No agreement in Brussels talks on future of Article 141 agricultural subsidies

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The European Commissioner for Agriculture, Mariann Fischer Boel and Finnish Minister of Agriculture Sirkka-Liisa Anttila (Centre) are holding talks in Brussels on Thursday on Finland's hopes to maintain the agricultural subsidies that it provides to farmers in the south of Finland.
      The subsidies, paid for by Finland, are based on Article 141 of the Finnish Treaty of Accession into the European Union. Commissioner Boel has been pushing for the end of the subsidies, which she says were intended only as an interim solution.
     
Finnish farmers see the 141 support as vital. It is paid to about 7,000 farms with domestic animals. Farms with greenhouses also receive subsidies under Article 141.
      The discussions are not expected to be easy. On Wednesday, the Commissioner called on Finland, and Agriculture Minister Anttila to offer a "sensible" proposal on what conditions the payment of the 141 subsidies might be continued.
      Under a joint proposal by the ministry and Finland's Central Union of Agricultural Producers and Forest Owners (MTK), the bottom line of a subsidy package next year would be EUR 129 million. The Article141 subsidies would account for EUR 94 million of this - the same amount as is being paid this year.
      The Article 141 support expires at the end of this year, and no promises have been made of an extension.
     
Experts say that a decline in the Article 141 subsidies would accelerate the structural changes facing Finnish agriculture, and would have an impact on the Finnish food industry.
      If the subsidies were reduced, many farms raising pigs, chickens, and cattle would have to shut down. Milk production would increasingly move to northern areas, where the subsidies are permanent and the level of support is higher. The number of dairy farms has already declined sharply in the south of Finland, with milk production increasingly focusing on North Savo and North Ostrobothnia.
     
BREAKING NEWS: Agriculture Minister Sirkka-Liisa Anttila and Commissioner Mariann Fischer Boel failed to reach agreement on the Article 141 subsidies at their meeting in Brussels on Thursday. Anttila said after the meeting that discussions would continue next week. Disagreements remain on how steep the decline in subsidies should be.


Previously in HS International Edition:
  Vanhanen sees Article 141 as the only way that Finland can secure livelihood of its farmers (24.10.2007)
  Vanhanen trusts Commission´s ´sensitivity´ in farm subsidy issue (22.10.2007)
  Spat among Nordic EU states on farm subsidies (12.10.2007)
  No More Mr. Nice Guy Finland (3.11.2007)
  EU Commissioner for Agriculture: Finland’s temporary 141-Support cannot continue forever (29.10.2007)

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