Faroese agriculture subsidy to be structured like shipbuilding support

A proposed subsidy scheme for Faroese agriculture will mirror the support system used for shipbuilding, with payments per unit produced rather than a fixed budget divided among applicants, reports Faroese broadcaster *Kringvarp Føroya*.

The new agricultural subsidy, now open for public consultation, will cover a wide range of production—from milk and meat to fruit, vegetables, and even aquaculture. Farmers will receive payments based on verified sales, with a total budget capped at 20 million Danish kroner for 2026.

However, the scheme introduces uncertainty: if applications exceed the budget, individual payments will be reduced proportionally. The draft regulation states that each subsidy will be granted *”to the greatest possible extent”*—meaning payouts may shrink if demand is high.

Jacob Vestergaard, the Faroese minister for agriculture, compared the model to shipbuilding subsidies, where payments are also tied to output. *”The support each individual receives should not depend on how many apply,”* he stated. While Vestergaard called this a *”good solution,”* no political agreement has yet been reached on the proposal.

The subsidy aims to boost active farming but risks underfunding if production grows faster than the allocated budget.