Tsymbalista N. A.

PhD in economic science, State Institution “Institute of Regional Research named after M. I. Dolishniy of National Academy of Sciences of Ukraine”

CHAMBERS OF AGRICULTURE AND THEIR ROLE IN RURAL DEVELOPMENT

Keywords: rural development, rural areas, chamber of agriculture

According to a standard definition, more than 91% of the EU territory is ‘rural’, and this area is home to more than 56% of the EU's population.  Rural areas are characterized by a distinctive way of life, closer relationships between people, direct contact with nature, which is a symbol of healthy living environment. On the other hand, the threats of the economic crisis appear more significantly here, poverty is considerably higher, education level lower and the population is aging. Agriculture, which is the main land user in rural Europe, has come through significant modernization during the last decades and this process was accompanied by intensification of land use and degradation of landscape values.

Therefore rural development policy, which consists of income, environmental and social policies, follows the target to help rural areas maintain their economic, ecologic and social functions. In order to keep in close touch with local issues public authorities, who are responsible for constructing plans and strategies of rural and agricultural development, should communicate not only with local authorities but also with representatives of local entrepreneurship and communities. Chambers of agriculture in European countries often serve as a liaison between the government and individuals and enterprises involved in agriculture and forestry activities. These self-governing organizations have a long history in Europe, having been first established in Poland and France in 1918-1920 [1, p. 47].

Chambers of agriculture are organized democratically and any farmer can join and vote. In most European countries, all self-employed persons active in agriculture and/or forestry as well as the members of their families working with them are by law members of the Chambers of Agriculture. Local (regional, federal, county etc.) Chambers of Agriculture are usually linked into a network by an umbrella organization, the National Chamber of Agriculture. Support for the activities of chambers comes primarily from levying contributions of their members, as for the Slovak Agriculture and Food Chamber. In some other countries agricultural chambers have more diversified sources of financing. For example in France the chamber’s budget comes from investments and agricultural loans, local chambers and members, the state and EU and other sources. In Germany 100% of land tax is used to support agricultural chambers.

The roles of chambers also vary from country to country, but always include advocacy for farmer needs. Services provided by chambers of agriculture to their members may include vocational training, consulting, certification programs, providing market information and organizing workshops. One of the Chambers’ most important tasks is also the implementation of measures relating to the Common Agricultural Policy (CAP) of the European Union. Agricultural chambers in Slovenia provide information to farmers and give advices on how to gain funds from these measures [2]. German Chambers of agriculture carry out monitoring and controlling functions concerning CAP: they maintain a database using cartographic materials, which farmers give to the chambers to claim the allocation of crops they are going to grow during a year [3, p. 8]. Agricultural chambers in Germany also practice random audit to validate data form the database by doing landscape aero-photography. About 3-5% of agricultural holdings are checked annually. This is the way in which chambers of agriculture help to implement measures of soil conservation in EU.

Chambers also play a decent part in supporting opportunities expand and diversification of activities and incomes for residents of rural areas in Europe. For example, Slovenia’s Chamber of Agriculture assists farmers who wish to set up tourism related activi­ties and accommodations on their farms, and now Slovenia has some 800 farms, which are open to visitors. Such efforts can help to stem the flow of workers away from rural areas because of a lack of employ­ment opportunities. This situation is typical and extremely topical especially for small familiar agri-business, and in many cases, these non-agricultural activities have very important and useful impact on rural development.

Besides this, agricultural chambers may fulfil some other functions, like boosting agricultural exports and attracting foreign capital into domestic agriculture, foresting and food production sectors.

Summarizing the above said, we should draw a conclusion that European Chambers of Agriculture practice and experience can be very useful for Ukraine in order to reach economic growth, creating jobs and new business opportunities in countryside areas by developing rural infrastructure, dissemination of information, debates and trainings. Ukrainian Chamber of Agriculture was established in 2005. It consists of 23 regional chambers and an Arbitrage. However, the Parliament of Ukraine have not yet adopted a law to regulate powers and activity of agricultural chambers in Ukraine. According to the opinion of some foreign experts, this is the main reason why Ukrainian Chamber of Agriculture still cannot provide an effective public influence and control of the state agricultural and rural development policy.

 References

1.                 Agricultural markets in a transitioning economy : an Albanian case study / [edited by Catherine Chan-Halbrendt and Jean Fantle-Lepczyk]. – UK: CABI, 2013. – 256 p.

2.                 Chamber of agriculture and forestry. Building on long tradition of high quality agriculture. – Retrieved from http://www.european-times.com/sector/chamber-of-agriculture-and-forestry.

3.                 Ïàíàñåíêî Â. Äîñâ³ä ͳìå÷÷èíè ó ñôåð³ ðàö³îíàëüíîãî âèêîðèñòàííÿ ³ çáåðåæåííÿ ´ðóíò³â. /  Ïàíàñåíêî // Çåìëåâïîðÿäíèé â³ñíèê. – 2012. – ¹ 11. – ñ. 6-8.