COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 30.04.1997 
COM(97) 162 final 
1995 REPORT FROM THE COMMISSION TO THE COUNCIL 
on the implementation of the long-term national aid scheme for agriculture in the 
northern regions in Finland, pursuant to Commission Decision 95/196/EC 

Report presented to the Council by the Commission pursuant to Article 143(2) of the Act of 
Accession to the European Union of the Republic of Austria, the Republic of Finland and the 
Kingdom of Sweden 
I. INTRODUCTION 1 c 
1. Demarcation of the northern region 2 
2. Reference period 3 
3. Description of Finnish northern region aid programme 3 
4. Method for calculating northern region aid 4 
5. Assessment 5 
6. Support for agriculture 6 
H. IMPLEMENTATION OF AID FOR NORTHERN REGIONS IN 1995 8 
1. Livestock production 8 
a) BfiStoal 8 
b) Sucklercows 9 
c) Male bovine animals > 6 months 9 
d) Heifers for slaughter 10 
e) Ewes and shegoats 11 
f) Saône 12 
g) Eeuta 13 
h) HOJSÊS 14 
i) Reindeer 15 
j) Milk 15 
k) Aid for transport of milk and meat 16 
kl) Aid for transport or milk 16 
k2) Aid for transport of meat 17 
2. Crop production 17 
1) Susari2££t 18 
m) Potatoes for starch production 18 
n) Cereals and other arable crops 19 
4 
ni) Barley, oats and mixed cereals 20 
n2) Other cereals and arable crops 20 
0) Vegetables, flowers and plants grown under permanent shelter 21 
01) Vegetables 21 
02) Flowers and ornamental plants 21 
p) Fieldscale vegetables 22 
q) Apples 23 
r) Aid for storage for horticultural products 23 
s) Payment per hectare of UAA (land for grazing, left fallow, etc.) 24 
3. Young farmers 24 
4. Land for grazing, left fallow and under ware potatoes 25 
5. Other aid measures 26 
m. AID FOR THE NORTHERN REGIONS ALLOCATED IN 1995 26 
IV. PRICES FOR FRUIT AND VEGETABLES 26 
V. COMMUNITY AID MEASURES APPLIED 26 
VI. SOCIOECONOMIC DEVELOPMENT IN THE NORTHERN REGIONS IN 1995. -
IMPACT OF NORTHERN REGION AID MEASURES 28 
1. Economic development of the northern regions 28 
2. Socioeconomic situation and trends 28 
3. Current state of agricultultural holdings and outlook 29 
4. Impact of aid on northern regions 30 
VH. EFFECTS OF AID GRANTED ON ENVIRONMENTAL PROTECTION AND 
THE PRESERVATION OF THE COUNTRYSIDE (AS PROVIDED FOR IN THE 
THIRD SUBPARAGRAPH OF ARTICLE 142(3) OF THE ACT OF ACCESSION) 30 
Vffl. INTEGRATED ADMINISTRATION AND CONTROL SYSTEM (IACS) 31 
4. ex. 
DC. REQUESTS FROM FINNISH AUTHORITIES 32 
1. Requests for amendments to Decision 95/196/EC 32 
2. Proposals for technical adjustments to Annexes II to VI to 
Decision 95/196/EC 
as a result in particular of inaccurancies and shortcomings in regional 
statistics 33 
3. Other requests 33 
X. ADMINISTRATIVE INSTRUMENTS ADOPTED FOR THE 
IMPLEMENTATION 
OF COMMISSION DECISION 95/196/EC 34 
XL CONCLUSIONS 34 
ANNEX 1 - Map of northern zones 36 
ANNEX 2 - Map of subrogions C1C4 37 
ANNEX 3 - Map of subzones P1P5 38 
ANNEX 4 - Northern regions 39 
ANNEX 5 - Northern aid...... , 40 
ANNEX 6 - Evolution of support in the northern zones 41 
^ 
I. INTRODUCTION 
Pursuant to Article 142 of the Act of Accession to the European Union of the Republic 
of Austria, the Republic of Finland and the Kingdom of Sweden, the Commission has 
authorized Finland to grant long-term national aid to ensure that agricultural activity is 
maintained in specific regions determined by the Commission and covering agricultural 
areas situated to the north of the 62nd Parallel and some adjacent areas affected by 
comparable climatic conditions rendering agricultural activity particularly difficult. 
When determining those areas, the Commission took special account of the low 
population density, the proportion of utilized agricultural area (UAA) in relation to the 
overall area and the proportion of the UAA given over to arable crops for human 
consumption. 
This aid, which may vary by region and be related to physical production factors taking 
account of the ceilings imposed by the COMs, must not be linked to future production or 
lead to an increase in production or the level of overall support recorded during a 
reference period prior to accession, to be determined by the Commission. 
The aid must be granted in particular to maintain tradition primary production and 
processing, to improve structures for the production, marketing and processing of 
agricultural products, to facilitate the disposal of such products and to ensure that the 
environment is protected and the countryside preserved. 
The Community's enlargement to Austria, Finland and Sweden provides for the 
immediate alignment of agricultural prices, but alongside the latter and in order to soften 
the effect of such alignment, Finland is authorized to grant degressive aid for a 
transitional period to producers of agricultural products subject to the common 
agricultural policy. 
In addition, Finland has the right to maintain a long-term national aid scheme in the 
northern regions. Since there is provision for the aid scheme in question under 
Article 142 of the Act of Accession, it must be considered in terms of that Article and 
not on the basis of Articles 92 and 93 of the Treaty. 
In its final version submitted on 20 January 1995, the programme initially presented by 
the Finnish authorities on 26 October 1994 and later supplemented with additional 
information and amended in certain respects in response to requests from Commission 
departments sets out the form and level of aid contemplated and the production factors 
- (number of ha and LU) on which the aid may be paid. 
In Decision 95/196/EC of 4 May 19951, the Commission determined the northern 
regions of Finland, set the reference period for checking that aid for the latter regions 
does not lead to an increase in production or overall support and lays down the ceiling 
on agricultural production not to be exceeded, the penalty being a reduction in the aid 
granted. 
1 OJ No L 126,9.6.1995, p. 35. 
1. Demarcation of the northern regions 
On 21 February 1994 the Council supplemented its decision in principle on long-
term national support for agriculture in specific northern areas by setting the precise 
values of the criteria to be used in demarcating those areas. 
These -values were recorded in conference document No CONF.5/94 (GENERAL). 
The text was ratified unchanged in its entirety and all its details by the conference. 
For the Commission's determination of the northern regions of Finland, the 
abovementioned criteria are as follows: 
- all municipalities north of the 62nd Parallel, 
- for other municipalities in adjacent areas south of the 62nd Parallel, a 
population density of not more than 10 inhabitants per square kilometre, less 
than 10% UAA as percentage of total area of the municipality, and not more 
than 20% of that UAA under arable crops within the meaning of Regulation 
(EEC) No 1765/92 and intended for human consumption. 
The method applied for demarcating the northern regions is analogous with the 
practice adopted in defining less-favoured areas in accordance with Community 
legislation (Directive 75/268/EEC). 
The kunta-kommun or municipality was selected as the relevant administrative unit 
for checking compliance with the abovementioned criteria. Where appropriate, 
municipalities which do not simultaneously meet all three criteria but are 
completely surrounded by areas which do are included so as to form a homogeneous 
whole (this involves two municipalities accounting for 705 ha of agricultural land). 
Exceptionally, the rural district (maatalouspiiri/lantbrukdistrikt) of Mikkeli and the 
rural district of South Karelia (representing a total UAA of 74 419 ha) and the 
agricultural areas defined in Area 3 of the Finnish system of aid to agriculture 
according to the size of holdings in force prior to accession and within the limits 
existing at 31 December 1993 (with a UAA of 13 646 ha) were selected as territorial 
units for the purpose of checking compliance with the criteria. It was necessary to 
treat this area astride the 62nd Parallel as a special case owing to the presence of 
specific natural handicaps. The area is a region of great lakes, which account for 
over 20% of the total area of the districts of Mikkeli and South Karelia, The area 
used for agriculture makes up only 5% of the total (including the lakes). Farmland is 
thus fragmented and scattered throughout a vast area covered by woodland and 
lakes. 
Treating these areas as a homogeneous whole made it possible to deal with this 
exceptional case within the European Union. These two areas as a whole meet the 
agreed thresholds, although no individual municipality taken separately could claim 
to do so. 
This approach, which is the one usually followed when applying 
Directive 75/268/EEC on mountain and hill fanning and farming in certain less-
favoured areas, will not only make it easier to administer the scheme but above all 
help in meeting the special needs of the great lakes region of Finland. 
The northem region thus determined represents an area of 1 417 000 ha of UAA or 
55.5% of Finland's total UAA (see Map 1) and is subdivided into five subrogions, 
i.e. CI, C2, C2 North, C3 and C4 (see Map 2). Subregions C3 and C4 are 
subdivided into sub-areas PI, P2, P3 and P4 (subregion C3) and P4 and P5 
(subregion C4) (see Map 3) in order to allow for a variation in the aid for bovine 
animals, sheep and milk. 
This subdivision makes it possible to modulate support for agriculture by taking 
account of the special features of the regions' agricultural economy and the severity 
of the natural handicaps. To that end, the Nikula index, a synthetic agro-economic 
index which enables each municipality to be classified in a subregion or subarea, 
was used in the main. 
The northern regions thus demarcated (see maps and Table 4) are annexed to this 
Report. 
2. Reference period 
The reference period for agricultural production and overall support before 
accession not to be exceeded should, on the basis of available national statistics with 
regard to quantities, be the period 1991-93. Exceptions are cow's milk and bovine 
animals on the one hand, for which 1992, used to fix the milk quota and the 
reference herd for Finland, is deemed most appropriate, and on the other hand, 
horticultural production, for which 1993 has been taken as the basis because of the 
availability of reliable statistics for that year. 
3. Description of Finnish northern region aid programme 
The programme submitted by the Finnish authorities pursuant to Article 142 
provides for long-term aid for production within the ceilings set out in the Annexes 
to Commission Decision 95/196/EC. 
It covers a wide range of products and is justified on the grounds that Finland's 
accession entails a major reduction in the level of support for the agricultural 
economy of the northern regions. 
There is provision for the support to vary be region in several cases in order to 
reflect the conditions existing in Finland. 
The Finnish authorities have specified the form in which they intend to allocate the 
aid. The aid proposed for all plant products (cereals and other arable crops, fruit and 
vegetables, potatoes for starch production and sugarbeet) is expressed per hectare. 
For livestock production, the aid is expressed per livestock unit (LU) for bovine 
animals (excepting heifers), equines, ewes, goats, swine and poultry, while in the 
case of milk it is expressed per kilogram, and for reindeers and heifers per head of 
livestock. 
The coefficients used for converting livestock into LU are identical to those applied 
for fixing aid under Articles 138, 139 and 140 in Finland in the Decision approved 
by the Commission. 
There is also provision for aid for the transport of milk and meat from the farm to 
the first collection or processing centre in certain areas of the northem regions (C4, 
C3 and C2 North, with the exception of the municipalities that do not belong to 
regions eligible under Objective 6 of the Structural Funds), which is expressed in 
Finnish markka per tonne (the average cost is estimated to be FIM 54/t for milk and 
FIM 0.5/kg for meat). The level of aid was calculated by reference to the average 
quantity delivered to the dairy per holding, the average density of farms in the 
dairy's collection area and the average distance between the farms and the dairy. 
Aid is also planned for the storage of fruit and vegetables produced in the northern 
regions, expressed in Finnish markka per cubic metre per year. 
For young farmers (under 40 years old) there is provision for flat-rate aid per 
hectare under pasturage and cereals. The number of recipients is estimated at 
19000. 
Aid is also planned for all UAA used for grazing, left fallow and sown to ware 
potatoes. The same aid is allocated for other crops but the accounting is separate for 
each type of crop. 
It is also planned to grant aid for the Skolt population2, "the reindeer industry" and 
"the natural economy", allocated in the form of a subsidy on the interest rates for 
loans or as direct grants covering a percentage of 45% to 75% (up to 80-85% for the 
Skolt population) of the cost of certain small-scale productive investments and rural 
infrastructure (roads and water supply). 
4. Method for calculating northern region aid 
To assess the level of aid contemplated by the programme, overall support per 
product during the reference period was compared with support after accession. 
To calculate overall support during the reference period, account was taken firstly of 
the différence between 1993 prices in Finland and in the Community (indirect 
support) and secondly of the direct support financed by the national budget in that 
year. 
Support after accession was taken to include not only aid for the northern regions 
and degressive national aid under Articles 138,139 and 140 of the Act of Accession 
applied during the transitional period (1995-96), but also compensatory allowances, 
agri-environmental aid provided for by the Member State for farmers in the northern 
regions and aid currently granted under the COMs. 
2 Ethnic group of around 800 people transferred from Petsamo after the Second World War. 
4 
Any change in those amounts resulting in the level of support before accession's 
being exceeded will entail adjusting the permissible aid for the northern regions 
from the following calendar year. 
The amounts are expressed in national currency as at 1 January 1995 and may be 
adjusted each year. The Commission Decision will have to be amended to reflect 
sucrradjustments. 
Aid for the northern regions, with the exception of that for cow's milk (for which 
there is a quota system), is not granted on the basis of the quantities produced but on 
that of production factors within the regional limits shown in Annex 4 to Decision 
95/196/EC (see Annex 5). Support before and after accession in the northern 
regions is given in the diagram in Annex 6. 
5. Assessment 
The Finnish authorities have shown that a dference exists depending on the product 
between support during the reference period and support after accession. The figures 
were checked by the Commission departments in close cooperation with the Finnish 
authorities. 
The difference in price levels and the fall in production costs (of pigmeat, eggs and 
poultry) were checked and no overcompensation was observed. 
For fruit and vegetables, where it was estimated that prices in 1995 could turn out to 
be different from those used as the basis for assessing support, there is provision for 
a system for adjusting the level of aid to take account of storage aid, in order to 
avoid any overcompensation from 1996 on. There is also provision for such a 
review of aid levels in respect of transitional aid under Articles 138,139 and 140 of 
the Act of Accession. 
Aid for the transport of milk and meat in these remote areas of the Community is to 
be considered aid to facilitate the disposal of those products in accordance with the 
third subparagraph of Article 142(3) and is therefore permissible. 
The aid per kilogram of meat was "converted" into aid per LU, and the aid for dairy 
cows and for heifers intended for dairy production was converted into aid per 
kilogram of milk, and is therefore permissible. The aid for heifers for slaughter 
(expressed in head of livestock slaughtered and paid after slaughter) and for keeping 
mares for breeding, foals (1-3 years) and Finnish horses is also acceptable. 
In order to avoid an increase in production, a clause inserted in the Decision 
provides that if production of a product is found to exceed that of the reference 
period, a proportional reduction in the aid for the product groups concerned will 
apply the following year. In the case of field-scale production, that clause is 
applicable if production is 10% higher on average for two consecutive years. 
In order to avoid penalizing product groups or subrogions (aid varies by subregion) 
through the application across the board of a reduction in aid in the event of any 
excess production, the levels of production and support are presented by product 
and by subregion. 
Under these circumstances, the aid arrangements for Finland's northern regions 
proposed by the Finnish authorities pursuant to Article 142 may be considered to 
meet the conditions laid down in that Article, and the Decision determining the 
northern regions of Finland, authorized aid, the reference period and the level of 
production and overall support was adopted by the Commission on 4 May 1995 
(Decision 95/196/EC). 
6. Support for agriculture 
Main changes in the environment in which Finland's agriculture operates 
Finland's accession to the European Union has brought about far-reaching changes 
in the environment within which Finnish agriculture operates. National agricultural 
policy underwent a sea change as market prices and the system of support provided 
for under the EUs common agricultural policy were applied immediately. With a 
view to the integration of Finnish agriculture within the CAP, the special 
arrangements laid down in the Act of Accession were implemented. 
The impact of accession must be viewed from various standpoints. At the holding 
level, accession has affected producer prices and those of certain inputs, as well as 
the level of support overall. These factors have influenced holdings' profitability and 
income. 
The abolition of protection at the frontier and of regulation prices for agricultural 
products led to a significant reduction in market prices from day one after accession. 
The loss of income due to the reduction in market prices for agricultural products 
was partially offset by the fall in production costs. The remaining income loss was 
offset by other forms of support. The previous national system of support was 
replaced by support under the CAP (market support, compensatory allowances and 
agri-environmental measures) and by national aids provided for in Articles 138,139 
and 140 of the Act of Accession. 
For the purposes of regional apportionment of aid, Finland was subdivided into 
various support zones. 
The major forms of support in the various zones in 1995 were as follows: 
- Zone A: 
CAP premiums and compensatory payments; 
- Zone Bi 
In addition to the aids provided for in respect of Zone A: 
Compensatory allowance provided for in Directive 75/268/EEC and 
Regulation (EEC) No 2328/91; 
- Zone C1-C4: 
In addition to the aids provided for in respect of Zone B: 
Long-term national aids pursuant to Article 142 of the Act of Accession 
authorized by Commission Decision 95/196/EC to maintain agricultural 
activity in the northern regions; 
- Finland as a whole: 
In addition to the abovementioned aids: 
• National aids pursuant to Articles 138, 139 and 140 authorized by 
Commission Decision 95/3 3/EC3 to facilitate the adaptation of Finland's 
agricultural and horticultural industries to prices set by the market 
organizations and the integration of Finnish agriculture within the CAP; 
• Measures accompanying the reform of the CAP and support pursuant to 
Regulations (EEC) No 2078/924, No 2079/92* and No 2081/92*. 
The total amount paid in 1995 as support for agriculture and horticulture in Finland 
was FIM 12.320 billion, including FIM 2.3 billion as compensation for stocks. Of 
that amount, FIM 1.677 billion allocated for production support in 1995 was carried 
over for payment in 1996. 
3 OJNoL 6, 9. 1.1996, p. 21. 
4 OJ No L 215, 30. 7.1992, p. 85. 
5 OJNoL215,30.7.1992,p.91. 
6 OJ No L 208, 24. 7.1992, p. 1. 
IL IMPLEMENTATION OF AID FOR NORTHERN REGIONS IN 1995 
AJd for the northern regions is not paid to farmers over 65 years old. 
1. Livestock production 
(a) Bççf/vçal 
The northem regions, 73% of Finland's cattle are reared on 44 814 holdings 
with a stocking density of 1.25 LU/ha. 
Table 1 
Total number of cattle reared 
(LU) 
Beef and veal 
production (t) Subregion 
In the reference 
period 
in 1995 
In the reference 
period(1 ) 
en 1995(2) C1 
188 550 
15(586 
18,400 
14,142 C2 
316,700 
255,377 
31,700 
25,814 C2-North 
35,900 
28/673 
3,600 
2,715 C3 
56,550 
40,063 
5,600 
4028 C4 
7,650 
5,550 
600 
446 Total 
605,350 
481,249 
59,000 
47,144 
(1) except for cow's meat (26,300t) 
(2) production of coWs meat in 1995:23|281t 
Table 2 Remarks: 
In 1995, both livestock numbers and beef/veal production were below the levels 
recorded during the reference period. As a consequence, the condition 
concerning the prohibition on an overrun in production laid down in Article 142 
was met. 
(b) Suckler cows 
53% of Finland's suckler cows are reared on 2 189 holdings {51.1% of national 
total) in the northern regions. 
1995 
Production units 
reared (LU) 
Unit aid in 
1995 (FIM/LU) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
Authorized and 
applied (1) 
Authorized 
Paid (2) Subregion 
Ci 
6,550 
7,030 
100 
0 .7' 
0 .6 C2 
7,100 
7,229 
150 
1 .1' 
1 .0 C2-North 
650 
654 
600 
0 .4' 
0.3 C3 
900 
538 
1,050 
0 .9' 
0 .5 C4 
150 
37 
2,150 
0 .3 
0 .1 Total 
15,350 
15,488 
3 .4 
2 .5 
(1) The aid is paid up to the individual quota limit allocated to each producer. The aid is paid in full 
on a maximum of 30 LU. Between 31 and 50 LU the aid is reduced by 25%. For more than 50 LU the aid is reduced by 50%. 
The aid is limited to 300 LU in subregions C1 and C2, in subregions C3 and C4 it is limited to 200 and 100 LU/holding respectively. 
(2) Government Decision No 413/95 paragraph 12. 
(3) Aid paid on a minimum of 3 LU 
Remarks: 
On account of restrictions in the aid allocated, the total aid granted was below 
the level authorized, despite a very slight increase (0.9%) in total livestock 
numbers. 
(c) Male bovine animals > 6 months 
73% of Finland's male bovine animals are reared in the northern regions. 
Table 3 1995 
Production units 
reared (LU) 
Unit aid 
(FIM/LU) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
Authorized and 
applied (1 ) 
Authorized 
Paid (4) C1 
36,000 
35,214 
650 
23 .4' 
16 .7 Subregion 
C2 
62.300 
58,764 
700 
43.6' 
33.4 C2-North 
7,250 
6,370 
1,150 
8.3* 
6 .0 C3 
11.100 
8,612 
2900-3400 (2) 
35 .0' 
20 .9 C4 
1,050 
1,153 
4500-6000 (3)1 
4 .8 
3 .1 Total 
117,700 
110,113 
115.1 
80 .2 
(1) Government Decision No 413/95. paragraphs 12 and 13. 
(2) Sub-areas P1-P2:2,900 FIM/LU (of which 1 600 annual aid and 1 300 once during the animal's lifetime). P3-P4: 
3.400 FIM/LU (of which 1,600 annual aid and 1 800 once during the animal's lifetime) 
(3) Sub-area P4:4 500 FIM/LU (of which FIM 2,700 annual aid and 1,800 once during the animal's lifetime). 
P5: 6000 FIM/LU (of which 2/700 annual aid and 3 300 once during the animal's lifetime) 
(4) Aid paid on a minimum of 3 LU. 
Remarks: 
The number of livestock raised and the aid granted in 1995 are within the 
ceiling authorized. 
(d) Heifers for slaughter 
72% of Finland's heifers are raised in the northem regions. 
Table 4 
Production units 
(head) 
Unit aid 
(FIM/head)(1) 
Total aid 
in 1995 (FIM million) Authorized 
Reared 
Authorized and 
applied (2) 
Authorized 
Paid 1995 
Subregion 
C1 
17,390 
9,828 
460 
8.0 
4.52 C2 
30,020 
18,907 
470 
14 .1 
8.89 C2-North 
3,380 
2,105 
780 
2.6 
1 .64 C3 
5,440 
3,304 
1,060 
5.8 
3,50 C4 
810 
391 
1,640 
1 .3 
0.64 Total 
57,040 
34,535 
31 .8 
19,19 
(1 ) Aid paid once in an animars lifetime, at slaughter. 
(2) Government Decision No 413/95. paragraph 13. 
(3) AJd paid on a minimum of 3 LU. 
Remarks: 
Figures for the number of animals slaughtered and total aid allocated in 1995 
are below those for the reference period. 
10 
(e) Ewes and she-goats 
57% of ewes and 41% of she-goats in Finland are reared on 2 828 holdings and 
62% of Finland's sheepmeat and goatmeat is produced in the northern regions. 
Table 5 
Production units 
reared (LU) 
Sheepmeat and 
goatmeat 
production (t) 
Unit aid 
(FIM/LU) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
in receipt of 
aid in 1995 
In the reference 
period 
in 1995 
Authorized and 
applied 
Applied on average 
in 1995(3) 
Authorized 
Paid (5) 1995 
Subregion 
C1 
1,650 
2,318 
1,860 
223 
303 
650 
621 
1 .1' 
1 .2 C2 
1,810 
2,337 
1,899 
276 
407 
700 
691 
1 .3' 
1 .3 C2-North 
460 
436 
331 
60 
57 
1,150 
1,130 
0.5' 
0 .4 C3 
790 
629 
551 
111 
101 
3,100 (1)' 
3,700 (1)' 
3,372 (1) 
2 .6' 
1 .8 C4 
300 
193 
164 
41 
23 
4,800 (2)' 
6,400 (2)' 
5,052 (2) 
1 .5' 
0 .80 Total 
5,010 
5,913 
4.805 
711 
892 
7 
5 .6' 
(1) Sub-areas P1-P2: 3,100 FIM/LU. P3-P4: 3,700 FIM/LU 
(2) Sub-areas P4: 4,800 FIM/LU. P5: 6 400 FIM/LU 
(3) The aid is paid up to the individual quota limit allocated to each holding. The aid is paid in full 
on a maximum of 30 LU. Between 31 and 50 LU the aid is reduced by 25%. For more than 50 LU the aid is reduced by 50%. 
In subregions C1 and C2 the aid is limited to 300 LU. in subregions C3 and C4 it is limited 
to 200 and 100 LU/holding respectively. 
(4) Government Decision No 413/95. paragraph 12. 
(5) Aid paid on a minimum of 1.5 LU. 
Remarks: 
In 1995, there was a rise of around 18% in livestock numbers and of around 
25.5% in meat production compared with the reference period. Despite the 
increase in numbers of animals reared in 1995, there was no overrun in the level 
of support authorized since the aid was limited to a small number of LU. 
As a result of the rise in production and pursuant to Article 4(1 )(c) of Decision 
95/196/EC, the aid for 1996 should be reduced proportionately. Unless the 
resulting FIM 1.785 million reduction is offset by an increase in aid as a result 
of the reduction in Community aid or revaluation of the national currency, it 
must be spread among the regions where the overrun was recorded. 
11 
(f) Swine 
42% of Finland's pigs are reared in the northern regions. 
Table 6 1995 
Production units 
reared (LU) 
Pigmeat 
production (t) 
Unit aid 
(FIM/LU) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
In the reference 
period 
in 1995 
Authorized and 
applied 
Authorized 
Paid (2)(3) Subregion 
C1 
63,700 
74,570 
42,900 
40,673 
0 
0 
0 C2 
37,600 
43,138 
24,700 
23,897 
0 
0 
0 C2-North 
2.100 
2,172 
1,300 
1,273 
590 
1 .2' 
1 .3 C3 
3,150 
2,569 
2,000 
1..420 
590 
1 .9' 
1 .3 C4 
40 
3 
6 
3 
900 
0 .04' 
0 .0 Total 
106,590 
122,452 
70,906 (1) 
67,264 
3 .1" 
2 .5 
(1) Sow's meat (3 1001) is included 
(2) In the case of sows, the full aid payment is limited to 30 LU. Between 31 and 50 LU the aid is reduced by 25%. 
For more than 50 LU. the aid is reduced by 50%. In subregions C1 and C2 the aid is limited to 300 LU; in subregions C3 and C4 the 
aid is limited to 200 and 100 LU/holding respectively. 
(3) Aid paid on a minimum of 3 LU. 
Remarks: 
Despite the 14,9% increase in the number of swine reared, there was no rise in 
pigmeat production or in the aid granted in the northern regions. The reason 
behind the increase in the number of swine lies in the fact that from 1995 on, 
the method for classifying pigs (based on age) has changed to a system based on 
the weight of the animal. In accordance with the new system, pigs of less than 
20 kg are classified as piglets, whereas prior to 1995, piglets were less than 
three months old. Since the number of LU was calculated for swine other than 
piglets, the increase in LU is due to this change in statistics. The change has no 
impact on the reference quantity. 
12 
(g) Poultry 
30.3%o of Finland's poultry is raised in the northern regions, where 30.1% of the 
country's poultrymeat is produced. 
Table 7 
Production units 
reared (LU) 
Production (tonnes) 
-eggs 
-meat 
Unit aid in 
1995 (FIM/LU) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
In the reference 
period 
Achieved in 1995 
In the reference 
period 
Achieved in 1995 
Authorized 
Applied (4) 
Authorized 
Paid (5)(6) 1995 
Sub-region 
C1 
23,700 
20,559 
26,000 
14,513 
4,820 
10,148 (2) 
0 
0 
0.0' 
0 C2 
7,700 
5,838 
8,000 
2,784 
1,140 
1,457 (3) 
0 
0 
0 .0" 
0 C2-North 
850 
468(1) 
1,000 
147 
10 
0 
590 
590 
0 .5" 
0 .3 C3 
355 
356(1) 
1,000 
110 
20 
99 
900 
900 
0 .3' 
0 .20' C4 
5 
2(1) 
2 
0 
1 
0 
1,900 
1,900 
0 .01 
0 .00 Total 
32,610 
27,223 
36,002 
17,554 
5,991 
11,705 
0 .8' 
L 0 .5 
(1 ) Of which 9,5901 broiler meat and 5581 other poultry. 
(2) Of which 1,401 t broilers and 561 other poultry. 
(3) The aid is paid in full on a maximum of 30 LU. Between 31 and 50 LU the aid is reduced by 25%. For more than 50 LU 
the aid is reduced by 50%. In the subregions C1 and C2, the aid is limited to 300 LU; in subregions C3 and C4 it is limited to 200 
and 100 LU/holding respectively. 
(4) Government Decision No 413/95. paragraph 12. 
(5) Aid paid on a minimum of 3 LU. 
Remarks: 
A major increase in poultrymeat production was recorded in 1995. As a result, a 
proportionate reduction must be made in the aid in 1996. 
The Finnish authorities propose that the figures for authorized production of 
poultrymeat and eggs be changed and the aid be divided into two categories, 
one for layers and broilers and another for table fowl and other poultry. These 
changes result in no increase in the aid planned (see Table below). If the new 
figures are used, a reduction of 23% in the aid as a result of the overrun in 
production must be applied in 1996. 
13 
Table 8 
Production units 
reared (LU) 
Production (tonnes) 
-eggs 
-meat 
Total aid (FIM million) 
laid down in Decision 
95/196/EC 
Total aid (FIM million) 
laid down in the new 
Finnish 
proposal(3) Laid down in 
Dec. 95/196/EC 
New proposal 
Decision 95/196/EC 
New proposal 
Decision 95/196/EC 
New proposal 
1995 
1996 
1997 
1998 
1999 
from 2000 
1995 
1996 
1997 
1998 
1999 a 
b 
a 
b 
a 
b 
a 
b 
a 
b 
from 2000 a 
lb 1995 
Subregion 
C1 
23/00 
23,700(1) 
26,000 
16,950 
4,820 
8y335 
0 .0 
0 .0 
14 .5 
29.1 
43 .6 
58.1 
0 
0 
0 
0 
9 .8 
4 .7 
19.6 
9 .4 
29.4 
14 .2 
39.2 
18.9 C2 
7/700 
7,700 (2) 
8,000 
8,000 
1,140 
1,075 
0 .0 
0 .0 
4 .8 
9.6 
14 .4 
19.3 
0 
0 
0 
0 
3 .9 
0 .9 
7 .9 
1 .8 
11 .8 
2 ,6 
15.8 
3.5 C2-North 
850 
850 
1,000 
1,000 
/ 10 
10 
0 .5 
0.5 
1 .0 
1 .5 
2 .0 
2 .5 
0 .4 
0 .1 
0 .4 
0 .1 
0 .8 
0 .2 
1 .2 
0 .3 
1 .6 
0 .4 
2 .0 
0.5 C3 
355 
355 
1,000 
1,000 
J 20 
20 
0 .3 
0 .3 
0 .5 
0 .8 
1 .0 
1 .2 
0 .2 
0 .1 
0 .2 
0 .1 
0 .5 
0 .04 
0 .7 
0 .06 
0 .9 
0 .07 
1 .1 
0.1 C4 
5 
5 
2 
2 
1 
1 
0 .01 
0 .01 
0 .01 
0 .02 
0 .02 
0 .02 
0 .0 
0 .0 
0 .0 
0 .0 
0 .0 
0 .003 
0 .014 
0 .003 
0 .014 
0 .004 
0 .018 
0,002 Total 
32,610 
32,610 
36,002 
261952 
5,991 
9,441 
0 .8 
0 .8 
20 .9 
41 .0 
61 .0 
81 .1 
0 .6 
0 .2 
0 .6 
0 .2 
15.1 
5.8 
29.4 
11 .5 
43 .7 
17 .3 
58.1 
23.0 
(1) Of which: 16 000 LU laying hens, 6 400 LU broilers and 1 300 LU other poultry 
(2) Of which: 6 300 LU laying hens, 900 broilers and 500 other poultry 
(3) Total aid for eggs before accession in the northern regions is FIM 109 million 
a = laying hens and chicks 
b = broilers and other poultry 
(h) Horses 
Table 9 
(1) Breeding mares, foals (1-3 years) and Finnish horses. 
