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Finland's Rural Development Plan

Commission Européenne - MEMO/07/244   20/06/2007

Autres langues disponibles: SV FI

MEMO/07/244

Brussels, 20 June 2007

Finland's Rural Development Plan

Country profile:

  • Agriculture: 8.9% of Finland is agricultural land, 100% of the area is less favoured.
  • Agricultural employment 3.9%, primary production accounted for 2.9% of GDP in 2005
  • Harsh natural conditions restricting agriculture, fragmented farm structure, long distances, sparse population
  • Environment: improvement of the state of waters, emphasis on the environmental and landscape values of rural areas
  • Rural Areas: forests are a valuable natural resource, increased demand for bioenergy, limited employment opportunities

Chosen strategy corresponding to the profile:

  • To preserve a viable and active countryside, improve the state of the environment and promote the sustainable use of renewable natural resources
  • Focus on natural handicap payments and agri-environmental payments
  • Positive opinions of ex-ante and strategic environmental assessment.

A financial aid of € 6 626 million of which € 2 062 million is EU financed (31 %) has been allocated to the Rural Development Programme for mainland Finland for the period 2007- 2013

 Axis
Total public
(in € million)
% of EAFRD contribution
EAFRD
(in € million)
Share %
Axis I
504
45
227
11
Axis II
5 407
28
1 513
74
Axis III
433
45
195
14
LEADER
242
45
109
(5.3)**
TA***
40
45
18
1
Total
6 626
31
2 062
100

* EAFRD: European Agricultural Fund for Rural Development

** 5.8 % of the total minus TA,

*** TA stands for technical assistance for the implementation of the programmes.

AIMS:

The aims of the Rural Development plan of Finland are:

  • Agriculture and forestry are practised in a way that is economically and ecologically sustainable as well as ethically acceptable in all parts of the country.
  • Action favouring and furthering the competitiveness of businesses, new enterprise and networking among entrepreneurs to diversify rural economies and improve employment;
  • Strengthening local initiatives to improve the viability and quality of life of the rural areas

Concerning the three axes the main priorities of Axis 1 of which the contribution of the EAFRD will be € 227 million (11 %) are.

  • Young farmers (32 %)
  • Modernisation of agricultural holdings (23 %)
  • Adding value to agricultural and forestry products (22 %)

The main focus of Axis 2 of which the contribution to the EAFRD will be € 1 513 million (74%) are:

  • Natural handicap payments (55 %)
  • Agri-environmental payments (43 %)

Referring to Axis 3 budget allocation of the EAFRD corresponds to € 195 million (14%).

Majority of financing goes to:

  • Diversification into non-agricultural activities (39 %)
  • Creation and development of micro-enterprises (37 %)

The Leader budget allocation of the EAFRD will be 109 meuro Euros (5,3%) and will be implemented on all axes, majority of the financing envisaged for axis 3.


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