1996-2000 report on the implementation of the long-term national aid scheme for agriculture in the northern regions of Finland pursuant to Commission Decision 95/196/EC presented by the Commission to the Council 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
Date: 2002-02-25
Institutions: European Commission
Subjects: Finland, Lapland, aid system, aid to agriculture, common agricultural policy

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 25.02.2002
COM(2002) 102 final

1996-2000 report

on the implementation of the long-term national aid scheme
for agriculture in the northern regions of Finland pursuant
to Commission Decision 95/196/EC

presented by the Commission to the Council 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

TABLE OF CONTENTS

1.

1.1.

1.2.

INTRODUCTION ....................................................................................................... 3

In general...................................................................................................................... 3

General principles of Nordic aid .................................................................................. 5

1.2.1. Aid based on cultivated area ........................................................................................ 6

1.2.2. Aid for livestock production ........................................................................................ 6

1.2.3. Young farmers.............................................................................................................. 6

1.2.4. Aid for reindeer husbandry .......................................................................................... 6

1.2.5. Vegetables, flowers and plants grown under permanent shelter.................................. 7

1.2.6. Aid for storage.............................................................................................................. 7

1.3.

Management of Nordic aid........................................................................................... 7

2.

2.1.

2.2.

2.3.

3.

3.1.

3.2.

3.3.

3.4.

3.5.

3.6.

3.7.

3.8.

3.9.

4.

IMPLEMENTATION OF NORDIC AID 1996-2000 ................................................. 8

Aid disbursed in 2000 .................................................................................................. 8

Community aid............................................................................................................. 9

ANNEX II combination: Production and total aid by product .................................. 10

IMPACT OF NORDIC AID AND ITS SIGNIFICANCE 1995 – 2000.................... 11

Basis of report ............................................................................................................ 11

Disbursement of Nordic aid ....................................................................................... 12

Trends in prices of production input and products .................................................... 12

Number of holdings ................................................................................................... 14

Development of production ....................................................................................... 15

Economic impact of aid ............................................................................................. 16

Impact on food chain.................................................................................................. 17

Impact on the state of the environment ...................................................................... 17

Socio-economic impact.............................................................................................. 17

CONCLUSIONS........................................................................................................ 18

ANNEX

2

1. 

INTRODUCTION

1.1. 

In general

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 authorised
Finland  to  grant  long-term  national  aid  to  ensure  that  agricultural  activity  is  maintained  in
northern regions. Nordic aid is granted in particular to maintain traditional 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.

This  aid,  which  may  vary  by  region  and  be  related  to  physical  production  factors  taking
account of the ceilings imposed by the CMOs, 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  Commission,  pursuant  to  Decision  95/196/EC1,  as  amended  partly  by  Commission
Decision  97/279/EC2  issued  on  4  April  1997,  and  Commission  Decision  2000/405/EC3,
issued on 7 June 2000, has:

– 

– 

– 

1

2

3

4

determined  that  the  northern  region  of  Finland  comprise  agricultural  areas  lying
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
(maximum 10 persons/km2), the proportion of Utilised Agricultural Area  (UAA) in
relation  to  the  overall  area  (less  than  10  percent)  and  the  proportion  of  the  UAA
given over to  arable crops for  human  consumption. The  northern region of  Finland
thus  determined  represents  an  area  of  1 417 000  ha  of  UAA  or  55.5%  of  Finland's
total UAA.
defined  that  the  northern  region  comprises  five  sub-regions,  i.e.  C1,  C2,  C2  North4
(including the archipelago of Area C), C3 and C4 (Figure 1). Sub-regions C3 and C4
are subdivided further into sub-areas P1, P2, P3 and P4 (Sub-region C3) and P4 and
P5  (Sub-region  C4)  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
(also used for classification of less favoured areas), a synthetic agro-economic index
which  enables  each  municipality  to  be  classified  in  a  sub-region  or  sub-area,  was
used first and foremost.

ratified  the  reference  period  used  to  establish  that  Nordic  aid  does  not  lead  to  an
increase  in  agricultural  production  or  in  the  total  aid.  Based  on  available  national
statistics  with  regard  to  quantities,  the  reference  period  for  agricultural  production
and the total aid before accession is 1991-93. Exceptions are cow's milk and bovine
animals  for  which  1992  is  used  to  ratify  the  milk  quota  and  reference  herd  of

OJ L 126, 9.6.1995, p. 35
OJ L 112, 29.4.1997, p. 34
OJ L 154, 27.6.2000, p. 23
The abbreviation C2N will be used henceforth to refer to the C2 North area and C-Area archipelagos.

3

                                                
– 

Finland, and horticultural production, for which 1993 was taken as the basis because
of reliable statistics available for that year.

defined  maximum  aid  amount  by  product  and  sector.  The  proposed  aid  of  all  plant
products  (cereals  and  other  arable  crops,  fruit  and  vegetables,  potatoes  for  starch
production and sugar beet) is calculated per hectare.  For  livestock  production,  aid  is
expressed per livestock unit (LU) for bovine animals (except heifers), equines, ewes,
goats, swine and poultry, while for milk it is expressed per kilogram, and for reindeer
and  heifers  per  head  of  livestock.  Aid  is  also  granted  for  the  storage  of  fruit  and
vegetables  produced  in  the  northern  region,  expressed  in  FIM/m3/year.  For  young
farmers (under 40 years of age), provision is made for flat-rate aid per hectare used
for growing grass crops and cereals. Aid is also granted for all UAA kept for pasture,
left fallow or used to sow food potatoes. The same aid is allocated for other crops but
accounting is separate for each crop type.

The level of aid included in the aid system was estimated in such a way that the total aid by
product  during  the  reference  period  was  compared  to  the  aid  applied  after  Accession.  In
calculating total aid during the reference period, account was taken of the difference between
prices in Finland in 1993 and those in the Community (indirect support) on the one hand and
the direct aid financed from the national budget in the same year.

Support after accession was understood to include not only Nordic aid and degressive national
aids  pursuant  to  Articles 138,  139  and  140  of  the  Act  of  Accession  applied  during  a
transitional  period  (1995-99),  but  also  compensatory  allowances,  agri-environmental  aid
provided for by the Member State for farmers in the northern region and aid currently granted
under the CMOs.

Any  change  in  those  amounts  resulting  in  the  level  of  support  before  Accession’s  being
exceeded entails adjusting the permissible Nordic aid from the following calendar year.

The amounts are expressed in the national currency as on 1 January 1995 and may be adjusted
each year. The Commission’s Decision will have to be amended to reflect such adjustments.

Nordic aid, with the exception of that for cow's milk (for which there is a quota system), is not
granted  on  the  basis  of  quantities  produced  but  on  production  factors  within  the  regional
limits shown in Annex 4 to Commission Decision No 95/196/EC.

In order to avoid an increase in production, a clause inserted in the Decision provides that, if
the  total  production  volume  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 the production of arable crops, that clause is only applicable if production
is 10% higher on average for two consecutive years.

In order to avoid penalising product groups or sub-regions (aid varies by sub-region) 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 sub-region.

Commission Decision No 95/196/EC was amended by Commission Decision No 97/279/EC,
correcting  factual  errors,  adding  SLOM  milk  quantities,  distinguishing  between  aid  with
regard  to  poultry  meat  and  eggs  and  permitting  the  payment  of  aid  for  milk  in  accordance
with Council Regulation (EEC) No 3950/1992, Article 2(1), and by Commission Decision No
2000/405/EC, in which the annual deadline was postponed from April to June, a joint review
of aid for poultry was allowed again, SLOM milk quantities were increased and a move was

4

made to scrutinise meat production in its entirety in the first hand in advance of scrutiny based
on products. These  changes did  not have any  impact  on the  amount of unit  aid, total  aid  or
production volumes.

C4

C3

C2p

C2

C1

B

A

Figure 1. Agricultural aid areas (Sub-regions C1 to C4 are included in Nordic aid).

1.2. 

General principles of Nordic aid

Nordic aid has been disbursed to agricultural and horticultural producers in the form of aid for
milk production, and as Nordic aid per hectare, general aid per hectare, Nordic aid to young
farmers,  Nordic  aid  for  livestock  units,  Nordic  aid  for  slaughtered  heifers  and  male  bovine
animals, aid for reindeer owners, aid for the transport of milk and meat, aid for the storage of
horticultural products, aid for plant production under permanent shelter and aid for the storage
of wild berries and wild mushrooms.

5

Aid  can  be  disbursed  to  farmers  permanently  resident  in  Finland,  who  are  natural  or  legal
persons singly or in  a  group, irrespective  of the legal status of  the  group or  its members. A
community or trust domiciled in Finland is also considered to be resident in Finland.

Aid can be disbursed to a producer who (or whose spouse) is at least 18 years of age and not
more than 65 years of age. For economic holdings in which several farmers are collectively
engaged or those managed jointly, aid can be disbursed if at least one of the farmers, partners,
members or shareholders engaged in agriculture or horticulture meets the age requirement.

Aid recipients must be in possession of at least three hectares of arable land, which is under
cultivation  during  the  growing  season.  Nordic  aid  per  hectare  for  horticultural  plants  and
products is disbursable if the area under horticultural cultivation is at least half a hectare.

Nordic aid is not disbursable if the aid amount per category is less than FIM 500.

1.2.1.  Aid based on cultivated area

The basis for the aid is arable land in the possession of the producer on 1 June and used for
the cultivation of farm crops and horticultural plants during the growing season for which the
aid  is  disbursed.  For  crops  whose  marketing  requires  that  producers  be  listed  in  a  plant
protection  register  or  a  quality  control  register,  disbursement  of  aid  will  be  conditional  on
such a listing.

The aid can be disbursed only for a production area cultivated at least in accordance with the
method  of  cultivation  customary  in  the  locality  and  with  joint  CAP  regulations  applying  to
direct aid in compliance with the environmental requirements intended for crop production as
issued in Council Regulation (EC) No 1259/1999, Article 3.

1.2.2.  Aid for livestock production

The basis for determining Nordic aid for livestock production is the total number of livestock
units possessed or owned by the producer. If the quantity of livestock at the time of counting
differs  significantly  from  the  quantity  already  established,  the  aid  can  be  disbursed  in
accordance with the quantity of livestock established, provided that production is continuous.
Aid is granted for suckler cows and ewes only up to the limit of a holding’s ratified quota.

