Faroese farming subsidies to be structured like shipbuilding support

A new proposal for Faroese agricultural subsidies, now open for consultation, would cap individual payments based on total demand, mirroring the system used for shipbuilding grants, reports Faroese broadcaster Kringvarp Føroya.

Under the draft rules, subsidies would cover a wide range of farming activities—from milk and meat production to fruit cultivation, livestock breeding, and fodder crops. Payments would be tied to documented sales, with a fixed annual budget of 20 million Danish kroner. If applications exceed the budget, individual grants will be reduced proportionally, as the policy states subsidies are awarded “at most” per application.

Agriculture Minister Jacob Vestergaard defended the model, arguing that individual entitlements should not depend on how many apply. The approach replicates the shipbuilding subsidy scheme, where payments adjust annually based on the number of vessels built.

The proposal follows broad political discussions at February’s Agricultural Conference in Klaksvík but lacks formal cross-party agreement. Consultation on the draft is now underway.