November 24, 2008
The EU has permitted Finland to maintain a higher level of subsidies for beef and milk production than other member states.
Finland is the only member state to be allowed to keep 10 percent of its subsidies related to production. This indicates that milk and beef production will continue to be profitable in Finland.
The EU has reformed its agricultural policy by moving away from production subsidies and instead investing in the development of agricultural and rural areas. The measures will be in force from 2009-2013.
The move is aimed to encourage farmers to produce products that the market needs.
In Finland, the shift from direct subsidies to rural development is in the range of EUR 6-15 million (US$7.6-19 million) a year.