G/SCM/N/372/NOR  
16 July  2021 
(21-5633) Page: 1/21 
Committee on Subsidies and  
Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATI ON PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES  
NORWAY  
The following communication, dated and received on 22 June 2021 , is being circulated at the request 
of the delegation of Norway . 
 
_______________  
 
  G/SCM/N/372/NOR  
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  TABLE OF CONTENT S 
 INTRODUCTION  ................................ ................................ ................................ ..........  3 
 ASSISTANCE TO RESEARCH AND DEVELOPMENT SCHEMES  ................................ .........  3 
2.1   The Bioenergy Scheme  ................................ ................................ ................................ . 3 
 ASSISTANCE TO DISADVANTAGED REGIONS  ................................ ...............................  3 
3.1   Regional Transport Aid  ................................ ................................ ................................ . 3 
3.2   Regional Development Aid Scheme  ................................ ................................ ................  4 
3.3   Aid Scheme for Economic Development in Svalbard  ................................ .........................  5 
 ASSISTANCE TO SPECIFIC INDUSTRY SECTORS  ................................ ..........................  6 
4.1   The Press Grant Scheme  ................................ ................................ ..............................  6 
4.2   The Innovation and Development Grant Scheme  ................................ .............................  7 
4.3   National Programmes for the Promotion of Norwegian Space Industry  ................................  8 
4.4   National Nuclear Waste Management and Operation of Nuclear Facilities  ............................  9 
 EXCISE DUTIES  ................................ ................................ ................................ ...........  9 
5.1   Exemptions  in the CO 2 Tax on Mineral Products  ................................ ...............................  9 
5.2   Exemptions and Reduced rates in the Base Tax on Mineral Oil  ................................ .......... 11 
 TEMPORARY GRANT SCHEME FOR UNDERTAKINGS SUFFERING  
A SUBSTANTIAL LOSS OF TURNOVER  ................................ ................................ .............  12 
 ASSISTANCE TO THE FISHERY SECTOR  ................................ ................................ ..... 13 
7.1   Transport Support  ................................ ................................ ................................ ......13 
7.2   Sealing ................................ ................................ ................................ ...................... 14 
 ASSISTANCE TO FORESTRY SECTOR  ................................ ................................ ..........  15 
8.1   Subsidies for Forest Management Planning  ................................ ................................ ....15 
8.2   Subsidies for Industrial and Environmental Purposes in Forestry  ................................ .......16 
8.3   Subsidies for Forest Infrastructure  ................................ ................................ ................ 16 
 THE AGRICULTURAL SECTOR  ................................ ................................ .....................  17 
9.1   Introduction to Subsidies on the Expenditure Side of the Budget  ................................ ......17 
9.2   Information on the Subsidy Programmes  ................................ ................................ .......17 
 The Milk Sec tor ................................ ................................ ................................ .......18 
 The Meat and Egg Sectors  ................................ ................................ ........................ 18 
 The Grain Sector  ................................ ................................ ................................ .....18 
 Potatoes and Horticultural Products  ................................ ................................ ............ 18 
 Headage Support  ................................ ................................ ................................ .....18 
 National Environmental Program  ................................ ................................ ................ 18 
 Vacation and Replacement  ................................ ................................ ........................ 19 
 Market Regulation  ................................ ................................ ................................ ....19 
9.3   Expenditures and Market Structure  ................................ ................................ ............... 19 
 
