sectoral actors, fostering potential collaborations for entrepreneurial and territorial value chains.

Among the others some effective interventions might be the followings (list not exhaustive):

Generational renewal projects

These include project plan for installation of young farmers that must include other forms of support, by:

  • Combining support for installation of your farmers with mentorship by older/experienced farmers and support for early retirement.
  • Combining the support for installation of young farmers with training on global management and an advisory programme of 3 years.
  • Combining the support for installation of young farmers with vouchers for the use of substitution services.

Cooperation for innovation

  • Encourage the adhesion of young farmers in Operational Groups.
  • Promote the installation of start-ups.

Training, discussion groups, peer-to-peer reviews, cross-visits and other forms of knowledge sharing

  • Training programmes that engage young farmers in networks, discussion, groups, and other interactive peer-to-peer learning and networking experiences, by including more experienced farmers.
  • Exchange programmes for young farmers.
  • Study visits and participation to seminars and demofarms events.
  • Mentorship and Knowledge Transfer: Advisory services foster mentorship relationships between experienced farmers and younger generations, facilitating the transfer of valuable insights, best practices, and local knowledge.
  • Training on business farm management, marketing, sustainable farming practices, technology in agriculture, Crop and Livestock Management, soil and water management, Regulatory Compliance, and other key topics.
  • Training on accessing CAP funding, grants, and incentives for sustainable practices and public goods.

Advisory and innovation support services:

  • Specific advisory programs and tools for young farmers.
  • Vouchers Coaching/Tutoring services.

Information access and sharing:

  • Information on databases and platforms to match demand and offer of farms and of lands.

First insights from practices

The practices presented in this "Compendium" showcase three different and interesting approaches that leverage effectively the potential of AKIS interventions to support generational renewal in agriculture.

The case of the call for EIP-OGs set up by young farmers (IE) is clearly designed to provide a unique opportunity for young farmers to engage in collaborative innovation pathways that specifically address key issues related to their installation on farms, such as succession, skills development, and access to land and capital. This initiative also fosters new relational dynamics with other actors and peers, helping to build an important social network.

The case of the intergenerational knowledge transfer intervention (SE) is well designed to ensure the transfer of knowledge between generations and facilitate apprenticeships for young farmers. This is based on a structured mentorship program that is supported alongside contributions to their establishment on farms.

The last case (ES) involves the provision of a comprehensive training program that, through a mix of methods (e.g., study visits, seminars, workshops) and mentorship support, ensures thorough capacity building for young farmers.

Food for thinking

Questions for opening the discussion and reflect on how to better direct AKIS interventions towards a skills development of young farmers, new entrants in agriculture and start-ups are:

Delivery:

  • How to better organize coordination of national educational policies and schemes with CAP training?
  • How to structure a call for Generational renewal projects applications?

SWOT & Needs Assessment:

  • What specific skills do young farmers and new entrants feel are most critical for their success in today's agricultural landscape?

Training and Capacity Building

  • How to establish (and advertise) a catalogue of relevant training courses, Mentorship programs, for a smooth access by potential users?
  • How to facilitate the access study visits?

Monitoring and Evaluation

  • How to structure and advertise a repository of demand and offer of farms/lands?

Advisory and innovation support services:

  • How to facilitate the access to specialized high quality advisory programs, coaching/tutoring services for young farmers?

How to follow-up with the results of collection of akis-in-practice!

  • The collection of "AKIS-in-Practice" must be expanded through continuous dialogue with partners to provide a broader scope of the different approaches that can contribute to achieving CAP specific objectives relating to generational renewal.
  • Workshops, informative and capacity building sessions within the CoPs can be used to share and discuss on the effectiveness of approaches already put in practice and practical implications. These events might be directed to co-develop/adapt possibly innovative combinations of AKIS interventions with the CAP and national support to young farmers.
  • Workshops on the EU research and innovation projects focusing on the specific topics to share knowledge and to put in use already delivered practical advisory/monitoring tools and guiding documents (e.g. policy briefs, interventions schemes, digital tools). Among the others, for example, some relevant projects are: Ruralization, COCOREADO, and other projects.

Further sources of information