REPORT FROM THE COMMISSION TO THE COUNCIL 2016-2020 report on the implementation of the long-term national aid scheme for agriculture in the northern regions of Finland and Sweden pursuant to Decision C(2009) 3067, as amended by Decision C(2009) 9122, Decision C(2013) 2809 and Decision C(2015) 2790, and Decision (EU) 2018/672 concerning Finland and to Decision C(2010) 6050 and Decision (EU) 2018/479 concerning Sweden
Date: 2022-08-31
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: Finland, State aid, Sweden, agricultural production, aid to agriculture, control of State aid, farming sector, less-favoured agricultural area, less-favoured region

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 31.8.2022  COM(2022) 419 final  REPORT FROM THE COMMISSION TO THE COUNCIL 2016-2020 report on the implementation of the long-term national aid scheme for agriculture in the northern regions of Finland and Sweden pursuant to  Decision C(2009) 3067, as amended by Decision C(2009) 9122, Decision C(2013) 2809 and Decision C(2015) 2790, and Decision (EU) 2018/672 concerning Finland and to Decision C(2010) 6050 and Decision (EU) 2018/479 concerning Sweden  
 
 
TABLE OF CONTENTS  

1. 

INTRODUCTION ........................................................................................................................................ 2 

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

2.2.  Commission authorisations ....................................................................................... 2 

2.3.  Regions covered by aid .............................................................................................. 2 

2.4.  Relation with production .......................................................................................... 3 

3.  NORDIC AID IN FINLAND 2016-2020 ..................................................................................................... 3 
3.1.  Authorisations granted .............................................................................................. 3 

3.2.  Aid disbursed ............................................................................................................. 5 

3.3.  Production volumes in the Nordic aid area ............................................................. 7 

3.4.  Development of the agricultural economy in the Nordic aid regions ................... 8 

4.  NORDIC AID IN SWEDEN 2016-2020 .................................................................................................... 10 
4.1.  Authorisations granted ............................................................................................ 10 

4.2.  Aid disbursed ........................................................................................................... 11 

4.3.  Production volumes in the Aid area ....................................................................... 12 

4.4.  Development of the agricultural economy in the Aid region ............................... 13 
5.  CONCLUSIONS ......................................................................................................................................... 14 
5.1.  Finland ...................................................................................................................... 14 

5.2.  Sweden ...................................................................................................................... 14 

1 

 
 
 
 
 
  
 
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(2)  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 submitted in 1996, 20022, 20073, 20124 and 20175.  

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. 

2.2. 

Commission authorisations 

The  Aid  is  authorised  by  Decision  C(2009) 3067,  as  amended  by  Decision  C(2009) 9122, 
Decision  C(2013) 2809  and  Decision  C(2015) 2790,  and  subsequently  by  Decision  (EU) 
2018/672, notified under document C(2016) 8419, for Finland and by Decision C(2010) 6050 
and  Decision  (EU)  2018/479,  notified  under  document  C(2018)  1622,  for  Sweden. 
Prolongation  of  the  scheme  for  Finland  for  2022-2027  was  done  by  Commission  Decision 
(EU)  2021/2312,  notified  under  document  C(2021)  8773,  which  does  not  fall  under  the 
reporting obligation of this 5-year report. 

The basic conditions are fixed in Article 142(3) 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 (Figure 1) are defined in the respective Decisions, are 
situated  north  of  the  62nd  parallel  and  include  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 

1 
2 
3 
4 
5  

OJ C 241, 29.8.1994, p. 9. 
Finland COM(2002) 102 of 25.2.2002, Sweden COM(2002) 105 of 1.3.2002. 
Finland COM(2007) 459 of 31.7.2007, Sweden COM(2007) 416 of 31.7.2007. 
COM (2012) 358 final of 29.6.2012. 
COM (2017) 189 final of 24.4.2017. 

2 

 
 
 
 
                                                 
density  (max  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 report 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 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. 

The 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.  

3. 

NORDIC AID IN FINLAND 2016-2020 

3.1. 