  G/SCM/N/372/NOR  
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INTRODUCTION  
This report covers state aid programmes and schemes that were in operation in 2019 and 2020. The 
amount of subsidies which are reported, refer s to actual payments in the fis cal years 2019 and 2020. 
As regards the agricultural sector, the notification covers schemes in force from 1 January 2018 and 
until 31 December 2019, as numbers for 2020 were not available at the time of writing.  
Through Norway's participation in the Europ ean Economic Area (EEA), Norwegian legislation, under 
which subsidies are granted, is consistent with the legislation of the European Union (EU). However, 
agriculture and fisheries are not part of the EEA Agreement.  
ASSISTANCE TO RESEARCH AND DEVELOPMENT S CHEMES  
2.1  The Bioenergy Scheme  
1. The authority responsible for the subsidy  
Administered by Innovation Norway on behalf of the Ministry of Agriculture and Food.  
2. Legislation under which the subsidy is granted  
- The Annual Agricultural Agreement.  
- The Annual State Budget.  
3. Policy objective of the subsidy  
The objective of the scheme is to promote the production and use of bioenergy as an environmentally 
friendly alternative to fossil energy.  
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy  is provided  
The scheme applies to all types of companies, all regions and all sectors.  
6. Amount of subsidy  
2019: NOK 77 million.  
2020: NOK 87 million.  
7. Duration of the subsidy  
The scheme was established in 2003, and the duration is dependent on annual allocations.  
8. Trade effects of the subsidy  
Statistical information indicating trade effects are not available.  
ASSISTANCE  TO DISADVANTAGED REGIONS  
3.1  Regional Transport Aid 
1. The authority responsible for the subsidy  
The Ministry of Local Government and Mo dernisation, the County Municipalities of Sør -Trøndelag, 
Nordland and Troms.  G/SCM/N/372/NOR  
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  2. Legislation under which the subsidy is granted  
The Annual State Budget.  
Regulation on eligible areas for investment aid and transport aid (FOR -2014-06-17-807).1 
Regulation on regional aid funds (FOR -2013-12-11-1574)2 with guidelines .3 
3. Policy objective of the subsidy  
Stimulate economic growth in less developed areas by means of reducing the competitive 
disadvantages caused by long distances, difficult transpor t conditions and scattered population.  
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
The purpose of the scheme is to offset additional transport costs of firms located in the low population 
density areas of Norway. Additional transport costs are the extra costs occasioned by movements of 
goods within the borders of Norway. Under the scheme  aid is granted in relation to transport from 
places within the area of finished or semi -finished goods that have undergone significant processing 
within the eligible area. The aid is granted ex -post on the basis of verifiable incurred transport costs.  
6. Amount of subsidy  
2019: NOK 5 .5 million . 
7. Duration of the subsidy  
31.12.2021 . 
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
3.2  Regional Development Aid Scheme  
1. The authority responsible for the subsidy  
Innova tion Norway on behalf of The Ministry of Local Government and Modernisation.  
2. Legislation under which the subsidy is granted  
Act No. 130 of 19 December 2003.  
Regulation on regional aid funds (FOR -2013-12-11-1574) with guidelines of January 2015.  
Regulati on on eligible areas for investment aid and transport aid (FOR -2014-06-17-807). The Annual 
State Budget.  
3. Policy objective of the subsidy  
Stimulate development of undertakings within the regional assisted areas . 
 
1 Regulation of 01.07.2014.  
2 Regulation of 01.01.2014.  
3 Reviewed guidelines in effect from 01.01.2015.  G/SCM/N/372/NOR  
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  4. Form of the subsidy  
Grants  and loans . 
5. To whom and how the subsidy is provided  
The Ministry of Local Government and Modernization allocates funding for the county authorities for 
use on loan and grant schemes in areas with special employment problems or a low level of economic 
activity. The county authorities decide how much will be allocated for such instruments within their 
own region. The allocation from the county authorities is transferred to Innovation Norway for 
decisions on approval or rejection of applications from enterp rises located in the corresponding 
county.  
6. Amount of subsidy  
2017: NOK 337.83 million (NOK 262.18 million in grants, and NOK 75.65 million in loans).  
2018: NOK 323.60 million (NOK 281.15 million in grants, and NOK 42.45 million in loans).  
2019: NOK 264.32 million (NOK 228.36 million in grants, and NOK 35.96 million in loans).  
7. Duration of the subsidy  
31.12.2021 . 
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
3.3  Aid Scheme for Economic Development in Svalba rd 
1. The authority responsible for the subsidy  
Innovation Norway on behalf of the Ministry of Trade, Industry and Fisheries.  
2. Legislation under which the subsidy is granted  
Act No. 130 of 19 December 2003 on Innovation Norway.  
Letter from the Ministry o f Trade, Industry and Fisheries to Innovation Norway dated 20th June 2016 
(Regelverk for tilskudd til næringstiltak på Svalbard).  
3. Policy objective of the subsidy  
The objective is to stimulate new economic development in Svalbard.  
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
The scheme applies to all companies and sectors, including services, based in Svalbard and 
registered in the Norwegian Brønnøysund Register Center. Interested businesses has to apply to 
Innovation Norway.  
Aid is granted on the condition that aid is necessary to start up and realise a new project.  
6. Amount of subsidy  
2020: NOK 2 million.  G/SCM/N/372/NOR  
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  7. Duration of the subsidy  
Starting date: 1 January 2015.  
Duration: Parliament only approved funding for this scheme in 2015. Aid was granted under this 
scheme, based on the 2015 funding, in 2016 and 2017.  
The Parliament approved new funding for the scheme in 2020 to follow up on the government's 
innovation strategy for Svalbard from 2019.  
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
ASSISTANCE  TO SPECIFIC INDUSTRY SECTORS  
4.1  The Press Grant Scheme  
1. The authority responsible for the subsidy  
The Ministry of Culture.  
2. Title of the subsidy programme  
Production grants for news and current affairs media . 
3. Policy objective and/or purpose of the subsidy  
Production grants shall stimulate diversity in news and current affairs media characterised by high 
quality and independent journalism, including media in markets that are too small to be sustainable 
and alternatives to the leading media in major markets.  
4. Background and authority for the subsidy  
The scheme was first introduced in 1969 by a parliamentary decision.  
Present legislation: Regulations on production gra nts for news and current affairs media, adopted 
by the Norwegian Ministry of Culture 25 March 2014.  
The regulations replaced previous regulations of 7 November 1996. The purpose of the new aid 
scheme was to provide for platform -neutral measures, thereby ac commodating the scheme to 
current technological developments and facilitating the press' transition to digital publishing.  
5. Form of the subsidy  
Grants.  
6. To whom and how the subsidy is provided  
Grants are given to media which:  
(1) Have as their primary objective to engage in journalistic production and the distribution 
of news, current affairs and social debate to the general public.  
(2) Contain a broad range of news, current affairs and debate content from different areas 
of societ y. 
(3) Have an editor in chief . G/SCM/N/372/NOR  
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  (4) Receive genuine payment for news, current affairs and debate content, and advertising, 
according to a publicly available price list . 
(5) Sell at least half of their approved net circulation through subscription.  
Further conditions are stipulated in section 3 to 8 in the regulations.  
There are two main groups of recipients:  
(1) Leading and sole media (media which do not have larger competitors at the publishing 
site) receive a fixed base grant and a fixed amount for each e dition (newsprint or 
electronic) beyond one weekly publication.  
(2) Secondary media (media which have a competitor with a larger circulation at the 
publishing site) receive grants calculated on the basis of per annum circulation 
(newsprint or electronic). The grants are based on three different grant rates reflecting 
the medium's competitive position: Rate 1: Nationwide media, Rate 2: Media in large 
cities (Oslo, Bergen, Stavanger and Trondheim), Rate 3: Other media.  
A transitional scheme provides reduced g rants to media that no longer qualifies for subsidy.  
7. Subsidy per unit  
The grant per unit varies greatly i.a. according to the number of weekly editions, annual circulation 
and competitive position, see above. The grant amounted to a total of 358 million  NOK in 2020, and 
was divided between 152 different news media as follows:  
Secondary media  258.1 million NOK  
Leading media  9.9 million NOK  
Sole media  89.9 million NOK  
 
