With a view to adapting the CAP for the period 2007 – 2013, the European Unionadopted a revised rural development policy in September 2005. It came into effect at the beginning of 2007. The policy is structured around three core objectives each of which has a corresponding axis.Axis 1: improving the competitiveness of the agricultural and forestry sector. This axis comprises measures to improve knowledge and innovation, measures to improve the quality of farm products and two transitional measures for the new Member states, these being assistance for semi-subsistence farms and producer groups.Axis 2: improving the environment and the countryside. This axis comprises measures to encourage sustainable farming and forestry and to promote high standards of animal welfare. Farmers may receive payments to compensate them for farming in a manner which generates public goods – for instance, farming in a manner that preserves biodiversity, farming in mountainous areas (thereby maintaining rural society), etc. These payments are known as agri-environmental payments.Axis 3: improving the quality of life in rural areas and helping the diversification of the rural economy. This axis comprises measures which encourage farmers to diversify into non-agricultural activities, measures to improve the quality of life in rural areas and measures concerning local development. This axis helps to promote micro-enterprises, rural tourism, basic services and village renewal.In addition to these three axes there is fourth one which promotes the Leader approach.