Agricultural Policy Monitoring and Evaluation 2026

22. Norway

Main findings

Support to agriculture

Norway provides the third‑highest level of agricultural support, relative to the value of production, across all countries covered in this report. In 2023‑25, transfers to farmers (Producer Support Estimate, %PSE) averaged 50% of gross farm receipts, compared with 69% in 2000‑02.

Market Price Support (MPS) has continued to decline in recent years but still accounts for a substantial share of producer support, representing 24% in 2023‑25. Budgetary payments based on current or non-current production factors represents 61% of producer support.

Support for general services, measured by the General Service Support Estimate (GSSE) averaged 3.8% of the value of agricultural production, above the OECD average. Nearly two-thirds of GSSE is allocated to agricultural education services at the Norwegian University of Life Sciences, with most of the remaining funds directed towards agricultural product-safety and inspection services managed by the Norwegian Food Safety Authority.

Norway’s total support (TSE) has declined steadily over time, falling from 1.42% of GDP in 2000‑02 to an average of 0.7% of GDP in 2023‑25. Despite this decline, TSE remains above the OECD average, which stood at around 0.5% of GDP in 2023–25.

Key policy changes in 2025-26

In January 2025, Norway adopted new regulations on fertilisers, covering both fertiliser products and fertiliser use: the product regulation ensures quality standards and promotes environmentally sound, circular use of raw materials, while the use regulation introduces stricter limits on the timing and quantities of fertiliser application in line with crop needs.

In 2025, Norway adopted a new national strategy for organic agriculture, aiming to increase production, demand and sales and to reach 10% of total agricultural area under organic farming by 2032.

In 2026, Norway introduced a system of regular soil monitoring on arable land, building on monitoring systems established in 2024 for pastureland and forest soils, with the aim of documenting the status of soils and tracking changes in soil properties over time.

In 2025, Norway, together with the European Free Trade Association (EFTA) states, expanded its trade network by signing or advancing several trade agreements with partners including MERCOSUR, Malaysia, India, Thailand and Kosovo*, covering trade in goods and services and incorporating provisions on sustainability, climate and environmental protection.

Assessment and recommendations

• Adapt agricultural support to regional conditions to maintain distributed agriculture. Agricultural support policies should remain flexible and responsive to regional differences in production conditions and environmental constraints. Where policy objectives include maintaining a geographically distributed agricultural sector, support should be tailored rather than applying uniform measures that may disadvantage certain regions or production systems.

• Shift from price‑based support toward targeted, outcome‑oriented measures. Further progress on environmental and social objectives will require more targeted and outcome-oriented policies, or a combination of both where the outcomes fall beyond farmers’ control. This could include expanding and reforming the national and regional environmental programmes from practice-based grants toward results-based payments – such as per hectare payments indexed to verified biodiversity indicators, grazing intensity thresholds, or nutrient runoff reductions in high-risk catchments. Support should focus on addressing specific environmental pressures – such as livestock-related impacts and farmland biodiversity loss – while also supporting viable rural communities and facilitating generational renewal, without suppressing market signals.

• Strengthen generational renewal through targeted support. Redirecting a share of current farm income support toward dedicated renewal packages – such as start-up grants, concessional loans, and tax incentives – conditional on business plans that integrate innovation and environmental performance, will be needed to support long-term sector viability.

• Improve nutrient management through targeted, farm‑level approaches. Persistently high nitrogen and phosphorus surpluses in Norway point to ongoing pressures on soil, water, and air quality. Strengthening nutrient management should be a priority, including by promoting farm‑level environmental plans to support targeted action. Establishing a robust system to monitor agri‑environmental performance at the farm level would help track progress over time and better inform policy design.

• Continue trade engagement while reinforcing environmental provisions. Norway’s engagement in trade agreements through EFTA could be further pursued, particularly where agreements are underpinned by clear and robust environmental provisions. Strengthening the environmental dimension of trade policy can help ensure that openness is consistent with sustainability objectives and supports higher environmental standards in agricultural production.

