REPORT FROM THE COMMISSION TO THE COUNCIL 2011-2015 report on the implementation of the long-term national aid scheme for agriculture in the northern regions of Finland and Sweden pursuant to Commission Decisions 2009/3067 and 2010/6050
Date: 2017-11-16
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: Finland, State aid, Sweden, aid to agriculture, control of State aid, farming sector, financial aid, regions of Finland, regions of Sweden

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 16.11.2017  COM(2017) 189 final/2  CORRIGENDUM   The present document corrects document COM(2017) 189 final of 24.4.2017. The changes concern all language versions. The reason for the corrigendum is that revised data for Sweden has been received. The figures in the tables on Page 12 have been updated accordingly. These corrections do not affect the conclusions of the document COM(2017) 189 final of 24.4.2017.  The corrected text shall read as follows: REPORT FROM THE COMMISSION TO THE COUNCIL 2011-2015 report on the implementation of the long-term national aid scheme for agriculture in the northern regions of Finland and Sweden pursuant to Commission Decisions 2009/3067 and 2010/6050  
 
 
TABLE OF CONTENTS 

1.  INTRODUCTION ......................................................................................... 3 

2.  GENERAL PRINCIPLES OF THE NORDIC AID ................................... 3 
2.1.  Objectives of the Aid ................................................................................................. 3 

2.2.  Commission authorisations ....................................................................................... 3 

2.3.  Regions covered by aid .............................................................................................. 3 

2.4.  Relation with the production .................................................................................... 4 

3.  REFORM OF THE NORDIC AID SCHEME ............................................ 4 

4.  NORDIC AID IN FINLAND 2011-2015 ...................................................... 5 
4.1.  Authorisations granted .............................................................................................. 5 

4.2.  Aid disbursed ............................................................................................................. 7 

4.3.  Production volumes in the Nordic aid area ............................................................. 8 

4.4.  Development of the agricultural economy in the Nordic aid region ..................... 9 

5.  NORDIC AID IN SWEDEN 2011-2015 ..................................................... 11 
5.1.  Authorisations granted ............................................................................................ 11 

5.2.  Aid disbursed ........................................................................................................... 12 

5.3.  Production volumes in the Aid area ....................................................................... 13 

5.4.  Development of the agricultural economy in the Aid region ............................... 13 

6.  CONCLUSIONS ......................................................................................... 14 
6.1.  Finland ...................................................................................................................... 14 

6.2.  Sweden ...................................................................................................................... 14 

2 

 
 
 
 
 
 
 
 
 
1. 

INTRODUCTION 

Pursuant  to  Article  142  of  the  Act  of  Accession  to  the  European  Union  of  Austria,  Finland 
and Sweden1, the Commission has authorised Finland and Sweden to grant long-term national 
aid to agriculture in the northern regions, in order to maintain agricultural activity. This aid is 
referred to as the Nordic aid ("the Aid"). 

The present report is submitted to the Council in compliance with the reporting requirement 
of  Article  143  of  the  Act  of  Accession,  where  it  is  laid  down  that  the  Commission  shall 
submit to the Council one year after accession and subsequently every five years a report on 
the  authorisations  granted  and  the  results  of  the  aid  granted  under  such  authorisations. 
Previous reports were made in 1996, 20022, 20073 and 20124.  

2. 

GENERAL PRINCIPLES OF THE NORDIC AID 

2.1. 

Objectives of the Aid 

The  Aid  is  granted  in  particular  to  maintain  traditional  primary  production  and  processing 
naturally suited to the climatic conditions of the regions concerned, 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. 

Commission authorisations 

2.2. 
The  Aid  is  authorised  by  separate  Commission  Decisions5  for  Finland  and  Sweden 
respectively.  The  maximum  annual  payment  for  Finland  is  currently  EUR  382  million.  For 
Sweden,  the  maximum  annual  payment  authorised  amounts  to  SEK  318.67  million 
(approximately EUR 35 million)6. 

The basic conditions are fixed in Article 142 of the Act of Accession; the total amount of the 
aid granted should be sufficient to maintain agricultural activity in the northern areas but may 
not  lead  to  overall  support  exceeding  the  level  of  support  during  a  pre-accession  reference 
period, defined in the authorisations. Also, aid may not be linked to future production or bring 
about  an  increase  in  production,  in  relation  to  reference  levels,  as  determined  by  the 
Commission. 

2.3. 

