The strategic objectives of Norway’s agricultural and food policies are set out in the 2016 White Paper “Change and development – A future oriented agricultural production” (Det Kongelige Landbruks - Og Matdepartementet, 2016[1]). Those include food security, agriculture throughout the country, increased value creation, and sustainable agriculture with lower greenhouse gas emissions.
The principal policy instruments supporting agriculture include border protection measures, budgetary payments differentiated by commodity and region, and domestic market regulation based on the Marketing Act. The Marketing Act covers certain types of meat (beef, mutton, pork and poultry); milk, butter and cheese; eggs; cereals and oilseeds; potatoes, vegetables, fruit and berries.
Target prices are provided for grains and some fruits and vegetables. The government and farmers’ organisations annually negotiate target prices and the budgetary framework for payments to farmers. Marketing fees are collected from producers and used to finance marketing activities dealing with surpluses. For agricultural products, simple average MFN applied tariffs were 31.1% in 2023 (compared with 0.4% for non-agricultural commodities). Certain sectors face significantly higher rates, such as meat (98% on average) and dairy (97%) (World Trade Organization, 2024[2]).
Dairy production is controlled by a milk quota system. Milk quotas are farm-specific and tradeable only within the same regional area. Quotas were introduced in 1983, with trading of quotas being introduced in 1997 and leasing of quotas allowed since 2009.
Various direct payments are provided to farmers, including acreage and headage payments, as well as payments based on product quantities for meat. Many of these are differentiated by region and farm size to equalise income opportunities across all types of farms and regions. This is designed to maintain the geographic distribution of farms and production in the country.
Since 2004, agri-environmental measures have been implemented as part of the National Environmental Programme (Nasjonalt miljøprogram), which aims to contribute to sustainable agriculture production with reduced greenhouse gas (GHG) emissions, as well as to fulfilling Norway’s international commitments on environment and climate in the agricultural sector.
The most important agri-environmental measures are the Acreage and Cultural Landscape Support (Areal- og kulturlandskapstilskudd), which provides payments to farmers as an incentive for land to remain in production and prohibits major changes to the natural landscape, such as levelling agricultural land, spraying edge vegetation or channelling rivers or streams. There are requirements and support for livestock on pasture, with extra payments for grazing on unimproved pasture land. Other measures include those for organic agriculture, payments for regional environmental programmes for specific agri-environmental measures, Special Environmental Measures in Agriculture (Spesielle Miljøtiltak i jordbruket) and organised grazing measures (Tiltak i beiteområder). Environmental levies are applied on agricultural pesticides.
The Selected cultural landscapes in agriculture (Utvalgte kulturlandskap i jordbruket, UKL) initiative supports farmers who want to make an extra effort to care for the environmental values of cultural landscapes in 51 selected areas deemed important or exceptional. The investment is based on voluntary agreements between the state and landowners. Co-ordination of these cultural landscapes nationally is the responsibility of the Norwegian Directorate of Agriculture, in collaboration with the Norwegian Environment Agency and the National Heritage Board. Each of the selected areas is co-managed by the municipality, landowners and agricultural enterprises, in collaboration with regional agricultural, natural and cultural heritage management.
The Regional Environmental Programme (Regionalt miljøtilskudd i jordbruket, RMP) includes payments to reduce water pollution from agricultural fields, environmentally friendly spreading of manure, management of fields deemed of high natural value or with special biodiversity, and maintenance around heritage sites in the agricultural landscape.
Fossil fuel emissions from the agricultural sector are subject to the nation’s carbon tax. A combination of economic and regulatory instruments exists to reduce run-off and comply with commitments of the EEA agreement for water protection. For instance, autumn tillage is restricted in areas surrounding the vulnerable Oslofjord estuary to reduce run-off.
Through the European Free Trade Association (EFTA), Norway has negotiated 34 free trade agreements (FTAs) with 45 partner countries. All agreements include agricultural products, although average tariffs remain above those outside the agricultural sector.