Key indicators on agricultural support

Table 22.1. Norway: Estimates of support to agriculture

Million USD

	1986-88	2000-02	2023-25	2023	2024	2025p
Total value of production (at farm gate)	2 533	2 051	3 885	3 592	3 882	4 181
of which: share of MPS commodities (%)	73.28	80.83	71.45	73.56	70.83	69.95
Total value of consumption (at farm gate)	2 686	2 085	4 165	3 962	4 061	4 472
Producer Support Estimate (PSE)	2 843	2 337	3 069	2 726	3 104	3 377
Support based on commodity output	2 069	1 346	1 075	960	1 089	1 177
Market price support¹	1 396	1 009	724	670	737	764
Positive market price support	1 396	1 009	749	680	758	809
Negative market price support	0	0	-26	-10	-21	-45
Payments based on output	673	337	352	290	352	413
Payments based on input use	250	117	212	205	206	226
Based on variable input use	149	71	94	116	78	86
with input constraints	0	0	0	0	0	0
Based on fixed capital formation	91	38	107	79	116	125
with input constraints	0	0	0	0	0	0
Based on on-farm services	11	8	12	10	12	14
with input constraints	0	-0	-0	0	0	0
Payments based on current A/An/R/I, production required	524	871	1 286	1 124	1 307	1 428
Based on Receipts / Income	0	49	91	86	90	96
Based on Area planted / Animal numbers	524	822	1 196	1 038	1 217	1 332
With input constraints	371	644	1 003	854	1 004	1 150
Payments based on non-current A/An/R/I, production required	0	0	487	431	494	537
Payments based on non-current A/An/R/I, production not required	0	0	0	0	0	0
With variable payment rates	0	0	0	0	0	0
with commodity exceptions	0	0	0	0	0	0
With fixed payment rates	0	0	0	0	0	0
with commodity exceptions	0	0	0	0	0	0
Payments based on non-commodity criteria	0	3	8	6	8	10
Based on long-term resource retirement	0	0	0	0	0	0
Based on a specific non-commodity output	0	3	8	6	8	10
Based on other non-commodity criteria	0	0	0	0	0	0
Miscellaneous payments	0	0	0	0	0	0
Percentage PSE (%)	71.44	68.98	49.26	48.27	49.67	49.71
Producer NPC (coeff.)	4.11	2.55	1.36	1.34	1.37	1.36
Producer NAC (coeff.)	3.50	3.22	1.97	1.93	1.99	1.99
General Services Support Estimate (GSSE)	129	157	148	145	143	154
Agricultural knowledge and innovation system	74	62	92	90	90	95
Inspection and control	5	25	32	33	30	34
Development and maintenance of infrastructure	29	54	14	13	14	15
Marketing and promotion	21	15	10	10	9	11
Cost of public stockholding	0	2	0	0	0	0
Miscellaneous	0	0	0	0	0	0
Percentage GSSE (% of TSE)	4.04	6.16	4.33	4.73	4.16	4.15
Consumer Support Estimate (CSE)	-1 388	-1 034	-681	-655	-664	-723
Transfers to producers from consumers	-1 674	-1 099	-807	-730	-835	-856
Other transfers from consumers	-178	-75	-75	-126	-42	-57
Transfers to consumers from taxpayers	220	71	196	205	197	185
Excess feed cost	244	70	6	-3	17	5
Percentage CSE (%)	-56.34	-51.08	-17.15	-17.44	-17.19	-16.86
Consumer NPC (coeff.)	3.23	2.28	1.27	1.28	1.28	1.26
Consumer NAC (coeff.)	2.29	2.04	1.21	1.21	1.21	1.20
Total Support Estimate (TSE)	3 192	2 566	3 413	3 076	3 445	3 716
Transfers from consumers	1 852	1 175	882	857	878	913
Transfers from taxpayers	1 518	1 466	2 605	2 346	2 609	2 860
Budget revenues	-178	-75	-75	-126	-42	-57
Percentage TSE (% of GDP)	3.49	1.42	0.69	0.64	0.71	0.71
Total Budgetary Support Estimate (TBSE)	1 796	1 557	2 689	2 407	2 708	2 952
Percentage TBSE (% of GDP)	1.96	0.86	0.54	0.50	0.56	0.57
GDP deflator (1986-88 = 100)	100	163	388	383	383	398
Exchange rate (national currency per USD)	6.88	8.59	10.57	10.56	10.75	10.40

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient.

A/An/R/I: Area planted/Animal numbers/Receipts/Income.

1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for Norway are: wheat, barley, oats, milk, beef and veal, sheep meat, wool, pig meat, poultry and eggs.

Source: OECD (2026), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

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 Marketing Act (Omsetningsloven), the Land Act (Jordlova) and the Customs Duty Act (Tollavgiftsloven) establish the legal framework for the regulation and marketing of agricultural products, and underpins the implementation of key agricultural instruments in Norway. Within this framework, the authorities apply a range of policy tools, including border protection measures, budgetary payments differentiated by commodity and region, and domestic market regulation aimed at balancing supply and demand and ensuring stable market conditions.