Regions covered by aid 

The  regions  covered  by  the  Aid  scheme  are  defined  in  the  respective  Decisions  and  are 
situated  north  of  the  62nd  parallel  and  some  adjacent  areas  south  of  the  parallel  affected  by 
comparable  climatic  conditions  rendering  agricultural  activity  particularly  difficult.  The 
factors taken into consideration when determining the areas are low population density (max 

1 
2 
3 
4 
5 

6 

OJ C 241 of 29.08.1994 
Finland COM(2002) 102 of 25.02.2002, Sweden COM(2002) 105 of 01.03.2002 
Finland COM(2007) 459 of 31.7.2007, Sweden COM(2007) 416 of 31.7.2007 
COM (2012) 358 final of 29.6.2012 
The  first  Decision  concerning  Finland  was  adopted  in  1995  (95/196/EC),  recast  by  Decision 
2002/404/EC,  and  by  Decision  C(2009)3067.  This  Decision  was  lastly  amended  by  Decision 
C(2015)2790. The first Decision concerning  Sweden  was  adopted  in 1996  (96/228/EC)  and  recast by 
Decision  C(2010)6050  which  was  amended  last  time  in  2015  by  Decision  C(2015)6592.  This  latter 
decision entered into force on 1 January 2016 and its changes do therefore not impact on the five year-
period reported on in this Communication. 
The exchange rate used in this report is 9.0 SEK/EUR. 

3 

 
 
                                                 
10 inhabitants/km2),  Utilised  Agricultural  Area  (UAA)  as  a  proportion  of  the  total  area 
(<10%), agricultural area used for the cultivation of crops intended for human consumption as 
a  proportion  of  UAA  (≤  20%),  and  municipalities  surrounded  by  others  within  before 
mentioned areas (even where they do not satisfy the same requirements).  

In Finland, the Aid area reported on in this Communication covers 1 417 140 hectares (ha) of 
UAA (55.5% of total UAA) and in Sweden 335 881 ha of UAA (11 % of total UAA). 

Figure 1: Finnish (C1-C4) and Swedish (1-3) support areas 

2.4. 

Relation with the production 

The  Aid  is  limited  to  specific  agricultural  sectors,  as  defined  for  each  Member  State  in  the 
respective Decision. 

The Aid is granted on the basis of production units, either livestock units (LU) or ha, with the 
exception of support to and transport of milk, where the quantities delivered and transported 
are supported. The Finnish aid to reindeer is on a per animal basis. 

As  stated  above,  aid  may  not  be  linked  to  future  production  or  bring  about  an  increase  in 
production in relation to a reference period. Reference periods are stipulated in the respective 
Decision  for  each  Member  State  per  sector.  The  reference  quantity  for  milk  production  in 
Finland has been aligned several times with developments of the Common Agricultural Policy 
(CAP) as regards the milk sector. However, the 2009-2010 review of the Finnish Aid scheme 
removed the link between the individual CAP milk quotas and the aid payments. Instead, it 
introduced a restriction, applied until the end of the milk quota system, not to pay such aid for 
any quantity of milk in the region subject to surplus levy. 

3. 

REFORM OF THE NORDIC AID SCHEME 

Following an evaluation of the Aid scheme finialised in 2007 a review was conducted, which 
aimed  at  simplifying  the  schemes  and  aligning  the  authorisations  with  the  objectives  of  the 
Act of Accession. As regards simplification, the recasts finalised in 2009 and 2010 regrouped 

4 

 
 
 
different  production  sectors  and  specified  the  maximum  average  aid  rates  for  the  entire 
Finnish and Swedish aid areas, respectively.  

In relation to aligning the authorisations with the objectives set in the Act of Accession, the 
review of production and payment authorisations led to a reduction of the maximum annual 
payment authorisation for Finland from EUR 448.59 million to 358 million. Also, aid to the 
pig and poultry sectors was decoupled from the type of production. In 2009 a compensation 
for predator damage was introduced. This compensation was abolished in 2015. 

Concerning  the  Swedish  Aid  area,  the  review  revealed  that  production  levels  had  in  the 
preceeding years been decreasing. On proposal by the Swedish authorities, the revision of the 
Decision  finalised  in  2010  allows  for  concentrating  the  aid  on  the  remaining  production  to 
stop  this  decline.  In  2013  an  additional  amendment  was  introduced,  which  incorporated  the 
previous state aid to potato growers into the Nordic Aid, while respecting the overall ceiling. 