8. Duration of the subsidy  
The duration of the scheme is maximum six years (time limit set by the EFTA Surveillance Authority) 
and by Decision No 112/14/COL, ESA approved the scheme from 12 March 2014 to 12 March 2020. 
By Decision 006/20/COL, ESA approved a prolongation of the scheme to 31 December 2020. 
On 26 June 2020 ESA granted a t emporary extension of the current scheme from 31 December 2020 
to 31 December 2021.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
Support is assumed to have no trade effects due to the low level of exports/imports of news papers.  
4.2  The Innovation and Development Grant Scheme  
1. The authority responsible for the subsidy  
The Ministry of Culture.  
2. Title of the subsidy programme  
Innovation and development scheme for news and current affairs media.  
3. Policy objective of the sub sidy 
Grants shall promote media diversity and an enlightened public discourse, and stimulate to 
innovation and development in news and current affairs media.  G/SCM/N/372/NOR  
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  4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
Grants are given to media which:  
(1) Have as their primary objective to engage in journalistic production and the distribution 
of news, current affairs and social debate to the general public.  
(2) Contain a broad range of news, current affairs  and debate content from different areas 
of society . 
(3) Have an editor in chief . 
All types of media, including broadcasters, fulfilling the eligibility criteria are eligible to apply for 
grants.  
6. Amount of subsidy  
2020: NOK 20 .1 million.  
7. Duration of the subsidy  
The duration of the scheme is until 31 December 2022.  
8. Trade effects of the subsidy  
Support is assumed to have no trade effects.  
4.3  National Programmes for the Promotion of Norwegian Space Industry  
1. The authority responsible for the subsidy  
The Ministry of Trade, Industry and Fisheries through the Norwegian Space Agency.  
2. Legislation under which the subsidy is granted  
The Annual State Budget.  
3. Policy objective of the subsidy  
Assistance for enterprises that delivers goods or services to spac e related programmes including 
programmes administered by the European Space Agency (ESA). The programme seeks to increase 
the spin -off effects of the Norwegian membership in ESA.  
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
The grant is eligible for all enterprises that develop space related goods and services. The Norwegian 
Space Agency administers the allocation of the grant.  
6. Amount of subsidy  
Granted expenditure for 2019 was NOK 21 million.  
Granted expenditure for 2020 was NOK 21 .5 million.  G/SCM/N/372/NOR  
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  7. Duration of the subsidy  
Duration has not been specified, depending on Parliament appropriations.  
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
4.4  National Nuclear Waste Management and Operation of Nuclear Facilities  
1. The authority responsible for the subsidy  
The Ministry of Trade, Industry and Fisheries.  
2. Legislation under which the subsidy is granted  
The Annual State Budget.  
3. Policy objective of the subsidy  
All Norwegian nucl ear research reactors have been shut down. The objective is to operate the nuclear 
facilities including the reactors in a safe and secure manner and to manage Norwegian nuclear waste 
and decommissioning of the Norwegian research reactors.  
4. Form of the su bsidy 
Grants.  
5. To whom and how the subsidy is provided  
Subsidies for operation of and securing nuclear facilities are granted directly to the research institute, 
Institute for Energy Technology (IFE), which owns the reactors. Subsidies for waste manageme nt is 
handled through the state agency Norwegian Nuclear Decommissioning which cooperates with IFE 
on waste management and decommissioning.  
6. Amount of subsidy  
Granted expenditure in 2019 was NOK 376 .9 million . 
Granted expenditure in 2020 was NOK 426 .3 million. 
7. Duration of the subsidy  
Duration has not been specified, but will continue until the sites are decommissioned and waste 
handled. The clean -up is expected to take at least fifty years.  
8. Trade effects of the subsidy  
No trade effects are expected.  
EXCISE DUTIES  
5.1  Exemptions in the CO 2 Tax on Mineral Products  
1. The authority responsible for the subsidy  
The Ministry of Finance . G/SCM/N/372/NOR  
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  2. Legislation under which the subsidy is granted  
The Parliaments annual resolution concerning the CO 2 tax on mineral products and Regulation 
11 December 2001 No. 1451 concerning Excise Duties.  
3. Policy objective of the subsidy  
The CO 2 tax on mineral products was introduced 1 January 1991. As of 2020, the tax encompasses 
nearly all uses of fossil fuels th at are not encompassed by the European Emission Trading System 
(EU ETS). As of 2020, the standard rate is equivalent to 545 NOK per ton of CO 2, Thus, the tax base 
