Commission Decision (EU) 2021/2312 of 7 December 2021 on the long-term national aid scheme for agriculture in the northern regions of Finland (notified under document C(2021) 8773) (Only the Finnish and Swedish texts are authentic)

• CELEX: Decision (EU) 2021/2312
• Articles: 10

Article 1 Authorised aid

1.   From 1 January 2022 to 31 December 2027 Finland is authorised to implement the long-term aid scheme for agriculture in its northern regions comprising the municipal units ( kunta ) listed in Annex I.

2.   The total amount of aid granted shall not exceed EUR 574,5 million per calendar year, of which a maximum of EUR 221,0 million shall be intended for the production of cow’s milk. Those amounts shall be considered as annual averages of the aid granted in the period of 6 calendar years covered by this Decision.

3.   Aid categories and the production sectors for each category, the maximum average annual amounts allowed per aid category, calculated as specified in paragraph 2, as well as the maximum annual number of eligible production factors per aid category, are set out in Annex II.

4.   Aid shall be granted on the basis of eligible production factors as follows:

(a)

per livestock unit for animal husbandry;

(b)

per hectare for crop production;

(c)

per m 2 for glasshouse production;

(d)

per m 3 for storage of horticultural products; and

(e)

as a compensation for actual costs for the transport of milk and meat and indispensable services for livestock production, deducting any other public support for the same costs.

Aid for the production of cow’s milk and storage aid for wild berries and wild mushrooms may be granted per kilogram of actual production.

Aid for reindeer husbandry shall not lead to overcompensation in conjunction with the aid granted under Article 213 of Regulation (EU) No 1308/2013.

The conversion rates into livestock units (LU) for the various types of livestock are set out in Annex III.

5.   In accordance with paragraph 3 and within the limits set in Annex II, Finland shall differentiate the aid in its northern regions and set the aid amounts annually per production factor, cost or unit of production on the basis of objective criteria relating to the severity of the natural handicap and other factors contributing to attaining the objectives set out in Article 142(3), first subparagraph, second indent, of the Act of Accession.

Article 2 Reference periods and certain maximum numbers of production factors

1.   The reference period referred to in Article 142(3), first subparagraph, second indent, of the Act of Accession shall be as follows:

(a)

as regards production: 1992 for cow’s milk and for cattle, 1993 for horticulture, the average for 1991, 1992 and 1993 for other products;

(b)

as regards the level of overall support: 1993.

2.   The maximum number of eligible dairy cows shall be 227 200.

3.   The maximum number of eligible hectares of plant production shall be 944 300 ha, of which a maximum of 481 200 ha grassland, and 203 ha for glasshouse production.

Article 3 Conditions for granting aid

1.   Finland shall lay down, within the limits provided for in this Decision, the conditions for granting aid to the various categories of beneficiaries. Such conditions shall include the eligibility and selection criteria applied and ensure the equal treatment of beneficiaries.

2.   Finland shall pay the aid annually to the beneficiaries, based on actual production factors or units of production referred to in Article 1(3). Advances on the aid may be paid on the basis of the initial estimates for a given year.

3.   For cow's milk the aid may be paid in monthly instalments based on actual production figures.

4.   An overrun of the maximum annual number of production factors eligible for aid, as set out in Annex II, shall be taken into account as a corresponding reduction in the number of production factors eligible for aid in the year following the overrun.

5.   An overpayment or undue payment to a beneficiary shall be recovered by deducting the corresponding amounts from the aid paid to the beneficiary the following year or be otherwise recovered in that year, where no aid amounts are due to the beneficiary.

Article 4 Information and control measures

1.   Finland shall, as part of the information provided pursuant to Article 143(2) of the Act of Accession, forward to the Commission each year before 1 June information on implementation of the aid granted under this Decision during the preceding calendar year.