4. 

NORDIC AID IN FINLAND 2011-2015 

4.1. 

Authorisations granted 

Decision  C(2009)3067  authorised  a  maximum  annual  aid  amounting  to  EUR  358  million 
from 1 January 2009 to 31 December 2014. Decision C(2015)2790) applies from 1 January 
2015 and authorises a maximum amount of EUR 382 million, aid as shown in Table 1. The 
maximum  annual  total  aid  was  increased  since  the  EUR  24  million  available  under  Article 
182(7) of Regulation (EC) No 1234/2007 ("Health Check") were exhausted in February 2014. 
In that Decision the maximum unit aid and total aid allowed for ruminants were also increased 
in order to provide an incentive against declining production. 

Table 1: Annual aid authorised according to Decision C(2015)2790 

Maximum 
average aid 
allowed / unit 1) 

Unit  

Maximum aid 
allowed 
(EUR mill) 2)  

Maximum 
number of eligible 
production factors 

1. MILK 

10.9 

cents/kg 

193.7 

1 776 765 t. 3) 

2.RUMINANTS  

97.7 

Bovines 

4) 

Ewes and she-goats 

Horses 

546 

584 

252 

EUR/LU 

EUR/LU 

EUR/LU 

181 000 LU  

3. PIGS AND POULTRY  

5) 

266 

EUR/LU 

37.0 

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4. HORTICULTURE 

Greenhouses 

Storage of horticultural products 

5. CROP PRODUCTION  

General hectare-based aid 

Aid for certain crops 

Aid for young farmers 

6. OTHER AID  

6) 

7) 

8) 

9) 

10) 

11.3 

18.5 

37 

145 

36 

EUR/m2 

EUR/m3 

EUR/ha 

EUR/ha 

EUR/ha 

202.9 ha 

881 825 ha 

62 475 ha 

25.4 

58.3 

14.9 

Reindeer 

11) 

36 

EUR/anim
al 

171 100 animals 

 Aid for transport of milk and meat 

12) 

Safeguarding services for livestock  

13) 

production  

Aid for storage of wild berries and  

14) 

0.10–0.42 

EUR/kg 

mushrooms 

Other aid 

15) 

1)  Aid per unit may be differentiated by region within the limits of the maximum average. 
2)  Maximum aid allowed EUR 382 million per year.  
3)  Maximum eligible per calendar year and for the quota year 2014/2015.  
4)  Suckler cows, suckler cow heifers, male bovines > 6 months and slaughtered heifers as well as slaughtered 
bulls and steers in support regions C3 and C4. 
5)  Decoupled aid. Reference quantity not exceeding 139 200 LU's 
6)  Aid for greenhouse production may be differentiated according to the length of the growing period. 
7)  Aid may be differentiated according to the technical standard of the storage facility.  
8)  General hectare-based aid for utilised agricultural area (UAA) in support regions C2–C4. 
9)  On the basis of the cultivation area of cereals (except for barley, oats and mixed cereals) and other crops 
(oilseed and other oil crops, protein and fibre crops), sugar beets, starch potatoes and apples in support regions 
C1, C2 and C2north. The aid for vegetables grown in the open can be paid in support regions C1–C4.  
10)  Aid for young farmers for utilised agricultural area (UAA) in support regions C1–C4.  
11) 
12)  Milk: Kainuu and Province of Lapland and Koillismaa (North-East Finland). Meat: Province of Lapland. 

In support regions C3 and C4.  

6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
13)  Aid may be paid for services that maintain the operating conditions for livestock production in areas, where 
distances are longer than the average. 
14)  Maximum amount of aid: Aid is granted for quantities in storage at the end of June up to the following 
maximums 0.34 EUR/kg for wild cloudberries, 0.10 EUR/kg for other wild berries and 0.42 EUR/kg for wild 
mushrooms.  
15)  Skolts, natural livelihoods and reindeer husbandry. " 

4.2. 

Aid disbursed  

Nordic aid 

During the years 2011-2015 the total annual aid paid out was between EUR 336.1 and 310.1 
million (Table 2).  

