Ministry for Regional Development . Ministry of Agriculture
Agriculture and Rural Development Plan
of the Czech Republic
2000-2006
SAPARD Plan
Table of Contents
1. Rural Development Context …6
1.1 General Description...... 6
1.1.1. Area, Population and Natural Conditions...... 6
1.1.2. Administrative System and the Structure of Settlement, Non-govermental organizations,
Statistics...... 7
1.1.3. Demographic Trends and Human Resources...... 10
1.1.4. Settlements, Amenities, Infrastructure...... 16
1.1.5. Cultural and Natural Heritage...... 20
1.1.6. Rural Tourism, Diversity of Activities...... 22
1.1.7. Agriculture...... 24
1.1.8. Diversity of Regions in the Czech Republic...... 47
1.1.9. Education and Extension...... 53
1.1.10. Macroeconomic Conditions, Unemployment...... 54
1.2. Comparison with the European Union57
1.2.1. Basic Infrastructure...... 57
1.2.2. Human Resources...... 57
1.2.3. Production Sector...... 58
1.2.4. Natural Resources...... 59
1.3. Strengths and Weaknesses60
1.3.1. Strengths and Weaknesses of Agriculture and Rural Development………………. ….60
1.3.3. Environment – Limits, Opportunities and Trends...... 64
1.4. Overview and Brief Assessment of Previous Activities69
1.4.1. Previous Operations Undertaken with Community Assistance...... 69
1.4.2. Previous Operations Undertaken without Community Assistance...... 74
2. The SAPARD Plan83
2.1. General Objectives of the SAPARD Plan83
2.2. Geographical Scope84
2.2.1. Local Associations of Municipalities and Towns of Rural Microregions...... 84
2.2.2. Development Strategy of a Local Association of Municipalities and Towns...... 85
2.3. Strategy Proposed for the SAPARD Plan85
2.4. Phare, SAPARD, ISPA93
2.5. Preliminary Assessment of the Agriculture and Rural Development Plan of the Czech Republic
for the Period 2000-200696
3. Strategy and Priorities for SAPARD Assistance100
3.1. Agriculture and Rural Development Strategy100
3.2. The Priorities of the Sapard Plan...... ……… …………...... 101
4. Eligible measures……………………………………………………………………..…103
4.1. General Aspects103
4.2. Measure 1.1 Investments in agricultural holdings106
4.3. Measure 1.2 Improving the processing and marketing of agricultural and fishery products116
4.4. Measure 1.3 Improving the structures for quality control, for the quality of foodstuffs
and for consumer protection122
4.5. Measure 1.4 Land improvement and reparcelling129
4.6. Measure 2.1 Renovation and development of villages and rural infrastructure137
4.7. Measure 2.2. Development and diversification of economic activities, providing for multiple
activities and alternative income … ……… ………………………….. …………146
4.8. Measure 2.3. Agricultural production methods designed to protect the environment and
maintain the countryside ……………………………………………… …………153
4.9. Measure 3.1 Improvement of vocational training166
4.10. Measure 3.2 Technical assistance171
5. NATIONAL AND EU LEGISLATION APPLICABLE 174
5.1. Basic Legal Framework174
5.2. Basic National Legislation174
5.3. Basic EU Regulations174
5.4. Conformity with EU Policies174
5.4.1. Fair Competition Rules...... 174
5.4.2. Environmental Impact Assessment...... 176
5.4.3. Supporting Equal Opportunities for All Individuals...... 176
6.ELIGIBILITY EXPENDITURE FOR COMMUNITY FUNDING 177
6.1. The Eligibility Criteria...... 177
6.2. Scoring Procedure… ………………………………………………………………………..178
6.2.1. Measure Specific Criteria for Assessment (scoring criteria)179
Measure 1.1. Investments in agricultural holdings180
Measure 1.2. Improving the processing and marketing of agricultural and fishery
products183
Measure 1.3. Improving the structures for quality controls, for the quality of