The Agricultural Agreement (Jordbruksavtalen) is an annual political agreement negotiated between the government and the farmers’ organisations, the Norwegian Farmers’ Union and the Norwegian Farmers and Smallholders Union. It sets the overall economic framework for the agricultural sector, specifying subsidies, target prices and other support measures. It annually determines the policy measures and financial support for agriculture by adjusting target prices, setting budgetary allocations, and defining tax incentives. Target prices are set for grains and some fruits and vegetables.

Dairy production is controlled by a milk quota system. Milk quotas are farm-specific, leasable and tradeable only within the same regional area.

Direct payments are provided to farmers, by hectare and by head of animal, as well as based on product qualities for meat. These vary by region and farm size to equalise income opportunities. This is designed to maintain the geographic distribution of farms and diverse production systems 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 and reduced eutrophication (run-off), 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 programme (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. In 2024 this programme amounted to NOK 5 564 million (USD 535 million). There are requirements and support for livestock on pasture, with extra payments for grazing on unimproved pastureland. Other measures include those for organic agriculture, payments for regional environmental programmes for specific agri-environmental practices, 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 make additional efforts to safeguard the environmental, cultural, and heritage values of agricultural landscapes. The programme covers 51 selected areas identified as being of particular importance or exceptional value. Support is provided through voluntary agreements between the state and landowners and is jointly funded by the Ministry of Agriculture and Food and the Ministry of Climate and Environment. In 2024, funding amounted to NOK 15.5 million (USD 1.49 million) from the Ministry of Agriculture and Food and NOK 16.3 million (USD 1.57 million) from the Ministry of Climate and Environment. National co‑ordination of the initiative is the responsibility of the Norwegian Agriculture Agency, working in co‑operation with the Norwegian Environment Agency and the Directorate for Cultural Heritage. At the local level, each selected landscape is co‑managed by the municipality, landowners, and agricultural enterprises, in collaboration with regional authorities responsible for agriculture, nature conservation, and cultural heritage management.

The Regional Environmental Programme (Regionalt miljøprogram) includes payments (grants and cost sharing, depending on a measure) 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. The 2024 budget amounted to NOK 1 285 million (USD 123 million).

The Svalbard Global Seed Vault was established and is fully funded by the government of Norway, with operational responsibility assigned to the Norwegian Ministry of Agriculture and Food, in co‑operation with the Nordic Genetic Resource Center and the Global Crop Diversity Trust. It is supported by a dedicated advisory council that provides guidance on the Seed Vault’s activities. Deposits of seeds to the vault are continuous and reflect its role as a long-term global backup for crop diversity. The first seed deposit of 2026 took place in early February, including seeds from two new depositing countries, Guatemala and Niger, as well as the vault’s first-ever deposit of olive seeds.

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.

Recent policy developments

Domestic policy developments in 2025-26

In 2026, Norway launched a public system of regular, soil sampling on arable land. This builds on the system established in 2024 for pastureland and forest soils, which was designed to document the status of and changes in soil properties.

In January 2025, new regulations on fertilisers were adopted, one regulating fertiliser products and the other regulating fertiliser use. The Regulation on the production, sale, and import of fertilising products of organic origin and certain inorganic fertilising products (fertiliser regulation) ensures the quality of fertilising products and takes environmental considerations into account while facilitating the circular use of raw materials. The Regulation regarding fertiliser use includes stricter limits on the timing and amount of fertiliser use in accordance with crop needs. Farmers are required to take their own soil samples and report the results to a central register.

The electricity subsidy, originally introduced in 2021, to compensate for the rising energy costs, for agricultural enterprises has been extended to through December 2029. The scheme provides preferential treatment to agriculture through higher consumption limits than those applied to households and other businesses. There is no consumption ceiling for greenhouse and irrigation operations, while other agricultural enterprises may consume up to 60 000 kWh at a lower rate. The subsidy compensates a share of electricity consumption above a price threshold, which was increased from NOK 0.75/kWh (USD 0.064/kWh) to NOK 0.77/kWh as of 1 January 2025, with compensation currently set at 100% for all agricultural enterprises. The total allocation for 2025 amounted to NOK 38 million (USD 3.65 million).