Authorisations granted 

During  the  reporting  period,  the  reporting  requirements  for  the  authorisations  granted  were 
changed to simplify the Aid system. Information for authorisations granted for the years in the 
reporting period has been provided in line with the respective  Decisions and is presented in 
Tables 1 and 2 below. 

3 

 
 
 
 
 
Table 1: Aid authorised during 2016 in accordance with Decision C(2015) 2790 

Maximum 
average aid 
allowed / unit6 

Unit 

Maximum aid 
allowed per 
category 
(mEUR)7 

Maximum 
number 
of eligible 
production factors 

10.9 

cents/kg 

193.7 

1 776 765 t8 

546 
584 
252 

266 

11.3 
18.5 

37 
145 
36 

EUR/LU 
EUR/LU 
EUR/LU 

EUR/LU 

EUR/m2 
EUR/m3 

EUR/ha 
EUR/ha 
EUR/ha 

97.7 

37.0 

25.4 

58.3 

14.9 

181 000 LU  

202.9 ha 

881 825 ha 
62 475 ha 

36 

EUR/animal 

171 100 animals 

0.10–0.42 

EUR/kg 

1. MILK 

2. RUMINANTS 
Bovines 
Ewes and she-goats 
Horses 

3. PIGS AND POULTRY 

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 
Reindeer 
Aid for transport of milk and 
meat 
Safeguarding services for 
livestock 
production 
Aid for storage of wild berries 

9 

10 

11 
12 

13 
14 
15 

16 
17 

18 

19 

6  
7  
8  
9  

10  
11  
12  
13  
14  

15  
16  
17  

18  

Aid per unit may be differentiated by region within the limits of the maximum average. 
Maximum total aid paid cannot exceed EUR 382 million per year. 
Maximum eligible per calendar year and for the quota year 2014/2015. 
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. 
Decoupled aid. Reference quantity not exceeding 139 200 LUs. 
Aid for greenhouse production may be differentiated according to the length of the growing period. 
Aid may be differentiated according to the technical standard of the storage facility. 
General hectare-based aid for utilised agricultural area (UAA) in support regions C2–C4. 
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. 
Aid for young farmers for utilised agricultural area (UAA) in support regions C1–C4. 
In support regions C3 and C4. 
Milk:  Kainuu  and  Province  of  Lapland  and  Koillismaa  (North-East  Finland).  Meat:  Province  of 
Lapland. 
Aid  may be paid for services that  maintain the operating conditions  for livestock production in areas, 
where distances are longer than the average. 

4 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
and 
mushrooms 
Other aid 

20 

Table 2: Aid authorised during 2017–2020 in accordance with Decision (EU) 2018/672, 
notified under document C(2016) 8419 

Aid category  Production sectors 

Maximum average annual aid 
in the period 1 January 2017-
31 December 2021 (mEUR)21 

Maximum yearly number 
of eligible production 
factors 

1. Animal 
husbandry 

Cow's milk, bovines, ewes 
and she-goats, horses, pigs 
and poultry animals 

433.7 of which cow's milk 216.9 

2. Plant 
production 

Field and greenhouse 
production, storage of 
horticultural products 

110.5 

227 200 dairy cows 
181 000 other LU 
139 200 LU pigs and poultry 

944 300 ha for field 
production of which 481 200 
ha grassland; 203 ha 
greenhouse production 

3. Other aid 

Reindeer, transport of milk 
and meat, indispensable 
services for livestock 
production, storage of wild 
berries and mushrooms 

19.7 

171 100 reindeers 

TOTAL AID 

563.9 

3.2. 

Aid disbursed  

Nordic aid 

In  the  reporting  period,  the  annual  Nordic  aid  disbursed  in  Finland  respected  the  maximum 
levels  set  in  the  Decisions.  The  total  amounts  of  Aid  disbursed  remained  fairly  constant 
throughout  the  reporting  period.  The  categories  for  reporting  on  the  Aid  were  simplified 
during the reporting period, and the formats of the tables below correspond to the respective 
requirements.  

