Finnish Agricultural Support in Changes

Tuomo Heikkilä

No 190, Discussion Papers from VATT Institute for Economic Research

Abstract: The Finnish agricultural support system underwent fundamental changes when Finland joined the European Union. Prior to the EU membership the support was mainly price support. The CAP as well as the reformed agricultural policy outlined in Agenda 2000, means that the agricultural support paid from the national funds in Finland will stay at a high level. The pressures for national support and, through this, on the state budget could be reduced if the amounts of area payments per hectare according to the common agricultural policy were the same in all member states. The financing of the common agricultural policy should also be to an increasing extent managed through the Commission funds, which would reduce the budget pressures caused by agriculture to the state of Finland. The European Union is facing major challenges at the turn of the decade, and some of these may also have significant repercussions in agriculture. The EMU will not bring along any significant direct impacts on agriculture, but the Agenda 2000 programme drawn up by the Commission is going to have important effects on the possibilities for agricultural production.

Keywords: Agriculture, support, CAP, Agenda 2000, Economic growth, Taloudellinen kasvu, International comparisons, Kansainväliset vertailut, Policy analysis and modelling, Päätöksenteon tuki ja mallintaminen, F020 - International Economic Order; Noneconomic International Organizations; Economic Integration and Globalization: General, O130 - Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products, Q100 - Agriculture: General, (search for similar items in EconPapers)
Date: 1999
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