Instrument

Description

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Instrument

Subsidy for investments in non-agricultural sectors

Description

Financial subsidies are provided to encourage new crafts, service and industrial enterprises to settle in rural areas, bringing alternative employment opportunities to farm workers or family members. Land or facilities on existing farms can also be used (depots, temporary storage, workshops, etc.). Thereby future prospects in rural areas for the next generation shall be created, purchasing power shall be boosted and long-term improvement in economic development shall be achieved.

Rural structural policy with targeted investment subsidies plays a key role in bringing about socially acceptable structural change. It opens up entrepreneurial opportunities outside agriculture for the younger generation.

Requirements

  • A properly functioning country-wide administration and monitoring system with access to the relevant information and sufficient technical and human capacities for its design, implementation and monitoring
  • Clear and coherent political strategy and targets for policy-makers and public authorities
  • Clear responsibilities in public authorities
  • Purchasing power and market demand in a growing rural economy
  • Regulated and legally protected payment structures
  • Transport, communication and energy infrastructure

Possible Negative Effects

  • The new economic activities could divert land and resources away from the agricultural sector
  • Seasonal labour shortages
  • Rising wage costs
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This page was last edited on 25 October 2019 | 13:44 (CEST)
Implementation Level
  • On Site
  • Competent Authority
  • National Government
Required Budget
high ($$$)
Impact Horizon
  • medium
  • long
Administrative Complexity
medium
Ministries Involved
  • Agriculture, Fisheries & Forests
  • Trade, Industry & Economic Development
  • Finance
Trade Impact
not distorting
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