Farming has never been easy in Finland, a third of which lies above the Arctic Circle. Last year the country produced less than two per cent of the European Union grain crop despite being 1.5 Times the size of Britain.

"Crop failures are inevitable every now and then, but the weather has come at a particularly bad time this year," said Esa Harmala, chairman of the farmers' union MTK.

This year's crop failure comes on top of discontent about EU membership and during the run-up to a general election.

Before joining the EU, Finland kept prices above the world market in order to secure self-sufficient food production. Membership of the bloc has changed the conditions under which farmers operate.

MTK said a few weeks of dry weather would allow farmers to salvage what crops they could, but noted that the financial damage to Finland's 150,000farms would run into billions of markka.

Heavy rainfall makes crops worst in decade:

Rainfall twice as heavy as normal has left fields waterlogged, flattened grain crops, washed off pesticides and delayed harvesting.

"In this area we have had 500 millimetres of rain since the start of May," said Jussi Taruma, a 22-year-old who farms 153 hectares (378 acres) of wheat and barley on the outskirts of Helsinki.

"A third of my harvest is completely lost, another third is only partly usable and the rest will be fair if the weather holds in September and we don't have night frosts," he said.

Taruma said it was difficult to see how he would manage, particularly as he was still heavily in debt from inheritance tax incurred when he the farm passed to him from his father.

MTK says this year looks set to have the worst crop in a decade. Almost the whole bread cereal crop has been lost in terms of quality and much is being sold for fodder, but the price is often lower than the harvesting costs.

At thesame time cattle farmers say they are unsure where they will get fodder for their herds -- and at what price.

"My cows have stayed in the barn this summer -- the pasture was so wet they were udder-deep in mud," said Hannu Aho, an MTK official. "Higher fodder prices would be a catastrophe."

Fodder imports from the EU are not an easy option because of transport costs and the difficulty of finding suppliers abroad.

Government considers compensation payments:

A unique Finnish crop damage scheme compensates farmers for up to 70 per cent of losses caused by natural conditions.

The agriculture ministry is assessing the crop damage and hundreds of millions of markka of extra funds are expected in the government's supplementary budget in October.

MTK demands increasing compensation funds but it has not yet specified how much money it wants.

"One example would be 1987, when the state came to the aid of farmers with 1.5 billion markka ($275 million)," chairman Harmala said.

Such figures have nothit home with the government, which vows to stick to a balanced budget and prudent spending.

"MTK has spoken of compensation of one to two billion markka and this is clearly exaggerated. But we are addressing some of their other demands," said agriculture minister Kalevi Hemila.

Hemila said the 55 million markka in the crop damage fund would be inadequate, but that the compensation would amount to hundreds of millions of markka, not billions.

Farmers most eurosceptic in Finland:

Finland joined the European Union in 1995, dividing the country into urban EU supporters and rural opponents.

"EU membership did not create it, but it revealed the gap between young, well-educated city dwellers and older, less educated people outside large towns," said Peter Ekholm from the Centre for Finnish Business and Policy Studies (EVA).

The EU is working on Agenda 2000, a package which includes making its Common Agricultural Policy more market-oriented in the run-up to the entry of countries from the formerSoviet bloc, and farmers are worried about changes to subsidies.

Decisions on Agenda 2000 are expected during Germany's EU presidency in March 1999, but some matters may be left to Finland, which takes over for the second half of that year.

Finland has broadly supported Commission proposals, but prime minister Paavo Lipponen has demanded full compensation for farmers for loss of income from lower intervention prices.

Researchers have said EU membership has already resulted in lower incomes, fewer farms and more farmers taking up part-time jobs, because price levels were markedly higher before joining.

It has also brought a mountain of forms to fill in.

"You almost need a degree for all the paperwork and it is checked down to the last acre," said Matti Roysko, a 71-year-old pig farmer. "I am sure the Italians, for example, are not at all as conscientious."

Farming to feature as election theme:

Farming accounts for just 1.5 per cent of Finland's gross domestic product and six per cent ofthe workforce, but most urban Finns have agrarian roots and many spend their summer holidays in the countryside.

The potent mixture of crop failure and discontent about the EU may make farming one of the themes in next March's general election, which commentators expect to be high on personalities and low on issues.

"It is clear that Agenda 2000 will affect election debate considerably," agriculture minister Hemila said.

The crucial meeting on Agenda 2000 is due in late March, just after the election, adding to worries that Finland's voice may not be heard loudly enough.

The underlying concern has been that EU decision-makers are not familiar with the unique problems of Finnish agriculture, where a harsh climate and small farm sizes increase costs.

Hemila's own head will not be on the block: he is a non-political appointee and is said to be unlikely to keep his post in a new government.

The opposition Centre Party and MTK say appointing a technocrat was an error of judgment because it has relievedthe government parties of political responsibility.

But the coalition partners are questioning whether the Centre Party, traditionally associated with the rural community, has anything new for the voter.

"The Centrists do not have many alternatives to offer," said Social Democrat deputy Kari Rajamaki. "It will be hard for them to show anything concrete that has been done wrong."

As politicians brace themselves to do battle, farmers say they are waiting for them to come up with the goods.

"The situation is totally gloomy and hopeless at the moment. How low do farmers' lives have to be pushed before politicians wake up," asked farmer Matti Roysko.