The state presented its offer to the Norwegian Farmers' Association and the Norwegian Farmers' and Smallholders' Association in this year's agricultural negotiations.
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The state offers a total increase in revenue opportunities in 2022 and 2023 of NOK 10.15 billion ($1 billion).
Norway, Europe and the world are in an extraordinary situation with war and conflict. The markets for energy and food are in strong imbalance, and there is great uncertainty about how the situation and the markets will develop.
Agriculture has had unparalleled cost increases over the past year. This is demanding for Norwegian food production and Norwegian farmers.
"The extraordinary situation means that the state's offer is solid, with significant amounts in the budget and in target price increases. The government believes this is necessary to contribute to security for Norwegian food production and self-sufficiency in a situation with unpredictable markets and strong cost growth," says the state's chief negotiator Viil Søyland.
Some of the measures contained in the offer are extraordinary and of a temporary nature, and will not be able to be continued in a normal situation. This is crucial for the competitiveness of Norwegian agricultural production in the long term.
The state agrees with agriculture on basic figures and cost calculations that form the basis for this year's settlement. This year's settlement is in reality two years, and it has made it extra demanding to set up a traditional offer this time.
"There have been difficult trade-offs for the government, set against other important considerations within an overall budget. The budget increase presented by the state in this offer is large, and shows the government's very strong prioritization of Norwegian agriculture and food production," says Viil Søyland.
The state agrees with the Norwegian Farmers' Association and the Norwegian Farmers' and Smallholders' Association that it is necessary to compensate for increased costs of 2.4 billion in 2022. This will compensate for the decline in income growth compared to what the Storting assumed last year.
The offer aims to pay compensation for increased costs and to raise the income level in the industry further already this year. This is done through an additional allocation of NOK 1.8 billion this year, and through increases in target prices for milk, cereals, potatoes and vegetables.
The offer also provides for an increase in income in 2023 in addition to a similar development in other groups in terms of krone. In total, the offer provides a basis for a level increase of approximately NOK 30,000 per man-year in addition to an equal development in kroner, from the compensated level in 2022. ■