
Frequently asked questions
Good to know.
01 / 06
Operating obligation, food safety and environmental considerations
13 questions
What is the operating obligation (driveplikt)?
All agricultural land is subject to an operating obligation (driveplikt). If you lease agricultural land, among other things there must be a written contract for the lease.
The rules on the operating obligation apply to all owners of agricultural land. Under the Land Act (jordlova) § 8, owners of property with agricultural land have an operating obligation for the entire period of ownership. This applies to everyone who has owned such property since 1 July 2009. The obligation can be met by the owner farming the land personally or by leasing it out. In co-ownerships (sameie), each individual co-owner has an operating obligation.
Agricultural land means fully cultivated land (fulldyrka jord), surface-cultivated land (overflatedyrka jord) and infield pasture (innmarksbeite). If the property has land of this kind, it is subject to the operating obligation, regardless of the size of the area. The obligation lasts throughout the period of ownership, from the moment you become the owner until you transfer the property to someone else.
Fully cultivated land is land cultivated to normal ploughing depth that can be used for arable crops or for grassland that can be renewed by ploughing. Surface-cultivated land is land that has mostly been cleared and levelled on the surface so that mechanical harvesting is possible. Infield pasture is agricultural land that can be used for grazing but cannot be harvested mechanically. Contact the municipality or check http://gardskart.nibio.no/ (Gårdskart, the online farm map) if you are unsure what kind of land the property has.
The operating obligation does not apply to forest. Forest is governed by the Forestry Act (skogbruksloven).
The operating obligation can be met in two ways: by farming the land personally or by leasing it out. Within one year of taking over the property, the owner must decide whether to farm the land personally or to meet the obligation by leasing it out.
Can the operating obligation be met by leasing out or letting the land?
The owner may choose to meet the operating obligation (driveplikt) by leasing out the land. The land must be leased out for at least 10 years at a time. The lease agreement must be in writing and must not be terminable by the owner. It must also result in sound operational arrangements. Agreements that do not meet these requirements cannot be enforced between the parties or against the authorities.
Once the agreement has been entered into, the owner must send a copy of it to the municipality. If you are unsure whether a lease agreement satisfies the statutory requirements, you can contact the municipality in advance. Even though the agreement cannot be terminated by the owner, the owner may rescind it if the tenant is in breach.
The Norwegian Agriculture Agency (Landbruksdirektoratet) publishes an overview of land rental prices under « Jordleie » (land lease).
Can you apply for exemption from the operating obligation?
You can apply for exemption from the operating obligation (driveplikt). The application must be sent to the municipality. In deciding an application for exemption, weight is given to how important it is to keep the agricultural land in good condition, the size of the area, its productive capacity and whether there is a need for the land as additional land in the area. The applicant's personal circumstances are also taken into account.
The municipality may relax the requirements as to the length of the agreement and that the agreement must result in a sound operational arrangement. This is particularly relevant during a transitional period after the Act has come into force.
What are the consequences of breaching the operating obligation?
If the owner is not farming the agricultural land personally, has not leased it out, or the lease agreement results in operationally unsound arrangements, the municipality may order the owner to lease out the land for at least 10 years. An order may also be issued for afforestation or other measures to protect the cultural landscape. The municipality may ask the County Governor (fylkesmannen) to impose a coercive fine on the owner of the property.
What is the residence obligation (boplikt)?
A residence obligation (boplikt) arises on the takeover or acquisition of an agricultural property with buildings. The statutory residence obligation is a condition for persons with allodial rights (odelsberettigede) or close relatives to acquire agricultural property without a concession (konsesjon). A residence obligation may arise if the property comprises more than 25 decares (da) of fully cultivated or surface-cultivated land, or more than 500 da of productive forest. Anyone who cannot or will not take up residence on the property must apply for a concession.
What do environmental considerations mean for agricultural enterprises?
Agricultural enterprises must comply with the provisions that apply to farming, including environmental considerations in their operations. These include provisions on animal welfare, fertilisation, tillage and plant protection, as well as refraining from interfering with cultural heritage sites and the cultural landscape. If you participate in the Quality System in Agriculture (Kvalitetssystem i Landbruket, KSL), you gain access to their checklists, which go through the key environmental requirements.
The provisions on fertilisation include requirements for storage and storage capacity for livestock manure, so that the manure can be collected until it can be spread. There are also provisions on the ratio between livestock numbers and available land (the spreading area) to ensure the manure is used appropriately across the land. To qualify for several types of grant, farmers must also have a fertilisation plan. Read about the rules and considerations for manure and fertilisation.
What is important to know about livestock manure?
Livestock manure is an important plant nutrient, but it is also a source of environmental problems. There are several requirements and policy instruments intended to help ensure that manure is used well. Farmers have a strong interest of their own in making good use of livestock manure.
However, structural changes in agriculture, with larger herds and greater time pressure, make it harder to use the manure in the right place at the right time. These changes also mean that much of the old knowledge about the quantity and content of manure, and hence about suitable storage capacity and application rates, is not always valid.
What two purposes are to be served by the revision of the fertiliser regulations?
The Norwegian Agriculture Agency (Landbruksdirektoratet), together with the Norwegian Environment Agency (Miljødirektoratet) and the Norwegian Food Safety Authority (Mattilsynet), has been tasked with reviewing the regulations on organic fertiliser and presenting a draft of new regulations.
The assignment has two purposes. The first is to facilitate better use of the nutrients in manure while reducing the burden on the climate and the aquatic environment. Organic fertiliser is an important plant nutrient. The fertiliser regulations are intended to help make manure as much of a resource and as little of a nuisance as possible.
New areas of use
The second is to facilitate greater use of biomass in a number of ways, including for biogas production, while returning the nutrients to agriculture. This creates a closed cycle and brings us one step closer to low-emission farming.
New treatment methods and value chains for handling and using manure are being developed, which makes a review of the regulations timely. Another background factor is the work on new fertiliser regulations in the EU, which aims to increase the use of organic and waste-based fertiliser products while safeguarding environmental considerations.
Provisions on storage and spreading area, hygiene and pollution
The current regulations on organic fertiliser are divided into two main parts, one of which regulates which fertiliser products may be used. This product part of the regulations covers, among other things, quality assurance against infection, pests and environmental toxins. A key aim of the revision is to ensure that the new value chains and products now emerging meet such quality requirements.
The other part regulates the storage and spreading of organic fertiliser. This usage part sets requirements for storage capacity so that livestock manure is spread at the right time. The ratio between livestock numbers and available land (the spreading area), to ensure the manure is used appropriately across the land, is also regulated. This is being reviewed with a view to achieving good uptake by plants and low environmental impact.
The assignment also includes assessing an appropriate organisation, or possibly coordination, of regulations and policy instruments: the regulations on fertilisation planning, the regulation of mineral fertiliser and alternative instruments.
Work in 2017
Since 2009 a new knowledge base has been compiled, which forms the basis for the work. The product part of the regulations was previously reviewed by the Norwegian Food Safety Authority, and a preliminary draft of new regulations was presented in 2013.
Read more about the regulations on the Norwegian Food Safety Authority's website
At the same time, studies by the Norwegian Environment Agency and the agricultural authorities are available that aim to find good solutions to the issues facing agriculture. In the current assignment we are to draw the threads together and propose a common solution. The input gathered by the Norwegian Food Safety Authority in 2010 also forms part of the factual basis.
What do the regulations on organic fertiliser contain, and what is a fertilisation plan?
The regulations on organic fertiliser set requirements for storage and spreading to prevent manure from ending up where it should not. To qualify for several types of grant, farmers must also have a fertilisation plan. The fertilisation plan is a tool for adjusting the amount of fertiliser to factors such as crop, yield level, type of farming, soil type and climate.
In addition to these general instruments, there are specific grant schemes aimed at manure and fertilisation, described below.