In 2025, a new national strategy for organic agriculture was adopted. The strategy aims to increase production, demand, and sale, with an overall target of reaching 10% of total agricultural area under organic farming by 2032. The strategy also requires the development of sector-specific action plans for dairy, fruits and vegetables, and grains, respectively. In addition, a memorandum of understanding (MoU) has been signed by 26 key actors across the value chain. Each actor has set out specific commitments contributing to the achievement of the overall target, with annual reporting on progress. A dedicated platform has also been established to facilitate co‑operation and monitor the implementation of both the MoU and the strategy.

Trade policy developments in 2025-26

The Trade and Economic Partnership Agreement (TEPA) between the EFTA states – Switzerland, Iceland, Liechtenstein and Norway – and India entered into force on 1 October 2025, following parliamentary approval in March 2025. Signed in March 2024, the agreement is expected to boost trade and investment, create jobs, and support economic growth. Under the TEPA, the EFTA states committed to invest USD 100 billion and generate one million jobs in India over the next 15 years.

In January 2025, Thailand and the EFTA states signed a trade agreement at the World Economic Forum, following ten rounds of negotiations concluded in November 2024. The agreement aims to enhance trade relations by eliminating or reducing customs duties, facilitating trade, and promoting sustainable development. Ratification and implementation are still pending.

In January 2025, the EFTA states signed a free trade agreement with Kosovo at the World Economic Forum in Davos, covering trade in goods and services and including provisions on sustainable development.

In April 2025, the EFTA states and Ukraine signed a modernised free trade agreement, replacing the 2012 agreement. The updated free trade agreement (FTA) includes a new sustainable development chapter and improves market access for selected goods. Ukraine has been granted the same general tariff concessions for unprocessed agricultural products as the EU. For processed agricultural products, the treatment granted to the EU is maintained, with additional duty-free access for certain tariff lines and full duty-free access within WTO tariff-rate quotas for sensitive products. Sensitive Norwegian agricultural products are protected, and no bilateral tariff-rate quotas have been granted for agricultural products.

Beyond trade, both EFTA-Kosovo and EFTA-Ukraine agreements carry political significance, supporting Kosovo’s and Ukraine’s European integration amid ongoing geopolitical challenges.

In April 2025, the Protocol of Amendment modernising the free trade agreement between the EFTA states and Chile was approved by parliament. Signed in June 2024, the protocol updates the FTA in force since 2004 and will grant duty-free access to 99% of existing agricultural imports into Chile from the EFTA states, while covering 95% of Chilean imports into the EFTA states. The modernised agreement also introduces new chapters on trade and sustainable development and, for the first time, on small and medium-sized enterprises.

On 23 June 2025, the EFTA states signed an economic partnership agreement with Malaysia. The agreement is comprehensive, covering trade in goods, financial services, telecommunications, investment, government procurement, competition and intellectual property rights. It also includes new sustainability provisions and binding commitments related to climate, environmental protection and labour rights.

On 16 September 2025, the EFTA states signed a free trade agreement with the MERCOSUR countries Argentina, Brazil, Paraguay and Uruguay. Once ratified and in force, the agreement will primarily grant MERCOSUR bilateral import quotas and tariff reductions for agricultural products already traded, such as maize, molasses, and soybean. In addition, bilateral quotas have been granted for horses, beef, chicken, honey, apples and apple juice, potato products, and wheat. It will also grant duty-free access to the Norwegian market for MERCOSUR products, within certain WTO quotas. More broadly, tariff reductions apply to tropical products and Norwegian offseason products. The agreement includes a chapter on trade and sustainable forest management, committing parties to combat illegal logging. This is an important provision supporting sustainable forest management and addressing deforestation and forest degradation in the Amazon, notably in the context of Norway’s International Climate and Forest Initiative. This chapter also includes a provision on trade and sustainable agriculture and food systems.

In early summer 2025, the Norwegian Government decided to incorporate the EU Deforestation Regulation into the EEA Agreement and to apply it to goods covered by the Agreement, while the need for national rules will be assessed for goods outside its scope. The process of incorporating the Regulation into the EEA Agreement is ongoing, and proposals for its implementation in Norwegian law have already been subject to public consultation.

Policy context

Key economic and agricultural statistics

Norway boasts one of the world’s highest GDP per capita at USD 102 014 in 2024, underpinned by its substantial petroleum sector. Agriculture amounts to about 2.3% of Norway’s GDP. Farmland in Norway accounts for about 3% of the mainland land mass. The agricultural sector tends to focus on a limited selection of goods. About 67% of agricultural value stems from livestock on extensive grasslands. Crop cultivation is relatively difficult given the climate and the most suitable central regions are reserved for cereal production, with milk and meat production mainly taking place in less favourable rural areas. Sheep farming, cattle rearing for both dairy and beef, and cereal cultivation, predominantly for livestock feed, are the mainstay activities. The industry is characterised by small-scale family-owned farms, a significant number of which operate in isolated areas.

