Norway’s heavily subsidized agriculture industry has received its biggest boost in years. Farmers will be getting an additional NOK 3.66 billion worth of taxpayer funding during the coming year, to narrow the so-called “income gap” between farmers with the lowest incomes and salaried workers in the country.
The additional subsidy is up from NOK 1.1 billion last year but still less than the NOK 4.2 billion that the lobby groups representing farmers demanded when the annual bargaining season began last month. After a week of negotiations, Norway’s Labour Party government boosted its initial offer by NOK 460 million on the eve of Norway’s national day on the 17th of May.
That should give farmers more reason to celebrate. The state’s sweetened offer was meant to cover higher costs, not least tied to the diesel needed to fuel tractors and other farm equipment, and help farmers earning the least, especially those raising sheep and cattle. While large-scale poultry, egg and plant producers earn well, small farmers with 30 head of cattle are struggling.
The leaders of the farmers’ two organizations seemed satisfied, with Bjørn Gimming of Norges Bondelag saying he was glad a settlement had been reached. He insisted, though, that the agreement “was all about one thing, and that is more Norwegian food from the whole country.” His organization often seems to set aside all the locally produced food from Norway’s large seafood industry, arguing that subsidy of meat, poultry, fruit and vegetables is critical for “more self-sufficiency and better preparedness.”
Gimming’s counterpart at the organization representing Norway’s small farms agreed. “Grain is so fundamental for both self-sufficiency and our entire food system,” claimed Tor Jacob Solberg of Norsk Bonde- og Småbrukarlag. Solberg, known for usually criticizing the state and rarely being satisfied, said the industry’s “focus” this year on national preparedness amidst international unrest was important for farming’s future in Norway.
“Important steps are being taken to develop working conditions within Norwegian agriculture, and we value that,” Solberg said. “Our common goal is for farming to be secure and enhance food production.”
Agriculture Minister Nils Kristen Sandtrøen of the Labour Party seemed to agree. “With this agreement we’re following up on the goals Parliament has set for raising (farm) income by 2027,” Sandtrøen stated. He stressed that the deal struck with the farming organizations secures a “good framework” for the industry and its growth, by making it easier, for example, for young farmers to receive parental- and welfare leave when needed. The new deal aims to make it easier for farmers to call in and pay for additional or substitute workers when needed.
Sandtrøen’s ministry also claimed the new support package for farmers won’t push Norway’s high food prices much higher, only by around NOK 600 (USD 66) a year.
The Parliament is expected to approve the government’s agreement with farmers before the summer recess.
NewsinEnglish.no/Nina Berglund
