Finland and European Commission agree on farm animal subsidies
Juha Korkeaoja
|
Franz Fischler
|
|
|
Finland and the European Commission reached agreement late on Wednesday on the rules concerning distribution of a new national supplement to EU agricultural subsidies.
The agreement allows Finland to pay additional national subsidies to farmers raising domestic animals in less-favoured areas suffering from difficult natural conditions. The amount of national subsidies, which are paid in addition to EU subsidies, can be EUR 100 - 105 per hectare. Minister of Agriculture and Forestry Juha Korkeaoja (Centre) says that farms that do not raise animals would be entitled to national subsidies of no more than EUR 20 - 25 per hectare.
Finland will be able to raise its less-favoured area subsidy to the maximum EUR 250 per hectare, according to an agreement reached in connection with the EU Common Agricultural Policy reform in the summer of 2003.
Korkeaoja was pleased that an agreement was reached. Even though he admitted that it is not exactly what he would have wanted if he had the chance to dictate it himself, he nevertheless feels that Finland’s main goals were achieved.
The agreement came at a crucial time, as Wednesday was the last working day of the outgoing European Commissioner for Agriculture, Franz Fischler, who then left for a holiday in Bali.
Korkeaoja said that he would put his agreement forward to the government and producer organisations as soon as possible. Farmers would be receiving their first subsidies under the agreement from the beginning of next year.
A dispute broke out about a year ago when the Commission and Finland agreed on cutbacks to national farm subsidies for Southern Finland. At that time Finland drew up a model aimed at compensating income losses suffered by farmers raising domestic animals.
The Commission did not accept the Finnish model, saying that the less-favoured area subsidies should be raised by the same percentage in all parts of Finland.
According to Matti Hannula, a top official at the Ministry of Agriculture and Forestry, the new model will be much simpler than the one that was previously agreed on.
"We sought a solution that is compatible with the WTO, and also meets the requirements set for green subsidies", Hannula said.
Helsingin Sanomat
|
| 11.11.2004 - TODAY |
 Finland and European Commission agree on farm animal subsidies |
|
