Page 41 - Green knowledge 2024

Photo: Dan Aamlid
Farmer incomes – the numbers explained
The Agricultural Budget Committee showed that the average Norwegian farmer earned just
over NOK 400,000 per work year in 2023. However, this figure doesn’t give the full
picture. NIBIO’s farm management surveys reveal that annual incomes in agriculture vary
significantly between farms.
In 2023, there were 37,561 active farms in Norway,
but their numbers and sizes differ greatly across
counties. For instance, farms in Vestland and Agder
are notably smaller than in other regions. Farmers
aren’t wage earners; they are self-employed, and
income is the result of profit minus expenses. Most
farmers also rely substantially on other sources of
income.
Agricultural enterprises are dependent on govern-
ment regulations affecting prices, tariffs, and subsi-
dies. Over the past three years, government subsidies
have increased to offset rising costs. The government
has also pledged to reduce the income gap between
farmers and other professions by 2027.
The survey of account statistics for agriculture and
forestry, provide insights into income variations
across regions and production types. Over 900 farms
participate in the surveys, reporting income per work
year for various sectors. In cereal farming, farm size
has little impact on economic result per work year.
Factors like investments, debt, climate, soil quality,
and yield variations affect results.
Dairy farming requires larger investments, and many
dairy farmers carry substantial debt. Geography and
subsidy rates also affect profitability. Sheep farmers
have low average incomes, but results vary substan-
tially. Farms combining sheep farming with other
activities tend to perform better.
Farmers’ incomes vary widely and are affected by
numerous factors. These surveys provide valuable
insights, illustrating the complexity and challenges
of Norwegian agriculture.
Purpose: Funding: Contact: NIBIO compiles extensive data that describes the economics of Norwegian agriculture. This is
invaluable for the annual agricultural settlements and crucial for an informed public debate.
Ministry of Agriculture and Food
Head of Department Jon Fredrik Strandrud, Division of Survey and Statistics.
Email: jon.strandrud@nibio.no | Phone: +47 920 13 580
39