Aid  is  granted  up  to  300  livestock  units  in  Area  C2N,  200  livestock  units  in  Area  C3  and
100 livestock units in  Area  C4.  Aid  for  poultry  in  Areas  C1,  C2,  and  C2N  is  granted  up  to
260 livestock units per recipient.

Nordic aid for milk production (in FIM per kg) is granted for milk delivered to dairies and for
milk sold directly from holdings up to the quota available to them.

1.2.3.  Young farmers

Aid per hectare is disbursable to young farmers. A young farmer is a producer (or spouse) not
more than 40 years of age.

1.2.4.  Aid for reindeer husbandry

Aid for reindeer husbandry per household is disbursable to reindeer owners in Areas C3 and
C4 for each reindeer husbandry year. The year begins on 1 June and ends on 31 May of the
following year.

6

1.2.5.  Vegetables, flowers and plants grown under permanent shelter

Aid is based on the production under permanent shelter of tomatoes, cucumber, lettuce, dill,
parsley, cut flowers, cut greenery, multiple plants and ornamental plants for indoor cultivation
in pots, and of gherkins, Chinese cabbage and red peppers.

Aid  disbursement  is  conditional  on  the  permanent  shelter’s  being  heated  and  not  less  than
300 sq. m. in area. Aid can be disbursed only for products that are cultivated at least on a par
with the general level of cultivation in the locality.

1.2.6.  Aid for storage

Aid for the storage of horticultural products is disbursable annually on the basis of space used
for the storage of outdoor vegetables and apples that are in the producer’s possession between
1 October and  31  December, based on the  average  volume of  space  in  use  from  October  to
December. The producer  applying  for the aid must  have produced  the  products  stored,  they
must meet minimum quality standards for plants and the cultivated area must be not less than
half a hectare in area. Aid for the storage of wild berries and wild mushrooms is disbursable
to persons in possession of storage space for such.

1.3.  Management of Nordic aid

Fifteen regional Employment and Economic Development Centres (hereafter EEDC) operate
as regional organisations for the administration of agriculture.  The EEDC rural departments
manage, in addition  to  aid-related supervisory tasks, other implementation  tasks such as the
training  of  municipal  rural  development  officials  and  farmers,  processing  applications  other
than  those  processed  within  the  municipality,  approving  payments  and  monitoring  the
activities of rural development officials by means of municipal inspections.

The rural development officials of municipalities receive applications for aid to farmers  and
record  the  application  data  in  the  IACS  system.  Aid  calculations  are  made  centrally,  after
which the rural development officials make the decisions on aid and deliver them to farmers.
The  participation  of  the  municipalities  in  agricultural  and  rural  development  administration
tasks has ensured customer awareness in administration and familiarity with local conditions.

Rural development  officials  from  the  EEDC  exercise  control  over  the  recipients  of  national
aid as it is for EU aid. Each  year 5% of  all aid applications are inspected. EEDC inspectors
also control the activities of the rural development officials of municipalities.

7

2. 

IMPLEMENTATION OF NORDIC AID 1996-2000

Because the aid system covers many products and the level of aid for certain products varies
from year to  year, detailed analysis by product will be presented in the Annex. This chapter
will examine the development of the overall amount of aid and show the level of aid in 2000.

2.1. 

Aid disbursed in 2000

The following table shows a summary of Nordic aid applied in 2000 as an example of years
(Note: 1 FIM equals 0.168 euro).

Table 1a. Summary of aid amounts in 2000

Nordic aid granted, FIM mill.

Products

Subregion

C1

C2

C2 North

C3

C4

Total

5.47

6.67

0.74

0.58

0.13

13.6

64.56

130.62

15.89

34.19

4.30

249.6

1. Livestock products

Cattle, of which

 - suckler cows

 - male bovine animals
over 6 months of age

 - slaughtered heifers

10.35

19.24

4.37

142.96

44.53

5.07

4.07

77.99

10.17

5.78

2.92

0.92

4.33

0.60

0.76

3.85

3.82

4.57

0.52

0.80

0.54

1.64

36.9

14.8

0.00

229.8

0.00

0.15

55.8

12.6

16.9

4.59

12.31

Ewes, goats

Swine

Poultry

Equines

Reindeer

Milk

Permissible
Nordic aid

Excess/
Shortfall

FIM mill.

%

31.0

326.5

102.0

16.4

265.7

81.1

15.0

36.6

-56 %

-24 %

-64 %

-10 %

-13 %

-31 %

-16 %

-54 %

-10 %

-27 %

268.78

549.81

65.00 167.64

32.70 1 083.9

1 207.6

Transport aid for milk
and meat

TOTAL 1

Difference in FIM mill.

2. Plant products

- sugar beet

2.59

- potatoes for starch prod.

3.55

Cereals, other arable crops
- barley, oats, mixed grain 0.00
6.62
- other cereals & arable
crops

0.22

1.87

41.61

4.50

9.8

13.5

1 723.7

2 095.3

0.00

0.00

2.86

0.00

0.00

0.00

0.05

0.00

2.8

5.4

47.4

11.4

-371.6

-18 %

7.6

7.0

-63 %

-23 %

54.5

30.9

-11 %

-63 %

0.00

0.00

2.92

0.26

8

Table 1b. Summary of aid amounts in 2000

Nordic aid granted, FIM mill.

Products

Horticulture

- Cultivation under
permanent shelter

Subregion

C1

C2 C2 North C3

C4

Total

Permissible
Nordic aid

Excess/
shortfall

FIM mill.

%

 - - vegetables
 - -flowers and plants
 - Outdoor vegetables
 - Apples
Aid for storage
Aid for storage of wild berries
and wild mushrooms
Utilised agricultural area
(pasture, fallow land, etc.)
Young farmers
T O T A L 2
Difference in FIM mill.
Other aid
AID, TOTAL (1+2+others)
Difference in FIM mill.

3.17
1.33
0.011 0.004

0.00 64.83

27.73 36.32

0.09 0.18

0.00

0.001

99.6
30.8
4.8
0.02
5.4
0.9

107.0
39.8
5.1
0.01
15.0
2.0

-7 %
-23 %
-8 %
59 %
-64 %
-55 %

7.40 22.24

5.36

99.8

157.4

-37 %

3.49 4.59

0.60

72.7
381.1

0.0
2 104.9

94.2
520.5
-137.4
22.7
2 638.5
-531.7

-23 %

-26 %
-100 %

-20 %

Note:  At  the  total  level,  aid  fell  FIM  531.7  mill.  (20%)  short  of  the  permissible  level.  The
shortfall  was  FIM  371.6  mill.  (18%)  for  livestock  products  and  FIM  137.4 mill.  (26%)  for
plant products.

2.2. 

Community aid

When calculating the level of Nordic aid, account was also taken of aid disbursed for products
in accordance with the agricultural policy of common market organisations (CMOs), imputed
compensatory  allowances  and the  agri-environmental  subsidy  (with  respect  to  the  latter,  the
total amount of support paid was used).

Table 2. Aid for livestock products

Year

CMO payments

Compensatory
allowance

Total, FIM mill. Total, FIM mill.

1996
1997
1998
1999
2000
Reference period

148.0
196.8
170.3
163.4
292.6
199.6

502.2
207.52)
588.2
632.7
812.7
707.0

Environmental
measures for agriculture
Total, FIM mill. 1)
396.0
394.2
347.1
343.2
510.6
277.4

Total

FIM mill.
1 046.2
772.3
1 105.5
1 139.3
1 615.9
1 184.0

1)
2)

The aid shown in the table equals the total aid paid to farmers and not only the 20% incentive portion.
The figure differs from other years (See also Table 3).

9

Note: The reference amounts for aid do not take account of  the impact of the Agenda 2000
reforms on Community aid. Any increase in CMO payments compared to the reference period
is attributable to compensation for a further reduction in producer prices.

Table 3. Aid for plant products

Year

Regulation (EC)
No 1765/92

Compensatory
allowance

Environmental measures
for agriculture

Total
Combined total

1996
1997
1998
1999
2000
Reference period

Total, FIM mill.
399.9
485.7
504.7
517.4
766.8
509.1

Total, FIM mill.
481.6
800.52)
405.6
467.1
542.0
634.5

Total, FIM mill.1)

179.6
186.4
249.6
250.5
291.7
210.2

FIM mill.
1 077.9
1 472.6
1 159.9
1 234.9
1 600.5
1 354.5

1)
2)

The aid shown in the table is the total aid paid to farmers and not only the 20% incentive portion.
The figure differs from other years.

Note: The reference amounts for aid do not take account of the impact  of  the Agenda 2000
reforms on Community aid. Any increase in CMO payments compared to the reference period
is attributable to compensation for a further reduction in producer prices.

Community  aid  for  livestock  and  plant  products  applied  to  northern  areas  in  2000  (CMO
payments,  compensatory  allowances  and  agri-environmental  measures)  amounted 
to
FIM 3 216.4 mill.

2.3. 

ANNEX II combination: Production and total aid by product

When calculating the level of Nordic aid, account was also taken both of Community aid and
Nordic  aid  itself  and  this  was  compared  to  the  level  of  total  aid  (direct  aid  disbursed  and
producer price differences) in 1993 (Commission Decision, Annex II). In the following table,
the comparison is shown for 2000.

Table 4a. Total aid in 2000 for Nordic aid areas (Livestock husbandry)

Line
Number

Product

Total aid
2000
FIM mill.

Total aid
1993
FIM mill.

Excess/
Shortfall
%

1.1.
1.2.
1.3.
1.4.
1.5.
1.6.
1.7.
1.8.

1. Livestock products
Beef
Mutton and goat meat
Pork
Eggs
Poultry meat
Reindeer
Equines
Milk
TOTAL 1

1 216
35
301
109
44
41
32
2 648
4 426.2

-33 %
-8 %
-24 %
-81 %
-21 %
-59 %
12 %
-13 %
-21 %

811
32
230
21
35
17
36
2 312
3 494

10

Table 4b. Total aid in 2000 for Nordic aid areas (Crop cultivation)

Line
Number

Product

Total aid
2000
FIM mill.

Total aid
1993
FIM mill.

Excess/
Shortfall
%

2.1.
2.2.
2.3.

2.4.

2.5.

2.6.
2.7.
2.8.
2.9.
2.10.

