Brussels, 30/04/2009 (Agence Europe) - On Thursday 30 April, the European Commission adopted a decision reviewing the long-term national aid scheme for agriculture in the northern regions of Finland. The decision takes account of consultations which took place at the end of December 2008 between European Agriculture Commissioner Mariann Fischer Boel and Finnish Agriculture Minister Sirkka-Liisa Anttila. The national aid scheme for agriculture in northern regions of Finland has existed since 1995, under Article 142 of the Act of Accession. Between 2006 and 2008, the Commission carried out an assessment of how it works. The conclusion was that the aid scheme: - is still necessary if agriculture is to remain in these regions (one of the objectives of the Act of Accession); - must be simplified; - must be made more flexible.
The northern regions covered by this national aid scheme extend to 1.4 million hectares, or 55.5% of the land used for agricultural purposes in Finland. The main changes from the current decision (which dates from 2002 and was amended in 2004 and 2005) are: - the various production sectors will be formed into six groups (milk, ruminants, pigs and poultry, horticulture, crop production and other aid, such as that for reindeer of €36 per animal); - the maximum level of aid granted under the scheme will be reduced from €448.59 million to €358.00 million per year (payments in the last four years have not exceeded €330 million, the Commission points out); - under the current decision, the amount of aid varies according to sub-region, making the system too rigid; the new Commission decision only provides for average maximum amounts of aid for all regions covered by the scheme, and it will be for national authorities to determine the criteria for dividing out this aid according to sub-region (the Commission will still have to be informed of these criteria); - in view of the increased pig and poultry production in the northern regions since Finland's accession and the restrictions set out in Article 142 of the Act of Accession, aid for pigs and poultry will be decoupled from production (€226 per livestock unit, LU). Entitlement to aid will be based on aid granted in 2007 (or 2006 in cases where exceptional circumstances resulted in an abnormal reduction in aid in 2007).
The decision will apply from 1 January 2009. However, provisions relating to milk will apply from 1 April 2009 and those on ruminants, horticulture, crop production and other aid will apply from 1 January 2010. Aid is authorised until 31 December 2013. (L.C./transl.rt)