19  

20  
21  

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. 
Skolts, natural livelihoods and reindeer husbandry. 
The reference quantity for decoupled aid for pigs and poultry. 

5 

 
 
 
 
 
 
 
 
 
 
 
 
                                                                                                                                                         
Table 3: Nordic aid disbursed in Finland in 2016 (mEUR) 

Sector supported 

Milk 

Ruminants 

Pigs and poultry 

Horticulture 

Crop production 

Other aid 

Total 

2016 

161.10 

72.66 

17.41 

16.80 

9.99 

14.30 

292.26 

Table 4: Nordic aid disbursed in Finland in 2017–2020 (mEUR) 

Sector supported 

2017 

2018 

2019 

2020 

Animal husbandry 

258.51 

259.49 

255.15 

253.31 

Plant production 

34.06 

33.31 

33.27 

32.66 

Other aid 

Total 

7.60 

7.00 

6.90 

6.98 

300.17 

299.80 

295.32 

292.95 

Total support in the Nordic aid area 

Agriculture in the support areas in the Aid scheme benefits also from instruments financed by 
the  EU.  Support  for  less-favoured  areas  (Areas  of  Natural  Constraints  –  ANC)  and  agri-
environmental-climate  measures  (AECM)  are  of  particular  importance  for  the  agricultural 
sector in the support areas. Decision (EU) 2018/672, notified under document C(2016) 8419, 
fixed  the  maximum  level  of  overall  support  in  the  Aid  area  at  EUR  1 118.9  million  (1993 
level). Table 3 shows that aid disbursed in the Aid area in the years 2016-2020 respected the 
maximum ceiling set in the Decision.  

6 

 
 
 
 
 
 
Table 5: Summary of the total annual aid disbursed in the Aid area in Finland, 
including EU aid (mEUR) 

Year 

Direct aid, 
fully EU 
financed  

ANC, 
including 
national aid 
under State aid 
rules 

AE- 
support 

Nordic aid 

Total 

2016 

2017 

2018 

2019 

2020 

288.70 

239.90 

239.90 

236.30 

236.50 

314.10 

169.00 

292.26 

1 064.06 

311.60 

155.80 

300.17 

1 007.47 

311.60 

155.20 

299.80 

1 006.50 

309.80 

155.30 

295.32 

996.72 

307.90 

155.60 

292.95 

992.95 

3.3. 

Production volumes in the Nordic aid area 

Milk sector 

Milk  production  is  the  most  significant  sector  supported  from  the  Nordic  Aid  scheme  in 
Finland.  During  the  reporting  period,  about  80%  of  Finnish  milk  was  produced  in  the  Aid 
area,  and  the  share  of  total  national  production  remained  fairly  constant  throughout  the 
reporting period. The production is concentrated in the C2 area (see Figure 1).  

During the reporting period, the volume of milk production in the Aid area remained constant. 
Outside  of  the  Nordic  aid  area,  production  declined  by  6%.  In  this  context,  the  stability  of 
production levels in the Aid area shows that the Aid scheme effectively fulfilled its purpose of 
maintaining agricultural activity in northern regions as set out in the Decisions. 

Ruminants 

During  the  reporting  period,  about  81%  of  the  Finnish  beef  production  took  place  in  the 
Nordic  aid  area.  Production  remained  constant  throughout  the  reporting  period,  only 
experiencing fluctuation within a margin of 2%. The area C2 (see Figure 1) had the highest 
production volumes amounting to about 60% of beef production in the Nordic Aid area. The 
stability of production levels shows that the Aid has here fulfilled its purpose of maintaining 
agricultural activity in the Aid area as set out in the Decisions. 

Pigs and poultry 

Nationally, about half of pork meat production takes place in the Nordic Aid area. Production 
decreased by  about 6% between 2016 and 2020 in the Aid area. However, in the rest of the 
country the drop in production was slightly bigger. This contrast illustrates the role of Nordic 
Aid  in  maintaining  agricultural  production.  Pork  meat  production  is  concentrated  in  the 
southernmost Aid region (C1, see Figure 1), with a little over 70% of all production in the Aid 
area taking place in this region.  

The production of poultry meat  (including  broiler and turkey) remained  fairly  constant  over 
the reporting period. Poultry production is concentrated in the Aid region C1 (see Figure 1). 

7 

 
 
Horticulture 

During  the  reporting  period,  horticultural  production  remained  fairly  constant,  as  total 
production fluctuated within a margin of only about 3%.  

In  reporting  for  horticulture,  data  for  areas  under  short-term  (2-7  months)  and  long-term 
glasshouse  production  (7+  months)  is  differentiated.  Analysis  of  data  distinguished  on  this 
level shows more significant changes. 

Short-term  horticultural  production  declined  by  7%  in  the  Aid  area  during  the  reporting 
period.  Nationally,  about  half  of  short-term  horticultural  production  took  place  in  the  Aid 
area, with production being concentrated in the Aid region C1 (see Figure 1). 

Long-term horticultural production increased by about 5% in the Aid area during the reporting 
period.  About  59%  of  the  national  long-term  production  took  place  in  the  Aid  area,  with 
production being concentrated in the Aid region C1 (see Figure 1). 

The developments in horticultural production show that the Aid scheme fulfilled its purpose 
of  maintaining  agricultural  production,  as  the  total  glasshouse  production  remained  fairly 
constant,  despite  some  changes  that  can  only  be  distinguished  on  a  more  refined  level  of 
analysis. 

Crop production 

Production of cereal crops and sugar beet is mainly concentrated in the regions A and B (see 
Figure  1),  outside  of  the  Aid  area.  Data  for  levels  of  crop  production  is  not  available 
differentiated by support region. However, it can be determined that, due to the climate and 
geographical  conditions,  crop  production  levels  are  considerably  lower  in  the  Aid  area  in 
comparison to the southern part of the country. 

Contrastingly, the cultivation of grass is concentrated in the northern regions, as grass is often 
cultivated  in  cattle  farms.  In  comparison  to  crop  production,  grass  cultivation  is  relatively 
cheaper in the Aid area. Nationally, over half of crops for animal feed is produced in the Aid 
area, and most of starch potato is grown in the Aid regions C1 and C2 (see Figure 1).  

Other aid 

The  Nordic  Aid  scheme  in  Finland  includes  support  to  reindeer  per  animal  basis.  The 
maximum  number  of  eligible  production  factors  set  in  the  Decisions  was  respected  in  the 
reporting period. The remaining part of the other aids is not directly linked to production. 

Conclusions related to production volumes 

In conclusion, Nordic Aid helps maintain stable production levels in the Aid area in Finland. 
The  total  production  of  the  supported  sectors  remained  relatively  constant  in  the  Aid  area 
during  the  reporting  period.  The  maximum  number  of  eligible  production  factors  in  the 
different production categories was effectively respected during the reporting period. 

3.4. 

Development of the agricultural economy in the Nordic aid regions 

In the reporting period, there were about 47 000 farms in Finland, of which 58% in the Aid 
area. This  figure represents  a drop of 8% from  a 2015  baseline.  In the reporting period, the 
number of farms declined across sectors and Aid regions. The development was slightly faster 
in the southernmost Aid regions C1 and C2P (see Figure 1) than in the rest of the Aid area. 

8 

 
 
The  number  of  milk  farms  decreased  more  rapidly  than  the  national  rate  of  decline  in  the 
number of farms. Even with Aid received, the rate of decline in the number of milk farms in 
the Aid area and in the rest of the country  was roughly equal: about every fourth milk farm 
ceased production over the reporting period. In the Aid region C4 (see Figure 1) about every 
third  milk  farm  closed  down.  The  adverse  development  of  the  agricultural  economy  in  the 
milk  sector  effectively  illustrates  the  economic  context  in  which  Nordic  Aid  is  applied,  as 
well  as  its  impact:  despite  the  declining  number  of  farms,  production  was  maintained  to  a 
constant level. 

The change in beef farms has been slower than the change in milk farms. The rates of change 
in the Aid area vary between Aid regions. In the region C2P (see Figure 1), over a fifth of all 
beef  farms  closed,  but  in  the  region  C1  (see  Figure  1),  only  2%  of  beef  farms  closed 
operations over the reporting period. Contrastingly, nationally the number of farms producing 
beef  declined  by  over  8%.  This  difference  illustrates  the  role  of  Nordic  Aid  in  maintaining 
production.  

The  number  of  poultry  farms  in  the  Aid  area  remained  fairly  constant  over  the  reporting 
period,  again  showing  the  impact  of  the  Aid  in  maintaining  agricultural  production  in  the 
northern regions. 

Despite  the  Aid  scheme,  some  sectors  in  the  Aid  area  experienced  significant  exits,  which 
partly illustrates the dire economic conditions of farmers and low profitability of agriculture 
in Finland. The number of crop farms decreased significantly over the reporting period (e.g. -
45% in region C2P and -35% in C3, see Figure 1) but the relative rate of decline can partly be 
attributed to the small absolute amount of crop farms in the Aid area in the first place. In the 
areas outside of the Aid area, the number of crop farms declined by 11%. Additionally, the 
number  of  horticultural  farms  declined  as  well  (-19%  nationally,  -23%  in  region  C3,  see 
Figure 1). 

Additionally, the number of pig farms declined significantly. The northern regions  C2P and 
C3 have only a few pig farms and the northernmost region C4 has none (see Figure 1 for the 
areas).  

The significance of national  aid  to  total  farm profit varied among sectors of production and 
Aid  regions.  The  significance  increases  toward  the  north  in  all  sectors.  In  the  years  2016- 
2019,  the  significance  was  the  highest  in  milk  production  (10.4%  of  profit  in  region  C1, 
11.5% in C2, 12% in C2P, 19.2% in C3) and cattle farms (10% in C1, 11,3% in C2, 16.2% in 
C3). These are also the sectors where the number of farms remained fairly constant over the 
reporting  period,  illustrating  the  role  of  Nordic  Aid  in  the  maintenance  of  agricultural 
production  in  the  north.  The  significance  to  total  farm  profit  was  the  lowest  in  horticulture 
(1.1% in C1, 1.2% in C2).  

According to the economic research institute Pellervo Economic Research, it is challenging to 
determine the direct impact of Nordic Aid to the overall economic situation in the Aid area, as 
determinants such as other aid, policy and societal factors play a role in shaping that as well. 
However, in light of data on employment and number of enterprises, it can be established that 
the northern C-regions (see Figure 1) are in disadvantage in comparison to the southernmost 
agricultural  region  A  (see  Figure  1).  Agricultural  employment  is  proportionately  more 
significant in the Aid area (e.g. about 8% of total employment in region C2) than in the rest of 
the  country  (e.g.  0.8%  in  region  A).  The  high  share  of  agricultural  employment  of  total 
employment in the Nordic Aid area highlights the importance of national support to the sector 
in the north. 

9 

 
 
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 dominated by 
forest. This development contributes significantly to reducing erosion and the nutrient leach 
and has a positive effect on biodiversity. It should be noted that without the Nordic Aid, it is 
possible that agricultural production would be even more concentrated in the southern part of 
the country, which would intensify the transfer of nutrients to waterways.  

4. 

NORDIC AID IN SWEDEN 2016-2020 

4.1. 

Authorisations granted 

During  the  reporting  period,  the  reporting  requirements  for  the  authorisations  granted  were 
changed to simplify the Aid system. Information for authorisations granted for the years in the 
reporting period has been provided in line with the respective  Decisions and is presented in 
Tables  6  and  7  below.  Decision  C(2010) 6050  authorised  Sweden  to  pay  SEK 318.67 
million/year (approximately EUR 33.37 million/year22) in 2016 and 2017 as shown in table 6 
below. From 1 January 2018, Commission Decision (EU) 2018/479, notified under document 
C(2018) 1622, authorises Sweden to pay SEK 422.92 million/year (approximately EUR 40.51 
million23).  The  yearly  maximum  amounts  shall  be  considered  as  annual  averages  of  the  aid 
granted in the period of 5 calendar years covered by Decision (EU) 2018/479. 

Table  6:  Aid  authorised  during  2016-2017  period  in  accordance  with  Decision 
C(2010) 6050, as amended by C(2015) 6592 

  Maximum average 
aid allowed/unit24 

Unit 

Maximum aid allowed 
(SEK million/year)25 

0.73 
26  500 
27  0.039 

299.87 

SEK/kg 
SEK/head 
SEK/kg 

Maximum number of 
eligible production 
factors 
450 000 tonnes 

28  1 350 

SEK/LU 

13.60 

16 532 LU 

29  2 800 

SEK/ha 

1.00 

2 500 

SEK/ha 

4.20 

750 ha 

2 910 ha 

and 

Pigs 

1. Milk sector 
-Dairy cow milk 
-She goats 
-Transport 
aid 
for  dairy  cow 
milk 
2. 
poultry 
-Pigs 
slaughter 
-Sows 
-Laying hens 
3.  Soft  fruit  and 
vegetables  
4. Potatoes 

for 

22  

23  

24  
25  
26  

27  
28  
29  

Exchange rate EUR 1 = SEK 9.55 derived from European Central Bank data for the average exchange 
rate from 4 January 2016 to 29 December 2017. 
This conversion uses the rate EUR 1 = SEK 10.44 based on the 2018-2020 average conversion rate as 
recorded by the ECB. 
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. 

10 

 
 
 
 
 
 
 
 
 
 
                                                 
Table 7: Aid authorised in accordance with Decision (EU) 2018/479, notified under 
document C(2018) 1622, during 2018-2022 period 

Maximum average yearly aid for 
a 5-year period from 1 January 
2018 until 31 December 2022 
(million SEK) 

Maximum yearly number of 
eligible production factors or 
amounts30 

Cow's milk and transport aid for cow's 
milk 

She goats, pigs for slaughter, sows, 
laying hens 

Soft fruit, vegetables and potatoes 

TOTAL AID 

422.9231 

4.2. 

Aid disbursed 

Nordic aid 

450 000 000 kg 

17 000 LU 

3 660 hectares 

In the reporting period, the annual  Nordic aid  disbursed in  Sweden  respected the maximum 
levels set in the Decisions. The Aid disbursed increased by one third in 2018 (in line with the 
increased authorised levels according to  Decision (EU) 2018/479 with marginal increases in 
the  following  years.  The  categories  for  reporting  on  the  Aid  were  simplified  during  the 
reporting  period,  and  the  formats  of  the  tables  below  correspond  to  the  respective 
requirements.  

Table 8: Nordic aid for Sweden by sector, MSEK 
For  2016-2017,  the  maximum  aid  allowed  was  318.67  million  SEK32.  For  2018-2020,  the 
maximum  allowed  was  422.92  million  SEK33.  The  below  table  shows  that  the  maximums 
were respected. 

Sector supported 

2016 

2017 

2018 

2019 

2020 

Milk34 

291.79 

283.43 

374.92 

378.72 

383.18 

Pigs, poultry, goats 

13.51 

13.44 

Soft fruit, vegetables 
incl. potatoes 

4.77 

4.7 

23.39 

6.11 

22.23 

5.94 

23.68 

5.81 

Total 

310.07 

301.57 

404.42 

406.89 

412.67 

30  

31  

32  
33  
34  

Conversion rates into livestock units (LU): a she goat is 0.15 LU, a pig for slaughter 0.10 LU, a sow 
0.33 LU, and a laying hen 0.01 LU. 
Of which a maximum support of SEK 395,9 million may be granted towards the category cow's milk 
and transport aid for cow's milk. 
Decision C(2010) 6050, as amended by C(2015) 6592. 
Decision (EU) 2018/479, notified under document C(2018) 1622. 
Including transport support. 

11 

 
 
  
  
  
  
  
 
                                                 
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  9). Of the second pillar measures, support for 
Areas of Natural Constraints (ANC) and agri-environmental-climate measures (AECM) have 
been of particular importance. A ceiling of total support to the Aid region is not fixed in the 
Decision  C(2010) 6050  nor  in  the  Decision  (EU)  2018/479.  Under  the  Rural  Development 
Programme  2014-2022,  support  for  ley  farming  could  only  be  applied  for  outside  areas  of 
natural constraints. Environmental support for ley farming in areas of natural constraints (for 
commitments  from  the  programming  period  2007-2013)  was  therefore  gradually  decreased 
until it was ended in 2018. Follow-up of the level of the EU aid is carried out ex post since 
2003. 

Table 9: Summary of aid disbursed in Sweden, including Community Aid, million SEK 

Type of aid 

2016 

2017 

2018 

2019 

2020 

Compensatory payment (ANC) 

587.22 

593.73 

591.12 

597.81 

599.25 

Agri-environmental support (ley farming) 

36.60 

21.69 

- 

- 

- 

Nordic aid 

Total 

310.0735  301.5736  404.4237  406.8938  412.6739 

933.89 

916.99 

995.54 

1 004.70  1 011.92 

The  total  combined  support  has,  with  some  variation,  slightly  increased  over  the  past  five 
years,  but  consistently  remained  under  the  reference  level  and  within  the  same  range  since 
1997.  

4.3. 

Production volumes in the Aid area 

Milk sector 

Milk is the most important agriculture product in the area, with a share of approximately 13% 
of the total Swedish milk production. The share has largely remained the same during the 5-
year period, but has decreased from a baseline of 15% in the reference year 1991. During the 
reporting period, the average amount paid to the production of cow milk was SEK 342 million 
per  year  (compared  to  an  average  of  SEK 267 million  in  2011-2015),  in  line  with  the 
increased authorised levels according to Decision (EU) 2018/479.  

In  the  reporting  period,  milk  production  decreased  by  about  3.9%  in  the  Aid  area  (3.1% 
decrease  nationally).  The  decrease  was  relatively  steady  throughout  the  reporting  period. 
Transport support was paid for an average of 362 778 tonnes per year (compared to in average 
386 202 tonnes/year in the previous 5-year period). The fact that production in the Aid area 
experienced only a decline similar to that in the rest of the country highlights the impact of the 
Aid in maintaining production in the more challenging northern conditions. 

35  
36  
37  
38  
39  

Reference level: SEK 318.67 million.  
Reference level: SEK 318.67 million.  
Reference level: SEK 422.92 million.  
Reference level: SEK 422.92 million. 
Reference level: SEK 422.92 million. 

12 

 
 
 
                                                 
Pig and poultry 

The pig production has slightly increased in the area during the 5-year period. 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  showed  small  variations 
over  the  period,  in  line  with  the  developments  in  the  payments.  The  yearly  production  (in 
average 11 436 LU) remains far below the total allowed production factor (17 000 LU). 

Egg  production  showed  variations  between  the  years  in  the  reporting  period.  The  yearly 
fluctuations may depend on the point of time when the hens are being replaced by new ones. 
Egg production in northern parts of Sweden is highly dependent on the cereal based fodder as 
the conditions for cultivating cereal are less productive than in the southern parts of Sweden. 

Soft fruit and vegetables 

Farms  producing  soft  fruit  and  vegetables  were  supported  on  a  yearly  basis,  covering  an 
average area of 341 ha, representing a 5% decrease since the previous 5-year period. The area 
has  fluctuated,  as  has  the  production  during  the  last  five  years,  and  is  less  than  half  of  the 
maximum number of eligible production factors.  

Conclusions related to production volumes 

As  regards  milk,  the  production  volumes  remained  fairly  constant,  discounting  a  minor 
increase  in  2020  in  line  with  the  national  trend.  The  other  sectors  also  remain  fairly  stable, 
even  though  the  production  varies  from  year  to  year.  All  sectors  effectively  respect  the 
maximum number of eligible production factors. 

4.4. 

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 
characterised  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  northernmost  counties  covered  by  the  Nordic  Aid  scheme,  the  share  of  the 
national  production  (in  gross  regional  product  –  GRP)  shows  a  decreasing  trend  with  slight 
yearly variations, since 1995 until 2015 and from then on, a flattened share (the GRP for the 
counties concerned being around 13% expressed as a share of national total GDP). 

The key  agricultural  product  in  the area is  milk, which  counts for  around  13% of Sweden's 
total milk production (compared to 15% in 1991). The number of producers declined by 20% 
in the area as well as in the whole country from 2016 until 2020, while the number of cows 
declined  by  10%  in  the  area  compared  to  8%  nationally.  The  milk  production  declined  at  a 
slower  pace  (-3,9%),  but  faster  than  in  the  country  overall  (-3,1%).  In  the  Aid  area,  milk 
production was 15 000 tonnes less in 2020 than in 2016. In spite of the Nordic Aid and other 
aid  granted,  the  economic  viability  of  farms  in  the  Aid  area  was  considerably  lower  in 
comparison  to  the  southern  and  middle  parts  of  the  country.  In  the  Aid  area,  which  is 
dominated by forests, the land in agricultural production contributes to keeping 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. 

13 

 
 
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.  

Even  though  the  area  concerned  had  a  slight  population  growth  during  2016-2020,  it  was 
much  lower  than  the  population  surge  in  the  rest  of  the  country,  so  the  population  gap 
between  the  northern  areas  and  the  country  as  a  whole  increased.  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%). 

5. 

CONCLUSIONS  

This report gives an account of the Nordic aid authorisations granted to Finland and Sweden 
in  the  period  2016-2020  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. 

5.1. 

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  2016-2020  respected  the  maximum  allowable  aid  authorised  in 
Decision  C(2009) 3067,  as  amended  by  Decisions  C(2009) 9122,  C(2013) 2809 
and C(2015) 2790, and subsequently in Decision (EU) 2018/672, notified under 
document C(2016) 8419.  
Conformity  with  the  maximum  number  of  eligible  production  factors:  the  total 
production  of  the  supported  sectors  remained  fairly  constant  in  the  Aid  area 
during the reporting period. The maximum number of eligible production factors 
was respected during the reporting period. 
Achievement of the objectives of the aid scheme: generally speaking, the  Aid in 
Finland  has  contributed  to  maintaining  agricultural  production  in  the  Aid  area 
and  played  a  role  in  supporting  employment  in  the  area.  The  Aid  is  especially 
important to milk and beef production,  the majority of which takes place in the 
Aid area. 

5.2. 

Sweden 

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

1. 

2. 

3. 

Compliance  with  the  maximum  aid  allowed  by  the  Commission  authorisations: 
the  total  amounts  of  Nordic  aid  paid  out  during  the  period  2016-2020  have 
respected the ceiling set  for the maximum  allowable aid  authorised in  Decision 
C(2010) 6050  and  subsequently  Decision  (EU)  2018/479,  notified  under 
document C(2018) 1622. 
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  milk  production  in  the  Aid  area  remained  stable  over  the  first  four 
years  of  the  reporting  period,  and  experienced  a  slight  increase  in  2019-2020. 
Other production categories maintained a fairly constant volume. 

14 

 
 
For both  countries, the continuation of agricultural production contributes to maintaining 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. 
Keeping  the  agricultural  production  has  also  a  positive  impact  on  the  vitality  of  the  remote 
rural areas. 

On  the  basis  of  the  information  provided  by  the  national  authorities,  the  Commission 
considers that the authorities have applied Decision C(2009) 3067, as amended by Decisions 
C(2009) 9122, C(2013) 2809 and C(2015) 2790, and subsequently  Decision  (EU)  2018/672, 
notified under document C(2016) 8419, concerning Finland, and Decision C(2010) 6050 and 
subsequently  Decision  (EU)  2018/479,  notified  under  document  C(2018)  1622,  concerning 
Sweden, on aid to northern regions in a satisfactory manner. 

15