2. Crop products

Sugar beet
Starch
Cereals and other
arable crops
Barley, oats and
mixed grains
Other cereals and
arable crops
Horticulture
Greenhouse vegetables
Flowers
Outdoor vegetables
Apples
Wild berries &
mushrooms, storage aid
TOTAL 2
COMBINED TOTAL

6
12
1 802

100
31
7
0.0
6.3

24
40
1 858

(1 616)

(242)

187
71
44
0.3
17.0

1 964.4
5 457.9

2 241.3
6 667.5

-75 %
-69 %
-3 %

-47 %
-57 %
-84 %
-84 %
-63 %

-12 %
-18 %

Note:

Total  income  subsidies  disbursed  in  2000  for  northern  areas  amounted  to  FIM
5 457.9 mill. i.e. 18% below the 1993 reference level. 2000 figures include the higher
amounts brought by the Agenda 2000 reforms on Community aid (i.e. compensation
for  further  price  decreases),  whereas  this  further  producer  price  difference  is  not
taken into account as regards 1993 figures.

3. 

IMPACT OF NORDIC AID AND ITS SIGNIFICANCE 1995 – 2000

3.1. 

Basis of report

The  Department  of  Agriculture  and  Forestry  of  the  Research  Centre  for  Agriculture  and
Foodstuffs has produced a  comprehensive  report5 on the Impact and  Significance of Nordic
Aid 1995-2000, on which the conclusions of this chapter are based.

The objectives set for the aid system and the socio-economic status of primary production and
the aid region in the introductory phase of the aid system were considered as the starting point
for an analysis of the development occurring in agriculture as a livelihood and in the northern
economy in a broader sense. Indicators for the assessment of development and change were
used which were available from general statistical sources  and administrative  registers  (The
Information  Centre  of  the  Ministry  of  Agriculture  and  Forestry  and  Statistics  Finland).  The
central  data  sources  were  combined  with  the  Integrated  Administration  and  Control  System
(IACS) and the General Aid Management System (GAMS). An assessment of the impact at
farm level was based on the results of the Farm Accountancy Data Network survey (FADN).

5

Impact  and  Significance  of  Nordic  Aid  1995-2000,  The  Research  Centre  for  Agriculture  and
Foodstuffs.

11

                                                
The  locally  resident  population,  enterprises  situated  in  the  area,  including  holdings,  and  the
development of the environment situation served as the criteria for preserving the countryside.

The Nordic aid system forms part of the management of agricultural policy as a whole. It is
difficult  to  make  a  distinction  between  this  whole  and  the  effect  of  any  particular  measure
with  respect  to  agricultural  production,  the  processing  of  agricultural  products,  the
distribution  and  trading  of  products  and  production  input  and  their  effect  in  turn  on  the
environmental situation and the preservation of the countryside.

3.2. 

Disbursement of Nordic aid

Roughly 78% of the payment authorisations available for Nordic aid in 1995 – 2000 were put
to  use  (Table  5).  The  shortfall  compared  to  the  total  available  was  attributable  to  several
factors. The production volumes of products and sectors remained lower to some extent than
during the reference period. The limitations on Nordic aid for certain products prevented the
disbursement  of  aid  in  the  full  amount.  Due  to  thrift  measures  implemented  in  the  national
economy, the unit amount of aid could not be disbursed for every product in conformity with
the  payment  authorisations  in  the  decisions  of  the  Commission.  In  addition,  on  account  of
joint aid policy, it was considered desirable to keep the difference in the level of aid between
the southern and northern regions of Finland to a reasonable level because, based on the Act
of  Accession,  Article  141,  the  livestock  aid  payment  authorisation  in  southern  Finland  has
been at a decidedly lower level than in the Nordic aid area.

Table 5. Amount of Nordic aid 1995 – 2000

Nordic aid payment authorisation,
FIM mill.
Nordic aid in Area C, FIM mill.1)
- as a percentage of all aid for Area C 2)

1995

1996

1997

1998

1999

2000

950

950

1 330

1 787

2 209

2 639

811

789

1 070

1 325

1 665

2 105

-

25

24

30

37

39

1)
2)

Aid provided targeted at the production year.
Total aid financed or partially financed by the EU and national aid.

3.3. 

Trends in prices of production input and products

Measuring the national aid package ensuing from membership of the EU was based on both
the expected price level of products and production input in membership.

In accordance with membership conditions, producer prices were adapted to the price level of
the  Community  without  a  transition  period,  which  entailed  a  considerable  drop  in  market
prices and sales income at the start  of 1995.  During  1995 – 2000,  producer  prices  remained
considerably weaker in certain respects than  expected  when  fitting  the  national  aid  package
(Table 6). Price expectations have remained unfulfilled for given products. The price of beef
remained at 26% below the expected level. Prices for feed grains, eggs and sheep meat  also
remained  below  anticipated  levels.  Against  that,  prices  for  poultry  meat  and  bread  grains
exceeded expectations and the price of milk was almost in line with estimates.

12

Table 6.

Expected  and  actual  producer  prices  for  given  agricultural  products  during  EU
membership

Price before
EU
membership1)

Anticipated
EU price 1)

Implemented prices 2)

1995

1996

1997

1998

1999

2000

Milk

Beef 3)
Beef, male bo-
vine animal 4)
Cow’s meat
Pork
Sheep meat
Poultry meat
Eggs
Bread grains
Bread rye
Malt barley
Feed barley
Feed oats

FIM/l

FIM/kg
”

”
”
”
”
FIM/kg
FIM/kg
”
”
”
”

2.93

24.74
27.63

20.60
16.29
24.20
13.36
8.79
2.19
2.26
1.87
1.63
1.54

2.04

2.00

2.02

2.07

2.05

2.04

2.07

16.00
19.00

13.99
8.36
16.80
6.20
5.17
0.75
0.75
0.83
0.75
0.75

15.25 14.08 13.60
15.77 14.53 14.06

14.54 14.09 13.61
15.07 14.60 14.12

12.28 10.67
7.80
7.83
8.73
10.04
6.70
6.40
4.18
2.83
0.86
0.82
0.85
0.84
0.82
0.80
0.70
0.68
0.69
0.65

9.15
8.16
8.54
6.80
3.62
0.83
0.84
0.86
0.69
0.65

10.04
7.36
9.58
6.90
3.84
0.80
0.82
0.79
0.68
0.61

9.58
6.60
9.10
6.67
4.42
0.77
0.80
0.76
0.68
0.63

8.79
7.56
9.96
6.61
4.85
0.76
0.75
0.72
0.66
0.68

1)

2)

3)

4)

Source: Ministry of Agriculture and Forestry (MAF).
Source: MAF Information Centre (For comparison purposes, the price of beef was taken to be minus the
warm carcass weight reduction and grain prices minus the estimated transport costs).
Beef, without cow’s meat.
Male bovine animals, slaughtered weight over 130 kg.

The second element in fitting the national aid package was the expectation that the prices of
production input  in  agriculture would fall  as a  result  of  membership.  The  fall  in  prices  was
due to reduced  prices  for agricultural  goods (seeds,  forage  and  bought-in  livestock)  and  the
elimination of different taxes and payments (production-input value-added tax and fertilisers).
The expectations about price changes for essential production inputs were as follows: bought-
in forage –40%, bought-in seeds –36%, bought-in livestock –33% and fertilisers –27%.

From 1994 to 1995, the prices for the above production input changed as follows: bought-in
forage  –29%,  bought-in  seeds  –35%,  bought-in  livestock  –30%  and  fertilisers  –17%.  On
average, the prices of essential production input in agriculture fell by roughly one fifth during
the first year of membership compared to the year before. The aggregate index of production
input rose by a good 7% between 1995 and 2000. The steepest price rise was in 2000 when
input prices increased almost 6% compared to the previous year.

The  starting  point  in  fitting  the  national  aid  package  for  agriculture  was  the  loss  of  income
that was expected to occur as a result of the reduction in market prices. In estimating the need
for aid, account was also taken of estimates for a drop in production costs. The income losses
with respect to some products consequent on accession were due to the fact that the prices of
these  products  remained  lower  than  their  expected  levels  and  those  of  production  input  fell
less. The yield and cost structure of holdings had a bearing on the impact of price deviations
on different types of farming from one holding to the next.

13

3.4. 

Number of holdings

There are now fewer holdings in the Nordic aid area but no significant changes have occurred
in  products  by  and  large  with  respect  to  production  volumes  or  share  of  production  in
proportion to the country as a whole. The significance of Nordic aid for the income formation
of holdings rose during the assessment period as it partially compensated for the reduction in
other aid during the transitional period. The number of holdings obtaining Nordic aid (Tables
7,  8)  was  reduced  by  5  600  or  13%  from  1997,  when  such  aid  was  extended  to  swine  and
poultry  in  Areas  C1  and  C2,  to  2000.  In  2000,  about  half  of  the  77 900  holdings  obtaining
income support (either CAP or national) also received Nordic aid.

Table 7. Number of holdings obtaining Nordic aid and % change 1996-20001).

Aid area

1996

1997

1998

1999

2000

Change 1997 – 2000

C1
C2
C2N
C3
C4
Total

1)

10 835
22 675
2 704
3 591
668
40 473

12 922
22 362
2 604
3 498
700
42 086

12 237
21 302
2 435
3 323
682
39 979

11 744
20 422
2 314
3 235
686
38 401

10 954
19 654
2 157
3 047
688
36 500

-1 968
-2 708
-447
-451
-12
-5 586

%
-15
-12
-17
-13
-2
-13

The change in the number of holdings is calculated from 1997 to 2000 because aid per livestock  unit
was not extended to swine and poultry until 1997, when swine and poultry holdings in Areas C1 and C2
came under the scope of Nordic aid in a more comprehensive way.

Table 8. Number of holdings obtaining Nordic aid by production trend1) 1996-20002).

Type of farming

1996

1997

1998

1999

2000

Change 1997 – 2000

Milk production
Other cattle
Pork production*
Cereal cultivation
Other
Total

18 608
4 893
1 751
6 271
8 950
40 473

17 672
4 267
2 344
9 044
8 760
42 086

17 215
4 170
2 331
8 710
7 553
39 979

15 968
3 764
2 165
8 366
8 139
38 401

15 423
3 534
1 965
7 029
8 549
36 500

- 2 249
-733
-379
-2 015
-211
-5 586

%
-13
-17
-16
-22
-2
-13

*

1)

2)

Total for piglet production, pig meat production and other swine husbandry.
Production trend of holding determined by farmer’s declaration.
The change in the number of holdings is calculated from 1997 to 2000 because aid per livestock  unit
was not extended to swine and poultry until 1997, when swine and poultry holdings in Areas C1 and C2
came under the scope of Nordic aid in a more comprehensive way.