foodstuffsand for consumer protection185
Measure 1.4. Land improvement and reparcelling187
Measure 2.1 Renovation and development of villages and rural infrastructure188
Measure 2.2 Development and diversification of economic activities, providing for
multiple activities and alternative income………… ……………………… …..190
Measure 3.1 Improvement of vocational training191
7. FINANCIAL PLAN, AID RATES AND RATE OF COMMUNITY CONTRIBUTION192
7.1. Financial Plan192
7.2. Aid Rates……………………………………………………………………………… . 193
7.3. Rate of Community Contribution………………………………………………………..193
7.4. Co - financing ……………………………………………………………………..…….. 193
8. ADMINISTRATION AND IMPLEMENTATION CONDITIONS…………………………..194
8.1. Institutional Organisation of the SAPARD Programme…………………………....……194
8.1.1. National Fund………………………………………………………………………………....194
8.1.2. The SAPARD Agency…………………………………………………………………….....194
8.1.3. The Implementation Task of the SAPARD Agency...... 194
8.1.4. Payment Functions of the SAPARD Agency...... 195
8.1.5. Internal Audit………………………………………………………………… ……………195
8.1.6. Selection Committees...... 195
8.1.7. Monitoring Committees...... 196
8.1.8. Managing Authority...... 196
8.1.9. Other Co-operating Ministries...... 196
8.2.Measure to secure financing of aid…………………..………………………….196
8.2.1. Allocation from National sources...... 196
8.2.2. The Process of SAPARD Programme Implementation / Administration...... 197
8.2.3. Payment Administration...... 197
8.2.4. Administration of the SAPARD Programme...... 198
8.2.5. Definition of final beneficiaries...... 199
8.2.6. Selection Procedure...... 199
8.2.7. Monitoring Procedure...... 199
8.2.8. Use of EUR, Exchange Rates and Method of Indexation...... 200
8.2.9. Control, Prevention and Exposure of Illegal Activities...... 200
8.2.10. Resolving Unauthorised Payments...... 200
8.2.11 Aid Termination Procedure…...... 200
8.3. Paying Agency … ...... 200
8.4. Coordination among the National Development Plan, Phare, SAPARD and ISPA….....200
9. MONITORING AND EVALUATION OF THE SAPARD PROGRAMME..202
9.1. Monitoring ...... 202
9.1.1. Regional SAPARD monitoring sub-committees...... 202
9.1.2. National SAPARD monitoring committee...... 202
9.1.3. Scope of activities …...... 202
9.2. Evaluation...... 203
9.3. Extension for SAPARD...... 203
9.3.1. Extension, Project Preparation...... 203
9.3.2. Dissemination of informaton on SAPARD...... 204
9.3.3. Procedure for the Ammendment fo the Programme...... 204
FINANCIAL TABLES 205
SUPPLEMENT……………………………………………………………………………… ….221
Agriculture and Rural Development Plan
of the Czech Republic
2000-2006
SAPARD Plan
The Government of the CzechRepublic has prepared and hereby submits the Agriculture and Rural Development Plan of the Czech Republic for the period 2000-2006, which concerns the European Union’s Special Accession Programme for Agriculture and Rural Development – the SAPARD Programme – pursuant to Council Regulation (EC) 1268/1999 of 21 June 1999 and related regulations.
The responsibility for the preparation and implementation of the Plan is shared by the Ministry for Regional Development and the Ministry of Agriculture.
This planning document is designed to present the parts and features of rural development, which predetermine the objectives and measures for the implementation of this Regulation (1268) in the CzechRepublic, in accordance with the objectives of the European Union’s rural development policy and the objectives of the CzechRepublic. Additionally, it is to enable support and co-operation in the framework of the SAPARD Programme together with the adoption and introduction of appropriate standards of the European Union.