is broad and the tax rate is high compared to similar taxes that have been established or pro posed 
in other countries.  
The policy objective of the CO 2 tax is to reduce emissions of CO 2 from combustion of mineral products 
(fossil fuels).  
When the CO 2 tax was introduced in 1991, there were no realistic alternative to fossil fuels in many 
sectors. Some of these sectors were given a reduced rate or were exempted. Since 1991, most of 
these reduced rates and exemptions have been abolished, but a few still remains.  
4. Form of the subsidy  
Tax concession.  
5. To whom and how the subsidy is granted  
Main rules : 
General tax rates 2019:  
Mineral oil            NOK 1.35 per litre  
Petrol             NOK 1.18 per litre  
Natural gas            NOK 1.02 per Sm3 
LPG            NOK 1.52 per kg  
General tax rates 2020:  
Mineral oil            NOK 1.45 per litre  
Petrol             NOK 1.26 per litre  
Natural gas            NOK 1.08 per Sm3 
LPG            NOK 1.63 per kg  
Tax concession : 
Natural gas and LPG used in commercial greenhouse s are exempted from the CO 2 tax. 
6. Amount of subsidy  
Expenditure for 2019:  
Natural gas and LPG in chemical reduction etc.      NOK 50 million  
Commercial greenhouses         NOK 25 million  
Expenditure for 2020:  
Natural gas and LPG in chemical reduction etc.      NOK 55 million  
Commercial greenhouses         NOK 25 million  G/SCM/N/372/NOR  
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  7. Duration of the subsidy  
Starting date: 1 September 2010.  
The scope of the CO 2 tax was extended to include natural gas and LPG from 1 September 2010.  
8. Trade effects of the subsidy  
Statisti cal data indicating trade effects are not available.  
5.2  Exemptions and Reduced rates in the Base Tax on Mineral Oil  
1. The authority responsible for the subsidy  
The Ministry of Finance.  
2. Legislation under which the subsidy is granted  
The Parliaments annual resolution concerning the base tax on mineral oil and Regulation 
11 December 2001 No. 1451 concerning Excise Duties.  
3. Policy objective of the subsidy  
The tax on mineral oil (base -tax on mineral oil) was introduced 1 January 2000. The o bjective of the 
tax was to avoid a switch in energy use from electricity to mineral oil when the electricity tax was 
increased from 1 January 2000.  
Sectors where electricity was not a substitute to mineral oil are charged a reduced rate or exempted.  
4. Form of the subsidy  
Tax concession.  
5. To whom and how the subsidy is granted  
Main rules : 
General tax rates 2019:  
Mineral oil            NOK 1.65 per litre  
General tax rates 2020:  
Mineral oil            NOK 1.68 per litre  
Tax concession:  
Mineral oil to the fish oil and fish meal industry are exempted from the base tax on mineral oil.  
Mineral oil to the pulp and paper industry and the production of pigments and colouring agents are 
levied a reduced tax rate.  
Reduced rates : 
Reduced tax rates 2019:  
Mineral oil            NOK 0.210 per litre  G/SCM/N/372/NOR  
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  Reduced tax rates 2020:  
Mineral oil            NOK 0.212 per litre  
6. Amount of subsidy  
Expenditure for 2019:  
Fish oil and fish meal industry, pulp and paper industry, production of pigments and  colouring 
agents:            NOK 20 million  
Expenditure for 2020:  
Fish oil and fish meal industries, pulp and paper industry, including production of pigments and  
colouring agents:           NOK 20 million  
7. Duration of the subsidy  
Starting date:  1 January 2020 . 
8. Trade effects of th e subsidy  
Statistical data indicating trade effects are not available.  
TEMPORARY GRANT SCHEME FOR UNDERTAKINGS SUFFERING A SUBSTANTIAL LOSS 
OF TURNOVER  
1. The authority responsible for the subsidy  
The Brønnøysund Register Centre on behalf of the Ministry o f Trade, Industry and Fisheries.4 
2. Legislation under which the subsidy is granted  
The legal basis for the measure is set out in the Act on a temporary grant scheme for undertakings 
suffering a substantial loss of turnover after August 2020 ( Lov om midle rtidig tilskuddsordning for 
foretak med stort omsetningsfall etter august 2020 ) and supplemented by Regulations adopted 
pursuant to this Act. The compensation is paid from the state budget. The scheme is compatible 
with the functioning of the EEA Agreement  pursuant to its article 61(2)(b).  
3. Policy objective of the subsidy  
The Business Compensation Scheme is part of the government's measures to mitigate the financial 
effects of the coronavirus and the infection control measures.  
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
The compensation scheme offers financial compensation to enterprises which have experienced a 
substantial decrease in revenue as a result of the COVID -19 situation. Companies are eligible under 
the measure if they have suffered a decline of revenue of at least 30% per 2 months as a 
consequence of the COVID -19 situation. The measure applies to the whole territory of Norway and 
is open to all sectors of the economy with certain exceptions.  
 