The average area of holdings increased during the assessment period in all the main types of
farming. In 2000, the biggest holdings were engaged in pig meat production, averaging more
than 35 hectares in area. The area of holdings producing milk averaged 30 hectares and other
cattle holdings a little over 25 hectares. Holdings engaged in cereal cultivation averaged about
23 hectares in area and the average for other types of farming was about 14 hectares. Holdings
engaged in the production of pig meat increased most from 1996 to 2000, the average increase
in area being 6.7 hectares. The total area of holdings producing milk increased by 3.8 hectares
on  average  and  holdings  for  other  cattle  by  4.7  hectares  on  average.  The  average  area  of
holdings specialising in cereal production increased by less than three hectares.

14

3.5. 

Development of production

The Nordic aid area’s share of  livestock  production in proportion  to  the country  as a whole
has remained fairly stable for the majority of products during the assessment period (Table 9).
About three-quarters of the milk and beef is produced within the aid area. The proportionate
share of milk production has increased by 3%. The share of beef fluctuated between 72-76%.
A  little  more  than  half  of  the  sheep  meat  is  still  produced  within  the  area  but  its  share  fell
between 1995 and 2000. About 40% of pork is produced within the aid area and its share has
remained  almost  unchanged  between  1995  and  2000.  A  good  third  of  poultry  meat  is
produced  within  the  aid  area.  Most  of  the  poultry  production  is  concentrated  outside  the
Nordic  aid  area.  About  a  quarter  of  the  eggs  are  produced  within  the  area.  However,  egg
production tends to concentrate mainly outside the Nordic aid area.

Table  9.  Nordic  aid  area’s  percentage  share  of  key  livestock  products  compared  to  the
country as a whole 1995-2000.

Product

1995

1996

1997

1998

1999

2000

Milk

Pork

Beef

Poultry meat

Sheep meat

Eggs

73

40

73

30

62

33

73

40

72

30

60

28

74

41

72

30

64

29

75

40

72

33

59

27

76

41

72

36

53

26

76

42

76

34

52

27

Since the number of units obtaining Nordic aid for livestock production, with the exception of
poultry intended for meat production, declined each  year from 1997 onwards, any growth is
attributable to increased productivity.

The extent of plant cultivation in the Nordic aid area from 1995-2000 is shown in Table 10.
The cultivation  of  bread  cereals  (especially  wheat  cultivation)  is  mainly  centred  outside  the
aid area. It is the source of about a fifth of the rye produced. The quality of the rye is heavily
dependent on autumn weather conditions. Nearly all malting barley and sugar beet production
lies  outside  the  Nordic  aid  area.  Against  that,  the  cultivation  of  pasture  is  proportionately
more common in the Nordic aid area due to the area’s heavy concentration on milk and beef
production.  Over  half  of  all  feed  grains  is  produced  in  the  aid  area.  The  proportion  of  feed
grains  cultivated  has  also  risen.  Most  of  the  potatoes  intended  for  starch  production  are
cultivated in Areas C1 and C2 (being 60% of the total area under such cultivation).

15

Table  10.  Percentages  of  Nordic  aid  areas  under  key  crop  cultivation,  left  fallow  or  under
horticultural cultivation compared to the rest of the country, 1995-2000

Crop

Wheat

Rye

Feed grains

Malting barley

Sugar beet

Potatoes for starch prod.

Other arable crops

Pasture

Fallow land

Horticultural cultivation:

Outdoor production

Greenhouse production

1995

1996

1997

1998

1999

2000

4

25

50

5

10

65

15

74

38

38

43

3

18

51

5

9

65

20

74

40

38

44

2

23

53

6

9

66

26

74

42

38

44

2

21

53

6

8

62

29

75

44

38

44

3

34

55

6

8

60

30

75

42

39

44

5

21

56

8

8

60

36

73

41

39

45

Cereal crop harvest levels and annual fluctuations have an impact on the production volumes
of cereal crops and indirectly on livestock production and profitability. Naturally, the impact
is higher on holdings specialising in crop cultivation than those engaged in livestock farming.

The annual fluctuation in weather conditions is the most critical reason for crop variations. In
1995 – 2000, annual changes in harvest yields per hectare in the Nordic aid area varied from 1
900 – 3 400 kg for barley, 2 100 – 3 200  kg for  oats,  2 200 – 3 600 kg  for spring wheat  and
1 300 – 2 100  kg  for  rye.  Dry  hay  hectare  yields  varied  from  3 200 –  4 100  kg  and  silage
hectare yields from 17 400 – 20 000 kg.

3.6. 

Economic impact of aid

The share of Nordic aid in the income formation of holdings increased during the 1995 – 2000
assessment period. Correspondingly, transitional aid gradually decreased and was terminated
at  the  start  of  2000.  The  significance  of  Nordic  aid  was  greater  for  holdings  with  livestock
than  for  those  engaged  in  crop  cultivation.  In  2000,  when  Nordic  aid  reached  its  long-term
level,  its  proportion  to  the  net  agricultural  income  of  farming  families  was,  based  on
calculations, 50 – 90% for dairy farming, about 50% for pig farming and 10 – 20% for  crop
farming, depending on the area.

Based  on  bookkeeping  results  available  up  to  1998,  the  profitability  of  milk,  pig  meat  and
cereal  holdings  generally  tended  to  decline  compared  to  the  average  situation  in  the  three
years prior to accession . None of the objectives for farming family pay or capital interest was
achieved in post-1994 production trends examined, in other words the profitability coefficient
was  less  than  one.  Pig  farming  and  cereal  farming  appeared  to  be  the  most  profitable  and
dairy  farming  the  least  profitable  among  holding  groups.  However,  the  proportionate
difference in profitability between dairy and pig farming remained fairly stable throughout the
period, so that the introduction of new income subsidy systems in 1995 would not appear to
have altered the central role of these two key production trends in 1995.

16

While holdings on average have almost succeeded in preserving their previous income level,
inter alia by increasing their size, the aid system has not been able to ensure the retention of
profitability at  the  level prevalent  before  accession to  EU membership.  Without  Nordic  aid,
the profitability of holdings would have fallen sharply.

3.7. 

Impact on food chain

The wholesale  and retail  trade, processing and  marketing situation  of products  belonging  to
the  Nordic  aid  system  remained  fairly  stable  in  the  particular  area.  Among  food  industry
enterprises,  the  number  of  dairies  and  slaughterhouses  purchasing  raw  materials  from
agriculture has fallen during the assessment period in the Nordic aid area. The northernmost
areas  can  be  somewhat  problematic  from  the  standpoint  of  processing  enterprises  operating
nation-wide: raw material volumes obtainable from the area are low compared to the overall
volumes of such enterprises, transport costs are high and the markets are at a great distance.

Transport aid for milk and meat within the Nordic aid system is indispensable because it helps
maintain  production  in  the  most  peripheral  regions.  It  is  true  that  a  number  of  small
slaughterhouses (so-called holding slaughterhouses) have been established in the aid area and
other  small  enterprises  whose  processing  is  mainly  based  on  own  raw  material  or  for  the
purpose  of  local  demand.  However,  in  the  sparsely  populated,  extensive  peripheral  regions,
economically viable production cannot be based solely on local consumption.

3.8. 

Impact on the state of the environment

One aim of the Nordic aid system was that it should positively influence the implementation
of environmental protection and preservation by tying the  disbursement of  aid  to  conditions
such  as  the  use  of  arable  land  (good  farming  practices)  and  livestock  quantities  (maximum
livestock density).  Because  several  different operational programmes have  an impact on the
environment, the influence of any individual programme cannot be separated from the whole.
While  changes  in  the  environment  occur  relatively  slowly,  research  into  such  changes
demonstrates the direction of environmental change. The use of fertilisers and pesticides has
fallen appreciably. The incidence of nitrate-related denudation has diminished by 4 – 15% in
several areas and phosphorus erosion by 5 – 13%. Soluble phosphorus levels have persisted or
have risen slightly. The impact of different measures has been apparent in a positive sense in
the landscape of the countryside and the extent of natural diversity.

3.9. 

Socio-economic impact

The Nordic aid system is part of measures taken by which an effort is being made to retain the
population in the northern and eastern regions. The greatest threat to preserving the rural way
of  life  over  wide  stretches  of  the  area  is  the  ongoing  outward  migration.  Except  for  a  few
growth  centres  in  the  region,  migration  has  been  mainly  in  the  direction  of  the  south  of
Finland. Since the people migrating are  young  and  educated, the  result is a reduction in  the
average educational level of the labour force in the areas from which migration occurs and a
demographic bias in the age structure of the population. The decline in population produces a
multiplier effect: maintaining the infrastructure is made difficult and services become dearer.
The negative  consequences of dwindling  populations  on  the  local  economy  of  the  areas  are
considerable  in  the  long  run.  Without  Nordic  aid,  farming  activities  would  no  longer  be
profitable  and  many  holdings  would  probably  be  forced  to  cease  production,  which  in  turn
would add to the loss of population in rural areas.

17

4. 

CONCLUSIONS

Pursuant to Article 142 of the Act of Accession, the Commission, by Decision No 95/196/EC of
4 May 1995, authorised Finland to grant long-term national aid in agricultural areas lying north
of  the  62nd  parallel  and  certain  adjacent  areas  affected  by  comparable  climatic  conditions,
rendering agricultural activity particularly difficult.

This  report  gives  an  account  of  the  authorisations  granted  and  the  results  achieved.  It  was
compiled on the basis of data supplied by the Finnish authorities in compliance with Article 143
(2) of the Act of Accession and is intended to be presented to the Council. Based on the report,
main features are as follows:

(1) 

Regarding most of  the sectors  receiving  Nordic aid, permissible production levels or
aid limits were not exceeded in the assessment period. However, the production level
was exceeded in the following occasions:

– 

– 

– 

– 

in 1996/97 sheep meat  production levels were exceeded; the  aid was reduced
by a corresponding amount the following years;

in  1997  production  levels  of  pork  were  exceeded;  the  aid  was  reduced  by  a
corresponding amount the following year;

in 1996/97 poultry meat production levels were exceeded; the aid was reduced
by a corresponding amount the following years;

in 1998-2000 milk production levels were exceeded; the aid was reduced by a
corresponding amount the following years.

(2) 

(3) 

(4) 

Community  aid  by  product  (market  aid,  compensatory  allowances  and  agri-
environment  measures)  were  below  the  levels  taken  into  account  when  agreed  aid
levels were  ratified.  For this  reason, their application did  not lead  to the level of  aid
agreed before Accession being exceeded.

