Looking for your way?
services on financial instruments under the
fi-compass is a unique platform for advisory
for Employment and Social Innovation (EaSI).
European Structural and Investment Funds
(ESIF) and microfinance under the Programme
Looking for your way?
be an important tool for boosting EU agriculture.
Investments, in a variety of forms, will help create a modern, dynamic agri-food
sector to create jobs and enhance growth in the EU. Financial Instruments will
Financial instruments using the European Social Fund
can support a wide range of financially viable
investment projects
Looking for your way?

New fi-compass handbook on ex-ante assessment for rural development financial instruments

A new fi-compass publication has been launched featuring advice about developing financial instruments for the European Agricultural Fund for Rural Development (EAFRD). Entitled 'Methodological handbook for implementing an ex-ante assessment of agriculture financial instruments under the EAFRD', the new publication provides a planning framework for managing authorities interested in using EAFRD financial instruments.

Advice in the fi-compass handbook focuses on potential investments targeted at agricultural holdings, primary agricultural production activities and farm sales of agricultural products. A number of agricultural sub-sectors are reviewed to provide analytical information about assessing the financial needs of agriculture in a rural development programme (RDP) territory.

Handbook contents highlight the overall scope of the ex-ante assessment process in terms of identifying and describing the existence of market failures or ‘suboptimal investment situations’. Explanations are provided about the tasks involved with carrying out a ‘market assessment’ as well as defining the options available for implementing the delivery and management of EAFRD financial instruments.

Ex-ante methodologies are described using illustrative step-by-step advice. This covers the specific ex-ante assessment requirements set out in Article 37 of Regulation (EU) No 1303/2013 of the Common Provisions Regulation (CPR). The handbook is therefore designed to be useful for EAFRD managing authorities involved with:

  • analysing and identifying market failures, suboptimal investment situations and investment needs of the agricultural sector;
  • assessing the value added of the financial instruments, both from a quantitative and qualitative point of view;
  • estimating the additional public and private resources to be potentially raised by the financial instruments;
  • identifying the success factors and pitfalls from past experience in order to enhance the performance of the financial instruments;
  • defining the investment strategy, by identifying the scale and focus of the financial instruments as well as the most appropriate governance structure to implement them;
  • establishing and monitoring a set of expected results consistent with the programme and the strategic objective;
  • defining when a revision or update of the ex-ante assessment is needed.

Practical examples are used in the handbook to clarify specific points. The publication also contains checklist tools as well as a list of relevant references and databases that managing authorities can use for: market assessment; evaluating leverage of private investment; enhancing the consultation process with stakeholders and final recipients; as well as for calculating the net present values for indicators of quantitative value added.

Share the article 
News Feature Section: