Primary agriculture’s contribution to the economy is small and declining, accounting for 1.2% of GDP and 3.9% of employment in 2004 [1] (Figure 3.7.1). Agricultural productivity improved at around 1% annually between 1992 and 2003, with production remaining about stable (reflecting rising crop production largely offset by declining livestock output) and reduced input use [1, 2, 3, 4]. The intensity of farming has diminished with the area farmed over the period 1990-92 to 2002-04 declining by 12%, one of the largest decreases across the OECD, with even larger reductions in purchased farm input use: nitrogen (–20%) and phosphorus (–60%) inorganic fertilisers; pesticides (–9%); and on-farm direct energy consumption fell by 12% (Figure 3.7.2). Finland’s accession to the EU in 1995 brought major price and structural changes to farming [1, 2, 3, 4]. In 1995 while producer prices declined by 40-50%, although for milk the reduction was 15%, the decrease in input prices was less dramatic [1, 3, 4]. Also the average farm size has increased as their number declined, and a third of farmers are full time. The climate limits farm production, and the share of agricultural land is only 7% of the total land area, among the lowest share across the OECD, with crop production largely in the south, whereas livestock farming is concentrated in the central, eastern and northern regions [1, 5]. As agriculture is largely rain-fed, use of total water resources is extremely limited with irrigation, mainly for vegetables, accounting for only 4% of total farmland in 2000 [6, 7].