The  controls  carried  out  by  the  Member  State  demonstrate  that  the  aid  was  applied
properly.

The aid granted was important from the standpoint of environmental protection and the
preservation of the countryside. Therefore, they comply with Article 142(3) of the Act of
Accession.

On the basis of the information provided by the Finnish authorities, the Commission considers
that in general the Finnish authorities have applied Commission Decision No 95/196/EC on aid
to  northern  regions  properly.  On  the  rare  occasions  when  the  maximum  production  volumes
were exceeded, the aid has been or is to be deducted in accordance with the said decision.

18

ANNEX

Development of aid and production by product 1996-2000

In the following section, the development of aid and production will be examined by product.
In this context, it should be noticed that the level of aid for some products gradually rises until
2000. This unit increase partially compensates for the progressive reduction in aid during the
transition period in compliance with Articles 138-140.

1.

1.1.

LIVESTOCK PRODUCTION

Beef

Roughly 72% of all beef production derives from the Nordic aid area.
Table 1.1. Production 1996-2000 (t) 1)

1996
1997
1998
1999
2000
During reference period

C1
14 337
15 065
13 249
12 544
12 855
18 400

Subregion
C2 C2 North
2 611
2 613
2 370
2 272
2 445
3 600

26 850
27 760
25 500
24 771
25 571
31 700

C3
4 043
4 027
3 740
3 816
3 748
5 600

C4
426
439
408
423
391
600

Total
48 267
49 904
45 267
43 826
45 011
59 900

1)

except for cow’s meat, the production figures for which were 22 693 t in 2000 (26 300 t in the reference
period).

Note: Beef production remained lower throughout the assessment period than it had been in

the reference period.

1.1.1.

Suckler cows

About 55% of all suckler cows are raised in the Nordic aid area.

C1

Subregion
C2 C2 North

C3

C4

Total

Table 2.1. Disbursed unit aid 2000
1 900
Permissible aid (FIM/LU)
Applied aid (FIM/LU)
1 000
Table 2.2. Production units 1996-2000 (LU)
6 982
7 163
6 743
6 181
5 570
6 550

During reference period
Table 2.3. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

0.7
3.5
4.4
5.1
5.5
12.4

19

1 950
1 000

7 635
7 956
7 610
7 247
6 729
7 100

1.1
4.2
5.5
6.4
6.7
13.8

2 400
1 450

2 850
1 900

3 950
3 000

553
589
558
562
518
650

0.3
0.5
0.7
0.7
0.7
1.6

476
467
460
376
321
900

0.5
0.6
0.7
0.7
0.6
2.6

37
40
41
41
42
150

0.1
0.1
0.1
0.1
0.1
0.6

15 683
16 215
15 412
14 406
13 180
15 350

2.7
9.0
11.4
13.0
13.6
31.0

Note:

The suckler cow LU total remained below the reference period level throughout the
assessment  period,  with  the  exception  of  years  1996-97.  The  total  aid  disbursed
likewise remained below the permissible level.

1.1.2. Male bovine animals

About 75% of all male bovine animals are raised in the Nordic aid area.

C1

Subregion
C2 C2 North

C3

C4

Total

Table 3.1. Applied unit aid 2000
Permissible aid (FIM/LU)

2 450

2 500

2 950

Applied aid (FIM/LU) 1)

2 450

2 500

2 950

Table 3.2. Production units 1996-2000 (LU)
28 168
27 912
27 630
26 843
26 597
36 000

During reference period
Table 3.3. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

18.2
30.4
42.3
53.1
64.6
88.2

53 184
53 415
54 552
53 164
52 748
62 300

37.0
60.9
86.2
107.2
130.6
155.8

5 554
5 365
5 306
5 222
5 391
7 250

6.4
8.6
10.8
12.9
15.9
21.4

4700-
5200
4700-
5200

7 622
7 608
7 776
7 830
7 811
11 100

20.0
15.5
28.9
32.7
34.2
54.4

6300-
7800
6300-
7800

774
752
781
753
704

95 302
95 052
96 046
93 813
93 251
1 050 117 700

4.2
2.4
3.9
4.5
4.3
6.7

85.7
117.8
172.1
210.3
249.6
326.5

1)

The  payment  per  livestock  unit  for  slaughtered  male  bovines  in  subregion  C3,  subarea  P1-P2  was
FIM 780;  in  subarea  P3-P4,  FIM 1 080,  and  in  subregion  C4,  in  parts  of  subarea  P4,  FIM  1 080  and
subarea P5 FIM 1 980.

Note: The male bovine animal LU total remained below the reference period level throughout
the assessment period. The total aid disbursed likewise remained below the permissible level.

1.1.3. Heifers for slaughter

About 77% of all heifers for slaughter are raised in the Nordic aid area.

C1

Subregion
C2 C2 North

C3

C4 Total

Table 4.1. Applied unit aid 2000
Permissible aid (FIM per head)
Applied aid (FIM/per head)
Table 4.2. Production units 1996-2000 (heads of livestock)

1 680
1 150

1 720
1 150

2 000 2 240
1 440 1 690

2 720
2 200

1996
1997
1998
1999
2000

During reference period

11 808
10 508
9 132
8 743
9 001
17 390

21 277
18 136
16 462
15 931
16 727
30 020

2 164 3 372
1 939 2 585
1 726 2 385
1 711 2 488
2 030 2 278
3 380 5 440

343 38 964
328 33 496
288 29 993
245 29 118
246 30 281
810 57 040

20

Table 4.3. Aid 1996-2000

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

C1

4.2
7.6
9.9
10.5
10.4
29.2

Subregion
C2 C2 North

C3

C4 Total

8.3
13.4
18.1
19.5
19.2
51.6

1.7
2.0
2.4
2.6
2.9
6.8

3.1
3.4
4.1
4.4
3.8
12.2

17.8
0.5
27.0
0.6
35.2
0.6
37.7
0.6
0.5
36.9
2.2 102.0

Note:

The total number of heifers remained below the reference period level throughout the
assessment period. The total aid disbursed likewise remained below the permissible
level.

1.2.

Ewes and she-goats

The sheep meat production in northern regions corresponds 52% of the total production.

C1

Subregion
C2 C2 North

C3

C4

Total

Table 5.1. Applied unit aid in 2000
Permissible aid (FIM/LU)

2 450

2 500

2 950

Applied aid (FIM/LU) Ewes

2 450

2 500

2 950

Applied aid (FIM/LU) She-goats

2 310

2 360

2 460

4900-
5500
4900-
5500
3060-
3260

6600-
8200
6600-
8200
3600-
4100

Table 5.2. Production units 1996-2000 (LU)
2 071
2 063
1 924
1 688
1 839
2 027

1996
1997
1998
1999
2000

During reference period
Table 5.3. Production 1996-2000 (t)
1996
1997
1998
1999
2000

During reference period
Table 5.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

293
290
244
174
128
223

1.3
2.2
2.6
3.2
4.4
4.2

2 023
2 093
1 849
1 569
1 679
2 116

364
342
269
177
147
276

1.4
2.3
2.7
3.1
4.1
4.6

328
407
375
313
312
540

52
41
45
43
44
60

0.4
0.6
0.7
0.8
0.9
1.4

599
655
727
689
772
827

73
60
56
41
32
111

2.0
2.4
3.0
3.1
3.8
4.1

179
169
204
222
270
376

16
10
8
6
0
41

0.9
0.9
1.1
1.3
1.6
2.1

5 201
5 388
5 079
4 480
4 873
5 886

798
741
622
441
351
711

6.0
8.3
10.2
11.5
14.8
16.4

Note:  The  total  number  of  LU  of  ewes  and  she-goats  remained  below  the  reference  period
level throughout the assessment period. The total aid disbursed likewise remained below the
permissible  level  Production  of  sheep  meat  exceeded  permissible  levels  in  1996-97,  due  to
which the aid was reduced in 1997 and 1998.

21

1.3.

Swine

40-42% of all swine are raised in the Nordic aid area.

C1

Subregion
C2 C2 North

C3

C4

Total

Table 6.1. Applied unit aid in 2000
2 450
Permissible aid (FIM/LU)
Applied aid (FIM/LU)
2 000
Table 6.2. Production units 1996-2000 (LU)
76 091
79 228
78 271
71 113
71 478
63 700

1996
1997
1998
1999
2000

During reference period
Table 6.3. Production 1996-2000 (t)
1996
1997
1998
1999
2000

During reference period 1)
Table 6.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

1)

Including sow meat (3 100 t).

43 001
45 226
46 782
46 523
47 011
42 900

0.0
28.0
65.8
95.6
143.0
156.1

2 500
2 000

40 453
44 177
43 596
39 057
38 996
37 600

23 644
25 433
25 072
23 715
23 517
24 700

0.0
16.3
37.5
53.3
78.0
94.0

2 950
2 480

2 071
2 056
1 933
1 845
1 747
2 100

1 144
1 094
1 160
1 091
1 160
1 300

1.0
1.9
2.7
3.5
4.3
6.2

2 950
2 480

2 422
2 452
2 371
1 942
1 842
3 150

1 395
1 345
1 339
1 230
1 047
2 000

1.2
2.3
3.3
3.7
4.6
9.3

3 400
2 900

7 121 044
2 127 915
0 126 172
0 113 958
0 114 062
40 106 590

10
2
0
0
0
6

0.0
0.0
0.0
0.0
0.0
0.1

69 193
73 100
74 354
72 560
72 735
70 906

2.2
48.5
109.3
156.0
229.8
265.7

Note:

The  total  number  of  pigs  (LU)  exceeded  the  reference  period  level  throughout  the
assessment  period  and  pig  meat  production  exceeded  permissible  level  in  1997.
Against that, the total aid for swine was lower than permissible levels throughout the
assessment period. Unit aid was reduced in 1998 because the permissible production
level was exceeded in 1997.

1.4.

Poultry

1.4.1.

Egg production

About 27% of all eggs are produced in the Nordic aid area.

