EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 13.6.2007 
COM(2007) 323 final 
2007/0109 (CNS)   
REPORT FROM THE COMMI SSION TO THE COUNCIL 
on the results of the aid authorised in  Finland for certain quantities of seeds 
and certain quantities of cereal seed 
Proposal for a 
COUNCIL REGULATION 
amending Regulation (EC) No 1947/2005 
as regards national aid granted by Finland for seeds and cereal seed 
(presented by the Commission)  
  
{SEC(2007) 799} 
 
EN 2   EN TABLE OF CONTENTS 
1. I NTRODUCTION .............................................................................................................. 3 
2. T HE SYSTEM OF NATIONAL AID TO SEED PRODUCTION .................................................. 3 
2.1. Aid for cereal seed ....................................................................................................... 3 
2.2. Aid for grass/clover seeds ............................................................................................ 4 
2.2.1. Production .............................................................................................................. ...... 4 
2.2.2. Implementation .......................................................................................................... .. 5 
2.2.3. Modification of the aid................................................................................................. 5 
2.2.4. Differentiation of the aid per region............................................................................. 5 
2.2.5. Seed varieties within each speci es eligible for aid (Annex V) .................................... 6 
2.2.6. Red clover (Trifolium pratense  L.) – Annex VI, Table 1 ............................................ 6 
2.2.7. Timothy (Phleum pratense L.) – Annex VI, Table 2 ................................................... 6 
2.2.8. Meadow fescue (Festuca pratensi s huds.) – Annex VI, Table 3.................................. 6 
2.2.9. Cocksfoot (Dactilis glomerata L.) – Annex VI, Table 4.............................................. 7 
2.2.10. Rye grass (Lolium perenne L.) – Annex VI, Table 5 .................................................. 7 
3. I MPORTS OF SEED INTO FINLAND ................................................................................... 7 
3.1. Imports of cereal seed – Annex VII – Tables 1 and 2.................................................. 7 
3.2. Imports of grass/clover seed s – Annex VII – Table 3.................................................. 8 
4. O THER  AID SCHEMES IN FINLAND ................................................................................. 8 
5. P RODUCTION  OF GRASS /CLOVER SEEDS IN THE EU-15  AS A WHOLE .............................. 9 
6. S INGLE PAYMENT SCHEME ........................................................................................... 9 
7. S UMMARY AND OBSERVATIONS .................................................................................. 10 
7.1. Legal basis............................................................................................................... ... 10 
7.2. Implementation of system.......................................................................................... 10 7.3. Other aid schemes ...................................................................................................... 10 7.4. Single Payment Scheme............................................................................................. 10 7.5. Multiplication in other countries................................................................................ 10 7.6. Cereal seed production............................................................................................... 11 
8. P
ROPOSAL ................................................................................................................... 11 
Note: The Annexes referred to in this report can be found in a Commission staff working 
document accompanying this report  (http://ec.europa.eu/agriculture /markets/seeds/index_en.htm
) 
 
EN 3   EN REPORT FROM THE COMMI SSION TO THE COUNCIL 
on the results of the aid authorised in  Finland for certain quantities of seeds 
and certain quantities of cereal seed 
1. INTRODUCTION  
In accordance with Article 8 of Council Regulation (EEC) No 2358/711, Commission 
Decision 2001/60/EC of 9 January 20012 authorised Finland to  grant aid for cereal 
seed until 31 December 2005 (see Annex I) and Commission Decision 2001/61/EC 
of 9 January 20013 authorised Finland to grant aid for Red clover, Timothy, 
Meadow fescue, Cocksfoot and Rye gr ass seeds until 31 December 2005 (see 
Annex II). 
Under Article 8(2) of Council Regula tion (EC) No 1947/2005, the Commission shall 
before 1 January 2006, on the basis of information supplied in good time by Finland, forward to the Council a report on the re sults of the aid authorised for certain 
quantities of seed and for certain quantit ies of cereal seed, together with any 
necessary proposals. 
This report is based on the information pr ovided regularly by the Finnish authorities. 
2. T
HE SYSTEM OF NATIONAL AID TO SEED PRODUCTION  
Both authorizations cover exclusively cereal varieties and grass/clov er varieties listed 
in the Finnish catalogue and which, except for small quantities cultivated in regions bordering on Finland, are grown so lely in that Member State. 
The authorization for cereal seed aid fixes an upper limit on the eligible quantity of 
100 000 tonnes and a maximum aid level of EUR 2,523 per 100 kilograms, representing a maximum amount of EUR 2,523 million (see Annex I). 
For grass/clover seed production aid the au thorization fixes per species an upper 
limit on the aid per hectare and on the elig ible area, representing a maximum amount 
of EUR 1,814 million (see Annex II). 
2.1. Aid for cereal seed 
During the period 2000–2005 the cereal s eed production increased by 23% from 
57 309 tonnes to 70 531 tonnes. 
                                                