The information shall concern in particular:

(a)

identification of the municipalities in which the aid was paid by means of a detailed map and where necessary by other data;

(b)

the total production, covering the reporting year, for the regions eligible for aid under this Decision, expressed in quantities for each of the products specified in Annex II;

(c)

the total number of production factors, the number of production factors eligible for aid and the number of production factors supported per production sector specified in Annex II with a breakdown by product within each sector, including the indication of any overrun of the allowed maximum annual number of production factors;

(d)

the total aid paid, the total amount of aid per aid category and the type of production, amounts paid to beneficiaries per production factor/other unit, as well as the criteria for differentiating aid amounts by sub-regions and types of farm holdings or on the basis of other considerations;

(e)

the payment system applied with details concerning any advances based on estimates, final payments as well as observed overpayments and their recovery;

(f)

amounts of aid under Article 32 of Regulation (EU) No 1305/2013, under Regulation (EU) No 1307/2013 and under Article 213 of Regulation (EU) No 1308/2013 paid in the municipalities covered by this Decision; and

(g)

references to national legislation whereby the aid is implemented.

2.   Before 1 June 2027 Finland shall, in addition to the annual report covering year 2026, submit to the Commission a report covering the 5-year period from 1 January 2022 until 31 December 2026.

That report shall indicate, in particular:

(a)

the total aid paid during the 5-year period, and its distribution among aid categories, types of production and sub-regions;

(b)

the total production, the number of production factors and the income levels of farmers in the regions eligible for the aid;

(c)

the evolution of agricultural production, processing and marketing in the social and economic context of the northern regions;

(d)

the effects of the aid on the protection of the environment and the preservation of the countryside; and

(e)

proposals for the development of the aid based on the data presented in the report, the national and Union context of agricultural production as well as other relevant factors

3.   Finland shall provide data in a form compatible with the statistical standards used by the Union.

4.   Finland shall take all steps necessary to apply this Decision and suitable control measures vis-à-vis beneficiaries of aid.

5.   Control measures shall to the extent possible be harmonised with the control systems applied under the Union support schemes.

Article 5 Application of any amendments

If the Commission decides to amend this Decision, in particular on the basis of any changes in the common market organisations or the direct support scheme or a change in the rate of any authorised national agricultural State aid, any amendment to the aid authorised by this Decision shall apply only from the year following that in which the amendment was adopted.

Article 6 Repeal

Decision (EU) 2018/672 is repealed with effect from 1 January 2022.

However, Article 4 of that Decision shall continue to apply until 1 June 2022.

Article 7 Addressee

This Decision is addressed to the Republic of Finland.

Schedules & Appendices

ANNEX I MUNICIPALITIES AS REFERRED TO IN ARTICLE 1(1)

ANNEX I

MUNICIPALITIES AS REFERRED TO IN ARTICLE 1(1)