22

C1

Subregion
C2 C2 North

C3

C4

Total

Table 7.1. Applied unit aid in 2000
2 450
Permissible aid (FIM/LU)
Applied aid (FIM/LU)
1 705
Table 7.2. Production units 1996-2000 (LU)
10 227
11 563
9 851
8 630
8 185
16 000

1996
1997
1998
1999
2000

During reference period
Table 7.3. Production 1996-2000 (t)
1996
1997
1998
1999
2000

During reference period
Table 7.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

14 589
15 121
12 882
11 285
10 704
16 950

0.0
4.5
6.8
10.0
13.9
39.2

2 500
1 720

3 398
4 516
4 015
3 714
3 488
6 300

4 856
5 906
5 250
4 857
4 561
8 000

0.0
1.8
2.9
4.4
6.0
15.8

2 950
2 230

3 400
2 630

4 500
3 800

253
345
296
282
198
680

300
451
388
368
259
1 000

0.3
0.3
0.4
0.5
0.5
2.0

186
224
201
198
199
330

223
293
263
259
260
1 000

0.1
0.3
0.3
0.4
0.5
1.1

1
0
0
1
1
4

1
0
0
1
1
2

0.00
0.00
0.00
0.00
0.00
0.02

14 065
16 648
14 364
12 825
12 071
23 314

19 969
21 771
18 783
16 771
15 785
26 952

0.4
6.9
10.4
15.2
20.9
58.1

Note:

The  total  number  of  poultry  hens  (LU)  remained  below  the  reference  period  level
throughout  the  assessment  period.  The  total  aid  disbursed  and  production  totals
likewise remained below the permissible level.

1.4.2.

Poultry meat production

About one third of all poultry meat production occurs in the Nordic aid area.

C1

Subregion
C2 C2 North

C3

C4

Total

Table 8.1. Applied unit aid in 2000
2 450
Permissible aid (FIM/LU)
Applied aid (FIM/LU)
1 610
Table 8.2. Production units 1996-2000 (LU)
8 524
11 254
13 232
17 152
18 999
7 700

1996
1997
1998
1999
2000

During reference period

2 500
1 640

1 052
1 712
1 962
2 360
2 436
1 400

2 950
2 180

3 400
2 580

4 500
3 780

20
21
23
51
53
170

23
4
0
1
0
25

0
0
0
0
0
1

9 619
12 991
15 217
19 564
21 489
9 296

23

Table 8.3. Production 1996-2000 (t)
1996
1997
1998
1999
2000

During reference period
Table 8.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

C1

12 698
14 038
16 800
20 347
18 794
8 335

0.0
4.3
7.6
16.6
30.6

Subregion
C2 C2 North

1 667
1 788
2 211
2 842
2 817
1 075

0.0
0.7
1.2
2.3
4.2

0
0
0
0
0
10

0.2
0.0
0.0
0.1
0.1

C3

0
0
0
0
0
20

0.0
0.0
0.0
0.0
0.0

C4

Total

0
0
0
0
0
1

0.0
0.0
0.0
0.0
0.0

14 365
15 826
19 012
23 189
21 611
9 441

0.2
5.0
8.8
19.0
34.9
44.0

Note:

The number of poultry hens (LU) exceeded the reference period level throughout the
assessment  period  and  poultry  meat  production  exceeded  the  permissible  level.
Against  that,  the  total  aid  remained  below  the  permissible  level  throughout  the
period. Unit aid was reduced in 1997-1998 because production totals were exceeded
during previous years.

1.4.3.

Poultry, total

Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

C1

0.0
8.7
14.5
26.6
44.5
58.1

Subregion
C2 C2 North

0.0
2.5
4.1
6.7
10.2
19.3

0.5
0.3
0.4
0.6
0.6
2.5

C3

0.1
0.2
0.2
0.4
0.5
1.2

C4

Total

0.00
0.00
0.00
0.00
0.00
0.02

0.6
11.8
19.3
34.3
55.8
81.1

Note: The total aid remained below the permissible level throughout the assessment period.

24

1.5. Horses

Roughly 61% of Finnish horses are raised in the Nordic aid area.

C1

Subregion
C2 C2 North

C3

C4

Total

Table 9.1. Applied unit aid in 2000
Permissible aid (FIM/LU)
Applied aid (FIM/LU)
Table 9.2. Production units 1996-2000 (LU) 1)

2 500
1 600

1996
1997
1998
1999
2000

4 108
4 152
3 356
3 286
3 184

During reference period
Table 9.3. Aid 1996-2000 (FIM mill.)

2 400

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

0.0
0.0
0.0
2.1
5.1
6.0

2 500
1 600

2 500
1 600

2 500
1 600

2 500
1 600

4 337
4 626
3 748
3 641
3 641

2 800

0.0
0.0
0.0
2.4
5.8
7.0

692
676
525
507
481

340

0.0
0.0
0.0
0.3
0.8
0.9

694
770
543
561
499

390

0.0
0.0
0.0
0.4
0.8
1.0

109
102
95
92
100

70

0.00
0.00
0.00
0.06
0.15
0.18

9 940
10 325
8 267
8 087
7 906

6 000

0.0
0.0
0.0
5.2
12.6
15.0

1)

Breeding mares, Finnish coldblood horses and other horses 1-3 years old.

Note:

The total number of horses (LU) exceeded the reference period level throughout the
assessment  period.  The  total  aid  disbursed  remained  below  the  permissible  amount
during the period (Note: Nordic aid for horses was disbursed for 1999-2000 only).

1.6.

Reindeer

Reindeers are raised only in the Nordic aid area.

C1

Subregion
C2 C2 North

C3

C4

Total

Table 10.1. Applied unit aid in 2000
Permissible aid (FIM/per head)
Applied aid (FIM/per head)
Table 10.2. Production units 1996-2000 (number)

1996
1997
1998
1999
2000

During reference period

160
100

160
100

71 200 141 600 212 800
68 000 134 616 202 616
65 824 130 314 196 138
67 815 127 617 195 432
70 576 132 813 203 389
71 500 157 500 229 000

25

Table 10.3. Reindeer meat production 1996-2000 (t)

C1

Subregion
C2 C2 North

C3

C4

Total

1996
1997
1998
1999
2000

During reference period
Table 10.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid

933
620
620
746
729
1 073

6.7
5.9
4.1
4.3
4.6
11.4

1 987
1 380
1 380
1 404
1 371
2 370

17.3
13.9
10.9
11.8
12.3
25.2

2 920
2 000
2 000
2 150
2 100
3 443

24.0
19.8
15.0
16.1
16.9
36.6

Note:  The  number  of  reindeer  remained  below  the  reference  period  level  throughout  the
assessment period. Disbursed aid and reindeer meat production likewise remained below the
permissible amounts.

1.7.

Summary of meat production in the Nordic aid area

Pursuant  to  Commission  Decision  No  2000/405/EC  meat  production  should  first  be
scrutinised at the aggregate level. The following table presents a summary:

Table 11.1. Development of meat production in the Nordic aid area, 1996-2000

Production, in tonnes

Beef

Sheep and
goat meat

Pork

Poultry
meat

Reindeer
meat

Total

1996
1997
1998
1999
2000
During reference period

48 267
49 904
45 267
43 826
45 011
59 900

798
741
622
441
351
711

69 193
73 100
74 354
72 560
72 735
70 906

14 365
15 826
19 012
23 189
21 611
9 441

2 920
2 000
2 000
2 150
2 100
3 443

135 543
141 572
141 255
142 166
141 808
144 401

Note: A check of meat production totals for Sub-region C (Nordic aid area) shows that they
remained below the permissible level throughout the assessment period.

1.8.

Milk

A total of 15 423 holdings produced milk in the Nordic aid area in 2000, amounting to 76% of
all milk holdings in Finland. They produced roughly 75% of all milk.

Table 12.1. Applied unit aid in 2000
Permissible (FIM/kg)
Applied (FIM/kg) 1)

C1

0.62
0.51

Subregion
C2 C2 North

C3

C4

Total

0.63
0.54

0.74 0.92-1.17 1.44-1.96
0.62 0.79-1.04 1.31-1.84

26

Table 12.2. Milk production 1996-2000 (t) 2)

C1

Subregion
C2 C2 North

C3

C4

Total

1996
1997
1998
1999
2000

516 232 909 480 100 175 163 321 22 616 1 711 824
516 377 927 869 101 220 162 335 22 631 1 730 433
515 772 961 009
99 286 169 132 23 137 1 768 336
518 861 987 671 104 568 172 007 22 996 1 806 103
526 961 1018 021 104 820 173 331 23 218 1 846 351
534 234 922 953 104 024 165 651 24 000 1 750 862

During reference period 3)
Table 12.3. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

84.3
134.6
165.0
212.7
268.8
331.2

156.6
259.8
334.4
434.6
549.8
581.5

28.2
37.5
43.2
54.4
65.0
77.0

104.3
116.4
132.3
149.2
167.6
181.4

24.4
26.2
28.3
30.2
32.7
36.5

397.8
574.4
703.2
881.1
1 083.9
1 207.6

1)
2)
3)

Note:

FIM per kg in Subregion C3; P1=0.79; P2=0.89; P3-P4=1.04; in Sub-region C4: P4=1.31; P5=1.84.
The aid applies only to cow’s milk.
This  figure  may  be  increased  where  an  increase  is  decided  in  the  quantities  of  milk  allocated  in
accordance with the Act of Accession, from the reserve decided on for the Finnish SLOM quota.

Total milk production exceeded the permissible volume in 1998, 1999 and 2000. In
this context, it must be taken into account that the reference quantities included the
SLOM  additions  for  quota  periods  1997/98  and  1998/99,  but  not  for  quota  periods
1999/2000 and 2000/01, corresponding in total 2 067 tonnes. The total aid disbursed
remained below the permissible amount throughout the assessment period. Unit aid
was reduced in 1999 and 2000 due to the production totals’ being exceeded.

1.9.

Aid for transport

Aid  for  milk  transport  is  disbursable  in  Kainuu,  the  Province  of  Lapland  and  Koillismaa
region. Aid for meat transport is disbursable in the Province of Lapland. Aid for transport is
disbursed to compensate for transport costs between holdings and the first degree processing
location.  Such  aid  is  declared  in  FIM  per  tonne  (the  average  actual  cost  estimate  being  FIM
54.00/t for milk transport  and  FIM  0.50/kg for meat transport). The average amount  delivered
per farm to dairies, the average density of holdings in the dairy catchment area and the average
distance between holdings and dairies are taken into account when calculating volumes.

Aid  disbursed  for  milk  and  meat  transport  in  peripheral  regions  of  the  Community  can  be
regarded as aid facilitating the sale of products in accordance with Article 142 (3), in the third
paragraph and therefore to be acceptable.

Table 13.1. Aid for transport in Nordic aid areas, Total

FIM mill.
Permissible
Applied

1996
13.5
9.6

1997
13.5
9.6

1998
13.5
9.5

1999
13.5
9.8

2000
13.5
9.8

Note: Aid  for  transport  remained  below  the  permissible  level  throughout  the  assessment

period.