Table 2: Nordic aid disbursed in Finland (mEUR) 

Sector supported 

2011 

2012 

2013 

2014 

2015 

Milk 

Ruminants 

Pig, poultry 

Horticulture 

161.1 

161.1 

161.1 

167.5 

71.1 

70 

69.7 

70.3 

30.84 

26.41 

20.85 

20.26 

21.3 

19.5 

18.0 

18.9 

Crop production 

41.11 

39.94 

38.93 

36.64 

Other aid 

Total 

10.7 

336.1 

12 

329 

14.1 

15.5 

322.8 

329.1 

310.1 

170 

70.1 

18.5 

17.5 

19.2 

14.7 

Apart  from  an  excess  payment  of  EUR  0.6  million  in  2014  in  the  category  "other  aid",  the 
annual  Nordic  aid  granted  in  Finland  respected the  maximum  levels  set  in  the  Decisions.  It 
should be noted, that for those sectors where total production exceeded the authorised number 
of  eligible  production  factors,  a  pro-rata  reduction  of  aid  per  unit  of  production  factor  was 
applied in order to respect the financial ceiling authorised by the Decision. As for the excess 
payment in the category "other aid", an unforeseen increase in compensations for the damage 
done by predators from EUR 6.83 Million (2013) to EUR 8 Million (2014) has been identified 
as  the  cause.  In  2015  such  compensations  were  removed  from  the  scope  of  the  Nordic  aid 
decision. 

Total support in the Nordic aid area 

Agriculture in the support areas in the Aid scheme benefits also from instruments financed by 
the  EU,  notably  the  two  pillars  under  the  CAP.  Of  the  second  pillar  measures,  support  for 
less-favoured  areas  (LFA,  since  2014  ANC)  and  agri-environmental  (AE)  measures  are  of 
particular  importance  for  the  agricultural  sector  in  the  support  areas.  Decision  C  2000/4057 
fixed  the  maximum  ceiling  of  total  annual  support  in  the  Aid  area  at  EUR  1118.9  million 

7 

OJ L 154, 27.6.2000, p.23 

7 

 
 
 
                                                 
(1993  level).  Table  3  shows  that  aid  disbursed  in  the  Aid  area  in  the  years  2011-2015 
according to the legal basis used, respected the maximum ceiling set in the Decision.  

8 

 
 
 
 
Table 3: Summary of the total annual aid disbursed in Finland, including EU aid 
(mEUR) 

Year 

Direct aid, 
fully EU 
financed  

LFA (ANC), 
including 
national aid 
under State aid 
rules 

AE- 
support 

Nordic aid 

Total 

2011 

2012 

2013 

2014 

2015 

274.2 

272.3 

258.9 

253.5 

212.7 

311.5 

312.3 

311.3 

309.9 

276.5 

177.3 

336.1 

1099.1 

203.8 

      329.0 

1117.4 

193.2 

174.4 

146.7 

322.8 

1086.2 

329.1 

1066.9 

310.1 

  946.0 

4.3. 

Production volumes in the Nordic aid area 

Milk sector 

Almost 80% of the Finnish milk is produced in the Aid area (2014 data). The production is 
concentrated in the C2 area.  

During  the  five-year  period,  the  milk  production  grew  4%  in  the  Nordic  aid  area.  In  other 
areas of Finland the production declined 1.5%. The production was highest in the 2014/2015 
and lowest in the 2012/2013 marketing year (1 874.2 vs. 1 774.5 thousand tonnes). Production 
exceeded  the  set  reference  level  in  all  marketing  years  except  2012/2013.  The  excess  in 
2014/2015 was in the order of 5.5%.  

Ruminants 

The revised Decision of 2009 authorising the aid grouped together the production factors for 
bovines, ewes, she-goats, and horses.  

Beef production decreased in 2012 and 2013 in all Nordic aid areas and the decline continued 
in the northernmost areas in 2014, while it increased slightlyin areas C1 and C2 in 2014 and 
in all areas in 2015. The 2015 level was higher than in 2011 level in all parts of the country. 
Of the national beef production of 85.8 million kg (2015) 68.5 million kg was in the Aid area, 
in  particular in  the area C2 due to the close relationship between  milk and beef production. 
The  overall  ruminant  production  stayed  below  the  maximum  eligible  number  of  production 
factors (livestock units) throughout the reporting period. 

