Finland’s EU membership and agricultural support
The study examines the transformation of Finland’s agricultural policy following EU membership.
Finnish agriculture was traditionally based on border protection, which kept domestic prices artificially high and generated overproduction. EU membership forced the abandonment of this model, as it was incompatible with the EU’s common agricultural policy. In the negotiations, Finland initially sought to obtain exceptions, but ultimately had to adapt to the EU system.
As a result, agricultural support shifted from price support to direct per-hectare and per-animal subsidies. In addition, Finland obtained the right to pay national northern support as well as a transitional support package. The new system is a complex combination of EU and national support elements.
The focus of the study is on the production-steering effects of the support package, rather than on the traditional income policy perspective. Particular attention is directed at the profitability of livestock farms, the effects of per-hectare subsidies on land prices, and the role of environmental support. The assessment suggests that production quotas will be filled and that there is a risk of overproduction in milk. (AI translation)
- ISSN: 1236-7176
- ISBN: 951-9282-79-3
