Direct payments of the EU

Direct support payments to farmers are financed from the European Agricultural Guarantee Fund (EAGF). The criteria for the direct payments were decided by the European Parliament and the Council under the codecision procedure.

The EU acts related to the payments are listed (in Finnish) at maaseutu.fi
The national acts and decrees are listed (in Finnish) here

The direct payments applicable in the period 2023–2027 are basic income support, redistributive income support, income support for young farmers, ecosystem support and coupled income support. The payments are granted on the basis of the surface area or the farm animals in the possession of the farmer, provided that the eligibility criteria are fulfilled. The basic eligibility criteria include compliance with conditionality and fulfilling the criteria for active farmer.

Read more (in Finnish) on the Finnish Food Authority website

Basic income support is paid in the whole country on the basis of eligible agricultural area. The eligible area must be used for agricultural activities, which means either production of agricultural products or maintaining the production potential of the land, in which case there is no production requirement.

Redistributive income support is a new type of support that redistributes payments from larger farms to small and medium-sized farms, in line with the targets set by the EU. Redistributive income support is paid on the basis of the eligible area and it is paid up to the maximum of 50 hectares per beneficiary. 

Direct income support to young farmers is paid on the basis of the surface area of eligible agricultural land to young farmers in the whole country. The support is paid for up to five years and the applicant must be no more than 40 years of age when applying for basic income support for the first time. Setting-up in agriculture and structural development of farms are promoted with EU co-funded setting-up aid for young farmers and national aid for young farms payable in support area C. 

Ecosystem support is area-related support paid for one year that contributes to the environmental and climate objectives of the Common Agricultural Policy. The aim is to mitigate climate change and adapt to its impacts and to promote biodiversity and effective management of natural resources. Ecosystem support is paid to farmers for plant cover in winter and for nature management grasslands, green manure grasslands and biodiversity plants in the whole country.

Coupled income support is a scheme that, unlike other support payments, is voluntary for the Member States. For Finland this is an important form of support as it encourages to continue production in certain sectors that are highly significant for us. The support ensures the supply of raw material for the food industry. Livestock premiums are paid for suckler and dairy cows, bulls, bovines in outer archipelago, slaughtered heifers, ewes, she-goats and slaughtered lambs and kids.  Area-related support is paid for contract production of starch potato, certain special crops and vegetables grown in the open.

Planned distribution of funding for direct support by support schemes in 2023–2027.