This SAPARD Plan is based on the National Programme for the Preparation for Membership of the European Union; the sectoral part of the National Development Plan of the Czech Republic entitled “Rural Development and Multifunctional Agriculture”; the Concept of Rural Development Policy; the Concept of the Sectoral Policy of the Ministry of Agriculture for the Period before Accession to the European Union; the Agriculture Implementation Strategy ; the Concept of Environmental Policy; and the Position Papers for Chapter 7 – Agriculture, and Chapter 21 – Regional Policy and Co-ordination of Structural Instruments. The measures of assistance are in compliance with the obligations laid down in Council Regulation (EC) 1268/1999 on support for pre-accession measures for agriculture and rural development in the applicant countries of Central and Eastern Europe in the pre-accession period, the Accession Partnership and also correspond with the National Programme for the Adoption of the Acquis communautaire. The measures are linked to the provisions of the Treaty on the European Union, including the implementing regulations concerning aid to states, and also to the objectives of the Common Agricultural Policy (CAP), in particular in the area of the common market and structural measures.
The SAPARD Plan has been prepared in collaboration with European Commission experts, the Government of the CzechRepublic, governmental and non-governmental organisations and participating economic and social partners.
After the SAPARD Plan is adopted by the European Commission, it will become an effective political and implementing programme, which will allow the financial instrument of the SAPARD Programme to be used in the Czech Republic. The Programme will be implemented through individual measures and will be co-financed from the state budget of the CzechRepublic.
When drawing up this Plan, the data of the Czech Statistical Office (CSO) and appropriate Ministries were employed and the structure recommended in the Aide Memoire was used. Financial figures quoted use the exchange rate of CZK 36 / EUR 1.
1. Rural Development Context
1.1. General Description
1.1.1. Area, Population and Natural Conditions
The CzechRepublic (“CR”) is a landlocked country with a total area of 78,866 square kilometers (km²). The total number of inhabitants is 10,299,125 and the population density is 131 inhabitants per km². The population density is 16 inhabitants per km² higher than the European average. Using EU criteria 92.3 % of the territory can be designated as rural. There are 2,988,550 inhabitants living in villages, i.e. 29 %. Of the total population, 75.9 % live in rural regions, which is 46.1 % more than the EU average . This is caused primarily by a relatively high number of small municipalities as well as the post-war displacement of one third of the population.
The main European watershed runs through the CzechRepublic. The catchment areas of the North, Baltic and BlackSeas are separated at Kralický Sněžník, which lies 1,423 m above sea level and is thus the watershed junction for the three seas. Significant rivers include the Labe (370km in length) and the Vltava (433km) in Bohemia; the Morava (246km)and the Dyje (306km) in Moravia; and the Odra (135km) and the Opava (131km) in northern Moravia and Silesia.
Natural conditions for agriculture correspond with the European average; the soil is fertile and the climate is moderate, benefiting from a mutual penetration and mixing of oceanic and continental effects, which is relatively abundant in precipitation. In some areas, however, topography and elevation are a cause of less favoured conditions. Of the total territory of the Czech Republic, 52,817 km² (66.13 %) are below 500 m in elevation (above sea level), 26,222 km² (32.83 %) between 500 m and 1,000 m andonly 827 km² (1.05%) are above 1,000 m. The average elevation of the CzechRepublic is 430 m. The total agricultural area of 4,284,000 hectares (ha) accounts for 54% of the totalCzech territory, i.e. there are 41.5 ha/100 inhabitants which is slightly lower than the EU average (45 ha/100 inhabitants).
Table 1:Area, population & population density in the NUTS II regions of the CR and the EU
Source: EUROSTAT 1997; Terplán 1999
*) Significantly rural NUTS II regions - with 15 - 50 % of settlements with less than 100 inhabitants per km²
1.1.2. Administrative System and the Structure of Settlement, Non-governmental organisations, Statistics
The CzechRepublic came into existence on 1 January 1993. Recently, the CzechRepublic has undergone a period of fundamental change from a totalitarian regime to a democracy with a market economy. These changes have been associated with privatisation and restructuring of the economy and with an extensive transformation of public administration. The territory is classified into so called NUTS I – NUTS V regions.