 
1 OJ L 246, 5.11.1971, p. 1. Regulation as last amended by Regulation (EC) No 1782/2003 (OJ L 270, 
21.10.2003, p. 1). Repealed and replaced by Council Regulation (EC) No 1947/2005 (OJ L 312, 29.11.2005, p. 3). 
2 OJ L 21, 23.1.2001, p. 17. 
3 OJ L 21, 23.1.2001, p. 18. 
 
EN 4   EN During the same period, seed production of barley increased by 62%, of spring wheat 
by 163% and of autumn wheat by 70%. Oats seed production on the other hand came down, by 32%, just as Rye seed pr oduction, which decreased by 10%. 
Table 1 includes the information received from  the Finnish authorities. It covers the 
period 2000–2005. 
Table 1 Certified cereal seed production (in tonnes) in Finland in the years 2000 
to 2005 
Cereal 2000 2001 2002 2003 2004 2005 % change 
2000/2005 
Barley 24 638 24 206 25 578 26 074 36 551 39 912 62% 
Oats 27 510 24 889 25 635 24 209 20 431 18 665 -32% 
Rye 660 569 887 1 394 315 592 -10% 
Spring wheat 3 976 4 909 7 023 11 362 10 252 10 471 163% 
Autumn wheat 525 861 1 056 1 141 1 552 892 70% 
Total 57 309 55 434 60 179 64 180 69 101 70 531 23% 
Source: communicated by Finland.  
While the aid level is fixed per 100 kg, the estimated average aid per hectare for the 
2000 to 2005 period is about €68/ha, and the tr end is upwards, as shown in Table 2. 
Table 2 Estimate of cereal seed aid level per hectare, based on average historic 
yields and an aid leve l of EUR 2,523 per 100 kg 
 2000 2001 2002 2003 2004 2005 Average 
2000 to 
2005 
Production (kg) 57 308 772 55 434 443 60 178 667 64 179 629 67 723 135 70 531 482 62 559 355
Area (ha) 27 324 24 436 20 639 21 379 21 699 23 341 23 136
Yield (kg/ha) (1) 2 097 2 269 2 916 3 002 3 121 3 022 2 704
Aid level (€/ha) 52,9 57, 2 73,6 75,7 78,7 76,2 68,2
(1) Average yield of barley, oats, rye, winter and spring wheat. 
During the period 2000-2005, the average yiel d level for cereal seed production has 
increased by 44%, consequently the aid level per hectare has seen the same 
development. 
The varieties of cereal seed in receip t of national aid between 2000 and 2005 are 
included in Annex III. From the list it become s evident that the number of varieties, 
in particular for Barley, has increased significantly. 
2.2. Aid for grass/clover seeds 
2.2.1.  Production 
The production of grass/clover seed in the period 2000 to 2005 declined from a peak 
of 4 685 tonnes in 2001 to a trough of 1 654 tonnes in 2004, mainly due to weather 
variation. However, as can be seen from Table 3 the production in 2004 was below the six year average of about 3 163 tonnes. Timothy is the most important species. 
 
