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Programme for installation and the development of local initiatives (Pidil)

The Pidil covers all actions implemented by the State and/or regional authorities in order to facilitate the renewal of agricultural operations. This programme has several aspects including:

• Financial (and sometimes technical) assistance for young people setting up on their own and those who do not come from a farming background, as well as young people who may require financial assistance when setting up a small family operation.

• Land assistance.

We can distinguish between two types of client: we have candidates who request assistance from the State and the European Union and then we also have candidates requesting aid from regional authorities. Those requesting aid under Pidil financed only by Regional Authorities must set up before the age of 40 and possess the skills and professional qualifications required by the Authority in question.

Expert assistance

This assistance partially covers the costs associated with technical assistance provided by an agricultural organisation or a producer’s group (fees for experts or advisors).

• Technical/economic support: strengthening the professionalism of young farmers by monitoring them for between three and five years after installation. The amount of aid is capped at 80% of the committed expenditure (exc. tax) with a limit of 1500 € per year, including all sources of funding (State and regional authorities). During the first year this cannot be combined with the 500 € assistance for the young farmer’s allowance (DJA)

• Diagnostics, market surveys: Payment of costs associated with diagnostics of the business being taken over or the costs associated with market surveys for certain types of production. The amount of aid is capped at 80% of the committed expenditure (exc. tax) with a limit of 1,500 € per year, including all sources of funding (State and Regional Authorities).

Training aid

This is to provide farmers assistance in adding to their initial training, and particularly for progressive diploma acquisition (derogation provided for in article D343—4-1 of the Rural Code). It is designed to assist young people in getting trained or doing and internship by giving them an allowance:

• Relief assistance for taking an additional one. Aid can be awarded for three to five years during the first five years of installation. A maximum of 60 € per day can be awarded by the State for between 100 and 200 days. The same amount can also be paid by a Regional Authority

• Sponsorship for a young person doing an internship, the professionalization of a young person or an installation candidate: this is a period of time spent with a farmer who is intending to stop farming. Sponsorship can be used to assist installation by replacement of the operator or partner who is ceasing agricultural activities, for consideration.

Local supplements for the young farmer’s allowance (DJA)

To cover shortfalls in the installation of candidate young farmers in geographic areas or in specific production systems, local governments can create an additional financial incentive by giving young farmers an additional DJA. The overall amount of the allocation (assistance from the Regional Authority in addition to the DJA) may not exceed the first community ceiling in force of 40,000 €. If a young beneficiary of the DJA, the regional supplement and the equivalent subsidy amount for MTS/JA subsidised loan, the total amount of the aid will be subject to a second community ceiling: 70,000 €.

Installation subsidy

A single subsidy may be awarded to installation candidates who start up without State aid at the beginning of their project. This aid will be decided on by the authority based on the candidate's installation project, the limit is 9,000 €. Several regional authorities can contribute support to a single candidate, the total amount of this aid may not exceed 9,000 € per candidate.

Investment aid

Investment aid can be provided on:

• Presentation of an operations development plan (ODP)

• A commitment to bring equipment into compliance with the minimum required standards within 3 years following installation, if required (environment, hygiene and animal welfare).

Non-land investment

aid This aid cannot be received in conjunction with certain other types of aid. They must however be linked with investment incentives provided in each regional rural development program (RDRP). They must comply with the 50% aid rate (plains areas) or 60% (less-favoured areas). Some authorities may set their own ceilings within the limits of these rates. Subject to whether they are accumulable, investment aid may include:

• A subsidy for a young farmer to make a new investment. The amount will be fixed within the limit of community ceilings.

• A repayable advance: The young farmer is given an interest-free loan to make an investment for which aid is not available. This aid cannot be accumulated with an MTS/JA loan.

Land investment aid

This type of aid partially covers the costs of the involvement of the Land Development and Rural Settlement Society (Safer) for which young farmers will be due when purchasing land through a consolidation process conducted exclusively through this organisation (with the exception of the financial costs of storage). This can be awarded to young people setting up business who are benefiting from State and European Union installation aid, or to those benefiting from regional authority aid, in the following cases:

• When the land being taken over is included in a consolidation operation or when the operation covers the installation of one or more young farmers

• When the land is being restructured with a view to improving one or more agricultural businesses for the installation of one or more young farmers

• When the land is undergoing major restructuring (major improvement works in the general interest, environmental protection works) and the operation eventually allows one or more young farmers to set up business there.

The aid covers:

• The costs associated with the first land purchase deed as well as a second if required

• Any surveying and consolidation costs

• Costs related to the involvement of Safer which must be paid by the winning bidder and which cover administrative costs incurred by Safer to carry out the land deal

• Legal costs involved with consolidation and, if required, bailiff’s costs.

This aid is capped at 80% of costs (excluding tax) invoiced to the farmer (the price of the land and storage costs therefore being excluded). It can either be paid to the farmer or directly to Safer (the beneficiary must then give Safer a mandate).

Guarantee aid

A regional authority may guarantee (or co-guarantee with a surety company) bank loans, meaning loan guarantee payments do not need to be made to the bank. This allows farmers to take out loans which they would otherwise not be able to. The guarantee is therefore similar to financial assistance (mainly as no premium need be paid). It has the effect of lowering the cost of the loan.

Guarantee aid is aimed at helping with investment projects during the first five years following installation therefore facilitating access to bank financing for installation candidates.

Aid provided to installation candidates can be used to guarantee up to 50% of the amount of investments in plains areas and up to 60 % of the investment amount in less-favoured areas.

When the aid is awarded to guarantee young famer loans (MTS/JA) the amount must be included in the communal ceiling of 70,000 €. The maximum amount of equivalent subsidy which this assistance can provide is set at 5,000 € per investment operation.

Useful links

• On the website for the Ministry of Agriculture and Food: Regulatory texts associated with installation (in French).


Last updated on December, 2012. Report a problem with this page.

 

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