Farmers receive NOK 754 million in compensation for increased costs

Farmers’ organizations and the government are in talks this fall to provide compensation to farmers as prices of fertilizers and other commodities have risen sharply.

On Thursday, the parties agreed to pay NOK 754 million in preliminary compensation rather than the budget. The amount corresponds to the needs of agriculture.

– We have strong cost growth, which weakens the economy of farmers, which also affects the ability to produce food. Without this compensation, farmers ‘incomes would be even lower, says Bjன்rn Jimming, president of the Norwegian Farmers’ Association.

– It shows that we are investing in Norwegian agriculture, says Agriculture Minister Sandra Porsche. Watch the interview here:

On the other hand, the farmers’ organizations did not accept the demand for compensation in view of the high cost of electricity. The parties have agreed that this will be considered separately in next year’s agricultural settlement.

– When the resumption of negotiations with the new government we removed the increase in electricity prices again. It is not possible to achieve this, but we have got an agreement that it will be considered separately in this spring agricultural settlement. This will be very important, says Jimming.

The government writes in a press release that compensation will be paid in February 2022 along with production subsidies and that the increased area will take the form of livestock and district subsidies.

Agriculture and Food Minister Sandra Porsche says it would be good to reach an agreement with agricultural organizations in a very short period of time to address the challenges that many farmers need.

Negotiations were suspended by the Solberg government on September 17 and resumed on October 19 with the new government.

Change record:

First, TV2 wrote that it would pay 974 million kroner in compensation to farmers. The correct amount is NOK 754 million.