EN 5   EN Table 3 Certified grass/clover seed pr oduction (tonnes) in Finland in the 
years 2000 to 2005 
Species 2000 2001 2002 2003 2004 2005 % change
2000/2005 
Red clover 53 125 68 62 4 52 -2% 
Timothy 2 151 3 781 3 541 2 594 1 319 1 908 -11% 
Meadow Fescue 423 732 468 454 318 700 66% 
Cocksfoot 6 3 0 2 0 0  
Rye grass 45 44 31 38 13 43 -6% 
Total 2 678 4 685 4 108 3 150 1 654 2 703 1% 
Source: communicated by Finland. 
2.2.2.  Implementation 
During the period 2000–2005, the Finnish auth orities have introduced, on their own 
initiative, some adjustments to the system  for granting the aid, namely modification 
of the aid per hectare in the case of an overshooting of the maximum authorised area 
and a differentiation of the aid level per region. 
2.2.3.  Modification of the aid 
On several occasions during the period 2000–2005, the area approved by Finland and 
on which seeds were produced, exceeded the maximum area indicated in Commission Decision 2001/61/EC. 
For the distribution of the aid in such a case two methods were used. 
At first, during the period 2000 to 2002, an envelope was calculated by multiplying 
the maximum area by the maximum aid per hectare as defined in the Commission 
Decision. That envelope was then divi ded by the national area approved, which 
exceeded the maximum area authorised, resultin g in a reduced aid level per hectare.  
In 2003 the concept of the aid unit coeffici ent was introduced and defined as “that 
proportion of a unit size eligib le for aid and the subject of an aid application, in 
respect of which aid is paid”. 
In case the national maximum area was exceeded, the area eligible for aid was 
calculated by using the aid unit coefficient and linearly reducing the area approved of 
all applicants. 
In practice, using an aid unit coefficient of less than one, results at an individual 
farmer level, in aid being granted only on a part of each hectare applied for. 
2.2.4.  Differentiation of the aid per region 
In 2004 and 2005 the level of aid granted to  seed producers varied by region (see 
Annex IV). The aid level was divided into two categories; one category for regions A 
and B in the South of Finland and anothe r category for regions C1 to C4, in the 
Northern part of Finland. 
The reason for establishing a regional differentiation was the introduction of 
additional national payments for the agri-e nvironmental scheme only applicable in 
regions A and B and consequently to avoid possible over-compensation. 
 
EN 6   EN 2.2.5.  Seed varieties within each speci es eligible for aid (Annex V) 
During the period 2000–2005 the lis t of seed varieties within  each species in receipt 
of authorised national aid has expanded considerably mainly for Timothy and Red 
clover. 
For the period 2000 to 2005, the evolution per species aided, details of the 
production, the area approved after inspect ion, the yield, the area corresponding to 
the maximum aid and the aid per hectare are given in Annex VI. An analysis of these 
data leads to the comments in the following paragraphs. In the analysis reference is 
made to the average EU-15 yield level, which may be found in Annex VIII, Table 1. 
2.2.6.  Red clover ( Trifolium pratense L. ) – Annex VI, Table 1 
During the years 2000 to 2005 there has been a substantial fluctuation in the total 
quantity of Red clover produced in Fi nland, ranging from 125 tonnes in 2001 to 
4 tonnes in 2004. The decrease is due main ly to a dramatic reduction in yield 
(188 to 10 kg/ha) and to a much le sser extent to a reduction in area. 
Average yield level in the EU-15 during the period 2000–2005 varied from 
260 kg/ha in 2004 to 380 kg/ha in 2000. 
Moreover, the area approved after inspection exceeded the maximum authorised area 
twice, in 2001 and 2002, and resulted in  a reduced aid level per hectare. 
2.2.7.  Timothy ( Phleum pratense L. ) – Annex VI, Table 2 
Timothy production also fluctuated in the 2000 to 2005 period, ranging from 
3 781 tonnes in 2001 to 1 319 tonnes in 2004. Both  yield and area variation led to the 
disparity in volume produced. Yield vari ed from 527 kg/ha in 2001 to 236 kg/ha 
in 2004. 
On average, the yield level in th e EU-15 during the period 2000–2005 varied 
between 280 kg/ha and 530 kg/ha. The yi eld levels for Timothy production in 
Finland are rather comparable with the EU-15 average figures during those years. 
Furthermore, the area approved after in spection on which Timothy was produced 
exceeded the maximum area authorised by Commission Decision 2001/61/EC during 
the complete period, especially in th e years 2001, 2002 and 2003 when the area 
exceeded the maximum area authorised by more than 40%. 
The exceeding of the maximum area authorised led to a reduction of aid per ha in the 
period 2000–2002. As of 2003 use was made of an aid unit coefficient, which was 
0,70 in 2003, 0,89 in 2004 and 0,97 in 2005. 
2.2.8.  Meadow fescue ( Festuca pratensis huds. ) – Annex VI, Table 3 
Production of Meadow fescue seed range d from a high of 732 tonnes in 2001 to 
318 tonnes in 2004. 
Yield figures during the period 2000–2005 show  some volatility, with the yields 
ranging from 444 kg/ha in 2001 to about 200 kg/ha in 2004. 
 