Remarks: 1995 
Production units 
raised (LU) In the reference 
period 
in 1995 Subregion 
C1 
2,400 
3,511 C2 
2,800 
4,119 C2-North 
340 
566 C3 
390 
446 C4 
70 
79 Total 
6,000 
8,721 
No aid is planned for tilts product group for 1995-97. As from 1998, support for 
horses will be paid in respect of only 20 units per recipient. If there is still an 
overrun in 1998, a reduction will apply to the aid in 1999. 
14 
(i) Reindeer 
Reindeer are reared in the northem regions only. 
Table 10 1995 
Production units 
reared (head) 
Production (tonnes) 
Unit aid in 
1995 (FIM/LU) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
Authorized 
Achieved in 1995 
Authorized 
Applied (1) 
Authorized 
Paid Subregion 
C1 
0 
0 
0 
0 
0 
0 
0 
0 C2 
0 
0 
0 
0 
0 
0 
0 
0 C2-North 
0 
0 
0 
0 
0 
0 
0 
0 C3 
71,500 
64,581 
1,073 
879 
160 
140 
11 .4' 
9 .04 C4 
157,500 
143,559 
2,370 
1,941 
160 
140 
25 .2' 
20 .10 Total 
229,000 
208,140 
3,443 
2,820 
36 .6' 
29 .14 
(1) Government Decision No 413/95 paragraph 13a 
Remarks: 
In 1995, the number of animals and the level of production were below those 
recorded during the reference period and total aid allocated in the northem 
regions was within the ceiling authorized. 
(j) Mi& 
There are 26 870 holdings (1992) producing milk in the northern regions of 
Finland. They are distributed by subregion as follows: CI = 8 617; C2 = 
13 500; C2 North = 1 696; C3 = 2 624; C4 = 433. They account for 80% of 
Finland's milk production. 
Table 11 
Production units 
reared (LU) 
Production 
(tonnes) 
Unit aid in 1995 
(FIM/Kg) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
In the reference 
period 
in 1995 
Authorized and 
applied 
Authorized 
Paid (7) 1995 
Subregion 
C1 
96,600 
90,034 
524,000 
517,153 (2) 
0.17' 
86 .9' 
86.054 C2 
166,800 
156,542 
906,000 
903,369 (2) 
0.18' 
159 .1' 
162 .155 C2-North 
18,800 
18,054 
102,000 
105,745 
0 .29' 
29.6" 
30 .596 C3 
30,200 
25,955 
164,000 
168^15 (3) 
0.47-0.72 (6) 
101 .7' 
109 .288 C4 
4,500 
3,704 
24,000 
23,750 (4) 
0.99-1.51 (6) 
25 .8' 
25 .553 Total 
316J900 
294^89 
1,720,000 (1 ) 
1,718,932 (5) 
403 .1" 
415 .646 
(1 ) These quantities can be supplemented by the quantities allocated under 
the Act of Accession using the reserve decided upon for the Finnish SLOM quota. 
(2) Of which 105.51 and 35.21 goat's milk in sub-regions C1 and C2. 
(3) Of which, by sub-area: C3P1 = 13,5801. C3P2 = 58,058. C3P3 = 65,826, C3P4 = 26 8961. 
(4) Of which by sub-area: C4P4 = 20,6431 and C4P5 = 3 6151. 
(5) Only 1 715 889 tonnes of milk benefited from northem aid. In the case of 3 043.204 tonnes produced by fanners over 65. 
the aid was not paid. 
(6) Unit aid in FIM/kg for subregion C3: P1 = 0.47. P2 = 0.57, P3 = 0.72 and for C4: P4 = 0.99, P5 = 1.51. 
(7) The unit aid applied in 1995 in FIM/kg was: for subregion C3: P1 = 0.459. P2 = 0.558. P3 = 0.704. 
P4 = 0.705 and for C4: P4 = 0.968. P5 = 1.48. 
(8) Government Decision No 413/95, paragraph 6. 
(9) For quantities exceeding 20Q 000 kg per producer, the aid is reduced by 50% 
15 
Remarks: 
The aid allocated exceeded the total aid authorized. The overrun (FIM 12.5 
million, or 3.1%) should be recovered. On 19 September 1996 the Finnish 
Government amended Government Decision 413/95 (amended by Decisions 
Nos 1006/95, 1435/95 and 225/96) in order that aid for the northern regions 
paid in October-December 1996 be reduced by the amount exceeding that 
authorized for milk in 1995. Following that decision, a general reduction of 
FIM 0.0317/kg was applied in all the northern regions. 
The Commission departments are considering a request from the Finnish 
authorities relating to: 
(a) a change in the total aid (increase of FIM 4.2 million for 1995 and 1996) 
as a result of a more accurate estimate of the quantity produced in areas 
P1-P4 of subregion C3, resulting in a change in the distribution of 
quantities produced among the areas but no increase in the ceiling on 
production; 
(b) an increase in the quantity of milk on which the aid is payable and the 
total aid in subregions CI, C2 and C3 to include the SLOM quantity 
allocated in 1995 and 1996, and 
(c) the abolition of the restriction with regard to cow's milk whereby the aid 
for the northern regions is limited to the reference quantity allocated to 
each producer. 
(k) Aid for transport of milk and meat 
(kl) Aid for transport of milk 
Table 12 
Production units 
(tonnes) 
Average unit 
aid (FIM/t) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
Authorized 
Achieved in 1995 
Authorized 
Paid(1) 1995 
Subregion 
C1 
. 
-
-
-
-C2 
. 
-
-
-
-
-C2-North 
n 
3Q,831 
o 64 .56' 
n 0 C3 
o 
148,566 
n 38 .22' 
O 
7.7 C4 
<*) 
23,786 
n 51,62 
n 1 .20 Total 
203,183 
43 ,79' 
13,5' 
8.90' 
(1) Government Decision No 1373/95 
(*) regions of Kainuu and Lappi and Koillismaa district 
16 
(k2) Aid for transport of meat 
Aid for the transport of all types of meat (FIM 0.704 million - see table below) 
for 1995 in the province of Lappi will be paid in 1996 in accordance with the 
arrangements applying prior to accession. The aid is payable on 1 832.6 t. 
Table 13 
Products 
Beef and veal 
Sheepmeat 
Pigmeat 
Other meat 
Sick animals 
(number: 28) 
Total Quantity (kg) 
Area 
C3 P4 and 
C4P4 
1,483,271 
22,662 
229..573 
1,433 
7,736;939 C4P5 
92,866 
2,776 
95,642 Aid in FIM (1) 
Area 
C3P4 and C4P4 
(0.35 FIM/kg) 
519,145 
7,932 
80,350 
501 
607,928 C4P5 
(0.8 FIM/kg) 
74,292 
2,220 
19,600 
96,112 1995 
Total 
Quantity 
(kg) 
1..576,137 
25,437 
1,832,581 Aid 
FIM 
593,437 
10,152 
80,350 
501 
19,600 
704,040 
(1) Government Decision No 1374/95. 
Remarks: 
There is no overrun in the total amount authorized for transport aid. 
2. Crop production 
In the northern regions, irrespective of the type of crop, aid amounting to 
FIM200/ha is paid in subregions C2 and C2 North and FIM400/ha and 
FIM 800/ha in subregions C3 and C4 respectively. 
The aid is not granted to farmers qualifying under pension arrangements. 
By product the situation is as follows. 
17 
(l) Sugarbeet 
Production in the northern regions accounts for only 8.3% of Finland's total. 
Leaving aside the general support mentioned above, aid amounting to 
FIM 500/ha is paid for this crop in subregions CI, C2 and C2 North. 
Table 14 
Production units 
cultivated (ha) 
Sugar 
production (tonnes) 
Unit aid in 
1995(FIM/ha)(1) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
Authorized 
Achieved in 1995 
Authorized and 
applied 
Authorized 
Paid 1995 
Subregion 
C1 
3,230 
3,358 
17,570 
11,689 
500 
1 .6' 
1 .60 C2 
520 
153 
2,270 
458 
500+200' 
0 .4' 
0 .10 C2-Nord 
0 
14 
0 
0 
500+200' 
0 .0' 
0 .00 C3 
0 
0 
0 
0 
0 
-
-C4 
0 
0 
0 
0 
0 
-
-Total 
3,750 
3,525 
19,840 
12,147 
2 .0 
1 .7 
(1) Government Decision No 413/95. paragraphs 8 and 9. 
(2) Aid allocated on a minimum of 3 ha. 
Remarks: 
In 1995, both production and support were below levels in the reference period. 
(m) Potatoes for starch production 
The northern regions account for 61.4% of Finland's production. 
Leaving aside the general support paid per hectare in subregions C2 and C2 
North, aid amounting to FIM 400/ha was paid in all subregions in 1995. 
Table 15 
Production units 
(ha) 
Starch (1) 
production (tonnes) 
Unit aid in 
1995(FIM/ha) 
Total aid 
in 1995 (FIM million) Authorized 
Cultivated in 1995 
Authorized 
Achieved in 1995 
Authorized and 
applied 
Authorized 
Applied (2) 1995 
Subregion 
C1 
1,700 
4,229 
15,590 
23,182 
400 
1 .1' 
1 .7 C2 
2,190 
1,830 
8,060 
8.836 
400+200' 
0 .8' 
1 .00 C2-Nord 
0 
0 
0 
0 
400+200 
0.0' 
0 C3 
0 
0 
0 
116 
. 
-
-C4 
0 
2 
0 
0 
. 
-
-Total 
3,890 
6,059 
23,650 
32,134 
1 .9' 
2 .6 
(1 ) There is a quota system in operation on potato starch production. 
(2) Government Decision No 413/95 paragraphs 8 and 9. 
(3) Aid allocated on a minimum of 3 ha. 
18 
Table 16 Remarks: 
Following the Council's decision to grant a quota of 54 7501 potato starch to 
Finland (Regulation (EC) No 1863/95 of 17 July 19957), 61.4% of which is for 
the northern regions, the Commission is preparing an amendment to Decision 
95/196/EC setting the starch production ceiling at 33 560 t, including 24 1601 
for subregion CI and 9 400 t for subregion C2, and overall support at FIM 3.1 
million. As a result of that amendment, there has been no overshooting of the 
reference quantity for production or support. 
(n) Cereals and other arable crops 
In the northern regions, 51% of Finland's arable land is cultivated on 58 120 
holdings (58%). 
