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.