Table 22.2. Norway: Contextual indicators

	Norway		International comparison
	2000*	2024*	2000*	2024*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	166	568	0.4%	0.3%
Population (million)	4	6	0.1%	0.1%
Land area (thousand km2)	365	364	0.4%	0.4%
Agricultural area (AA) (thousand ha)	1 042	985	0.0%	0.0%
			All countries1
Population density (inhabitants/km2)	12	18	52	64
GDP per capita (USD in PPPs)	36 994	102 014	9 508	31 740
Trade as % of GDP	27.7	27.9	12.3	15.0
Agriculture in the economy			All countries1
Agriculture in GDP (%)	2.0	2.3	3.0	3.6
Agriculture share in employment (%)	4.1	2.5	-	-
Agro-food exports (% of total exports)	0.8	0.9	6.4	8.3
Agro-food imports (% of total imports)	5.6	9.9	6.1	7.5
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	28.8	32.5	62.1	60.4
Livestock in total agricultural production (%)	71.2	67.5	37.9	39.6
Share of arable land in AA (%)	84.4	81.7	33.0	34.0

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

Norway’s economy is slowing as elevated inflation and higher interest rates weigh on private consumption and investment. At the same time, the labour market remains tight, with robust wage growth. Labour shortages and job mismatches are high and continue to increase, adding to underlying cost pressures.

Inflation eased over 2025 compared with the peaks reached in 2022-23, moving closer to Norges Bank’s 2% target (Figure 22.4). However, by December 2025, year‑on‑year inflation remained elevated at around 3.0-3.2%, reflecting renewed price pressures from food, energy, and rents toward the end of the year. Underlying inflation (excluding energy and tax effects) stayed somewhat high, which explains why monetary policy remained relatively tight through most of 2025 (Bank, 2026[2]).

Norway is a large net importer of agricultural goods, with the exception of fish, and these goods make up about 10% of its total imports. In contrast, agro-food commodities constitute only about 1.2% of Norway’s total exports (Figure 22.5A). The European Union (EU) is Norway’s main trade partner, responsible for nearly two-thirds of the country’s import and export activities. Within the EU, Sweden and Denmark combined are the destination for one-third of Norway’s agro-food exports. Beyond the EU, the United States and Japan stand out as significant markets for Norwegian agro-food products. Most trade is in processed rather than primary products, with 95% of exports being processed and 72% of imports. Most imports are directed at consumers rather than industry (Figure 22.5B).

Agricultural output in Norway increased at an average rate of 2.2% between 2014 and 2023, above the global average growth rate (Figure 22.6). This growth in Norway has been primarily driven by total factor productivity (TFP) growth, which averaged 1.5% over the period. Increased use of both primary and intermediate inputs, such as the use of fertilisers, accounted for the remaining 0.7% of annual output growth.

Norway has a strong record on domestic environmental performance overall (OECD, 2022[3]). Air quality in urban areas is among the best in Europe. While land‑use change is exerting some pressure on Norway’s diverse and largely pristine landscapes, the conversion of agricultural land is tightly restricted.

At the same time, the structure of agricultural production contributes to a relatively significant environmental footprint. Norway’s high share of livestock and dairy production, combined with its limited land area, has resulted in some of the highest nitrogen and phosphorus surpluses in the OECD, posing risks to water and air quality (Table 22.3). Agricultural greenhouse gas emissions account for nearly 10% of national emissions, close to the OECD average. Irrigation is rarely used, and as a result, agriculture places negligible pressure on water resources.

Table 22.3. Norway: Productivity and environmental indicators

	Norway		International comparison
	1991-2000	2014-23	1991-2000	2014-23
			World
TFP annual growth rate (%)	5.5%	1.5%	1.8%	0.8%
			OECD average
Environmental indicators	2000*	2024*	2000*	2024*
Nitrogen balance, kg/ha	85.3	98.2	32.3	29.0
Phosphorus balance, kg/ha	12.0	10.2	3.3	2.3
Agriculture share of total energy use (%)	1.6	1.6	1.7	2.0
Agriculture share of GHG emissions (%)	8.9	9.7	8.7	10.3
Share of irrigated land in AA (%)	4.2	3.3	-	-
Share of agriculture in water abstractions (%)	..	..	46.1	47.7
Water stress indicator	0.5	..	..	..