1995 
Cultivated area 
(ha) 
Production 
(tonnes) In the reference 
period 
in 1995 
In the reference 
period 
in 1995 Subregion 
C1 
286,780 
224,425 
900,400 
706,811 C2 
238,100 
176,344 
717.800 
521,480 C2-North 
20,720 
12,562 
52.500 
31.633 C3 
12,600 
7,752 
32,500 
19,696 C4 
100 
117 
0 
266 Total 
557,700 
421,200 
1,703,200 
1,279,886 
The situation is as follows by category of crop. 
OJ No L 179,29. 7.1995, p. I. 
19 
(ni)Barley, oats and mixed cereals 
46.6%o of the area under these crops is located in the northern regions and 
accounts for 44.2% of the country's production. In 1995, only the general 
support for all areas sown, amounting to FIM 200, FIM 400 and FIM 800 per 
hectare, was paid in subregions C2 and C2 North, subregion C3 and subregion 
C4 respectively. 
Table 17 
Area cultivated 
(ha) 
Production 
achieved (tonnes) 
Unit aid in 
1995(FIM/ha) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
In the reference 
period 
in 1995 
Authorized and 
applied 
Authorized 
Paid (1) 1995 
Subregion 
C1 
248,000 
204,218 
809,400 
663/445 
0 
0.0' 
0.0 C2 
227,050 
171,521 
680,000 
510,946 
0+200' 
45.4' 
34 .30* C2-North 
19,900 
12,297 
52,000 
31,289 
0+200' 
4.0' 
2 .46 C3 
12,600 
7,719 
32,000 
19,652 
0+400* 
5.0 
3 .09 C4 
100 
115 
0 
266 
0+800' 
0 .1' 
0 .09 Total 
507,650 
395,870 
1,573,000 
1..225..598 
54 .5' 
39 .94" 
(1) Government Decision No 413/95. paragraph 9. 
(2) Aid allocated on a minimum of 3 ha. 
Remarks: 
In 1995, both production and support were below the levels for the reference 
period. 
(n2) Qther cereals and arable crops 
In 1995, only the general support amounting to FIM 200/ha was granted in 
subregions C2 and C2 North. Production in the northem regions accounts for 
7.5% of the national total. 
Table 18 
Cultivated area 
(ha) 
Production 
(tonnes) 
Unit aid in 
1995 (FIM/hectare) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
Authorized 
in 1995 
Authorized and 
applied 
Authorized 
Applied (1)(2) 1995 
Subregion 
C1 
38,780 
20,207 
91,400 
43,366 
0 
0 .0' 
0 C2 
10,450 
4,823 
37,800 
10,534 
0+200' 
2.1' 
0 .97' C2-North 
820 
265 
500 
344 
0+200' 
0.1 
0 .05 C3 
0 
33 
500 
44 
-
-C4 
0 
2 
0 
0 
-
-Total 
50,050 
25,330 
129,200 
54,288 
2.2' 
1 .02' 
(1) Government Decision No 413/95 paragraph 9. 
(2) Aid allocated on a minimum of 3 ha. 
Remarks: 
In 1995, both production and support were below the levels for the reference 
period. 
20 
(o) Vegetables, flowers and niants grown under permanent shelter 
Of crops grown under permanent shelter, output in the northern regions 
accounts for 53.3% of national production. 
The aid is paid mainly in respect of tomatoes, cucumbers, lettuce, dill, 
parsley, gherkins, cabbages, sweet peppers, cut flowers, green vegetables 
and ornamental plants. In 1995, only transitional degressive aid was paid 
on these crops. 
The situation by category of product is as follows. 
(on Vegetables 
Table 19 
Area cultivated 
(ha) 
Production 
achieved (tonnes) 
Unit aid in 
1995(FIM/ha) 
Total aid 
FIM million In the reference 
period 
in 1995 
In the reference 
period 
in 1995 
Authorized and 
applied 
Authorized 
Applied (1) 1995 
Subregion 
C1 
116 
121 .4 
41,000 
25,190 
0 
0 
0 C2 
29 
25 .9 
10,000 
4/39 
0 
0 
0 C2-Nord 
1 .1" 
1 .3 
400 
236 
0 
0 
0 C3 
1 .1' 
0 .7 
400 
98 
0 
0 
0 C4 | Total 
0 .6' 
0.5 
200 
92 
0 
0 
0 148 
149 
52,000 
3Ç 355 
0 
0 
0 
(1) Government Decision No 413/95 paragraph 11. 
(o2^ Flowers and ornamental plants 
Table 20 
Area cultivated 
(ha) 
Production 
achieved (1 ) 
Unit aid in 
1995(FIM/m2) 
Total aid 
FIM million In the reference 
period 
in 1995 
In the reference 
period 
in 1995 
In the reference 
period and 
in 1995 
In the reference 
period 
in 1995 (2) Year: 1995 
Subregion 
C1 
26 .7' 
26.1 
n 
10.07 
0 
0 
0 C2 
20 
18.9 
C) 
4 .48 
0 
0 
0 C2-North 
2 .6' 
2.2 
(*) 
0.61 
0 
0 
0 C3 
5 .2" 
4 .2 
n 
0 .90 
0 
0 
0 C4 
0 .6' 
0 .6 
n 
0.02 
0 
0 
0 Total 
55 
52 
60 
16 .08 
0 
0 
0 
(1) Millions of items. 
(2) Government Decision No 413/95 paragraph 11. 
Remarks: 
There is no provision for aid in 1995. There was no overrun in production. 
21 
Table 21 (p) Field-scale vegetables 
Production in the northern regions, which involves 733 holdings, accounts for 
24.5% of total national output. 
1995 
Area cultivated 
(ha) 
Production 
(tonnes) 
Unit aid in 
1995(FIM/ha) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
In the reference 
period 
in 1995 
Authorized and 
applied 
Authorized 
Applied (1 ) Subregion 
C1 
1,285 
1,402 .6 
39,000 
39,908 
0 
0 .0' C2 
678 
558 
20,000 
16,318 
0+200" 
0 .1' C2-North 
52 
55.8 
1,600 
1,943 
0+200' 
0 .0' C3 
68 
67 
2,000 
2y154 
0+400 
0 .0' C4 
2 
1 
60 
52 
0+800 
0 .0' Total 
2,085 
2,084 .4 
62,660 
60,375 
0 .2' 
(1) Government Decision No 413/95 paragraphs 8 and 9. 
(2) Aid allocated on a minimum of 1.5 ha. 
Remarks: 
No increase was recorded in production or authorized support. 
In accordance with Article 4(l)(d) of Decision 95/196/EC, Finland forwarded 
information to the Commission in respect of 1995 concerning producer prices 
recorded on the national market for fruit and vegetables with a view to assessing 
any need to review the Decision should an increase be recorded in overall 
support as compared with that in the reference period in accordance with 
Article 4(2) thereof (see Chapter V). 
22 
Table 22 (q) Apples 
The area under apple-trees in the northern regions is very small (around 10 ha), 
accounting for 2.7% of the total, and is cultivated by 19 farmers. The reason 
why this area is not included in that under other fruit and vegetables is due to 
the fact that a different rate of aid applies to this crop. 
1995 
Area cultivated 
(ha) 
Production 
(tonnes) 
Unit aid in 
1995(FIM/ha) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
In the reference 
period 
in 1995 
Authorized and 
applied 
Authorized 
Paid(1) Subregion 
C1 
5 
3.7 
50 
18 
0 
0 
0 C2 
5 
6 .3 
50 
40 
0+200" 
0 .001" 
0 .001' C2-Nord 
0 
0 
0 
0 
0+200' 
0 .0... 
0 .0002' C3 
0 
0 
0 
0 
0 
0 C4 
0 
0 
0 
0 
. Total 
10 
10 
100 
58 
0 .001' 
0 .001' 
(1) Government Decision No 413/95 paragraphs 8 and 9. 
Remarks: 
No increase was recorded in production or support in 1995. 
(r) Aid for storage for horticultural produce 
Table 23 
Quantities stored 
(m3) in 1995 
Unit aid 
in 1995 
FIM/m3/year 
Total aid in 1995 
('FIM million) With heat control 
Without heat control 
With heat control 
Without heat control Authorized and 
applied 
Authorized and 
applied 
Authorized 
Paid 1995 
Subregion 
C1 
120 
80 C2 
120 
80 C2North 
120 
80 C3 
120 
80 C4 
120 
80 Total 
51,398 
13,971 
120 
80 
15 .0' 
5 .65 
(1) On average 86 FIM(m3) 
Remarks: 
The authorized ceiling on aid was not exceeded. 
23 
(s) Payment per hectare of UAA (land for grazing, left fallow, etc.) 
Table 26 1995 
Total UAA (ha) Authorized 
Cultivated Sub-region 
C1 
535,225 
459,998 C2 
646,388 
534,846 C2-North 
81,644 
55,091 C3 
134,138 
69,047 C4 
19^715 
8.905 Total 
1,417,140 
1,127,887 
Remarks: 
The authorized ceilings on area and aid were not exceeded. 
3. Young farmers 
In order to encourage young people to continue farming in Finland's northern 
regions, the Finnish authorities have made provision for aid of FIM 200/ha in 
subregions C1-C4, the area concerned being estimated at 400 000 ha. The aid 
is paid on condition that the area of arable land cultivated amounts to at least 
three hectares. Arable land covered by the set-aside arrangements is deemed to 
have been sown. 
Table 25 1995 
Reference 
period 
Achieved in 
1995 Unit aid FIM/ha 
Total aid FIM million 
Area cultivated, (ha) 
Number of holdings 
UnitaidFIM/ha(1) 
Total aid (FIM million) Subregion 
C1 
200 
n 183.205 
8.292 
200 
36 .64' C2 
200 
n 231,779 
9S945 
200 
46 .36' C2-Nord 
200 
n 22,567 
1,157 
200 
4 .51' C3 
200 
n 30,124 
1,598 
200 
6.02 C4 
200 
n 3.461 
265 
200 Total (m) 
80 
471,136 
21,257 
0.69| 94 .22' 
(1) Government Decision No 413/95 Article 10 
In 1995, the area cultivated by young farmers was 17,8 per cent higher than the 
maximum allowed. The proportional increase of granted aid was linked to this, 
which led Finnish authorities to ask to set the above mentioned aid 
retroactively from 1995 at FIM 94 million a year. 
The Commission is considering this request, which does not lead to any 
overrun in the ceiling on support prior to accession in respect of any crop, with 
a view to incorporating it in a decision amending Decision 95/196/EC. 
24 
4. Land for grazing, left fallow and under ware potatoes 
Land for grazing, under ware potatoes and left fallow qualifies for the general 
support applicable in the northern regions, amounting to FIM 200/ha in subregions 
C2 and C2 North and FIM 400/ha and FIM 800/ha in subregions C3 and C4 
respectively. 
Table 24 1995 
Area cultivated 
(ha) 
Unit aid in 
1995(FIM/ha) 
Total aid 
in 1995 (FIM million) In the reference 
period 
in 1995 
Authorized 
Applied (1 ) 
Authorized 
Applied (2) Subregion 
C1 
242-112 
226,069 
0 
0 
0 
0 C2 
404,846 
355,549 
200 
200 
81 .1" 
66 .7 C2-Nord 
60,868 
42,387 
200 
200 
12 .2" 
7 .5 C3 
121.464 
61.126 
400 
400 
48 .5 
23 .2 C4 
19,612 
8,784 
800 
800 
15 .7 
6 .6 Total 
849,502 
693,915 
157 .4' 
104 
(1) Government Decision No 413/95 Article 8 
(2) Aid allocated on a minimum of 3 hectares 
Remarks: 
The authorized ceilings on aid and production were not exceeded. 
25 
5. Other aid measures 
This covers aid for the Skolt population, the "natural economy" and the 
"reindeer industry", amounting to FIM 22.7 million a year. This aid was not 
allocated in 1995. 
III. AID FOR THE NORTHERN REGIONS ALLOCATED IN 1995 
The aid for the northern regions allocated in 1995 is set out in the summary table 
below. 
Table 27 Summary 
Product 
Animal production 
Suckler cows 
Male bovine animals 
HeHérs for slaughter 
Ewes - she-goats 
Swine 
Poultry 
Horses 
Reindeer 
Milk(1) 
Transport of milk and meat (2) 
Total 1 
Plant production 
Sugar beet 
Potatoes for starch (3) 
Barley, oats, mixed cereals 
Other cereals and arable crops 
Vegetables, flowers and plants 
under permanent shelter 
Field-scale vegetables 
Apples 
Storage aid 
Payment per ha UUA (pasture, 
set-aside, etc.) 
Young farmers (4) 
Other aids (5) 
Total 2 
GRAND TOTAL Nordic aid applied In 1995 
Subregion 
C1 
0 .60 
16.7 
4.52 
1 .20 
0 
0 
0 
0 
88 .054 
0 
111 .074 
1 .60 
1 .60 
0 
0 
0 
0 
0 
0 
36 .64 C2 
1 .00 
33.4 
8 .89 
1 .3 
0 
0 
0 
0 
162 .155 
0 
206 .745 
0 .1 
1 .00 
34.3 
0 .97 
0 
0 
0.001 
66 .7 
46 .36 C2North 
0.30 
6 .00 
1 .64 
0.40 
1 .3 
0.3 
0 
0 
30 .596 
0 
40 .536 
0 .01 
0 
2.46 
0.05 
0 
0 
0 .000 
7 .5 
4 .51 C3 
0.50 
20 .90 
3,50 
1 .80 
1 .3 
0 .20 
0 
9.04 
109 .288 
8 .3 
154 ,828 
3.09 
0 
0 
0 
23.2 
6 .02 C4 
0 .10 
3 .10 
0 ,64 
0 .80 
0.00 
0 .00 
0 
20 .1 
25 .553 
1 .30 
51 ,593 
0 .09 
0 
0 
0 
6 .6 
0 .69 Total 
2.50 
80 .10 
19,19 
5.6 
2.50 
0 .50 
0 
29 .14 
415 .646 
9 .6(3) 
564 ,776 
1 .7 
2.6 
39 .94 
1 .02 
0 
0 
0.001 
5.65 
104 
94 .22 
-
249 .131 
813 .907 FIM million 
Total eligible 
aid 
3 .4 
115 .1 
31 .8 
7.0 
3 .1 
0 .8 
0 
36 .6 
403 .1 
13 .5 
614 .4 
2 
1 .9 
54 .5 
2 .2 
0 
0 
0 
0 .001 
15 
157 .4 
80 
22 .7 
335.9 
950 .3 
(1) FIM 12.5 million will be recovered 
(2) Of which 0.7 million for the transport of meat 
(3) Overrun due to Reg. 1863/95 
(4) Overrun to be accounted for 
(5) Not applied in 1995 
IV. PRICES FOR FRUIT AND VEGETABLES 
According to figures provided by the Finnish authorities pursuant to Article 4(1 )(d) 
of Decision 95/196/EC on producer price levels recorded on the national market, 
prices in 1995 were (around 18%) below those recorded during the reference period 
and there was no increase in overall support over the latter. 
V. COMMUNITY AID MEASURES APPLIED 
Community aid measures (market support, compensatory allowances and agri-
environmental measures) applied in the northern regions in 1995 (see table below) 
resulted in no overrun for any product in the amounts set out in Annex VI to 
Decision 95/196/EC. 
26 
Table 28 
Community aids 
Zone 
C1 
C2 
C2North 
C3 
C4 
Total 
C1-C4 
C1-C4 
C1-C4 1. ANIMAL PRODUCTS 
Suckler cows 
Male bovine animals 
Total 
Suckler cows 
Male bovine animals 
Total 
Suckler cows 
Male bovine animals 
Total 
Suckler cows 
Male bovine animals 
Total 
Suckler cows 
Male bovine animals 
Total 
Suckler cows 
Male bovine animals 
Total 
Dairy cows, other bovine animals 
Total bovine animals 
Ewes, she-goals (4) 
Horses (5) 
Total 1 Market support (1) 
R.805/68 and 3886/92 
Total 
FIM million 
4 .93 
45 .070 
50 .927 
5.24 
87 .040 
93 .432 
0 .41 
9 .130 
9 .524 
0 .34 
13.20 
13 .602 
0.03 
1 .29 
1 .325 
10 .95 
155 .61 
168 .810 
6.95 
175 .76 Compensatory payment (2) 
under Reg. 2328/91 
Total 
million 
J 63 .46 
282 .83 
31 .55 
44 .31 
5 .84 
527 .99 
5.53 
533 .51 Agii-envlronmental measures 
under Reg. 2078/92(3) 
Total 
million 
127 .59 
220 .779 
24 .628 
34 .589 
4 .559 
412 .145 
4 .294 
476 .44 Grand total 
FIM million 
341 .977 
597 .041 
65 .702 
92 .501 
11 .724 
1.108 .945 
16 .774 
1,125 .71 
(1) For 1995: sudder cows: 1.096 FIM/head (175 ECU/head) 
Male bovine animals : 680 FIM/head (120 ECU/head) 
(2) 1.007 FIM/LU 
(3) 650 FIM/ha 
(4) Ewes, she-goats : 24.2 ECU/head 
(5) Finnish horses 
Community aid 
Ion» 
C1 
C2 
C2North 
C3 
Total 
C1 
C2 
C1-C4 
C1-C4 
C1-C4 
C1-C4 
C1-C4 2. Plant products 
Cereals and other arable crops 
- Barley, oats and mixed cereals 
- Wheat, rye. malt barley and other 
arable crops 
Total 
- Barley, oats and mixed cereals 
- Wheat, rye. malt barley and other 
arable crops 
ToUl 
- Barley, oats and mixed cereals 
- Wheat, rye. malt barley and other 
arable crops 
Total 
- Barley, oats and mixed cereals 
- Wheat, rye. malt barley and other 
arable crops 
Total 
- Barley, oats and mixed cereals 
- Wheat, rye. malt barley and other 
arable crops 
Total 
Autres cultures 
- Potatoes for starch production 
- Potatoes for starch production 
Sugar beet 
• Field-scale vegetables 
-Apples 
- Soft fruits 
- Other crops 
Total 2 
TOTAL 1+2 Market support 
R.1765/92 
Total 
mio 
177.5 
26.12 
203 .62 
120 .30 
5.25 
125 .55 
8.5 
0.20 
8 .70 
5.20 
5 .2 
311 .50 
31 .57 
343 .07 
11 .4 
4 .7 
359 .17 
534.93 Compensatory allowance 
under Reg. 2328/91 
Total 
mio 
229 .542 
172 .302 
11 .94 
7 .136 
420 .92 
4 .259 
1 .843 
3.348 
2 .099 
60.300 
492 .768 
1,026 .275(6) Agri-environmental measures 
under Reg. 2078/9? 
Total 
mio 
95 .056 
54 .289 
3 .762 
2 .249 
155 .356 
3.324 
1 .439 
2.771 
1 .638 
164 .528 
580 .967(7) Total 
526 .218 
352 .141 
24 .402 
14 .585 
919 .346 
18 .983 
7 .982 
6.119 
3.737 
60.300 
1.016 .466 
2*142 .176 
(6) Of which FIM 686.355 mWon bome by the Member State and FIM 339.92 m«on by the EAGGF. 
(7) Of which FIM 290.63 mBon bome by the Member State and FIM 290.62 mWon by the EAGGF. 
27 
VI. S OCIO-ECONOMIC DEVELOPMENT IN THE NORTHERN REGIONS IN 1995 - IMPACT OF 
NORTHERN REGION AID MEASURES 
1. Economic development of the northern regions 
No assessment of economic development in the northern regions can be made in the 
first year of application. This Report concentrates on production figures and total 
support paid in 1995 compared with levels in the reference period as set out in the 
Decision on aid in the northern regions. 
The final picture that emerges of economic development in agriculture will be 
clearer once statistics for 1995 have been finalized, after adjustments are made and 
by monitoring agriculture and horticulture following accession. Accordingly, in 
1994 the Ministry of Agriculture and Forestry introduced a research programme 
called "MATEUS", one of the principal tasks of which is to provide information on 
the economic impact of accession to the EU. Some of the studies undertaken in the 
framework of MATEUS cover the following: 
- adjustments due to the EU in Finnish agriculture in 1995-97, 
- monitoring the development of prices and the effects of the system of aid for 
horticulture and adjustments in 1995-96, 
- the adaptation of agriculture to the CAP, 
- the effects of accession on agricultural areas where selected vertically integrated 
sectors are dominant, 
- the importance of the animal feed industry having regard to the remoteness of 
the region and development measures, 
- conditions of life in the country without the adjustments due to the EU, 
- farmers' participation in the Finnish agri-environmental programme, reasons 
why farmers take part or not and the type of farmers concerned, 
- monitoring of impact of Finnish agri-environmental programme. 
2. Socio-economic situation and trends 
The table below sets out certain socio-economic indicators outlining the situation 
and trends in the northern regions of Finland. 