Pigs and poultry 

Pig production decreased from 93.6 to 87.7 million kg between 2011 and 2014 and was under 
the 2005 levels. In the rest of the country the drop in production was somewhat bigger. About 
70% of the pork meat production takes place in cereal producing areas in the most southern 
Aid  sub-regions  (C1),  where  also  the  poultry  production  is  concentrated.  The  production  of 
poultry  meat  has  grown  constantly,  from  34.9  to  43.9  million  kg  from  2011-  2014.  The 
growth rate has been higher than outside the Aid area. The Aid to this group was decoupled 

9 

 
 
from production as of 2009 at reference quantity of 139 200 LU. This level was not exceeded 
in the 2011-2015 period.  

Horticulture 

The Aid for horticulture is granted towards glasshouse production and storage of horticultural 
products. The production is concentrated in the C1 area (ca 74% of the total production). It 
declined  from  ca  202  ha  to  194  ha  in  the  2011-2015  period.  Outside  the  Aid  area  the 
production declined somewhat more. The annual reference level for horticulture production in 
the Aid area was not exceeded.  

Crop production 

The Aid for crop production comprises "general hectare based aid", "young farmers' aid", and 
"aid for certain crops", as defined in the Decision. As regards "general hectare based aid", the 
UAA supported in the Aid region has remained stable during this five-year period (630 000-
640 000 ha), although the reduction in UAA compared with pre-accession reference level has 
been  substantial  (30%).  For  "young  farmers'  aid"  there  is  no  maximum  level  of  eligible 
production factors set in the Decision and no comparison can be made. The area of "certain 
crops"  exceeded  the  maximum  number  of  eligible  hectares  by  between  ca  15%  and  45% 
throughout  the  2011-2015  period.  The  excess  production  was  mostly  due  to  changes  in  the 
market  situation,  in  particular  increased  demand  for  protein  crops,  as  well  as  to  the 
exceptionally good wheat crops in 2011, 2014 and 2015.  

Other aid 

Reindeer  production  was  ca  156  000  animals  in  2011  and  almost  157  000  animals  in  2015 
after significant drops in the number of animals in 2013 and 2014. The maximum number of 
eligible  production  factors  set  in  the  Decision  was  not  exceeded.  The  remaining  part  of  the 
other aids is not directly linked to production. 

Conclusions related to production volumes 

In conclusion, the total production of the supported sectors increased in the Aid area during 
the reporting period, exceeding the maximum number of eligible production factors for milk, 
and "certain crops". This production overrun was not significant nor systematic for milk, but 
substantial  and  persistent  for  "certain  crops"  throughout  the  reporting  period.  Finland  took 
measures to reduce the incentive for the cultivation of certain crops by reducing the supported 
area from 58 575 ha in 2011 to ca 45 641 ha in 2013. 

4.4. 

Development of the agricultural economy in the Nordic aid region 

There were 52 775 farms in  Finland in  2014 of which 57% in  the Aid area; a  drop of 11% 
from  2010  nationwide.  The  UAA  remained  more  or  less  the  same,  while  the  number  of 
ha/farm  increased,  indicating  a  structural  adjustment.  The  structural  development  has  been 
similar  in  all  parts  of  the  country,  but  in  the  northernmost  areas  the  number  of  farms  has 
decreased proportionally less than in other areas.  

The number of horticultural farms has decreased proportionally the most (-35%) in Finland in 
the 2010-2014 period, followed by pigmeat farms (-31%) and milk farms (ca -25% in all areas 
except Nordic aid subregions C2 and C4, where the decrease was -18%). The number of beef 
producing farms and cereal farms was rather stable in particular in the Nordic aid region and 
the number of poultry farms has risen by 13%, in particular in the C-area. 

10 

 
 
The data on production and farm numbers appear to indicate that the production is preserved 
in  the  Nordic  aid  area,  including  the  northenmost  areas.  An  econometric  analysis  of  milk 
production  by  the  PTT  research  centre  (Finland)  has  concluded  that  Nordic  aid  has  been 
successful in maintaining milk production in the Nordic aid region. 

The  importance  of  Nordic  aid  of  the  total  farm  revenue  varies  among  the  sectors  of 
production, being the highest in milk production (from 13% to 28%) and the lowest in cereal 
production  (from  3%  to  7%).  The  importance  of  the  aid  increases  towards  the  north  in  all 
sectors. 

The economic context has been very challenging throughout the country. The employment in 
agriculture  has  decreased  in  agriculture  by  7.7%  but  less  than  the  number  of  farms  (-11%). 
Agricultural employment is proportionately much more important in the Nordic aid area than 
in  the  rest  of  Finland.  For  example  in  the  C2  area  the  share  of  agriculture  of  the  total 
employment  is  10.2%  whereas  outside  the  Nordic  aid  area  the  corresponding  figure  is 
between 1.1 and 2.8%. The number of jobs in the food industry has increased in the Nordic 
aid area. 

