Rising interest rates, fuel prices and concentrate prices have made everyday life more demanding for many farmers. – We don’t have the money when the bills come, and that means we’re really behind, says Ståle Hustoft, who runs a farm in Nedstrand in Tysvær. An important contribution to the economy of most farmers is the various grants they can apply for. You apply for a grant on two specified dates during the year, but the money is not paid out until the following year. – It is a real problem that it takes an extremely long time from expenditure to subsidy. The horror is certain that I use replacements in January this year, and then the money only comes in February the following year. So it takes a year from the time I have the salary expenses until I get the money, explains Hustoft, who is also the leader of the Rogaland farming association. Subsidy schemes in agriculture Production and replacement subsidy is a collective term for several subsidy schemes that farmers can apply for. The grants are an important source of income for many farmers. The grant scheme works so that you apply on two fixed dates a year (15 March and 15 October) and receive the money the following year. The main payments of grants applied for in 2023 will take place in week 7 of 2024. Grants are government money given to maintain active and sustainable agriculture. Source: Directorate of Agriculture – Many end up in a pinch Funds for replacements are just one of several subsidies that are decisive for farmers. The system with late payments has been like this for a long time, and it was established long before today’s increasing prices. – It is a clumsy arrangement that could very easily have been solved in a better way. It would have worked better if we could apply for and get the money paid during the year, not wait until the following year, says Hustoft. Farmers’ association leader Ståle Hustoft in Rogaland. Photo: Marthe Synnøve Johannessen / news Øyvind Steinne’s farm with dairy cows and sheep in Hovsherad in Lund municipality. He believes that the current system, where various subsidies are paid in arrears so long afterwards, is demanding. – For some, it means that you have to take out a higher loan to get the business going. Many come in a rush, he says. Has taken out a large loan Steinnes himself is among those who have taken out a large loan to be able to keep operations at the farm going. – Personally, I have many millions in loans. I could reduce the loan significantly if I received the payments in the year I had the costs and not a year later. Steinnes is open about the fact that it takes a lot of effort to do this. – It weighs psychologically on many farmers when the economy is as strained as it is now, he says. Farmer Øyvind Steinnes. Photo: Privat Steinnes refers to the stream support scheme, where farmers receive support paid out every month. – There, the governing authorities solve it very flexibly. However, the subsidy system is old-fashioned. Will not change the current system But Agriculture and Food Minister Geir Pollestad (Sp) has no plans to change the subsidy system. Instead, he points to the fact that the government has taken several steps to help the farmers. – In both of the last two agricultural settlements, the government has increased the subsidy rates and allowed amounts for the welfare schemes to a large extent, he writes in an e-mail. Minister of Agriculture Geir Pollestad. Photo: Ole Andreas Bø / news In the agricultural settlement, the parties agreed that a working group will evaluate the substitute arrangements and the agricultural temporary arrangement. – The report in the group will be the basis for following up on these schemes during next year’s agricultural negotiations, writes Pollestad. – Red warning lights Hustoft believes that the current system of subsidies and late payments hits hardest for young farmers and farmers who change the operation of the farm. But he too notices that the expenses are increasing – at the same time that the prices of meat and milk have remained unchanged over time and the subsidy payments have been slow to arrive. – I have red warning lights in my account.
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Farmers despair over subsidy schemes with slow payments – news Rogaland – Local news, TV and radio
