Recommendations concerning the regulatory environment / policy

Apart from suggestions developed in workshops of the synthesis stage focusing on the knowledge system, a number of points were also mentioned which are related to the regulatory environment. One example was the expression of a desire for the government to play a more facilitating role rather than a directive role.

Currently, a shift is taking place not only in the EU but in many OECD countries away from a sectorspecific agricultural policy towards a cross-sectoral rural policy (OECD 2006). In the European CAP this is manifested mainly in the modulation from Pillar 1 to Pillar 2.

In order to meet future challenges and to enhance innovation and competitiveness in rural areas (OECD 2006), policy strategies are aimed at strengthening

· regions rather than sectors or nations (locations instead of sectors)

· cross-sector cooperation of actors and cluster formation

· the identification and exploitation of the diverse development potential of rural areas (investments instead of subsidies).

Given this background, the findings of our study are of particular relevance. We have found that the second Pillar, while important, can be applied differently, according to regions and nations. Equally, the outcomes of the workshops in the main and synthesis stage emphasise the importance of relationships in general and of relationships which go beyond the farming community. In terms of skills development, this is completely in line with the ongoing policy trends mentioned above: strengthening regions and cross-sectoral linkages will be beneficial for the development of entrepreneurial skills. Placing these conclusions in relation to CAP reform, it seems clear that a further strengthening of Pillar II in contrast to Pillar I would be advantageous. Within Pillar II, Axes 3 and 4 in particular already include the regional and cross-sectoral approach. Upon closer inspection, we can also conclude that the relevant Rural Development Regulation (Council Regulation (EC) No. 1698/2005) contains all the necessary elements to promote the development of entrepreneurial skills among farmers. However, as regulations can be interpreted and applied in different ways, the recommendations in this report should be seen as principles to consider when applying the Rural Development Regulation at EU, national and regional level.

Axis 1: Improving the competitiveness of the agricultural and forestry sector

Axis 1 focuses on education, innovation and quality within the agricultural/forestry sector in order to improve its competitiveness. Two ESoF findings are closely related to Axis 1: cross-sectoral contacts on the one hand and a systemic knowledge approach on the other. Even if Axis 1 is focused on education within the agricultural sector, connections to other industries are seen as important for the development of agriculture.

Axis 2: Improving the environment and the countryside

The measures foreseen in this Axis seem to have the least effect on the development of entrepreneurial skills of farmers. Of course, new business opportunities for farmers emerge out of societies’ environmental concerns, but to initiate a real change of perspective among farmers towards such opportunities, other measures might be needed additionally (see Winter 1997) – measures as suggested in Axes 1, 3 and 4.

Axis 3: The quality of life in rural areas and diversification of the rural economy

From the point of view of developing the entrepreneurial skills of farmers, the measures contained in Axis 3 could be seen as the most important ones, because they give the most consideration to entrepreneurial learning principles, such as enhancing networks and contacts within and beyond the farming community, and cross-sectoral cooperation. In this way, fostering entrepreneurial skills, the measures of Axis 3 also contribute to the aims of Axis 1 – improving the competitiveness of agriculture and forestry (compare also section 8.4). Thus, we suggest that a redistribution of funds in favour of Axis 3 should be considered, especially for member states that dedicate a very small proportion to it so far.

Axis 4: LEADER

As stated above, LEADER approaches are seen as very valuable for the development of farmers’ entrepreneurial skills. Including people from different sectors in the committees of the European Network for Rural Development (Commission Decision No. 2008/168/EC) would increase opportunities for discussing different perspectives.

With regard to entrepreneurial skills, the following recommendations can be formulated: