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written by  Erik Ringnes, Commitee Member EAF

2004 has proved to be the best year for more than a decade  in Norway with the following yields:

 

Barley	573 000 tons
Wheat	398 000 tons
Oats	340 000 tons
Rye	32 000 tons
Oilseeds	10 000 tons

Approximately 60 % of the grain has been delivered up to this date and 75 % of the wheat meets the requirements for human consumption.

In the budget proposal from the Government for 2005 that has been recently presented, the Government has proposed major changes in taxing of farmers with the following changes: 28 % tax on sales of farmproperties and forestland. To-day no tax is paid if you have owned the property for more than 10 years

Termination of   special taxregulations  for income from forestry  and a new system with an annual taxing of forestry income - to-day we can divide  the income over 5 years

No  withdrawal of maintanance costs on farm buildings used as accomodation for the farmer. In exchange, the mainhouse is no longer burdened with an advantage tax on top of your income.

The Government argues that the sum effect of these changes is positiv by 30 mill Nok, but most farmers  and The Farmers Union are skeptical, including me who is part of the Government as a member of the Central Committee for the Liberal Party  who has the Minister of agriculture.

Look forward to seeing you in Brussels!

Erik Ringnes
Norway