Continuation of agricultural production  in  the Aid area  has maintained many environmental 
services  and  the  open  agricultural  landscape,  which  is  a  scarcity  in  the  region.  This 
development  contributes  significantly  to  reducing  erosion  and  the  nutrient  leach  and  has  a 
positive effect on biodiversity. While total the grassland area has decreased in the Nordic aid 
area,  the  area  used  as  grassland  for  more  than  five  successive  years  has  increased  by  20%. 
This is in contrast with Southern Finland where such area has decreased by 40% during the 
same period.  

11 

 
 
 
5. 

NORDIC AID IN SWEDEN 2011-2015 

5.1. 

Authorisations granted 

As  followed  the  previous  five-year  period  Sweden  was  authorised  to  pay  SEK  318.67 
million/year  (EUR  35.41  million).  From  the  1  July  2010,  Decision  C(2010)6050  authorises 
Sweden to pay aid as shown in Table 4 below. 

Table 4: Aid authorised/year in accordance with Decision C(2010)6050  
and max during 2011-2015 period 

Maximum average 
aid allowed/unit 1) 

Unit 

Maximum aid 
allowed 2) (SEK 
million/year) 

Maximum number of eligible 
production factors 

Max 2011-
2015 

Max 2011-
2015 

Max 2011-2015 

1. Milk 
sector 

-Dairy cow 
milk 

0.73 

0.70 

SEK/kg 

-She goats 

3) 

500 

466 

SEK/head 

293.00 

288.87 

450 000 
tonnes 

394 464 tonnes 

4) 

0.039 

0.038 

SEK/kg 

5) 

1 350 

1 347 

SEK/LU 

17.94 

15.91 

16 532 LU 

11 982 LU 

6) 

2 800 

2 761 

SEK/ha 

2.03 

1.03 

750 ha 

374 ha 

-Transport 
aid for dairy 
cow milk 

2. Pigs and 
poultry 

-Pigs for 
slaughter 

-Sows 

-Laying 
hens 

3. Soft fruit 
and 
vegetables  

4. Potatoes 

2 500 

2 216 

SEK/ha 

5.7 

4.23 

2 910 ha 

1 908 ha 

1) 
2) 
3) 

4) 
5) 
6) 

Aid per unit may be differentiated by region within the limits of the maximum average. 
Maximum aid allowed: 318.67 million SEK. 
Only goats used for milk production. The estimated milk production is 800 kg of milk per goat 
annually. 
Between the farm and the collection centre or first processing centre. 
Where 1 laying hen is 0.01 LU, sow is 0.33 LU and 1 pig for slaughter is 0.10 LU. 
Excluding potatoes. 

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.2. 

Aid disbursed 

Nordic aid 

The total annual amounts paid as Aid varied between SEK 298.08–305.45 million (EUR 
33.12–33.94 million) during the period (Table 5). The aid disbursed thus remained very 
balanced throughout the period with small variations between years. 

Table 5: Nordic aid by sector, MSEK 

Sector supported 

2011 

2012 

2013 

2014 

2015 

Milk1 

Pigs, poultry 

Soft fruit, vegetables 
incl. potatoes 

281.14 

286.03 

285.77 

288.87 

287.12 

15.91 

1.03 

13.75 

1.03 

12.31 

4.80 

12.13 

4.45 

12.60 

4.18 

Total 

1 

298.08 

300.81 

302.88 

305.45 

303.90 

Including goat's milk and transport support. 

From this it can be concluded that the annual Aid granted in Sweden respected the maximum 
aid allowed by the Decisions. 

Total support in the Nordic aid area 

Agriculture in the Aid scheme areas may also benefit from instruments financed by the EU, 
notably the two pillars under the CAP (Table 6). Of the second pillar measures, support for 
less-favoured  areas  (LFA)  and  agri-environmental  (AE)  measures  are  of  particular 
importance.  A  ceiling  of  total  support  to  the  Aid  region  is  not  fixed  in  the  Decision 
C(2010)6050. Under the Rural Development Programme 2014-2020, support for ley farming 
can  only  be  applied  for  outside  areas  of  natural  constraints  (former  LFA).  Payments  for 
environmental  support  to  ley  farming  in  areas  of  natural  constraints  will  therefore  decrease 
towards disappearing in 2018. Follow-up of the level of the EU aid is carried out ex post since 
2003. 