CR / NUTS I / 1Regions (region) / NUTS II / 8
Counties (kraj) / NUTS III / 14
Districts (okres) / NUTS IV / 77
Municipalities (obec) / NUTS V / 6,244
Two levels of higher administrative units are being formed (NUTS III counties and NUTS II regions). Districts (NUTS IV) tackle the problems that are beyond the capacity of individual municipalities (NUTS V). In rural areas, new rural micro-regions have emerged through a voluntary association of villages to cope with their common problems.
A municipality is the basic administrative unit, with further distinctions between cities/towns, villages and military domains. A further classification is within big cities, which are divided among city districts.
Table 2: Types of settlement and numbers of inhabitants
Type / Number / No of inhabitantsAverage / Total
Village*) / 5,734 / 521.2 / 2,988,550
Town / 491 / 8,858.7 / 4,349,605
Statutory city II / 6 / 87,992.5 / 527,955
Statutory city I / 7 / 175,750.7 / 1,230,255
Capital city / 1 / 1,200,455.0 / 1,200,455
Capital city / 5 / 461.0 / 2,305
Total / 6,244 / 1,649.4 / 10,299,125
Source: MRD, 1999
*) Rural settlements with less than 100 inhabitants per km².
The capital city of Prague (with one tenth of the country’s population) is undoubtedly the social, cultural and economic centre also attracting also the bulk of tourism. The group of statutory cities encompasses county capitals and the most important spa towns. Prague and Ostrava with associated municipalities are parts of urban regions. The rest of the territory is rural or significantly rural.
Most towns fall within the group of small- and medium-sized towns whose populations range between 2,000 and 50,000 and are located in rural areas. Rural areas encompass 4,995 municipalities, i.e. 80% of the total 6,244 municipalities in the Czech Republic. The large number of municipalities is a typical feature of the Czech Republic.
Non-governmental Organisations Important for Rural Areas and Agriculture
The Agrarian Chamber of the Czech Republic (“AC CR”) was established through a resolution of the founding assembly on 4 September 1993, based on Act No. 301/1992 Coll. Membership in the Agrarian Chamber is voluntary, and encompasses 71 district agrarian chambers and 59 professional organisations, which include approximately 77,000 physical entities and 7,600 legal entities.
The Chamber, similarly as the individual district agrarian chambers, is a legal entity entered in the Commercial Register . The Chamber’s mission is to support the business activities of its members, to promote and protect their interests and to cater for their needs. The Chamber’s President is a member of the Economic Council of the Czech Republic, the Advisory Board of the Minister of Agriculture and the National Co-ordination Group for Regional Development at the Ministry for Regional Development. In co-operation with the Ministry of Agriculture, common commodity committees have been established to discuss the market situation in individual basic products and produce recommendations. The Chamber is also involved in the establishment of farmers’ marketing organisations.
The Association of Agricultural Co-operatives and Enterprises is a countryside non-government organization of legal entities. Its membership includes 1,110 member organisations that farm approximately 1.5 million ha of agricultural land. The Association‘s main mission is to protect the interest of its members and to provide them with an extension service in economic, business and commercial areas.
The Private Farming Association emerged in May 1998 as an organisation independent of the Agrarian Chamber with the objective of associating the then existing individual organisations of private farmers in the Czech Republic. It is an association of legal entities. The founding organisations are the Association of Private Farmers and the Farming Section of the Union of Entrepreneurs.
The Association of Landowners and Private Farmers in the Czech Republic was established in 1990 to represent one of the segments of Czech farming and the rural population. The main objective was to assist in the establishment and strengthening of private holdings with responsible and competitive owners. The Association was instrumental in pushing through the legal and moral principles of the restitutions in kind for several thousand owners in all transformation stages.
