The working group on agricultural policy alternatives highlights the need to increase the competitiveness of agriculture and the whole food sector. Both general outlines and concrete proposals to achieve this were presented in the working group report submitted to Minister of Agriculture Forestry Juha Korkeaoja on 11 January 2007.

Better competitiveness in agriculture and food sector calls for rapid structural change and growth of enterprises. Controlled growth of farms must be supported. Besides investment aids, the efficiency of the use of arable lands should be improved through revisions of the rules for leasing and better organisation of the lands, among other things. The managerial skills of farmers should be developed as well. The working group wishes to set no administrative restrictions to the growth, and concentration of the production, e.g. milk production, within Finland should be allowed.

The working group considers advanced biotechnology applications as indispensable for improving competitiveness in the food chain and in bioenergy production. What we need is a strategy for the utilisation of biotechnology in food production and further processing of agricultural products. According to the working group, use of gene technology should be promoted for breeding crops and varieties that are suited to the Finnish conditions.

The pro-competitive aspects should be reinforced through the whole food chain. Farmers' opportunities for joint operations on the market should be improved. The working group wishes to promote energy self-sufficiency on farms. Bioenergy production for farm use, other than road transportation, should be free from tax. New innovative pilot projects on bioenergy should be launched on farms already during 2007.

The transfers of farms to descendants should be free from inheritance tax. A preliminary study of the harmonisation of the taxation and financial support of different types of enterprises should be launched in 2007. Finland should draw up long-term strategic outlines for the development of EU agricultural policy. The objective must be an equal payment per hectare throughout the Union.

The working group would like to see better cooperation in research, product development, advisory services and education and training, as well as establish cross-sectoral clusters of research institutes and universities.

The working group was chaired by Permanent Secretary of State Raimo Sailas from the Ministry of Finance. The members were Managing Director Kalevi Hemilä from Etera Mutual Insurance Company, Chairman of the Board Antti Herlin from KONE, Agricultural Counsellor Jouko Kallio, Professor Jukka Kola from the University of Helsinki, Farmer Mariana v. Limburg-Stirum, Senior Vice President R&D Tiina Mattila-Sandholm from Valio Ltd, and Permanent Secretary Jarmo Vaittinen from the Ministry of Agriculture and Forestry. The secretaries were Counsellor Jukka Peltola from the Government Secretariat for EU Affairs and Principal Research Scientist Pasi Rikkonen from MTT Agrifood Research Finland.

Further information at the Ministry of Agriculture and Forestry:
Permanent Secretary Jarmo Vaittinen, tel. 358 (0)9 160 53303, (0)40 751 8406
Special Adviser to the Minister Jouni Lind, tel. 358 (0)9 160 53302, (0)50 521 3305