EN 7   EN The average yield level in the EU-15 during the period 2000–2005 varied between 
530 kg/ha and 750 kg/ha. 
Moreover, the area approved after inspection exceeded th e maximum area authorised 
during each year, with a substantial overrun in 2003 of more than 44%. 
In 2000–2002 this led to a reduced  aid level. An aid unit coefficient of 0,68 was used 
in 2003, 0,75 in 2004 and 0,74 in 2005. 
2.2.9.  Cocksfoot ( Dactilis glomerata L. ) – Annex VI, Table 4 
The production varied from 6 tonne s in 2000 to zero in 2004 and 2005. 
Yield levels of Cocksfoot seed varied from 339 kg/ha in 2003 to 23 kg/ha in 2002. 
On average in the EU-15, yield levels ranged from 790 kg/ha to  1 020 kg/ha during 
the period 2000–2005. 
During the period 2000–2003 the area approved after inspection for Cocksfoot seed 
production remained within the maximu m area indicated in  the Commission 
Decision 2001/61/EC and in 2004 and 2005 ther e was no area approved. As a result, 
the aid level per hectare remain ed unchanged in the period 2000–2003. 
Interest in producing Cocksfoot seed is evidently fading. 
2.2.10.  Rye grass ( Lolium perenne L. ) – Annex VI, Table 5 
Production varied from 45 tonnes in 2000 to 13 tonnes in 2004. 
Rye grass seed yield in Finland vari ed between 651 kg/ha in 2001 and 180 kg/ha 
in 2004. 
Within the EU-15, average yield levels during the period 2000–2005 fluctuate 
between 1 090 kg/ha and 1 510 kg/ha. 
For the period 2000–2005, the area approved af ter inspection remained well within 
the maximum area set out in the Commissi on Decision. The aid granted per hectare 
remained unchanged and was at the maximum level. 
3. IMPORTS OF SEED INTO FINLAND  
3.1. Imports of cereal seed – A nnex VII – Tables 1 and 2 
Imports of cereal seed increased from 39 tonnes in 2000 to 118 tonnes in 2004 but 
came down to 5 tonnes in 2005 (Annex VII, Table 1). 
The import/production percentage in 2000 wa s 0,07%, in 2005 that  percentage was 
even lower. 
The total quantity of certified cereal seed  available on the Finnish market, domestic 
production and imports (no cereal seeds were exported) was at a level of 
57 347 tonnes in 2000 and at 70 536 tonnes in 2005 (Annex VII, Table 2). 
 
