Instrument

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Instrument

Subsidy for providing non-agricultural services

Description

Farms receive subsidies for services they provide in non-agricultural areas of the economy, such as tourism, the preservation of protected areas, road building, energy, social services and facilities for the elderly and enterprises for the disabled. These subsidies may strengthen local economic structures and support structural change and revive local economies by incorporating farms into local economic cycles. Productive use can be made of the human and technical resources available on the farms, including at quieter time, securing additional sources of income and reducing the burden on municipalities.

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
  • Close cooperation and knowledge sharing with farmers' organisations
  • Ownership and initiative on behalf of the local population
  • Regulated and legally protected payment structures
  • Respect for cultural landscape and traditions
  • Technical resources and machinery on the farms involved

Possible Negative Effects

  • Lack of transparency in awarding grants and problems with non-performance of contracts
  • Reliability of contract performance by contractors could be jeopardised if agricultural work or operational duties have to take priority
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This page was last edited on 24 October 2019 | 12:54 (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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