MEMO/07/601

Brussels, 20 December 2007

Rural Development plan for the Region of Åland (Finland)

Region profile:

• Size: 6 739 km²; 22 % of this is land and 78 % water
• 26 800 inhabitants; 100% live in rural areas (OECD)
• Unemployment rate is 2.3 %
• In 2006, approximately 580 agricultural holdings managed around 14 000 hectares of arable land (9 % of the land area)
• 100% of the area is less favoured
• Employment in agriculture and forestry: 4.5 % of the labour market, primary production accounted for 2.9 % of GDP in 2005
• Compared with the Mainland Finland, natural conditions relatively favourable, fragmented farm structure, high transport costs due to insular location
• Emphasis on the environmental and landscape values of rural areas
• Small scale production and processing
• The largest agricultural products are: milk, sugar beets and onions

Chosen strategy corresponding to the profile:

The overall objectives are:

• To ensure that Åland's rural and archipelagic areas retain their attraction as places to live and run businesses
• To preserve the traditional characteristics of the Åland landscape
• To ensure that Åland's farmers and foresters achieve a high degree of competitiveness, based on efficiency, high productivity, quality and sustainable use of natural resources.

Budget overall and share of EU funding

* Leader financing in this table is already allocated to axis 3.

Overall aim of RD programme in the region:

• To ensure that Åland's rural and archipelagic areas retain their attraction as places to live and run businesses
• To preserve the traditional characteristics of the Åland landscape
• To ensure that Åland's farmers and foresters achieve a high degree of competitiveness, based on efficiency, high productivity, quality and sustainable use of natural resources.

Axis 1 budget allocation and main priorities:

Total public funding of € 8.4 million, of which the contribution of the EAFRD will be € 3.4 million

Main priorities:

• Modernisation of agricultural holdings
• Setting up of young farmers
• Adding value to agricultural and forestry products

Axis 2 budget allocation and main priorities:

Total public funding of € 44.0 million, of which the contribution of the EAFRD will be €11,7 million

Main priorities:

• Agri-environmental payments
• Payments to farmers in areas with handicaps, other than mountain areas

Axis 3 budget allocation and main priorities:

Total public funding of € 1.7 million, of which the contribution of the EAFRD will be € 0.8 million

Main priorities:

• Diversification into non-agricultural activities
• Creation and development of micro-enterprises

Leader budget allocation:

Total public funding of € 1.6 million, of which the contribution of the EAFRD will be

€ 0.9 million

Majority of the Axis 3 measures will be implemented through Leader.