EN 8   EN Imports of cereal seed into Finland have experienced some growth during part of the 
period covered, with a temporary upsurge in  2003, but represent a very small part, 
even in 2003, of the total quantity of cer eal seed available on the Finnish market. 
3.2. Imports of grass/clover s eeds – Annex VII – Table 3 
Grass/clover seed imports have experien ced a considerable reduction during the 
period 2000 – 2005. The overall quantity came down by 79% from 712 tonnes in 
2000 to 152 tonnes in 2005. A trough of  142 tonnes was reached in 2002. 
The reduction is mainly due to a decrease in imports of Timothy and Meadow Fescue 
seeds. 
The production of certified grass seed in  Finland during the period 2000–2005 was at 
a level of 2 678 tonnes in 2000 and at a level of 2 703 tonnes in 2005. The share of imports equalled 27%, 5% and 6% respec tively of the domestic production of 
grass/clover seeds in 2000, 2003 and 2005. 
On the basis of the data in Table 4 in A nnex VII it becomes clear from the increase 
of imports in 2004, that imports partly re placed the shortfall in local production 
during that same year. In these circumstan ces it is reasonable to suggest that seed 
destined for the Finnish market  can be grown outside Finland. 
Finally, the fact that domestic production of grass/clover seeds can be substituted by 
imports when domestic production is low shows that domestic production competes 
with imports for the same markets. 
4. O
THER AID SCHEMES IN FINLAND  
Aid systems based on the Act of Accession  
Based on Article 142 of the Act of Accession, a long term  national aid scheme is 
created for Finland and Sweden to compensa te for climatic conditions (Nordic Aid). 
In Finland this scheme is applicable in  regions C1 to C4 (see Annex IV) and aid 
increases as one goes furthe r north. It is payable per head, per hectare or as a 
slaughter premium in regions C3 and C4. 
Based on Article 141 of the Act of Accessi on, there is an aid scheme permitting the 
granting of transitional and degressi ve national aid in regions A and B 
(see Annex IV) for the livestock and horti cultural sectors. The aid consists of 
investment aid at higher than normal intensities as well as income aid. 
Other aid schemes  
In addition to the schemes listed above, there was also a national agri-environmental 
aid scheme in Finland. The Decision on Article 141 support authorised additional 
agri-environmental aid in form of incentiv e payments of up to 130% of the basic 
payment. The incentive payments were in addition to co-financed agri-environmental 
payments and varied according to crop. 
Finally, in March 2005 a national Less Fa voured Area (LFA) scheme was approved. 
This scheme allows the granting of a basic payment and, in certain cases, an 
 
EN 9   EN additional payment for areas eligible for the co-financed compensatory allowance. 
These payments are in a ddition to the co-financed compensatory allowances. 
In Annex XI a brief overview is provi ded of the financia l support from various 
programs, apart from the national aid fo r grass/clover seeds and cereal seed 
production, which a producer may receive in 2005. 
5. ASPECTS OF PRODUCTION OF GRASS /CLOVER SEEDS IN FINLAND AND THE EU-15   
An overview for the period 2000–2005 of the production, average prices and average 
yields for the EU-15 is given in Annex VIII. A comparison with Finnish data is also included in that Annex. 
Based on the overview it can be stated that: 
– Finnish seed yields are mostly below the EU-15 average except for Timothy 
which is on average simila r (Annex VIII, Table 1); 
– Finnish average prices are generally above  the EU-15 average levels especially 
for Red clover (Annex VIII, Table 2); 
– Finnish market receipts from seed pr oduction are in general below the EU-15 
average (Annex VIII, Table 3); 
– the Finnish average aid, including EU and nationa l aid for the period 2000 
to 2004, per hectare for seed producti on, largely exceeds the EU-15 average 
with the exception of Cock sfoot (Annex VIII, Table 6); 
– the total Finnish receipts (including mark et and aid) for seed production for the 
period 2000 to 2004, per hect are is in most years above the EU-15 average for 
Red clover and Timothy but generally below the EU-15 average for Meadow 
fescue and Rye-grass. Data for Cock sfoot in Finland are insufficient to 
compare with EU-15 figures (Annex VIII, Table 7). 
6. S
INGLE PAYMENT SCHEME  
As of the beginning of 2006 Finland appl ies the Single Paymen t Scheme, applying a 
dynamic hybrid regional model. Finla nd is divided into three regions and 
approximately 80% of CAP support is transfer red into the regional flat rate payment. 
At the same time, some payments remain coupled and are paid as a complement to 
the flat rate payments. The aim is to arrive at an all sector inclusive flat rate payment in 2016, by gradually decreasing the level of complementary payments. 
All arable crop aid and Community seeds ai d is fully decoupled, with the exception 
of the production of Timothy ( Phleum pratense L. ) seeds for which the aid remains 
coupled in accordance with  Article 99 of Council Regulation (EC) No 1782/2003. 
Maintaining coupled aid to Timothy produc tion will more than likely ensure a 
continued high level of production of Timothy seeds in Finland. 
 
