Programming rural development funds – An interactive linear programming approach applied to the EAFRD program in Saxony-Anhalt

Policies for rural areas have become an important but complex policy field in the European Union`s Common Agricultural Policy. The purpose of this paper is to report on a methodological approach pursued to model the allocation of EAFRD (European Agricultural Fund for Rural Development) funds in Saxony-Anhalt. We show how an interactive programming approach can be developed and used to support our partner Ministry of Agriculture and the Environment. So far, various key elements of the modeling approach have been specified: the definition of all relevant policy measures and funding options, the assessment of impacts on the regional objectives pursued, the definition of relevant lower and upper bounds, and the formulation of co-financing requirements and possibilities. Some first results reveal potentials for policy adjustment. After some more refinements and specifications, the model is to be used interactively with Ministry representatives for scenario calculations to support policy-making and strategy development for rural development in Saxony-Anhalt.