27

2.

PLANT PRODUCTION

2.1.

Sugar beet

Eight percent of all sugar beet is cultivated in the Nordic aid area.

Besides  the  aid  per  hectare  applying  to  general  Nordic  aid,  a  separate  aid  per  hectare  is
disbursable for sugar beet.

C1

Subregion
C2 C2 North

C3

C4

Total

2 000 200+2000 200+2000
1 200 200+1200 200+1200

Table 14.1. Applied unit aid in 2000 1)
Permissible (FIM/hectare)
Applied (FIM/hectare)
Table 14.2. Arable land 1996-2000 (ha)
3 119
2 817
2 496
2 582
2 159
3 230

During reference period
Table 14.3. Production 1996-2000 (t)

1996
1997
1998
1999
2000

1996
1997
1998
1999
2000

11 708
10 219
9 052
12 049
12 113
17 570

During reference period
Table 14.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

1.5
2.2
2.5
3.0
2.6
6.5

133
144
152
158
159
520

501
490
519
418
717
2 270

0.1
0.1
0.2
0.2
0.2
1.1

3
0
0
0
0
0

11
0
0
0
0
0

0.0
0.0
0.0
0.0
0.0
0.0

0

0

0

0

3 255
2 961
2 648
2 740
2 318
3 750

12 220
10 709
9 571
12 467
12 830
19 840

1.6
2.4
2.6
3.2
2.8
7.6

1) Includes general aid per hectare and aid per hectare for sugar beet.

Note: Both production totals and total aid disbursed remained below the permissible amount
during the assessment period.

2.2.

Potatoes for starch production

Sixty percent of all potatoes for starch production are grown in the Nordic aid area.

Besides  the  aid  per  hectare  applying  to  general  Nordic  aid,  a  separate  aid  per  hectare  is
disbursable for potatoes for starch production.

28

C1

Subregion
C2 C2 North

C3

C4

Total

Table 15.1. Applied unit aid in 2000 1)
Permissible (FIM/hectare)
Applied (FIM/hectare)
Table 15.2. Arable land 1996-2000 (ha)

1 000 200+1000 200+1000
1 000 200+1000 200+1000

1996
1997
1998
1999
2000

1996
1997
1998
1999
2000

4 594
4 132
3 996
3 406
3 594
4 490

19 778
22 411
17 730
12 049
21 458
24 160

1 906
1 701
1 519
1 387
1 560
2 090

9 298
9 179
8 441
4 178
9 431
9 400

1.1
0.8
1.1
1.1
1.9
2.5

0

0
0
0
0

0.0
0.0
0.0
0.0
0.0

0

0

6 500
5 832
5 515
4 792
5 154
6 580

29 076
31 591
26 171
16 227
30 889
33 560

2.9
2.9
3.3
3.1
5.4
7.0

During reference period
Table 15.3. Production 1996-2000 (t)

During reference period
Table 15.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid

1.8
2.0
2.2
2.0
3.5
4.5

1)

Includes both general aid per hectare and aid per hectare for starch production.

Note:  The  area  cultivated  remained  less  than  that  of  the  reference  period  throughout  the
assessment period. Production totals and the total aid disbursed remained below permissible
levels throughout the assessment period.

2.3.

Cereals and other arable crops (Summary of Tables 2.3.1. and 2.3.2.)

Holdings in the northern aid region area account for about 42% of all cereal production.

C1

Subregion
C2 C2 North

C3

C4

Total

Table 16.1. Arable land 1996-2000 (ha)

1996
1997
1998
1999
2000

During reference period (ha)

238 855 196 809
248 919 199 757
256 368 208 165
254 005 213 152
260 028 220 710
286 780 237 500

14 297
14 312
14 368
14 744
15 052
20 720

8 861
9 488
9 512
9 742
9 736
12 600

285
93
56
29
84
100

459 107
472 568
488 469
491 673
505 609
557 700

29

Table 16.2. Production 1996-2000 (t)

C1

Subregion
C2 C2 North

C3

C4

Total

1996
1997
1998
1999
2000

668 794 452 661
815 927 597 839
638 304 496 679
683 045 553 282
832 088 705 005
900 400 717 800

32 883
39 895
31 551
36 833
43 604
52 500

20 380
22 892
19 002
23 369
24 320
32 500

During reference period
Table 16.3. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid

0.0
1.7
6.1
6.9
6.6
23.4

39.4
41.1
35.6
36.5
46.1
52.7

2.9
2.9
2.4
2.5
3.2
4.2

3.5
3.3
3.0
2.7
3.8
5.0

656
210
72
50
163
0

0.2
0.0
0.0
0.0
0.0
0.1

1 175 374
1 476 763
1 185 609
1 296 580
1 605 181
1 703 200

46.0
48.9
47.1
48.5
59.8
85.4

Note:

The  area  cultivated  remained  less  than  that  of  the  reference  period  throughout  the
assessment  period.  Production  totals  and  the  total  aid  disbursed  remained  below
permissible levels throughout the assessment period.

2.3.1.

Barley, oats and mixed grain

About 55% of all feed grain is cultivated in the Nordic aid area.

218 428 191 277
230 567 192 602
230 203 198 935
226 332 204 019
221 695 208 039
248 000 227 050

611 598 439 937
760 870 577 805
575 507 478 218
611 096 530 451
709 425 665 726
809 400 680 000

Subregion
C2 C2 North

C3

C4

Total

200
200

200
200

400
300

800
600

283
59
56
29
82
100

651
142
72
50
163
0

0.2
0.0
0.0
0.0
0.0
0.1

432 858
446 355
452 684
454 473
453 962
507 650

1 104 787
1 400 090
1 103 622
1 200 866
1 441 519
1 573 400

44.8
45.3
37.1
37.7
47.4
54.5

14 050
13 956
14 092
14 473
14 600
19 900

32 315
39 078
31 026
36 183
42 341
52 000

2.8
2.8
2.3
2.3
2.9
4.0

8 820
9 172
9 399
9 619
9 546
12 600

20 286
22 196
18 798
23 086
23 864
32 000

3.5
3.3
3.0
2.7
2.9
5.0

Table 17.1. Applied unit aid in 2000
Permissible (FIM/hectare)
Applied (FIM/hectare)
Table 17.2. Arable land 1996-2000 (ha)

C1

0
0

During reference period
Table 17.3. Production 1996-2000 (t)

1996
1997
1998
1999
2000

1996
1997
1998
1999
2000

During reference period
Table 17.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid

0.0
0.0
0.0
0.0
0.0
0.0

38.3
39.2
31.9
32.7
41.6
45.4

30

Note:  The  area  cultivated  remained  less  than  that  of  the  reference  period  throughout  the
assessment period. Production totals and the total aid disbursed remained below permissible
levels throughout the assessment period.

2.3.2. Other cereals and other arable crops

C1

Subregion
C2 C2 North

C3

C4

Total

Table 18.1. Applied unit aid in 2000 1)
Permissible (FIM/hectare)
Applied (FIM/hectare) 2)
Table 18.2. Arable land 1996-2000 (ha)

800 200+800 200+800
200+… 200+…

350-800

1996
1997
1998
1999
2000

1996
1997
1998
1999
2000

20 427
18 352
26 165
27 673
38 332
38 780

57 196
55 057
62 797
71 949
122 663
91 400

5 532
7 155
9 231
9 133
12 671
10 450

12 724
20 034
18 461
22 832
39 279
37 800

1.1
1.9
3.7
3.8
4.5
7.3

247
355
276
271
451
820

568
817
525
650
1 264
500

0.1
0.1
0.1
0.1
0.3
0.2

41
316
113
123
190
0

94
696
204
283
456
500

0.0
0.0
0.0
0.0
0.0

2
34
0
0
3
0

5
69
0
0
0

0.0
0.0
0.0
0.0
0.0

26 249
26 213
35 786
37 199
51 647
50 050

70 587
76 673
81 987
95 714
163 662
130 200

1.2
3.6
10.0
10.8
11.4
30.9

During reference period
Table 18.3. Production 1996-2000 (t)

During reference period
Table 18.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

0.0
1.7
6.1
6.9
6.6
23.4

1) Includes general aid per hectare and aid per hectare for individual crops.

2) In Sub-regions C2 and C2N, aid amounted to FIM160 per hectare and FIM 210–400 per hectare, depending
on the individual crop.

Note:  The  total  aid  disbursed  remained  below  the  permissible  amount  throughout  the
assessment  period.  In  2000,  the  area  cultivated  exceeded  that  of  the  reference  period  and
production totals exceeded the permissible level.  It should be recalled that, for arable crops,
exceeding production totals only results in a reduction of aid if the excess averages more than
10% in two consecutive years.

2.4.

Vegetables, flowers and other plants grown under permanent shelter

About 45% of all plant production grown under permanent shelter is in the Nordic aid area.

Aid is granted mainly for the cultivation of tomatoes, cucumber, lettuce, dill, parsley, pickled
gherkins, cabbage, red pepper, cut flowers and vegetables.

The situation by category of product will be seen from 2.4.1. and 2.4.2.

31

2.4.1.

Vegetables

Table 19.1. Production area 1996-2000 (ha)

C1

Subregion
C2 C2 North

116.0
118.8
116.2
120.9
120.5
116.0

36 156
37 179
35 589
40 014
37 594
41 000

26.0
28.5
28.8
31.0
31.2
29.0

8 398
7 767
8 145
10 317
9 349
10 000

1.2
1.6
1.4
1.3
1.4
1.1

260
351
299
290
399
400

1996
1997
1998
1999
2000

1996
1997
1998
1999
2000

During reference period
Table 19.2. Production 1996-2000 (t)

During reference period
Table 19.3. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

C3

0.7
1.0
1.2
1.2
1.0
1.1

151
193
165
160
205
400

C4

0.7
0.7
0.7
0.6
0.6
0.6

91
98
74
82
73
200

Total

144.6
150.6
148.2
155.0
154.7
147.8

45 058
45 588
44 272
50 863
47 620
52 000

0.0
0.0
22.9
59.0
99.6
107.0

Note:

Production area exceeded the reference period level in 1997-2000. Production totals
and  the  total  aid  disbursed  remained  below  the  permissible  level  throughout  the
assessment period.

2.4.2.