EN 10   EN 7. SUMMARY AND OBSERVATIONS  
7.1. Legal basis 
The provision in the basic Regulation intr oduced by means of th e Act of Accession, 
enabling Finland to grant national aid seems to be of a transitional nature as the text permits the Commission to forward to th e Council not only a report but also “any 
necessary proposals” concerni ng the national aid scheme. 
7.2. Implementation of system 
Finland is authorised to grant aid to grow ers within the limits of the areas and the 
amounts laid down in Decisions 2001/60/EC and 2001/61/EC. 
In 2000–2002 the aid appears to be distribut ed over the total production area, which 
sometimes exceeded the authorised area, l eading to a reduced aid level. After 2002, 
the method of the aid unit coefficient was used. 
7.3. Other aid schemes 
Most of the schemes listed in Chapter 4, with the exception of the scheme based on 
Article 141 of the Act of Accession, are pr imarily intended as a compensation for the 
difficult climatic conditions in whic h Finnish farmers have to operate. 
Therefore the motivation for the introduc tion of many of thes e schemes and the 
national production aid for seeds is the same, and the cumulative nature of aid 
schemes introduced for climatic reasons is evident. Since the aid schemes serve the 
same purpose, it is necessary to reconsider  the relationship betw een the national aid 
scheme for seeds and cereal seed (already in existence fo r 12 years) and the other aid 
schemes. 
7.4. Single Payment Scheme 
Finland has chosen to apply a dynamic hybr id regional model as of 1 January 2006, 
decoupling the Community aid payments to th e arable crop and the seeds sector with 
the exception of Timothy seeds for which aid will remain coupled. Continuing 
indefinitely the national ai d scheme for seeds and cereal seed production would 
signify a permanent re-coupling of the sector and could undo the advantages of the 2003 reform. It could also have WTO implications. 
Moreover, Timothy seed is multiplied in Finland in nearly optimal and fairly 
competitive conditions. Maintaining coupled  aid for Timothy production will more 
than likely ensure a continued high level of production of Timothy seeds in Finland. 
7.5. Multiplication in other countries 
Based on the increase of imports of grass/clover seed during 2004, a year in which 
local production experienced a strong shortfal l and the upsurge in imports of cereal 
seed in 2003, it seems possible to multiply grass/clover seeds and cereal seed, destined for the Finnish market and its sp ecific climatic conditions, outside Finland. 
 
EN 11   EN 7.6. Cereal seed production 
Cereal seed production has shown a growing trend during the period 2000–2005. 
Moreover, the average yield level for cereal seed produc tion has increased by 44%, 
consequently the aid level per hectar e has seen the same development. 
Moreover, the number of varieties in rece ipt of national aid ha s risen substantially, 
during the period 2000–2005. 
7.7. Imports into Finland 
During the period 2000 to 2005 the quantity of imported cereal seed was at a very 
low level. The volume increased somewhat during this period but came down to a very low level in 2005. 
During the period 2000 to 2005, quantities of imported grass/clover seeds fell 
by 79% and equalled 6% of domestic production 
The fact that domestic production can be substituted by imports when domestic 
production is low shows that domestic pr oduction competes with imports for the 
same markets. 
Therefore it can not be excluded that the national aid for seeds and cereals seed 
production acts as a barrier to imports , by making the Finnish seed production 
artificially competitive against imports from other Member States. 
8. P
ROPOSAL  
Based on the outcome of this report, a propos al for a Council Regulation is attached. 
The proposed measures have no impact on the general budget of the European 
Communities . 
 
