Background information

Due to the drastic price increase of energy, fertiliser and fodder exacerbated by the Russian invasion of Ukraine, the Finnish government has proposed support for the Finnish agricultural enterprises. To support the companies’ survival and increase food sovereignty, the government has decided on a tax refund to agricultural entrepreneurs for their energy taxes in 2021 to the maximum level determined by the EU Energy Taxation Directive 2003/96/EY. The government has also allocated more funds to public crisis funds directed at the agricultural sector and an increase in public subsidies.

Content of measure

A total of around €300 million will be allocated to support domestic food production and thus increase food sovereignty. The package includes both fast-acting forms of support to help agricultural producers and measures to boost energy self-sufficiency and the shift away from fossil resources in the long run.

The package proposes €120 million to be allocated to the compensatory allowance fund run by the Finnish Food Authority. Additional national aid for pig and poultry farming, greenhouse production, storage of horticultural products, reindeer husbandry and fisheries is proposed at €27 million. In addition, the EU crisis support and its complement with national funding at €20.6 million. Agricultural producers will also receive a tax refund of the 2021 energy as a one-off measure adding up to €45 million in total.

The measures and their budgetary implications will be identified and specified further in the spring 2022 Supplementary Budget and the 2023-2026 Fiscal Plan. The agricultural producers can expect hand-outs earliest in July 2022.

Use of measure

In 2020, there were 45,111 agricultural and horticultural enterprises in Finland.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

No information available.

Views and reactions

The Central Union of Agricultural Producers and Forest Owners (MTK) has complimented the government in its efforts to ensure the security of supply. However, they have raised concerns regarding the slowness of pay-out of the promised handouts.

Sectors and occupations

This case is not occupation-specific.

Sources

• 18 February 2021: There were 45 111 remaining Finnish agricultural and horticultural holdings last year - the number of dairy farms fell most dramatically(Suomalaisia maatalous- ja puutarhayrityksiä oli viime vuonna jäljellä 45 111 – rajuimmin väheni maitotilojen määrä) (www.maaseuduntulevaisuus.fi)
• 31 March 2022: The security of supply package must be paid quickly - money from food markets is crucial for the survival of agriculture (Huoltovarmuuspaketti saatava pikaisesti maksuun – raha ruokamarkkinoilta ratkaisee maatalouden hengissä pysymisen) (www.mtk.fi)
• 31 March 2022: Ministerial working group on preparedness decided on measures to ensure security of supply in agriculture (Varautumisen ministerityöryhmä päätti toimista maatalouden huoltovarmuuden turvaamiseksi) (mmm.fi)