4 Previously The Norwegian Tax Administration on behalf of The Ministry of Finance ("Compen sation 
Scheme 1").  G/SCM/N/372/NOR  
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  The authori ties measure the decline in revenue by comparing the actual revenue of the beneficiary 
during the 2 months for which the support is sought, to the revenue in a reference period.  
The aid granted to each beneficiary is calculated by multiplying the unavoidable fixed costs by the 
percentage loss in revenue and an adjustment factor. The adjustment factor is set to 0.7 for the first 
period and 0.85 for the second and third period.  
Aid is limited by earlier loss of revenue, and cannot exceed X*(Y+ORFS), where  
X is percentage revenue loss  
Y is the sum of unavoidable fixed costs  
ORFS is earnings before taxes multiplied by the number of months in the aid period and divided by 
the number of months included in the fiscal year.  
6. Amount of subsidy  
Scheme under  the Norwegian Tax Administration  
NOK 728.2 million .5 
NOK 6 ,763.5 million .6 
 
Scheme under the Brønnøysund  Register Centre  
NOK 286.7 million .7 
NOK 2,239 million .8 
7. Duration of the subsidy  
March -August 2020  (former scheme administered by the Norwegian Tax Administration) . 
September -December 2020  (scheme under the Brønnøysund Register Centre) . 
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
ASSISTANCE TO THE FISHER Y SECTOR  
7.1  Transport Support  
1. The authority responsible for the subsidy  
The Ministry of Trade, Industry and Fisheries.  
2. Legislation under which the subsidy is granted  
The Annual State Budget.  
3. Policy objective of the subsidy  
The purpose is to support transport in order to facilitate implementations of fisheries activities in 
specific regions.  
 