EN 12   EN EXPLANATORY MEMORANDUM  
In accordance with Article 8(2) of Counc il Regulation (EC) No 1947/2005 the Commission 
shall forward to the Council a repor t on the results of th e national aid authorised in Finland for 
certain quantities of seeds and for certain quanti ties of cereal seed together with any necessary 
proposals. 
The findings on the results of the aid granted in  Finland for seeds and cereal seed production 
are made clear in the report “on the results of  the aid authorised in Finland for certain 
quantities of seeds and certain quantities of cereal seed”. The report describes the 
developments within the seed and cereal s eed sectors in Finland during the period 2000 
to 2005. 
Based in particular on the availability of other aid programs which compensate Finnish 
farmers for the climatic conditions in which they operate, the need to avoid double compensation and the possible distortion of competition by the national aid scheme, it is proposed to abolish the possibility for Finland to  grant national aid for seeds and cereal seed 
starting from 2011 with the exception of Timothy seeds for which aid has been terminated as 
of 2006. Article 8(2) of Council Regulation (EC) No 1947/2005 on the common organisation 
of the market in seeds and repealing Regulations (EEC) No  2358/71 and (EEC) No 1674/72 is 
amended accordingly. 
 
EN 13   EN 2007/0109 (CNS) 
Proposal for a 
COUNCIL REGULATION 
amending Regulation (EC) No 1947/2005 
as regards national aid granted by  Finland for seeds and cereal seed 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing th e European Community, and in particular 
Article 36 and the third subparagr aph of Article 37(2) thereof, 
Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament
4, 
Whereas: (1) Pursuant to Article 8(2) of C ouncil Regulation (EC) No 1947/2005 of 
23 November 2005 on the common organisation of  the market in seeds and repealing 
Regulations (EEC) No 2358/71 and (EEC) No 1674/72
5, Finland may, subject to 
authorisation by the Commission, grant aid fo r certain quantities of seeds and cereal 
seed produced in Finland because of  its specific climatic conditions. 
(2) On the basis of information sent by Fi nland to the Commission, the Commission 
forwarded to the Council a report6, in accordance with the second subparagraph of 
Article 8(2) of Regulation (EC) No 1947/ 2005. That report shows that seeds and cereal 
seed producers in Finland have access to a nd benefit from other aid schemes, which 
compensate Finnish farmers for the climatic conditions in which they operate. 
(3) The report also shows that the producti on volume of cereal seed in Finland 
experienced an upward trend and that the im ported quantity of cereal seed is small 
compared to the domestically produced quantit y. Furthermore, there is evidence in the 
report to show that when domestic seeds production decreased, im ports increased and 
vice versa, leading to the conc lusion that substitution of do mestic seeds with imports is 
possible and that national Fi nnish aid may distort competition with imported products. 
(4) Timothy seed is multiplied in Finland in nearly optimal and competitive conditions. 
Maintaining coupled aid for Timothy produc tion provides an incentive to production 
of Timothy seeds in Finla nd. The granting of national ai d to Timothy seeds should 
therefore cease. 
                                                 
4 OJ C …, …, p. … 
5 OJ L 312, 29.11.2005, p. 3. 
6 COM(2007) …. 
 
EN 14   EN (5) For the above reasons and for the proper f unctioning of the single market, it is 
appropriate to discontinue th e possibility for Finland to grant national aid for seeds 
and cereal seed. However, in order to provi de farmers in Finland with the opportunity 
to prepare for a situation w ithout national aid, it is approp riate to grant aid for the 
production of seeds and cereal seed, with the exception of Timothy seeds, during a 
final, additional transitional peri od after which it will be abolished. 
(6) With a view to an interim review of the national aid system, Finland should be 
required to provide a detailed report on th e results of the national aid granted. 
(7) Regulation (EC) No 1947/2005 should therefore be amended accordingly, 
HAS ADOPTED THIS REGULATION: 
Article 1 
In Article 8 of Regulation (EC) No 1947/2005, pa ragraph 2 is replaced by the following: 
“2. Finland may, subject to authorisati on by the Commission, gr ant aid for certain 
quantities of seeds, with the exception of Timothy seeds ( Phleum pratense  L.), and 
for certain quantities of cerea l seed produced solely in Finland up to and including 
the 2010 harvest. 
By 31 December 2008 at the latest, Finl and shall transmit to the Commission a 
detailed report on the results  of the aid authorised." 
Article 2 
This Regulation shall enter into  force on the third day following that of its publication in the 
Official Journal of the European Union . 
This Regulation shall be binding in  its entirety and directly applicable in all Member States. 
Done at Brussels, … 
 For the Council 
 The President