Note: * or closest available year.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

Historically, Norway’s agricultural policies relate to food security and ensuring farm incomes, employment opportunities and regional distribution of production. Today, these objectives are complemented by consumer and societal concerns such as sustainability and environmental issues, climate, food safety and animal welfare, cultural landscape, innovation, agri-tourism, and the small-scale food industry. Norway adopts a four-pillar approach to implement these objectives: i) border protection; ii) legal frameworks to secure family-owned farms; iii) annual negotiations between the state and farmers’ organisations to determine producer prices, budget transfers and allocation of funds; and iv) domestic regulations to balance the market through producer co-operatives.

Since the mid-1980s there has been modest policy reform towards market orientation, and modest reductions in the level of support. Farmers in Norway remain heavily supported through border measures, domestic market regulations, budgetary payments and tax breaks, however, some policy reforms were conducted since then. These trends are summarised in Table 22.4.

Environmental cross-compliance was introduced in 1991 with the Acreage and Cultural Landscape Programme which grants payments on the condition that farmers meet cultural landscape requirements. Norwegian agri-environmental policies are underpinned by the premise that certain environmental public goods are most cost-effectively provided through positive externalities of agricultural commodity production.

Prompted by the WTO Uruguay Agreement on Agriculture, in force since 1995, a number of changes were introduced to agricultural policies, to improve cost efficiency and market orientation, including removal of administered prices for eggs, poultry, pork, beef and sheep, and phasing out of export subsidies. Norway still holds milk quota system that divides production into 14 regions, with quotas generally not transferable across regions, ensuring geographically balanced milk production nationwide. Although inter‑regional transfers are rare, in 2025 the state allowed 4 million litres of milk from other regions to be sold at a reduced price to producers in northern Norway to strengthen production there. High levels of protection remain against imports of the most important and sensitive agricultural products, such as meat, dairy, eggs and grains. Moreover, the primary agricultural sector is exempt from standard competition law.

Most of Norway’s tariff rate quotas (TRQs) were eliminated in 2000 when the WTO bound tariff rates became equal to the in-tariff quota rates. Tariffs for some products, particularly livestock products are set between 100% and 400%. However, there is a system of “open periods” allowing imports at reduced tariff rates in the event that domestic prices rise above threshold levels due to a deficit in domestic production. Since 1 January 2015, Norway has unilaterally eliminated import duties on 114 agricultural tariff lines. While these duties were low (and not important for protecting Norwegian agricultural production), their elimination resulted in reduced customs procedures and administrative costs. Export subsidies were abolished at the end of 2020.

Table 22.4. Norway: Agricultural policy trends

Period	Framework	Changes in agricultural policies
Prior to 1985	Closed economy	High agricultural import tariffs and non-tariff measures Administered prices of agricultural products Production quotas of certain products
1985-1994	Modest domestic reforms	Modest reduction in agricultural import tariffs Removal of several administered prices Increased flexibility in the milk quota system
1995-2000	Implementation of the WTO Uruguay Agreement on Agriculture; more emphasis on environmental sustainability issues	Modest import tariff reduction; tariffication of non-tariff measures Introduction of environmental cross-compliance
2000-present	Continuation of trade reforms	Lower border protection Abolition of export subsidies Removal of several administered prices Introduction of environmental programmes

Agricultural policies have been stable for some time, with no major change to the basic structure of support in the last twenty years. The most noteworthy change was the addition of the cultural landscape payment and structural income support for milk production in 2003 (Figure 22.7). However, support as a share of gross farm receipts has been declining steadily as the growth in the value of production by the sector outpaces support. This trend is most evident in market price support, whose share of overall support has halved.

References

[2] Bank, N. (2026), The Monetary Policy Report, https://www.norges-bank.no/contentassets/d94783271f854bd08b3ec9e28d8c3f4c/mpr_1_26.pdf?v=27032026134117.

[1] Det Kongelige Landbruks - Og Matdepartementet (2016), Endring og utvikling: En fremtidsrettet jordbruksproduksjon Melding til Stortinget Endring og utvikling, http://www.fagbokforlaget.no/offpub.

[3] OECD (2022), OECD Environmental Performance Reviews: Norway 2022, OECD Environmental Performance Reviews, OECD Publishing, Paris, https://doi.org/10.1787/59e71c13-en.