28 
Table 29 
Indicator 
Population 31/12/95 ( x 1000 inhabitants) 
change 1970-95 ( x 1000 inhabitants) 
forecast 1995-2030 ( x 1000 inhabitants) 
population density 31/12/95 inhab/km2 
Net migration 1993 ( x 1000 inhabitants) 
Net migration 1994 ( x 1000 inhabitants) 
Net migration 1995 ( x 1000 inhabitants) 
Rate of population benefiting from 
infrastructure built by the municipalities 
31.12.85% 
31.12.95% 
Population over 64 as a percentage 
of the population in 1995 
Unemployment rate in 1995 (%) 
Number of jobs in agriculture and 
forestry: 1980 
1993 
% change 
Number of jobs in the other sectors 
1980 
1993 
% change Northern Region 
Entire region 
2,031 
+ 65 
-87 
7 
-1 
-6 
-7 
66 % 
71 % 
15% 
22 % 
178,507 
102 086 
- 42 .8% 
687,322 
576,759 
-14 .6 Rural area 
1,141 
-115 
-108 
5 
-2 
-7 
-9 
50 % 
56 % 
17 % 
21 % 
159,815 
91,567 
- 42 .7% 
339,260 
284,404 
-16 .2 Finland 
5,117 
+ 518 
-22 
15 
+ 8 
+ 3 
+ 3 
76 % 
80 % 
14 % 
20 % 
279,175 
162,181 
-41 .9% 
1,942,964 
1,715,540 
-11 .7 
Migration from the northern regions to southern Finland has continued over recent 
years (-14 000 inhabitants in 1993-95), this negative trend being more marked in 
rural areas (-18 000 inhabitants in 1993-95). This trend is expected to continue in 
forthcoming decades (- 87 000 inhabitants over the period 1995-2030 according to 
national statistics for 1995). In 1995 the unemployment rate in the northern regions 
(22%) was higher than the national average (20%). 
3. Current state of agricultural holdings and outlook 
In 1995 there were 61 743 agricultural holdings in the northern regions (9% down 
on the previous year) (see Table 30). The greatest fall affected stockfarms and 
poultry holdings. 
29 
Table 30 
Types of holding in 
the northern regions 
• dairy cows 
• bovine animals 
• swine 
• eggs and poultry 
• cereals 
• other 
Total 
Farm holdings in 
Finland Number of holdings 
in 1994 
26,155 
7,505 
3,085 
1,055 
12,007 
17,995 
67,802 
114,472 in 1995 
24,232 
6,569 
2,921 
923 
10,753 
16,345 
61,743 
104,555 Difference 94-95 
holdings 
- 1,923 
-936 
-164 
-132 
- 1,254 
-1,650 
- 6,059 
-9,917 % 
-7,4 
-12.5 
-5 ,3 
-12,5 
-10,4 
-9.2 
-8 ,9 
-8,7 
It is estimated that by the year 2000, there will be a 25% fall in the number of 
holdings of at least five hectares' area. 
4. Impact of aid on northern regions 
The primary sector still provides a major share of employment in the northern 
regions and the success in offsetting job losses in agriculture by openings in other 
sectors of the economy plays an important role. Between 1980 and 1994, only 6% 
of job losses in agriculture were offset by other sectors in municipalities in the 
northern regions. This is clear evidence of the importance of northern region support 
(as of other types of support) in maintaining the population in the area, since it 
would be very difficult to create alternative employment in the region if agricultural 
activity were not maintained. 
VII. EFFECTS OF AID GRANTED ON ENVDJONMENTAL PROTECTION AND THE PRESERVATION OF THE 
COUNTRYSIDE (AS PROVIDED FOR IN THE THIRD SUBPARAGRAPH OF ARTICLE 142(3) OF THE ACT OF 
ACCESSION) 
In the northern regions of Finland, as moreover throughout the rest of the country, an 
agri-environmental programme has been applied pursuant to Regulation (EEC) 
No 2078/92 on agricultural production methods compatible with the requirements of the 
protection of the environment and the maintenance of the countryside. 
30 
Pursuant to Article 142, one of the objectives of the aid measures for the northern 
regions is to protect the environment and preserve the countryside, which was also one 
of the main objectives of Finland's pre-EU agricultural policy. In the decades prior to 
accession, the aim of the latter was to maintain both agricultural production and the 
population in rural areas, in particular in the northern regions. Rates of aid to agriculture 
varied with the severity of the natural handicaps besetting it. This policy has been 
continued with the adoption of Article 142 of the Act of Accession. Aid applied in the 
northern regions is intended to offset the high production costs occasioned by the short 
growth period and low yields and varies with the conditions specific to each region. 
Ceilings on production qualifying for aid have been set per subregion in order to prevent 
the transfer of production to areas where aid payable is higher. The regional ceilings and 
quotas prevent production rising in subregions, firstly because production not benefiting 
from support is totally unprofitable, and secondly because the aid is not linked to the 
actual quantity produced. 
The table set out below gives a general overview of the area cultivated per subregion in 
Finland. 
Table 31 
Subregion 
C4 
C3 
C2North 
C2 
C1 
Sub-total 1 
B 
A 
Sub-total 2 
TOTAL Number of 
holdings 
720 
4,095 
3,116 
26,303 
23,886 
58/120 
29,715 
12,475 
42,190 
100,310 Area 
cultivated 
ha 
8,905 
69,047 
55,091 
534,846 
459,998 
1y 127,887 
690,478 
380,138 
1,070,616 
2 198,504 ha/ 
holding 
12 .37 
16 .86 
17 .68 
20 .23 
19 .26 
19 .41 
23 .24 
30 .47 
25 .38 
21 .92 Area of the 
subregion 
km2 
71,393 
64,779 
24,290 
67,788 
48,866 
227,115 
47,071 
13,518 
60,589 
337,704 Area 
cultivated 
(%) 
0 .1 
1 .1 
2 .3 
7 .9 
9 .4 
4 .1 
14 .7 
28 .1 
17 .7 
6 .5 
The conditions and restrictions governing support for the northern regions prevent any 
change in livestock production and any intensification of crop production, which could 
have undesirable consequences for the environment and the countryside. To sum up, 
support for the northem regions plays an important part in maintaining the countryside 
and the natural environment and provides an obstacle to excessive over-afforestation. 
VIII. INTEGRATED ADMINISTRATION AND CONTROL SYSTEM (IACS) 
Like other types of assistance to farmers, aid for the northern regions is administered and 
monitored by the information network which operates in Finland, comprising a 
centralized system at national and regional level and a decentralized system at municipal 
level. 
31 
The decentralized system provides data on most widespread forms of aid granted to 
farmers, i.e. national support applying to cultivated areas and livestock and CAP aid 
measures, subsidies for stockfarming (premiums for bovine animals, suckler cows, sheep 
and goats), the general scheme for agri-environmental support and compensatory 
allowances, while certain, less widespread aid measures are administered by the 
centralized system (e.g. additional aid for agri-environmental measures, afforestation, 
dried fodder, flax and hemp, and structural assistance). The Ministry of Agriculture's 
centralized system deals with accounting, statistics and markets. 
IACS subsystems undertake the management of aid, non-food production and the 
administration and monitoring of quotas. 
Aid applications are fed by farmers into the decentralized information system set up in 
all 455 municipalities. The system handles data on holdings, processes aid applications, 
calculates the aid and forwards the information to the centralized system, which carries 
out the requisite checks, selects the recipients for inspection and makes reports to the 
EU. 
Checks conducted in 1995 on all types of production numbered 11 527 (13.2% of aid 
applications), of which 65% took place in the northern regions. 45.2% of the checks 
conducted throughout the country relate to crop production. In the northern regions, 
there were 438 cases of irregularities observed in respect of all types of aid and penalties 
applied (4.9% of cases checked). 
DC REQUESTS FROM FINNISH AUTHORITIES 
On 5 December 1995 and 5 March 1996 the Finnish authorities forwarded a series of 
requests, supplemented later on 7,15 and 25 October and 19 November 1996. 
The proposals relate to the following. 
1. Requests for amendments to Decision 95/196/EC 
(a) Limiting of northern region aid for cow's milk provided for Article 3(2)(c) of 
Decision 95/196/EC to reference quantity allocated pursuant to Article 4 of 
Regulation (EEC) No 3950/928 after reallocation of unused reference quantities 
pursuant to the second subparagraph of Article 2(1) of that Regulation; 
(b) Increase in total aid for milk owing to more accurate estimate of distribution 
between areas P1-P4 of subregion C3; 
(c) Increase in quantity of milk qualifying for aid and in total aid in subregions Cl-
C3 to include SLOM quantity allocated in 1995 and 1996; 
OJ No L 405,31.12.1992, p. 1. 
32 
(d) Change in quantities of poultrymeat and eggs produced during the 
reference period, together with adjustment of total aid recorded over the 
same period and amendment to Annexes to Decision 95/196/EC to 
distinguish between layers, pullets and chicks on the one hand, and 
broilers and other poultry on the other hand; 
(e) Allocation from 1997 of aid for storage for wild soft fruit (gathered berries) 
and wild mushrooms. Maximum aid: FIM 2 million/year; 
(f) Increase in total aid for young farmers (FIM 94 million/year instead of 
FIM 80 million/year laid down); 
(g) Increase in quantity covered and northern region aid allocated in respect of 
potatoes for starch production following the increase in the potato starch 
quota allocated to Finland. 
2. Proposals for technical adjustments to Annexes II to VI to Decision 
95/196/EC as a result in particular of inaccuracies and shortcomings in 
regional statistics 
These concern: 
- poultrymeat 
- the SLOM quota for cow's milk 
- production of potatoes for starch production 
- ceiling on milk production and support 
- support for young farmers 
- agri-environmental aid, aid for potatoes for starch production and sugarbeet 
- area under grazing, ware potatoes and land left fallow 
- unit aid for other cereals and arable crops from the year 2000 on: 
FIM 800/ha instead of FIM 600/ha laid down (correction of typing 
mistake) 
- adjustment of amounts in Annex VI to Decision 95/196/EC for 
Community aid for potatoes for starch production and sugarbeet following 
the approval of Finnish agri-environmental programme in autumn 1995. 
3. Other requests 
No application of reduction in aid for ewes and she-goats in 1996 owing to 1995 
overrun in authorized production ceiling, which, given the very low prices for 
sheepmeat in Finland, would have adverse effects on production in the sector. The 
grounds for the request are that, on the one hand, the number of animals qualifying 
for the aid is below the limit laid down in Decision 95/196/EC and, on the other 
hand, the reduction in Community support expressed in national currency in 1996 is 
greater than the reduction due to the overrun in the authorized ceiling. 
33 
X. ADMINISTRATIVE INSTRUMENTS ADOPTED FOR THE IMPLEMENTATION OF 
COMMISSION DECISION 95/196/EC 
1. Council of State Decision No 413/95 of 23 March 1995 on support in northern 
regions for agricultural and horticultural production (as amended by Decisions Nos 
1006/96,1435/95 and 225/96) 
2. Ministry of Agriculture and Forestry Decision No 31/96 of 18 January 1996 fixing 
the maximum size of agricultural holdings for the purposes of payment of 
supplementary aid in 1995 
3. Ministry of Agriculture and Forestry Decision No 32/96 of 24 January 1996 on the 
implementation in 1995 of aid for egg production 
4. Council of State Decision No 223/96 of 28 March 1996 on additional premiums for 
suckler cows for 1995 
5. Council of State Decision No 376/96 of 30 May 1996 on aid for horticulture for 
1995 
XL CONCLUSIONS 
Pursuant to Article 142 of the Act of Accession, the Commission authorized Finland by 
Decision 95/196/EC of 4 May 1995 to grant long-term national aid for agriculture in 
agricultural areas situated to the north of the 62nd Parallel and adjoining regions affected 
by comparable conditions rendering agricultural activity particularly arduous. 