5 Excluding services, according to classifications under the European System of Accounts.  
6 Total amount, including services.  
7 Excluding services, according to classifications under the European System of Accoun ts. 
8 Total amount, including services . G/SCM/N/372/NOR  
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  4. Form of the subsidy  
Grant.  
5. To whom and how the subsidy is provided  
The transport support is given to the following sales organisat ions: 
The Norwegian Raw Fish Organisation  
Fish Sales Association for Sunnmøre and Romsdal  
Fish Sales Association for Western Norway  
The Southern Fish Sea Sales Association  
The Norwegian Herring Sales Association  
The sales organisations are responsible for the distribution of the transport support to the fishing 
industry. Each sales organisation must submit a plan showing how they intend to apply these funds 
so that fishing activities are secured throughout the year.  
The fish farming industry is not eligible  for aid under this scheme.  
6. Amount of subsidy  
Balanced budget for 2019: NOK 23 .9 million . 
Balanced budget for 2020: NOK 23 .5 million . 
7. Duration of the subsidy  
Duration has not been specified.  
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
7.2  Sealing  
1. The authority responsible for the subsidy  
The Ministry of Trade, Industry and Fisheries.  
2. Legislation under which the subsidy is granted  
The Annual State Budget.  
3. Policy objective of the subsidy  
The objective is to contribute to maximum utilization of harp -seal quotas.  
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
The sealing fleet and sealing processors can apply for subsidies.  
6. Amount of subsidy  
Balanced bud get 2019: NOK 2.5 million . 
Balanced budget 2020: NOK 2.5 million . G/SCM/N/372/NOR  
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  7. Duration of the subsidy  
Duration has not been specified.  
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
ASSISTANCE  TO FORESTRY SECTOR  
8.1  Subsidies for Forest Management Planning  
1. The authority responsible for the subsidy  
The Norwegian Agricultural Authority on behalf of the Ministry of Agriculture and Food.  
2. Legislation under which the subsidy is granted  
Regulation on grants for forest management planning with environmental registration of 
4 February  2004. Funded by the Agricultural Development Fund (LUF) under the annual Agricultural 
Agreement.  
3. Policy objective of the subsidy  
The objective is to stimulate forest management pla nning as a basic measure to promote sustainable 
forest management including:  
• Active short and long term utilisation of the forest resources.  
• Preservation and enhancement of forest functions related to biological diversity, 
landscape, and cultural and recre ational values.  
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
The subsidy is available to forest properties with more than 1 hectare. Provided a given area 
coverage of pre -ordered individual forest management plans, the grant co vers resource registration 
surveys of larger designated areas and preparation of forest management plans on individual 
properties. Area registrations provide data for forest inventory and resource overviews. The 
programme also supports capacity building on  application of the forest management plan.  
The sizes of the grants are decided by the county governor based on the total resource registration 
and plan preparation costs. Normally, subsidies are not granted to properties that have received 
grants from thi s programme within the last 10 -year period.  
6. Amount of subsidy  
2019: NOK 28 .5 million.  
2020: NOK 32 million.  
7. Duration of the subsidy  
Starting date: 1971. Duration is not specified. Dependent on annual budgets.  
8. Trade effects of the subsidy  
Statistic al data indicating trade effects are not available.  G/SCM/N/372/NOR  
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  8.2  Subsidies for Industrial and Environmental Purposes in Forestry  
1. The authority responsible for the subsidy  
The Norwegian Agricultural Authority on behalf of the Ministry of Agriculture and Food.  
2. Legislation under which the subsidy is granted  
Regulation on grants for industrial and environmental purposes in forestry of 4 February 2004, 
founded on the Forestry Act of 2005. Funded by the Agricultural Development Fund (LUF) under the 
annual Agricultural A greement.  
3. Policy objective of the subsidy  
To stimulate value -adding forestry activities and long -term investments like silviculture and forest 
roads, as well as to enhance environmental values related to biological diversity, landscape, cultural 
inheritance and recreational activities.  
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
The grant is eligible for all categories of forest owners and all properties exceeding 1.0 hectare of 
productive forestland.  
The Norwegian Agricultural Authority assigns the grant through th e County Governor to local 
authorities at municipal level.  
Local authorities are free to develop specific rules in accordance with the national framework. 
Granted measures can be silviculture, pre -commercial thinning, construction and reconstruction of 
forest roads, conservation and enhancement of environmental values in forest and harvesting of 
round wood in difficult terrain. The subsidy rates are determined by local authorities.  
6. Amount of subsidy  
2019: NOK 194 million.  
2020: NOK 204 million.  
7. Durati on of the subsidy  
Duration is not specified. Dependent on annual budget.  
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
8.3  Subsidies for Forest Infrastructure  
1. The authority responsible for the subsidy  
The Norwe gian Agricultural Authority on behalf of The Ministry of Agriculture and Food.  
2. Legislation under which the subsidy is granted  
The Annual State Budget and the Forestry Act with amendments.  G/SCM/N/372/NOR  
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  3. Policy objective of the subsidy  
The policy objective is to dev elop infrastructure necessary to uphold the forest activity in marginal 
forest areas. The grants are mainly aimed at timber quays and forest roads.  
4. Form of the subsidy  
Grants.  
5. To whom and how the subsidy is provided  
All forest owners are eligible for grants, based on application containing plans for the infrastructure 
project.  
6. Amount of subsidy  
2019: NOK 202 .3 million.  
2020: NOK 191 .8 million.  
7. Duration of the subsidy  
Starting date: 1976.  
Duration is not specified. Dependent on annual  budgets.  
8. Trade effects of the subsidy  
Statistical data indicating trade effects are not available.  
THE AGRICULTURAL  SECTOR  
9.1  Introduction to Subsidies on the Expenditure Side of the Budget  
The notification of the subsidies in the agricultural sector gives an overview of general developments 
in the Norwegian Agricultural Policy and of agricultural subsidy programs.  
Reference is also made to the notifications on domestic support provided to the Committee on 
Agriculture.  
9.2  Information  on the Subsidy  Programmes  
The various programs are listed under the sub headings 9.2.1 to 9.2.7 below. The notification covers 
schemes in force from 1 January 2018 until 31 December 2019. Numbers for 2020 were not available 
