Performance of dairy farms in Finland and Norway from 1991 to 2008

Agriculture and agricultural policy in Finland and Norway have shared many common in the past, except that Finland joined the European Union in 1995. In this, we examine profitability and productivity dynamics in Finnish and Norwegian during the period 1991 to 2008. Our analysis draws on a decomposition of prof- change into various sources. The results provide evidence that the stronger lib- of agricultural policy in Finland has provided greater flexibility for farmers to and thus has created better scope for productivity and profitability improvements with Norway.