Annex 3 Summary of ms assessments

Italy

Beyond being a peninsula, consisting of 7,456 kilometres long coasts for, Italy is characterised by mountainous and hilly chains developed along the whole country. Italy is included in a climatic transition zone, between the European continental zone and the Mediterranean one; the borderline is particularly represented by the Toscana, Emilia Romagna and Sardinia regions. In the northern side of the borderline, precipitation appears to be rather concentrated in high intensity events. In the southern side of this borderline, it is possible to observe a lower degree of precipitation, with a tendency towards long periods of drought.

This leads to a division between the agricultures of the northern and southern countries of the European Union. The production patterns in the lowlands of Northern Italy and the more handicapped mountainous areas in the Apennine Mountains and the interiors of Sicily and Sardinia are highly intensified. This also explains the high share of less favoured areas (LFAs) of 61%. On average however, small to medium sized agricultural holdings are the prevailing economies in Italy.

The North of Italy produces primarily grains, sugar beets, soybeans, meat, and dairy products, while the South specializes in fruits, vegetables, olive oil, wine, and durum wheat. Even though much of its mountainous terrain is unsuitable for farming, Italy has a large work force (1.4 million) employed in farming. Most farms are small, with the average size being only seven hectares.

Major challenges in Italian agriculture are soil erosion and land slides, water scarcity, forest fires, flooding (localised) and water quality in highly populated areas. Irrigation and over-extraction as well as nitrate groundwater pollution are stated as the most significant problems as regards to water.

In 2005, after a period of stagnation the number of farms and the land under organic management went up again. The distribution of operators on the National area shows Sicily and Calabria among the regions with the highest presence of organic farms. The related area, in conversion or fully converted to organic agriculture, has reached 1,148,162 hectares in 2005, which is about 8% of the total agricultural land.

In Italian regions, on average, allocate most of the public budget to the competitiveness axis (axis I) and environmental axis (axis II). Nine regions (Abruzzi, Campania, Friuli Venetia Giulia, Lazio, Liguria, Marche, Molise, Apuglia, Veneto) have allocated the larger share to axis I. In these regions the share of public budget allocated ranges from 40 to 51 percent. A same amount of regions have put the priority on axis II (Basilicata, Bolzano, Emilia Romagna, Lombardi, Piedmont, Sardinia, Trento, Umbria, Toscania, Vale d`Aosta). The percentage of the regions favouring axis II are ranging from 40 to 66 percent (Vale de Aosta). Axis III measures cover in most cases a budget share of 6 to 13 percent. “Extreme values” can only be found in Sardinia (one percent), and Basilicata (37 to 50 percent). To axis IV normally around 5 to 10 percent of the budget is allocated. Veneto, Sardinia Puglia and Liguria allocated more to axis IV with the highest value in Liguria (20 percent).

Overall and in average, Italy devotes 39% of the total public budget to axis I, 42% of the total budget to axis II, 9% to axis III, 8% to LEADER and 3% to technical support. Overall 22% of the total public budget of the programme is used to implement agri-environmental measures (214).

Monitoring, control and review

The Italian regions have established two control mechanism: a) a financial and b) measure specific controls. The financial control aimsto ensure that an accurate financial flow and is carried out either by a regional agricultural payments organisation or by the national agricultural payments organisation. The measure specific controls are based on reporting, legal obligation to keep books and records and the administration responsible for the implementation of the RDPs shall revert to an integrated information system. Most regions, however, do not specify how these integrated information systems are set up. All regions have installed independent evaluations of measures, however in most cases it is not mentioned if these evalutions are base on on-farm visits or not

The Common Monitoring and Evaluation Framework (CMEF) framework is used in all 21 regions and water quality is covered by the proposed indeictors under this framework. In addition, two additional indicators to measure water quality issues are addressed, namely water saving per hectar and total water saved.

Main strengths and weakness of the RD program as regards to water

With 21 RDPs, Italy has developed an approach that considers altitude and regional differences in development between North, Centre and South of Italy. The RDPs clearly reflect the different needs of the different areas.

Water issues are a high priority to all regional RDPs in Italy. Since water scarcity is of high priority to many Italian regions, investments in irrigation infrastructure are of utmost importance. Water issues are directly addressed through two horizontal measures dealing with irrigation efficiency which most of the 21 regions and the two autonomous provinces must implement. Measure 121 (modernisation of holdings) provides investment support to improve irrigation efficiency through technical investments at farm (parcel) level, whereas measure 125 (infrastructure investments) aims to improve the efficiency of the distribution infrastructure. No new irrigation infrastructure or expansion of irrigated land can be funded through the rural development programmes. All investments related to irrigation must have a demonstrable effect on water savings (measured through two additional indicators, see above). However, only a few regions actually set concrete water savings targets. Most programmes only state that a savings must take place.

Beside those two main measures, axis I also includes various measures that address environmental issues in general and water quality and quantity specifically. These measures include extensive trainings for farmers as well as the improvement of technologies and infrastructures that reduce wastage of valuable water resources.

The measures provided under the agri-environmental scheme reflect the different situations in Italy. As soil erosion and landslides are major issues in rural areas of most Italian regions. A number of agri-environment measures address erosion problems and thus indirectly water quality (for example through afforestation). Under axis II, the application of “non productive investments” (measure 216) plays an important role in restoring wetlands, small ponds and other aquatic ecosystems. At least half of the Italian RDPs are applying this measure.

Measures under axis III do not refer, in most of the regions, to water at all. In general, Axis III has also little budgets which are mainly used to support diversification activities. Priority is given to Intermediate areas and rural areas with low rate of economic development

While there is a clear reference to water issues, a direct link to the WFD and its implementation is lacking

There is also little said about co-operation between neighbouring regions and how coordination, especially on measures, with a primary environmental impact, are coordinated to achieve the maximum overall result.

Due to large variations (e.g. climate, type of agriculture) in Italy using one RDP program for the whole territory would be insufficient in terms of targeting measures and accounting for the different circumstances. So Italy decided to develop a national framework program, which is then applied according to the regional differences in 21 regions. This allows considering non-agricultural aspects such as altitude and regional differences in development of rural areas between North, Centre and South. This allows a flexible approach in terms of measures used and intensity of support according to areas. As regard to water, all regions are taking efforts under axis I and II. Under axis III water is not an issue and the extent of these measures’ use for improving the status of water due to slight modifications (increasing the by-products) should be assessed.

Irrigation is a central issue in Italy and all regions of relevance are taking action to improve the irrigation efficiency and to reduce water use. However, a clear target has not always been identified in terms of savings in the RDP. This should be improved in a revision of the RDPs.