in time for the deadline for this notification . Norwegian agricultural policy is implemented in pursuit 
of the overall objectives concerning food security, agricultural production throughout the country, 
improved productivity and sustainable agriculture.  
Target prices for farm products and the fiscal support to agriculture are agreed upon as integral 
parts of the annual Agricultural Agreement between the farmers' unions and the Government. The 
Agricultural Agreement is subject to ratification and appropriation of budget funds by the Norwegian 
Parliamen t. Allocations in the Agricultural Agreement are made under Chapter 1150, Ministry of 
Agriculture of the State budget (cf. table 1 below for details).  
Support is provided for grains and oilseeds, fruits and vegetables, milk and dairy products, meat 
from bo vine animals, veal, mutton, pork, poultry meat, eggs and wool. Direct payments, of which a 
significant part is differentiated by criteria such as region, size of farms, arable land and number of 
animals, play a significant role.  G/SCM/N/372/NOR  
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The Milk Sector  
Milk produc tion is of vital importance in several rural regions as alternative forms of agricultural 
production are scarce. It is a policy objective to facilitate employment and economic activity in the 
countryside, maintenance of agricultural landscape, and to fulfi l national food security policies 
including protecting arable land and securing a decentralized production structure.  
Since 1 July 2002, base deficiency payments are granted for goat milk only. In addition, regional 
deficiency payments apply to rural areas . The deficiency payments are paid for each litre of milk 
delivered to the dairy. The amount varies according to region, and the highest support is given in 
the northernmost districts in Norway. Structural income support is also provided to each farm. The 
support is paid as a lump sum to producers with 5 or more cows or 27 or more goats for milk 
production. The objective of the program is to equalize income between larger and smaller holdings.  
From 1 January 2019 a programme to strengthen the economy of small and medium size dairy farms 
in Norway was introduced. The payment is made per milk cow, to farms that have at least 6 or more 
cows, independently of the yield per cow. A fixed amount per cow is paid from cow 1 to cow  23. The 
maximum amount of support  is granted to farms with 23 cows. As from cow 24, the total amount is 
reduced per additional cow. Farms with more than 50 milk cows do not receive any payment through 
this measure. All farms with 6 to 50 milk cows are eligible to receive support based on their numbers 
of cows.  
The Meat and Egg Sectors  
Producers of meat from mutton receive a base deficiency payment on all output. Producers of beef 
cattle receive structural income support. The support is paid as a lump sum to producers with 6 or 
more suc kler cows. In addition a deficiency payment is provided as a quality incentive for wool. 
Regional deficiency payment is provided to producers of meat and eggs in less favoured regions. 
The payment is differentiated by region and by type of meat. The rates are highest in the 
northernmost county in Norway. Transport support is granted to equalise farm gate return due to 
differences in distance from slaughterhouses, processing plants and major consumer markets. A 
small amount of transport support is granted to the  egg sector based on the same rational as for 
the meat sector. Producers of beef receive payments per kg beef under the quality incentive support 
program for beef if the quality requirement of class O or better in the EUROPE quality standard is 
met. The ai m of the program is to increase the overall quality of Norwegian beef.  
The Grain Sector  
The Grain Price Support Program aims at securing the sale of Norwegian grain and to reduce the 
prices on raw materials for flour and for feed purposes.  
Potatoes and Horticultural Products  
Regional deficiency payments are provided to production of fruit, berries and vegetables.  
Headage Support  
The headage support is based on the number of animals, and the support is differentiated by region, 
farm size and kind of animal . 
National Environmental Program  
The aims of the national program are to ensure that various types of agricultural landscapes are 
maintained and that valuable biotopes and cultural heritage are attended to and taken care of. Given 
that agricultural l and in Norway constitutes only 3 per cent of the total area, it is important to 
safeguard environmental goods, which are dependent upon the agricultural landscape. An essential 
part of the program is therefore to prevent that the agricultural land is deter iorated. Furthermore, 
the program is aimed at contributing to an agricultural production that leads to the least possible 
pollution and loss of nutrients.  G/SCM/N/372/NOR  
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  The economic measures under the environmental programs shall cover the additional costs linked 
to the  participation in the program through the maintenance of the agricultural landscape and other 
environmental requirements, and represent payments for the production of environmental goods. 
The payments under the National Environmental program include paymen ts per decare  and 
payments for grazing animals.  
Organic production is subject to separate support programs.  
Vacation and Replacement  
To enable livestock farmers to have sufficient holidays and time off they are refunded expenses for 
hiring relief personnel  under the Vacation and Replacement Scheme. Eligible farmers must document 
the expenses.  
Market Regulation  
Market regulation is mainly financed through a marketing levy. Producers become liable for the 
marketing levy when selling a product. The aim of the market regulation is to equalize prices to 
producers and consumers in different regions and to secure supply of agricultural products in all 
regions of the country.  
9.3  Expenditures and Market Structure  
Deficiency payments, the structural income support, suppo rt under the environmental program as 
well as the Vacation and replacement scheme are granted directly to farmers. The rest of the 
programs are market regulation schemes and other indirect schemes.  
The amounts of support measured by total budget expenditur es for 2018 and 2019 are listed in 
tables 1 to 5 below. All numbers are account figures. Tables 1 to 10 provide updated information on 
Agricultural Support in Norway as well as market information on major agricultural commodities. 
The sources are Propositi on No 1 (2018 -2019) and (2019 -2020) to the Norwegian Parliament by the 
Ministry of Agriculture and Food, the Norwegian Agriculture Agency (Landbruksdirektoratet) and the 
Norwegian Institute of Bioeconomy Research (NIBIO).  
In Table 1 Price Support and Other  direct payments to producers are totals from Table 2 and Table  3. 
The rates in Table 5 and 6 multiplied by eligible volumes of milk and meat are equivalent to Price 
Support in Table 2.  
Table 1  
Chapter 1150, Agricultural Agreement  
Million NOK  
 2018 2019 
Agricultural Development Fund  1,123.7 1,193.9 
Market Regulation  24.4 27.4 
Price Support  3,452 3,664 
Other direct payments to producers  8,790 9,197 
 
