Much of Norway’s agriculture can be defined as ‘arctic’. Approximately 20% of Norway’s population live in rural areas and farms are spread out right across the country; north to south and east to west, despite the more challenging geography of some areas. The country is quite dependent on imports as its agriculture produces 40% to 50% of the calories eaten, depending on the crops.
Norway factbox
40,000 farms.3% of total land area is arable.Average of 24ha arable land per farm.8,000 dairy farms (average herd of 26 cows).15,000 sheep farms (average flock of 65 ewes).2,400 pig farms (average herd of 88 pigs).11,000 arable farms.Just 3% of Norway’s land is suitable for arable production and over two thirds of that is used to make silage. The country’s agricultural policy has four main goals:
Self-sufficiency.Active agriculture all over the country.Sustainable production.Rural development.“We can trace this back to the 1930s when there were difficult times,” Eirik Magnus Fuglestad, researcher for Ruralis, told the National Farmers Union of Scotland conference a few weeks back. “Farmers organised themselves into national co-operatives, selling their goods together. In addition to that, you had exceptions to the rules of competition. We had a compromise allowing farmers to sell in monopolies to stabilise prices for people in cities.”
After World War II the goals for Norwegian agriculture became pillars of its agricultural policy, complete with import barriers and market regulation. The system of subsidies favours smaller farms with tougher conditions. Farmers get more money for the first few animals and this declines per head once you have more.
“Our policy ensures the best agricultural areas are used for grain production which is helpful for self-sufficiency,” Fuglestad said. “We are not members of the EU but our deal is called EEA, which ensures free trade with the EU. Agricultural goods are not part of that. But Article 19 says the Norwegian government and the EU are to meet every second year and gradually liberalise trade even on agricultural products. We have a famous cheese deal and we import a lot of cheese.
“I think we have a pretty robust agricultural system. Our policy works to a degree. We still have farms getting bigger and bigger, with smaller ones being abandoned.”
1. Import barriers
Very high tariffs on key agricultural products such as grain, meat and milk.
2. Legal regulations
Land law in Norway says arable land must be used for farming purposes only. You need to obtain a special exception for industrial development. There are also concessional laws that make farm property lower in price and require you to live in it for a certain number of years. An ancient land law in Norway gives the oldest son/daughter the right to buy the farm.
3. Annual negotiations
Since 1950 there have been annual negotiations between farmers’ union and government. They compromise and discuss the level of subsidies and the prices of key agricultural products.
4. Market regulation
The task for the market is to meet these agreed prices. Co-ops are given the role of regulating the market so the target price is received during the year. The co-op’s duty is to receive all produced goods and to supply industry with the inputs needed.
Much of Norway’s agriculture can be defined as ‘arctic’. Approximately 20% of Norway’s population live in rural areas and farms are spread out right across the country; north to south and east to west, despite the more challenging geography of some areas. The country is quite dependent on imports as its agriculture produces 40% to 50% of the calories eaten, depending on the crops.
Norway factbox
40,000 farms.3% of total land area is arable.Average of 24ha arable land per farm.8,000 dairy farms (average herd of 26 cows).15,000 sheep farms (average flock of 65 ewes).2,400 pig farms (average herd of 88 pigs).11,000 arable farms.Just 3% of Norway’s land is suitable for arable production and over two thirds of that is used to make silage. The country’s agricultural policy has four main goals:
Self-sufficiency.Active agriculture all over the country.Sustainable production.Rural development.“We can trace this back to the 1930s when there were difficult times,” Eirik Magnus Fuglestad, researcher for Ruralis, told the National Farmers Union of Scotland conference a few weeks back. “Farmers organised themselves into national co-operatives, selling their goods together. In addition to that, you had exceptions to the rules of competition. We had a compromise allowing farmers to sell in monopolies to stabilise prices for people in cities.”
After World War II the goals for Norwegian agriculture became pillars of its agricultural policy, complete with import barriers and market regulation. The system of subsidies favours smaller farms with tougher conditions. Farmers get more money for the first few animals and this declines per head once you have more.
“Our policy ensures the best agricultural areas are used for grain production which is helpful for self-sufficiency,” Fuglestad said. “We are not members of the EU but our deal is called EEA, which ensures free trade with the EU. Agricultural goods are not part of that. But Article 19 says the Norwegian government and the EU are to meet every second year and gradually liberalise trade even on agricultural products. We have a famous cheese deal and we import a lot of cheese.
“I think we have a pretty robust agricultural system. Our policy works to a degree. We still have farms getting bigger and bigger, with smaller ones being abandoned.”
1. Import barriers
Very high tariffs on key agricultural products such as grain, meat and milk.
2. Legal regulations
Land law in Norway says arable land must be used for farming purposes only. You need to obtain a special exception for industrial development. There are also concessional laws that make farm property lower in price and require you to live in it for a certain number of years. An ancient land law in Norway gives the oldest son/daughter the right to buy the farm.
3. Annual negotiations
Since 1950 there have been annual negotiations between farmers’ union and government. They compromise and discuss the level of subsidies and the prices of key agricultural products.
4. Market regulation
The task for the market is to meet these agreed prices. Co-ops are given the role of regulating the market so the target price is received during the year. The co-op’s duty is to receive all produced goods and to supply industry with the inputs needed.
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