European Agriculture Fund for Rural Development

Period: 2007-2013

Budget: EUR 96 billion

European Agriculture Fund for Rural Development (EAFRD) is one of the two instruments financing the Common Agricultural Policy (CAP) It will finance actions in the field of rural development in the Member States in line with the rural development plans submitted by each country.

The main objectives of EAFRD are:

• Improvement of the competitiveness of agriculture and forestry by supporting reconstruction, development and innovation,

• Improvement of the environment and the countryside by supporting land management,

• Improvement of the quality of life in rural areas and encouraging the diversification of economic activities.

EAFRD comprises four axes:

Axis 1 – Competitiveness
Measures aimed at promoting knowledge and improving human potential, and restructuring and developing physical potential and promoting innovation

Axis 2 – Land management
Measures aiming to improve the environment and the countryside including measures targeting the sustainable use of agricultural and forestry lands. Payment for Natura 2000 is included in this axis

Axis 3 – Wider rural development
Actions aiming to improve the quality of life in rural areas and the diversification of the rural economy

Axis 4 – Leader axis
The Leader approach is a bottom-up approach aiming to build local capacity for employment and diversification of the rural economy. It has a multi-sector design and the implementation of the strategy is based on the interaction between actors from different sectors of the local economy. Local action groups (LAGs) implement the local development strategy.

Of these, the Leader axis will contribute to the priorities of the other axes and will also play an important role for improving governance and mobilising the endogenous development potential of rural areas.

Eligible areas for funding under EARDF are all rural areas for the first three axes, and only selected territories under the Leader axis.

More information: DG Agriculture and Rural development

Council regulation (EC) No 1290/2005 on financing the CAP PDF

Council regulation (EC) No 1698/2005 on support for rural development by EAFRD PDF