Table 2  
Chapter 1150, Price Support  
Million NOK  
 2018 2019 
Milk 618.3 664.9 
Beef, veal, mutton  and pork  1,678.2 1,601.1 
Cereals  648.7 847.7 
Eggs 11.7 9.6 
Potatoes, fruit and vegetables  150.8 185.5 
Wool 122.9 116.8 
Other  221.2 238.4 
Total  3,452 3,664 
 G/SCM/N/372/NOR  
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  Table 3  
Chapter 1150, other direct payments to producers  
Million NOK  
 2018 2019 
Structural income support  1,579.1 1,591.1 
Headage support, animals  2,528.5 2,416.1 
Grazing support  822.5 895.5 
Acreage and cultural landscape scheme  3,498.5 3,920.9 
Support to organic production  108.6 115.9 
Production support on market crops  49.6 48.3 
Other  203.1 209.1 
Total  8,790 9,197 
 
Table 4  
Base deficiency payment, amount per unit  
(NOK per kg)  
 2018 2019 
Mutton  3.81 3.81 
 
Table 5  
Regional deficiency payments, amount per unit  
(NOK per litre/kg)  
 2018 2019 
Milk 1) 0.00/1. 83 0.00/1. 85 
Meat 2) 0.00/1 4.20 0.00/1 4.40 
1) 10 zones, varying rates, lowest and highest cited . 
2) 5 zones, varying rates, lowest and highest cited (varies also for kind of meat) . 
Table 6  
Cow's milk  
Year Received by diaries  Consumption  
million kg  
Million litres  Whole, low -fat and 
skimmed milk  Cream and sour cream  
2018 1,522 422 38 
2019 1,481 423 37 
 
Table 7  
Cheese (million kg)  
Year Production  Exports  Imports  Consumption  
2018  93.2  11.4  15.5  97.3  
2019  91.2  10.4  16.3  97.1  
 
Table 8  
Butter (million kg)  
 
Year Production  Exports  Imports  Consumption  
2018  19  0  0.4  19.3  
2019  19  0  0.4  19.4  
 G/SCM/N/372/NOR  
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  Table 9  
Cereals (million kg)9 
Year Production  Exports  Imports  Consumption  
Wheat  
2018  126.6 0.4 429.6 667.3 
2019  441 0.2 404.5 693.6 
 
Year Production  Exports  Imports  Consumption  
Rye 
2018  12.4 0.0 9.7 36.3 
2019  50 0.0 11.6 25.0 
 
Year Production  Exports  Imports  Consumption  
Barley  
2018  408.9 0.7 376 545.7 
2019  539 0.7 41.5 561.2 
 
Year Production  Exports  Imports  Consumption  
Oats 
2018  146.7 0 42.4 289.1 
2019  220 0 70.3 255.9 
 
Table 10  
Meat (million kg)  
Year Production  Exports  Imports  Consumption  
Beef and Veal  
2018  89.4 0.5 10.6 99.5 
2019  87.0 0.7 10.7 97.0 
 
Year Production  Exports  Imports  Consumption  
Lamb  
2018 27.1 6.7 1.9 22.3 
2019 24.4 5.9 2.4 20.9 
 
Year Production  Exports  Imports  Consumption  
Pork  
2018 137.3 6.7 1.9 132.6 
2019 132.3 5.9 2.4 128.8 
 
Year Production  Exports  Imports  Consumption  
Poultry  
2018 98.2 0.9 0.7 98.0 
2019 106.8 1.2 1.0 106.6 
 
Table 11  
Eggs (million kg)  
Year Production  Exports  Imports  Consumption  
2018 71.6 1.5 0.4 70.1 
2019 74.3 1.4 0.7 73.1 
__________  
 
9 Production data cover the marketing year 2016/2017 and marketing year 2017/2018 respectively.