Flowers and ornamental plants

C1

Subregion
C2 C2 North

C3

C4

Total

40-80

40-81
34 + 68 34 + 68

40-82
34 + 68

40-83
34 + 68

40-84
34 + 68

Table 20.1. Applied unit aid in 2000
Permissible (FIM/per sq. m.)
Applied (FIM/per sq. m.)
Table 20.2. Production area 1996-2000 (ha)
26.8
30.1
28.1
32.1
33.2
26.7

1996
1997
1998
1999
2000

During reference period
Table 20.3. Production 1996-2000 (units mill.)

1996
1997
1998
1999
2000

During reference period

27.8
28.7
30.8
34.2
30.9
(*)

32

19.0
20.9
19.8
20.7
21.3
20.0

17.4
15.5
15.9
15.4
14.6
(*)

2.2
2.8
2.6
2.7
2.7
2.6

1.7
1.4
1.4
1.6
1.4

(*)

4.3
5.6
5.0
5.4
5.4
5.2

2.9
2.3
2.1
2.6
2.3
(*)

0.4
0.4
0.0
0.2
0.3
0.6

0.2
0.2
0.2
0.1
0.1
(*)

52.7
59.8
55.4
61.1
62.9
55.1

50.0
48.2
50.4
53.9
49.3
60.0

Table 20.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

C1

C2

Subregion
C2 North

C3

C4

Total

0.0
0.0
8.5
18.4
30.8
39.8

Note:  Production  area  exceeded  the  reference  period  level  in  1997-2000.  Production  totals
and the total  aid  disbursed  remained  below  the  permissible  level  throughout  the  assessment
period.

2.5.

Field-scale vegetables

About 39% of all field-scale vegetable production occurs in the Nordic aid area.

Table 21.1. Applied unit aid in 2000 1)
Permissible (FIM/hectare)
Applied (FIM/hectare)
Table 21.2. Production sector 1996-2000 (ha)

2 350
2 350

C1

Subregion
C2 North

C2

C3

C4

Total

200+2350 200+2350 400+2350 800+2350
200+2350 200+2350 300+2350 600+2350

1996
1997
1998
1999
2000

1 604
1 317
1 109
1 253
1 407
1 285

During reference period
Table 21.3. Production 1996-2000 (t)

1996
1997
1998
1999
2000

28 617
30 703
22 515
30 100
31 899
During reference period
39 000
Table 21.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

0.0
1.1
1.2
2.3
3.2
3.0

728
513
430
496
586
678

9 362
11 802
7 067
11 200
12 158
20 000

0.0
0.5
0.5
1.0
1.3
1.7

74
53
34
42
44
52

895
990
550
880
1 021
1 600

0.0
0.1
0.0
0.1
0.1
0.1

98
44
45
48
80
68

859
517
317
820
929
2 000

0.0
0.1
0.1
0.1
0.2
0.2

4
2
1
1
5
2.0

25
22
5
6
20
60

0.0
0.0
0.0
0.0
0.0
0.0

2 508
1 930
1 619
1 840
2 122
2 085

39 758
44 033
30 454
43 006
46 027
62 660

0.0
1.8
1.8
3.4
4.8
5.1

1)

Includes general aid per hectare and aid per hectare for field-scale vegetables.

Note: Production area exceeded the reference period level in 1996 and 2000. Production totals
and the total  aid  disbursed  remained  below  the  permissible  level  throughout  the  assessment
period.

33

2.6.

Apples

Only  a  small  quantity  of  apples  is  cultivated  in  the  Nordic  aid  area.  The  share  of  total
production is 6% and there are 117 producers. This arable land is not linked to that used for
other vegetable and fruit production, because the level of aid granted is different.

C1

Table 22.1. Applied unit aid in 2000 1)
920
Permissible (FIM/hectare)
Applied (FIM/hectare)
920
Table 22.2. Production area 1996-2000 (ha)
5.8
5.6
6.9
14.6
17.9
5.0

During reference period
Table 22.3. Production 1996-2000 (t)

1996
1997
1998
1999
2000

1996
1997
1998
1999
2000

12.3
30.4
17.2
21.9
26.0
50.0

During reference period
Table 22.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid at 2000 level

0.00
0.00
0.00
0.00
0.01
0.01

Subregion
C2 C2 North

C3

C4

Total

200+920 200+920
200+920 200+920

3.2
3.1
4.8
8.1
12.4
5.0

5.8
13.9
4.3
12.2
17.0
50.0

0.00
0.00
0.00
0.00
0.00
0.01

0.0
0.0
0.0
0.7
1.5
0.0

0

0.00
0.00
0.00
0.00
0.00
0.00

9.0
8.7
11.7
23.4
31.8
10.0

18.1
44.3
21.5
34.1
43.0
100.0

0.00
0.00
0.00
0.00
0.02
0.01

1)

Includes general aid per hectare and aid per hectare for apples.

Note:  Production  area  exceeded  the  reference  period  level  in  1998-2000.  However,  only
17.3 hectares  received  aid  in  2000.  The  production  totals  remained  below  the  permissible
level throughout the assessment period. The total aid disbursed exceeded the permissible level
in 2000 by about FIM 6,000 (1,000 euro).

2.7.

Aid for storage of horticultural produce

2000

Subregion
C2 C2 North
Table 23.1. Permissible and applied unit aid in 2000 FIM/m3/year
Temperature controlled
Temperature not controlled

120
80

120
80

120
80

C1

C3

120
80

C4

Total

120
80

34

2000

C1

Table 23.2. Method of storage 1996-2000 (m3)
Temperature controlled, 1996
Temperature not controlled, 1996
Temperature controlled, 1997
Temperature not controlled, 1997
Temperature controlled, 1998
Temperature not controlled, 1998
Temperature controlled, 1999
Temperature not controlled, 1999
Temperature controlled, 2000
Temperature not controlled, 2000

Table 23.3. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid

Subregion
C2 C2 North

C3

C4

Total

45 047
11 000
55 597
12 052
42 293
6 565
58 536
9 820
57 318
9 719

5.6
5.3
4.3
5.5
5.4
15.0

Note: The total aid remained below the permissible level throughout the assessment period.

2.8.

Aid for storage of wild berries and wild mushrooms

Table 24.1. Applied unit aid in 2000
Permissible (FIM/per kg/per year)
Applied (FIM/per kg/per year)

Table 24.2. Aid 1996-2000 (FIM mill.)

C1

2.50
Max.
2.50

Subregion
C2 C2 North

C3

C4

Total

2.50
Max.
2.50

2.50
Max.
2.50

2.50
Max.
2.50

2.50
Max.
2.50

1996
1997
1998
1999
2000
Permissible total aid

0.0
0.9
1.0
2.0
0.9
2.0

Note: The total aid remained below the permissible level throughout the assessment period.

2.9.

Land for grazing, left fallow or used for food potatoes, etc.

About three-quarters of all pastureland lies in the Nordic aid area. A good 40% of all fallow
land lies in the Nordic aid area.

35

C1

Subregion
C2 C2 North

C3

C4

Total

Table 25.1. Applied unit aid 2000
0
Permissible (FIM/hectare)
Applied (FIM/hectare)
0
Table 25.2. Cultivated area 1996-2000 ha

200
200

200
200

400
300

800
600

1996
1997
1998
1999
2000

During reference period
Table 25.3. Aid 1996-2000

1996
1997
1998
1999
2000
Permissible total aid (FIM mill.)

211 452 327 589
179 046 301 794
185 263 303 518
187 927 307 833
212 993 324 135
239 322 404 846

8 998
58 189
39 848
8 866
54 128
36 948
8 138
53 761
35 961
8 373
54 107
35 567
8 939
55 600
36 989
60 868 121 464 19 612

646 076
580 782
586 640
593 806
638 656
846 812

0.0
0.0
0.0
0.0
0.0
0

65.5
60.3
48.7
49.3
64.8
81.0

8.0
7.4
5.8
5.7
7.4
12.2

23.3
19.6
17.2
15.4
22.2
48.6

7.2
5.9
5.1
5.0
5.4
15.7

104.0
93.2
76.8
75.3
99.8
157.4

Note:  The  area  cultivated  remained  below  that  of  the  reference  period  and  the  total  aid
disbursed remained below the permissible level throughout the assessment period.

3.

YOUNG FARMERS

About 55% of all young farmers live in the Nordic aid area.

C1

Subregion
C2 C2 North

Table 26.1. Applied unit aid in 2000
Permissible (FIM/hectare)
Applied (FIM/hectare)
Table 26.2. Arable land 1996-2000 (ha)

200
160

200
160

200
160

C3

200
160

1996
1997
1998
1999
2000

178 885 228 715
176 505 226 512
172 510 229 812
169 960 227 563
173 291 227 027

21 753
21 472
20 772
21 074
21 823

29 520
29 305
27 849
28 288
28 705

Table 26.3. Number of holdings 1996-2000
7 736
7 283
6 643
6 161
5 822

1996
1997
1998
1999
2000

9 364
8 849
8 158
7 594
7 007

1 074
1 011
896
820
751

1 499
1 430
1 284
1 240
1 131

C4

Total

200
160

3 585
3 560
3 512
3 566
3 780

260
281
267
271
261

462 458
457 353
454 454
450 451
454 626

19 933
18 854
17 248
16 086
14 972

36

C1

Subregion
C2 C2 North

Table 26.4. Aid 1996-2000 (FIM mill.)

1996
1997
1998
1999
2000
Permissible total aid

35.8
31.7
27.6
27.2
27.7
36.6

45.8
41.1
36.7
36.4
36.3
46.4

4.4
3.9
3.3
3.4
3.5
4.5

C3

5.9
5.3
4.5
4.5
4.6
6.0

C4

0.7
0.6
0.6
0.6
0.6
0.7

Total

92.5
82.6
72.7
72.0
72.7
94.2

Note: The total aid disbursed remained below the permissible level throughout the assessment
period.

4.

UTILISED AGRICULTURAL AREA (UAA)

About 52% of the total UUA is in the northern regions.

Table 27. Utilised agricultural area (UAA), ha

Utilised area 1996
Utilised area 1997
Utilised area 1998
Utilised area 1999
Utilised area 2000
Reference period area

C1

Subregion
C3
C2 C2 North
67 148
54 220
63 667
51 354
63 324
50 378
63 904
50 358
50 279
64 876
81 644 134 138

451 923 525 135
436 386 503 961
447 384 514 160
449 340 523 085
450 937 531 939
535 255 645 788

Total

C4
9 287 1 107 713
14 961 1 070 330
8 195 1 083 442
8 404 1 095 090
8 911 1 106 942
19 715 1 416 540

Note:

The  utilised  agricultural  area  remained  less  than  that  of  the  reference  period
throughout the assessment period.

37