Table 6: Summary of aid disbursed in Sweden, including Community Aid, MSEK 

Type of aid 

2011 

2012 

2013 

2014 

2015 

Compensatory payment (LFA) 

307.01 

312.83  301.95 

299.36 

AE support (ley farming) 

295.44 

297.13  293.62 

287.65 

617* 

32.46* 

Nordic aid8 

Total 

298.08 

300.81  302.88 

305.45 

303.90 

900.53 

910.77  898.45 

892.46 

953.36 

* 

Prognosis based on partial payments finalised. 

The total combined support varies from year to year but does not follow a consistent trend and 
has remained within the same range since 1997. 

8 

Reference level: 318.67 mSEK  

13 

 
 
                                                 
14 

 
 
 
 
5.3. 

Production volumes in the Aid area 

Milk sector 

During 2011-2015, the average amount paid to the production of cow milk was 267 MSEK 
per  year.  Milk  production  in  the  support  area  corresponds  to  13%  of  total  production  in 
Sweden. There were fewer milk farms in the area in 2015 (795) than in 2011 (999), however 
the number of cows has stayed stable with just minor variations over the five yars.  

Milk is the only production section covered by the Nordic Aid that has seen an increase with 
2.7%  in  production  during  the  five  year  period.  Production  increased  until  2014,  after  its 
lowest level in 2011, to decrease again in 2015. Transport support was paid to between 7 and 
9 dairies for an average of 386 202 tonnes per year. 

Pig and poultry 

The pig production remained stable and well below the maxium number of eligible production 
factors. Between 2011 and 2013 there was a sharp decline in the number of pigs for slaughter, 
but  since  2013  the  number  has  been  growing  but  still  without  reaching  the  2011  quantities. 
One  difficult  factor  for  the  pig  producers  in  northern  Sweden  is  the  low  number  of 
slaughterhouses.  This  implies  long  distances  from  farm  to  slaughterhouse  and  decreases  the 
possibilities  for  the  farmers  to  choose  where  to  deliver  their  animals  and  to  negotiate  the 
slaughter  prices.  As  regards  sows  for  piglet  production,  the  number  of  farms  and  sows  are 
decreasing,  although  the  numbers  did  increase  in  2015.  The  sum  of  payments  shows  small 
variations over the five year period and stayed below the maximum levels allowed. 

As regards egg production, seen over the  five year period, there is a decreasing trend in the 
number of farms and hens supported as well as in the amounts paid over the years. 

Soft fruit and vegetables 

Between  94  and  103  farms  producing  soft  fruit  and  vegetables  were  supported  on  a  yearly 
basis, covering an average area of 360 ha. The area has fluctuated around these levels during 
the  last  five  years,  and  is  at  around  half  of  the  maximum  number  of  eligible  production 
factors. 

Conclusions related to production volumes 

As regards milk, the production volumes have slightly increased during the five-year period. 
The  other  sectors  also  remain  fairly  stable  even  though  the  production  varies  from  year  to 
year. All sectors are far below the maximum number of eligible production factors. 

5.4. 

Development of the agricultural economy in the Aid region 

The Swedish Aid area has a low and decreasing population density, limitations in the potential 
for  economic  developments  and  poor  conditions  for  agriculture.  The  farm  structure  is 
characterized  by  smaller,  more  scattered  and  irregular  fields  than  the  average  situation  in 
Sweden. This make costs higher, also for transport within farms due to the distances between 
fields.  For  the  northern  most  counties'  covered  by  the  Nordic  Aid  scheme,  the  share  of  the 
national production (in GRP) shows a decreasing trend since 1995. 

The key agricultural product in the area is milk which counts for 13% of Sweden's total milk 
production. The number of producers declined from from 2011 until 2015, while the number 
of cows remained stable however with an unequal development inside the support area. Milk 
is  the only  production sector covered by the support  scheme that  has  shown an increase. In 

15 

 
 
2015    milk  production  was  10  000  tonnes  higher  compared  to  2011.  Farm  income  of  milk 
farmers declined in this period. 

