The government’s offer vs agriculture’s demands

The case is updated.

In its demand for NOK 3,930 million, agriculture made arrangements to close the income gap to other groups in society by NOK 75,900 per family-year. In comparison, the state’s offer is NOK 2,620 million and aims to close the income gap by NOK 45,000 per family-year.

The government’s offer therefore has less money to distribute. The direction of the offer is essentially not far from what we have demanded, but there is too little money. One move that makes the difference is that the state is basing a lower cost increase than we have done in the claim. Before the income gap can be closed, the farmer must have coverage for his cost increases.

We have taken the steps we have taken in the claim to get the best income effect for the farmer, and to strengthen the active farmer. In its offer, the state will turn more of the schemes over to compensation for schemes that do not necessarily generate an income effect, such as the regional environmental programme.

Milk

Strengthening the finances of milk producers is a high priority in agriculture’s requirements. The government’s offer meets our priorities, but has less funds.

• Where we demanded an increased target price of 44 øre per litre, the state has put forward an offer of 24 øre per litre.
• Where we demanded a basic subsidy of 34 øre, the state turns the district subsidy for milk into a price subsidy for everyone. The rates will vary from 26 øre to 56 øre per liter depending on which zone the farm is in. To improve the liquidity of the dairy farmers quickly, agriculture will introduce this subsidy as early as 1 July. The state does not want that.
• We demanded a grazing subsidy in open fields of NOK +400, the state offers NOK +250
• We demanded a grazing subsidy of NOK +150, the state offers NOK +100
• Both agriculture and the state want to remove the target price for milk, and switch to a volume system. This is necessary to be in line with WTO rules.

Grain

Increased grain production is a key to increased self-sufficiency, and therefore food grains and protein crops in particular are prioritized in this year’s requirements. At the same time, it involves more risk for the grain farmer to sow food wheat, and that is the reason why the requirement not only entails an increased price for food wheat, but also an increased area subsidy, especially for wheat and protein crops.

• We demanded a 20 øre increase in the target price for food wheat, the state has offered 15 øre
• The food grain subsidy is increased in the requirement by 17 øre per kg, from 23 øre per kg to 40 øre per kg in order to ensure competitiveness vis-à-vis imported finished goods. The government proposes to increase the food grain subsidy by 25 øre per kg to 48 øre per kg.
• We demanded a 10 øre increase on feed grain, the state offers 7 øre
• We demanded an area subsidy for wheat of NOK +100, the state offers NOK +76
• We demanded an additional NOK +200 for protein crops, the offer was NOK +171
• Well-drained soil produces larger yields. In the requirement, we add NOK 100 million for drainage, the state offers NOK 32 million + NOK 45 million

Lactating cow and beef

Agriculture prioritizes forage-based productions, because they are important for the use of pastures and to have agriculture throughout the country. We do not find this prioritization in the government’s offer.

• We demanded NOK +400 for pasture allowance for open fields, the state offers NOK +250
• We require a grazing subsidy of NOK +150, the state offers NOK +100
• We demanded NOK +100 for livestock subsidy for suckling cows, the state offers NOK +70
• We demanded a livestock allowance for other cattle of NOK +400, while the state offers NOK +190

Sheep and lamb

• We have demanded a grazing allowance of 150 kroner, the state offers 100 kroner
• We demanded a grazing subsidy of NOK +40, the offer from the state is NOK +25
• We demanded NOK +250 for livestock subsidies from 1-75 animals, the state will give us NOK +125
• Livestock subsidy 76-150 animals we require NOK +150, the state offers NOK +75
• We have demanded an additional NOK 15 for lamb slaughter, the state will keep it unchanged
• We demanded NOK +2 in the basic subsidy for sheep/lamb, the state offers NOK 1.30

Potatoes, vegetables, fruit and berries

In order to increase self-sufficiency, we must also increase the Norwegian share of vegetables and potatoes. From this year, there is improved customs protection for potatoes, and there is a background for an increase in subsidies for industrial potatoes and also more for variety development. The state does not meet us on this. The state generally offers somewhat more in subsidies for green than we asked for, but this does not make up for the fact that they offer much lower price increases.

• We demanded a target price of potatoes of +40 øre, the state says +20 øre
• A price subsidy of 25 øre for the industrial potato that we demanded, the state says no to
• The target price for fruit, berries and vegetables would be an increase of 6 per cent, the state says 3 per cent
• Both agriculture and the state will give more to variety development

Welfare schemes:

The welfare schemes are part of the farmer’s safety net. Agriculture demands increased rates, and will remove the co-ordination rule which gives a reduction in sickness and maternity benefits for farmers who have paid work in addition to farming.

• Increased rates for all schemes – the state meets us on this.
• We demanded the removal of the coordination rule, the state says no. Many farmers will not get the full benefit of the increased rates when the coordination rule is not removed.