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Land consolidation can be an important tool for increasing agricultural competitiveness and improving rural conditions. Farmers can become more competitive when they decrease fragmentation and increase the size of their farms, and rural communities can benefit when consolidation projects include components to improve local infrastructure and the environment. At the national level, land consolidation can help to develop the agricultural and other sectors that comprise the rural economy, and to improve rural conditions by balancing the interests of agriculture, transportation, the environment, recreation, cultural heritage and tourism. Land consolidation can be applied differently in different situations, but regardless of the context, it can be used to introduce participatory and integrated cross-sector approaches into rural development. The European Union (EU) has included land consolidation as a measure of the European Agricultural Fund for Rural Development (EAFRD). This new instrument was introduced to finance rural development policy in Member States for the period of 200713, and is intended to improve the competitiveness of agriculture and forestry, the environment and the countryside, and the quality of life and diversification of the rural economy. New instruments were also introduced to provide assistance to countries that are not EU Members. The Instrument for Pre-Accession (IPA) provides targeted assistance to candidate and potential candidate countries, while the European Neighbourhood and Partnership Instrument (ENPI) provides financial support to other neighbouring countries. These instruments offer opportunities for some support to land consolidation. This publication addresses the policy implications of using the new instruments to support land consolidation. It describes the available funding options and makes recommendations for including land consolidation within a rural development programme.