In the Aid area, which is dominated by forests, the land in agricultural production contributes 
to  keep  the  landscape  open  which  favours  biodiversity.  The  agricultural  practices  in  the 
support  areas  are  characterised  by  less  intensive  production  as  the  main  cultivation  is 
grassland  and  pastures.  These  normally  rely  on  a  low  level  use  of  pesticides  and  fertilisers. 
Therefore the environmental impact is less than from agricultural activities in other parts of 
the country.  

Since  1990  the  support  region's  population  development  has  been  negative  with  a  3% 
decrease, compared to an increased population in the rest of Sweden (18%). 

6. 

CONCLUSIONS  

This report gives an account of the Nordic aid authorisations granted to Finland and Sweden 
in  the  period  2011-2015  and  the  results  achieved.  The  report  was  compiled  on  the  basis  of 
data supplied by the Member State authorities in compliance with Article 143(2) of the Act of 
Accession. 

6.1. 

Finland 

As regards the implementation of the Finnish Nordic aid scheme, the Commission notes that: 

1. 

2. 

3. 

Compliance  with  the  maximum  aid  allowed  by  the  Commission  authorisations:  the 
total  amounts  of  aid  paid  out,  and  total  support  in  the  Nordic  aid  area  during  the 
period 2011-2015, respected the maximum allowable aid authorised in the Decision 
C(2009)3067, as amended, with one minor and unforeseen exception in 2014. 

Conformity  with  the  maximum  number  of  eligible  production  factors:  total 
production  in  the  Aid  area  exceeded  the  maximum  number  of  eligible  production 
factors for milk, and "certain crops". To avoid exceeding the respective total amounts 
of authorised payments, Finland applied a pro-rata reduction of the payment per unit 
of  production  factor  and,  in  the  case  of  aid  to  "certain  crops"  reduced  the  eligible 
area. This system ensured that the obligation of the country concerning the maximum 
total amounts of paid-out aid was always respected, but the pro-rata reductions did 
not  prevent  extending  the  aid,  even  though  at  a  reduced  level,  to  all  eligible 
production. 

Achievement  of  the  objectives  of  the  aid  scheme:  generally  speaking,  the  Aid  in 
Finland  has  contributed  to  maintaining  the  production  levels  in  the  area  and 
contributed  to  maintaining  agricultural  employment.  Despite  less  favourable 
production conditions, some sectors of production have developed better than outside 
the  Aid  area  in  Finland.  However,  a  shift  of  production  southward  within  the  Aid 
area  has  continued,  although  the  number  of  milk  and  beef  farms  decreased 
proportionately  less  in  the  northernmost  areas.  The  implementation  of  the  scheme 
and  the  criteria  applied  to  differentiate the  Aid  should  be  closely  monitored  during 
the next reporting period in order to consider adjusting the support. 

6.2. 

Sweden 

As regards the implementation of the Swedish Nordic aid scheme, the Commission notes that: 

16 

 
 
1. 

2. 

3. 

Compliance  with  the  maximum  aid  allowed  by  the  Commission  authorisations:  the 
total amounts of Nordic aid paid out during the period 2011-2015 have respected the 
ceiling  set  for  the  maximum  allowable  aid  authorised  in  the  Decisions  96/228/EC 
and C(2010)6050. 

Conformity with the maximum number of eligible production factors: the maximum 
number  of  eligible  production  factors  receiving  aid  was  respected  in  all  sectors 
receiving Nordic aid.  

Achievement  of  the  objectives  of  the  aid  scheme:  after  the  review  of  the  scheme  in 
2010, the Aid disbursed in Sweden has for the main sector, milk, allowed to maintain 
the  production  level  during  the  2011-2015  period.  For  the  other  sectors  supported, 
production  has  either  remained  stable  or  slightly  decreased.  The  revised  Decision 
C(2010)6050 has provided more flexibility for the implementation of the aid scheme, 
which  has  contributed  to  better  fulfil  its  objectives,  although  the  support  can  only 
partially alleviate the constraints facing agricultural production in the support area. 

For both countries, the continuation of agricultural production contributes to maintain an 
open, well-managed agricultural landscape in the forest dominated Nordic aid area. Keeping 
the landscape open is positive for biodiversity and the attractiveness of the landscape. On the 
basis of the information provided by the national authorities, the Commission considers that 
the authorities have applied Decision 2002/404/EC and Decision C(2009)3067, concerning 
Finland, and Decision 96/228/EC and C(2010)6050, concerning Sweden, on aid to northern 
regions in a satisfactory manner. 

17