Enonkoski, Hankasalmi, Heinävesi, Ilmajoki, Isokyrö, Joensuu, Joroinen, Juva, Jyväskylä, Jämsä  ( 1 ) , Kaskinen, Kauhajoki, Kauhava, Kitee, Korsnäs, Kristiinankaupunki, Kuopio, Kuortane, Kurikka, Laihia, Lapua, Laukaa, Leppävirta, Liperi, Maalahti, Mikkeli, Mustasaari, Muurame, Mänttä-Vilppula, Närpiö, Outokumpu, Parikkala, Pieksämäki, Puumala, Rantasalmi, Rautjärvi, Ruokolahti, Ruovesi, Rääkkylä, Savitaipale, Savonlinna, Seinäjoki, Siilinjärvi, Sulkava, Suonenjoki, Taipalsaari, Teuva, Tuusniemi, Uusikaarlepyy, Vaasa, Varkaus, Vöyri, Alajärvi, Alavieska, Alavus, Evijärvi, Haapajärvi, Haapavesi, Halsua, Hirvensalmi, Honkajoki, Iisalmi, Isojoki, Joutsa, Juankoski, Kaavi, Kalajoki, Kangasniemi, Kannonkoski, Kannus, Karijoki, Karstula, Karvia, Kaustinen, Keitele, Kempele, Keuruu, Kihniö, Kinnula, Kiuruvesi, Kivijärvi, Kokkola, Konnevesi, Kontiolahti, Kruunupyy, Kyyjärvi, Kärsämäki, Lapinlahti, Lappajärvi, Lestijärvi, Liminka, Luhanka, Lumijoki, Luoto, Merijärvi, Merikarvia, Muhos, Multia, Nivala, Oulainen, Parkano, Pedersören kunta, Perho, Pertunmaa, Petäjävesi, Pielavesi, Pietarsaari, Pihtipudas, Polvijärvi, Pyhäjoki, Pyhäjärvi, Pyhäntä, Raahe, Rautalampi, Reisjärvi, Saarijärvi, Sievi, Siikainen, Siikajoki, Siikalatva, Soini, Sonkajärvi, Tervo, Tohmajärvi, Toholampi, Toivakka, Tyrnävä, Uurainen, Vesanto, Veteli, Vieremä, Viitasaari, Vimpeli, Virrat, Ylivieska, Ylöjärvi  ( 2 ) , Ähtäri, Äänekoski, Ilomantsi, Juuka, Kajaani, Lieksa, Nurmes, Paltamo, Rautavaara, Ristijärvi, Sotkamo, Vaala, Valtimo, Oulu, Utajärvi, Hailuoto, Hyrynsalmi, Ii, Kemi, Keminmaa, Kuhmo, Simo, Tervola, Tornio, Kemijärvi, Pello, Pudasjärvi, Puolanka, Ranua, Rovaniemi, Suomussalmi, Taivalkoski, Ylitornio, Kuusamo, Posio, Kittilä, Kolari, Pelkosenniemi, Salla, Savukoski, Sodankylä, Enontekiö, Inari, Muonio, Utsjoki.

( 1 )   Only the area of former municipalities Jämsänkoski and Kuorevesi.

( 2 )   Only the area of the former municipality of Kuru.

ANNEX II DETAILS OF THE AID AS REFERRED TO IN ARTICLE 1(3)

ANNEX II

DETAILS OF THE AID AS REFERRED TO IN ARTICLE 1(3)

Aid category and production sectors

Maximum average annual aid in the period 1.1.2022-31.12.2027

(million euros)

Maximum annual number of eligible production factors

1.

ANIMAL HUSBANDRY:

dairy cows (milk production), other bovines, sheep and goats, horses, decoupled aid for pigs and poultry

441,9

of which cow’s milk 221,0

227 200 dairy cows, 181 000 other livestock units, 139 200 livestock units for pigs and poultry

2.

PLANT PRODUCTION:

arable crops, greenhouse production, storage aid for horticultural products

112,6

944 300 ha of arable crops, of which 481 200 ha of grassland;

203 ha greenhouse production

3.

OTHER NORDIC AID:

reindeers, transport aid for milk and meat, animal husbandry services, storage aid for forest berries and mushrooms

20,0

171 100 reindeers

Total Nordic aid ceiling

574,5

ANNEX III COEFFICIENTS FOR CONVERSION INTO LU AS REFERRED TO IN ARTICLE 1(4)

ANNEX III

COEFFICIENTS FOR CONVERSION INTO LU AS REFERRED TO IN ARTICLE 1(4)

The following table is to be used when determining the average number of livestock units (LU)

(maximum number of livestock units):

LU

Bovine animals over two years and suckler cows

1,0

Suckler cow heifers from eight months to two years

0,6

Other bovine animals from six months to two years

0,6

Ewes

0,2

She-goats

0,2

Horses (over 6 months):

—

mares for breeding, including pony mares

1,0

—

Finnish horses

1,0

—

other horses and ponies from 1 to 3 years

0,6