By that Decision, the Commission: 
(a) demarcated the areas taking account of low population density, the proportion of 
agricultural land in relation to the overall area and the proportion of agricultural 
land given over to arable crops for human consumption, and 
(b) fixed on the one hand, the unit aid and total aid ceiling not to be exceeded taking 
account of the difference in prices obtaining in the EU and in Finland prior to 
accession, degressive national aid authorized pursuant to Article 138 of the Act of 
Accession and Community aid (market aid, compensatory allowances, agri-
environmental measures) and, on the other hand, the ceiling on production, any 
overrun in which will lead to a proportionate reduction in authorized aid in the 
following year. 
As noted in this Report on authorizations granted and results achieved, which has been 
drawn up with a view to presentation to the Council on the basis of information provided 
by the Finnish authorities pursuant to Article 143(2) of the Act of Accession, the 
following points are clear: 
1. In most product groups where aid was authorized in the northern regions, there was 
no overrun in 1995 in the level of production or support authorized. 
- Production was exceeded in respect of: 
• horses, for which there was no provision for aid in 1995; 
34 
• poultry, where an overrun in production was recorded and a reduction in 
proportion to the overrun recorded in 1995 must be applied in the aid 
authorized in 1996; 
• ewes and she-goats, where a reduction in proportion to the overrun 
recorded in 1995 should not be applied in the aid authorized for 1996, 
- - since the reduction in the aid due to the overrun in production was offset 
by the reduction in Community aid expressed in national currency. 
- An overrun was recorded in the total aid authorized for milk without any 
overrun in the total quantity authorized. This overrun is due to higher 
production as compared with that laid down for certain sub-areas in subregion 
C3 and in subregions C2 and C2 North. This has led the Finnish authorities to 
apply a general reduction in the aid allocated in 1996 in order to recover 
amounts unduly paid in 1995. 
- A justified overrun in both production and total aid authorized in respect of 
potatoes for starch production, as a result of the Council's increasing the quota 
of potato starch production for Finland (Regulation (EC) No 1863/95). 
2. All the aid measures were applied in 1995 except for aid for the Skolt population, 
the "natural economy" and the "reindeer industry". 
3. Producer prices for vegetables in Finland in 1995 were lower than in the 
Community. As a consequence, there is no reason to reduce northern region support 
for such products. 
4. Community aid measures (market aid, compensatory allowances and agri-
environmental measures) applied per product were below the level used to fix the 
northern region aid authorized; as a consequence, their application results in no 
overrun in support applying before accession. 
5. Checks conducted by the Member State show that the aid has been applied properly. 
6. Aid granted plays an important role in protecting the environment and preserving 
the countryside and as a consequence it complies with the third subparagraph of 
Article 142(3) of the Act of Accession. 
It emerges from the foregoing that, generally speaking, the Finnish authorities have 
correctly applied Decision 95/196/EC on aid in the northern regions. In the few cases 
where an overrun has been recorded in production or aid authorized, the aid must be 
reduced in accordance with the Commission Decision. 
The Finnish authorities have proposed a set of amendments to Decision 95/196/EC, 
which the Commission is considering. 
35 
MAP N° i 
MAP N° 2 
31 
MAP N° 3 
<g 
ANNEXE 4 
FINLAND - Nordic Region - Article 142 
Lâàni-County 
name Total Area 
km* Land Area 
km1 Population 
1990 Density 
H/km2 Total U.A.A. 
"1990" ha U.A.A. eligible of which 
ha 
Total % Total North 62 Fullfllling 
3 criteria Isolated Homogeneous 
area 
UUSIMAA 
«TURKU AND PORI 
1ÂLAND ISLANDS 
HÀME 
KYMI 
MIKKELI 
NORTH-KARELIA 
KUOPIO 
KESKI-SUOMI 
VAASA 
OULU 
LAPPI 
FINLAND 10,254 
22,355 
1,553 
20,699 
12,708 
19,887 
22,355 
20,028 
19,212 
26,985 
61,880 
99,854 
337,770 9,905 
19,958 
1,527 
19,230 
10,784 
16,346 
17,783 
16,509 
16,232 
26,018 
56,476 
93,058 
303,826 1,248,041 
694,407 
24,604 
715,340 
342,629 
208,225 
176,836 
256,781 
252,815 
457,557 
439,249 
200,694 
5,017,178 126 
35 
16 
37 
32 
13 
10 
16 
16 
18 
8 
2 
17 221,909 
479,533 
13,393 
308,304 
163,440 
122,286 
119,174 
169,550 
121,485 
452,403 
302,137 
75,330 
2.548,944 0 
21,690 
0 
35,722 
32,173 
98,138 
119,170 
169,550 
110,823 
452,403 
302,137 
75,330 
1.417,140 0.0% 
4.5% 
0.0 
11.6% 
19.7% 
80.3% 
100.0% 
100.0% 
91.2% 
100.0% 
100.0% 
100.0% 
55.6% 13,981 
33,259 
55,382 
119,174 
169,550 
98,540 
452,403 
302,137 
75,330 
1,319,756 2,268 195 
510 
6,346 
8,614 705 7,709 
32,173! 
42,246 
5,937 
ANNEXE 5 
Northern Aid (Article 142) 
FINLAND 
0 - bovines: 
. suckler cows 
. male bovines > 6 months 
. heifers for slaughter 
- milk 
- sheep/goats 
- swines 
- poultry 
- horses 
- reindeer 
- milk and meat transport 
Total a 
- cereals and other arable crops 
. barley, oats and mixed cereals 
. other cereals and arable crops 
- potatoes for starch production 
- sugar beet 
- horticulture under perman. shelter 
- field scale vegetables 
- storage of vegetables 
- payment per ha of UAA 
- young farmers 
Total b 
- aid for Skolt Lapps, "natural 
economy" and "reindeer industry" 
GRAND TOTAL Year (in mio FIM) 
1995 
3 .4 
115 .1 
31 .8 
403 .0 
7 .0 
3 .1 
0 .8 
0 
36 .6 
13 .5 
614 .4 
54 .5 
2 .2 
1 .9 
2 .0 
0 
0 .2 
15 .0 
157 .4 
80 .0 
313 .2 
22 .7 
950 .3 1996 
3 .4 
115 .1 
31 .8 
403 .0 
7 .0 
3 .1 
0 .8 
0 
36 .6 
13 .5 
614 .4 
54 .5 
2 .2 
1 .9 
2 .0 
0 
0 .2 
15 .0 
157 .4 
80 .0 
313 .2 
22 .7 
950 .3 1997 
10 .3 
166 .9 
49 .3 
597 .9 
9 .2 
68 .8 
20 .9 
0 
36 .6 
13 .5 
973 .4 
54 .3 
9 .3 
2 .5 
3 .4 
9 .2 
2 .1 
15 .0 
157 .4 
80 .0 
333 .4 
22 .7 
1,329 .5 1998 
17 .2 
220 .5 
67 .2 
793 .0 
11 .5 
134 .5 
41 .0 
4 .8 
36 .6 
13 .5 
1,339 .8 
54 .5 
16 .4 
3 .1 
4 .8 
51 .4 
3 .1 
15 .0 
157 .4 
80 .0 
385 .7 
22 .7 
1,748 .2 1999 
24 .1 
274 .1 
84 .6 
987 .9 
13 .7 
200 .1 
61 .0 
9 .0 
36 .6 
13 .5 
1.704.6 
54 .5 
23 .5 
3 .7 
6 .2 
99 .0 
3 .9 
15 .0 
157 .4 
80 .0 
445 .3 
22 .2 
2 172 .6 >2000 
31 .0 
326 .4 
102 .0 
1183 .2 
' 16 .0 
265 .7 
81 .1 
15 .0 
36 .6 
13 .5 
2.070.5 
54 .5 
30 .9 
4 .3 
7 .6 
146 .8 
5 .1 
15 .0 
157 .4 
80 .0 
501 .3 
22 .2 
2.594 .7 Year (In mio ECU) 
1995 
0 .54 
18 .27 
5 .05 
63 .97 
1 .11 
0 .49 
0 .13 
0 
5 .81 
2 .14 
97 .5 
8 .65 
0 .35 
0 .30 
0 .32 
0 
0 .03 
2 .38 
24 .98 
12 .70 
49 .71 
3 .60 
150 .84 1996 
0 .54 
18 .27 
5 .05 
63 .97 
1 .11 
0 .49 
0 .13 
0 
5 .81 
2 .14 
97 .5 
8 .65 
0 .35 
0 .30 
0 .32 
0 
0 .03 
2 .38 
24 .98 
12 .70 
49 .71 
3 .60 
150 .84 1997 
1 .63 
26 .49 
7 .83 
94 .90 
1 .46 
10 .92 
3 .32 
0 
5 .81 
2 .14 
154 .50 
8 .65 
1 .48 
0 .40 
0 .54 
1 .46 
0 .33 
2 .38 
24 .98 
12 .70 
52 .92 
3 .60 
211 .03 1998 
2 .73 
35 .0 
10 .67 
125 .87 
1 .83 
21 .35 
6 .51 
0 .76 
5 .81 
2 .14 
212 .67 
8 .65 
2 .60 
0 .49 
0 .76 
8 .16 
0 .49 
2 .38 
24 .98 
12 .70 
61 .22 
3 .60 
277 .49 1999 
3 .83 
43 .51 
13 .43 
156 .81 
2 .17 
31 .76 
9 .68 
1 .43 
5 .81 
2 .14 
270 .57 
8 .65 
3 .73 
0 .59 
0 .98 
15 .71 
0 .62 
2 .38 
24 .98 
12 .70 
70 .68 
3 .60 
344 .86 >2000 
4 .92 
51 .81 
16 .19 
187 .81 
2 .54 
42 .17 
12 .87 
2 .38 
5 .81 
2 .14 
328 .65 
8 .65 
4 .90 
0 .68 
1 .21 
23 .30 
0 .81 
2 .38 
24 .98 
12 .70 
79 .57 
3 .60 
411 .86 
ANNEX 6 
DIAGRAMME 
Evolution of support in the northern areas of Finland 
7000 
3 
—I 
Support 
during the 
reference 
period 1995 1996 1997 1998 1999 2000 2001 >2002 B Price support 
E3 Budget support 
B Support according to Articles 138-140 
• Support according to Article 142 
• Market support foreseen 
B Compensatory allowances foreseen 
B Agri-environmental measures foreseen 
(*) 1 green ECU = 7,0207 FIM 
1 budget ECU = 5,8163 FIM 
ISSN 0254-1475 
COM(97) 162 final 
DOCUMENTS 
EN 03 13 
Catalogue number : CB-CO-97-150-EN-C 
ISBN 92-78-18352-0 
Office for Official Publications of the European Communities 
L-2985 Luxembourg