In addition to the main objective of supporting a stable business environment for farming enterprises, the Association emphasises the link with rural development, the need to preserve the countryside and follow environmentally friendly procedures in farming.
The Association for Rural Renewal was established in 1993 as an association of legal and natural persons – villages, residents, enterprises and experts. Its objective is to exchange experience with rural renewal, to solve common problems in rural areas, to stimulate social life in rural areas, participation in the implementation of development concepts and to disseminate information. The Association organises an annual ‘Village of the Year’ contest, the winner of which is then delegated to compete at the European level.
The Association of Historical Settlements of Bohemia, Moravia and Silesia was established in 1991 as an association of legal persons, mostly municipalities and enterprises.
The common interest of the association is the conservation and restoration of cultural heritage and its presentation and promotion. The Association takes part in the inter-ministerial ‘Programme for the Regeneration of Protected Urban Heritage Districts’. It organises an annual contest for the ‘Historical Town of the Year’. The Association is the main organiser of the Council of Europe’s ‘European Heritage Days’ and of the campaign ‘Europe – Common Cultural Heritage’, the objective of which is to make use of the cultural potential of individual regions for social and economic development.
Agricultural and Rural Statistics
Agricultural and rural statistical information comes from the following sources:
- state statistical service
- sectoral information surveys
- statistical information provided by non-governmental organisations.
State Statistical Service
The state statistical service is governed by Act No. 89/1995 on the state statistical service. The state statistical service is carried out by the Czech Statistical Office, which collects data for the bodies of state and regional administration in particular. Statistical surveys are organised as exhaustive or on a sample basis. Every year, the Czech Statistical Office publishes the scope of the exhaustive and sample surveys in the Statistical Bulletin. Collection of statistical data is carried out by their offices at the regional and district levels. The scope of the surveys on physical entities is precisely legislated for.
Table 3: Basic list of statistical information on agriculture and forestry
Type of information / Territory, for which the data is available / PeriodicityGross agricultural output in theCR, basic accounting indicators in the balance sheet, income statement, cash flow / CR / annual
Final figures on crop harvest in the CR (by districts for selected crops only) / CR, regions[1] , districts[2] / annual
Long-term time series on crop production in the CR / CR / annual
Livestock census as of 1 March 1999, (by districts) / CR, regions , districts / annual
Census of sowing areas in the CR as of 31 May 1999 / CR, regions / annual
Census of sowing areas by regions and districts as of 31 May 1999 / CR, regions , districts / annual
Census of sowing areas and yield forecast for cereals, oilseed rape and early potatoes / CR, regions / annual
Results of cattle, pig and poultry production / CR, regions / quarterly
Sales of crop products / CR, regions / quarterly
Farming enterprises: Selected economic indicators / CR, regions / quarterly
Employment and sales in agriculture / CR, regions / monthly
Operational yield forecast – July 1999 / CR, regions , districts / monthly
Operational yield forecast – August 1999 / CR, regions / monthly
Operational yield forecast – September 1999 / CR, regions , districts / monthly
Operational yield forecast – October / CR, regions , districts / monthly
Mechanisation equipment in agriculture as of 1 February 1999 / CR, regions / annual
Estimates of cereal production in the EU countries in comparison with the CR, 1998/1997 / CR / annual
Price indices of deliveries and services to agriculture / CR / quarterly
Farmgate price indices by commodities / CR, regions , districts / monthly
Forestry and game management / CR, regions / annual
Price indices in forestry (raw timber) / CR, regions / monthly
Import and export of selected foodstuffs / CR / monthly
Source: CSO
Sectoral Surveys
The information provided by the state statistical service is supplemented by extensive surveys. In the sector administered by the Ministry of Agriculture, the following information is processed:
-monthly, quarterly and annual results of livestock performance testing;
-monthly information on the sources and use of cereals, meat, milk, poultry and meat products;