The law on temporary cost subsidies for agriculture and aquaculture was confirmed March 3, during the presentation of the president.
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The law will enter into force on April 1, 2023, Ministry of Agriculture and Forestry said.
The increase in producer prices has only partially covered the increase in production costs. The cost subsidies in part ensure the continuation of domestic production and the preservation of security of supply in a situation where the profitability of production and the operators' willingness to pay have weakened.
In the 2023 supplementary budget, EUR 95 million has been allocated to temporary cost subsidies for agriculture and aquaculture. It is estimated that the cost support will be determined on the basis of fertilizers at 63 million euros and on the basis of electricity at 32 million euros.
Cost subsidies can be granted to professional farmers and professional aquaculturists if the general conditions for the support are met.
A maximum of EUR 50,000 per beneficiary can be paid for electrical energy used in agriculture and aquaculture, and a maximum of EUR 35,000 per beneficiary for fertilizers used in the cultivation of agricultural and horticultural crops in open ground.
When determining the electricity cost subsidy, 50 percent of the amount of electrical energy purchased in 2022 is taken into account. The amount of electrical energy is multiplied by the average price of electrical energy without value added tax per beneficiary from 1 October 2022 to 31 March 2023.
The lower limit of the subsidy is 13 cents per kilowatt hour, and a maximum of 27 cents per kilowatt hour is taken into account when calculating the subsidy. The subsidy paid for the same costs under another law is deducted from the cost subsidy.
The subsidy is not paid if the amount of the subsidy would be less than 500 euros before the deduction of the subsidy paid on the basis of other laws. When calculating the amount of electricity cost subsidy, neither the amount paid for the transmission of electricity nor the basic fee is taken into account. The support share would be 40 percent.
Cost support for fertilizers can be granted for the recipient's own production for the 2023 growing season based on the amount of fertilizers purchased from commercial operators and their company-specific average price without value added tax.
When calculating the average price, the part exceeding 500 euros per ton is taken into account, but no more than 300 euros per ton. The subsidy is 35 percent.
Fertilizers eligible for the fertilizer subsidy are industrially produced inorganic fertilizers, organic mineral fertilizers or organic fertilizers used in open field cultivation of land and garden plants. The definition also includes fertilizers suitable for organic production.
"It is good that the subsidies can be applied for in a quick schedule. Operating conditions are supported with electrical support, especially in livestock farms and greenhouses.
The fertilizer subsidy enables the sowing of several farms this spring, and it especially ensures security of supply," says Minister of Agriculture and Forestry Antti Kurvinen.
Support is applied for from the State Treasury, which also grants and pays the support. The application must be submitted no later than July 31, and the support must be granted by the end of 2023. ■