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.