Are grants available for environmentally friendly spreading of livestock manure?
In several counties, grants for environmentally friendly spreading of livestock manure are available through the regional environmental programmes (regionale miljøprogram, RMP). Among other things, grants are given for spreading methods that get the manure onto or into the ground more quickly. This helps reduce ammonia losses to the air, nutrient run-off to water and the odour problems that arise during spreading.
Run-off from manure can damage water bodies and watercourses. Ammonia emissions cause over-fertilisation and acidification in nature. Ammonia can also be converted into nitrous oxide, a potent greenhouse gas. Agriculture accounts for around 90 per cent of total ammonia emissions.
How can manure be spread using more environmentally friendly methods?
Manure is usually spread with splash-plate spreaders that throw it out across the field. When spreading on open arable land or stubble, the manure must be incorporated into the soil immediately and within 18 hours at the latest. The RMP grant schemes are intended to raise the standard. Grants are given for injection and band-spreading (trailing hose) methods, and in cases where the manure is incorporated within 2 hours of spreading.
Injection means the manure is placed directly into the soil where it is useful, namely at the plant roots. This can reduce nitrogen losses by up to 80 per cent, and also reduces run-off and odour problems. Band-spreading uses hoses that lay the manure on the ground, where the foliage protects it against evaporation and run-off. These two methods are well suited to spreading in growing crops, such as grassland and winter cereals.
If the land is sown in spring, grants may be available if the manure is incorporated within two hours. Such rapid incorporation means the manure is less exposed to evaporation and run-off.
Emphasis is placed on spreading manure at times when the growing plants can make use of the nutrients. Livestock manure accounts for around 25 per cent of all nitrogen used in agriculture. Better use of livestock manure helps reduce the need for artificial fertiliser.
Who administers the rules on the operating obligation, environmental considerations, food safety and animal welfare?
The municipality administers the rules on matters such as the operating obligation (driveplikt) and environmental considerations, while the Norwegian Food Safety Authority (Mattilsynet) administers the rules on food safety and animal welfare. On their website you will find information on the rules on animal welfare and the use of plant protection products.
Where can I find the rules on organic farming?
Debio has information on the rules for those who farm organically.
Much of the information above is taken from the Norwegian Agriculture Agency's information pages and other relevant sources within agriculture.
Tegneby & Grønnerød Landbruksmegling has focused on the main points that will help you on your way to succeeding as a farmer.
02 / 06
Ownership, concession and operating obligation
5 questions
Why clarify ownership before buying an agricultural property?
If two of you are buying the farm, there are a number of formalities regarding ownership that should be clarified when the farm is purchased. Separate property (særeie) or co-ownership (sameie)? For married couples, many of the formalities are governed by, among other things, the Marriage Act. In other forms of cohabitation, you must make your own agreements that protect you both. If two of you wish to take over an agricultural property as co-owners without being married, this will normally require approval from the concession authority (the municipality) under the current Concession Act (konsesjonsloven). This is to secure both parties' rights if the relationship ends, whether during your lifetimes or on the death of one of you. These are things people would rather not think about, but it is very important that they are formally in place early on. There are several variants of separate property and co-ownership. Which option is best for you is a choice you must make yourselves, based on what meets your needs and wishes. In most cases it is a good idea to contact someone who deals with property transfers. Accountancy firms and lawyers know the possibilities and variants well. It is always wise to seek advice from people with expertise in this field. It is complicated!
What is a concession (konsesjon)?
A concession (konsesjon) means permission to acquire real property. "Acquisition" (erverv) is a collective term for every way in which you can take over a property: purchase, inheritance, gift and so on. Real property means, for example, a house, a farm, an undeveloped plot or other land.
Which acquisitions are exempt from concession?
The main rule is that you can acquire a developed property (one with buildings) of no more than 100 decares in total, and with no more than 35 decares of fully cultivated or surface-cultivated land, without applying for a concession (konsesjon). From 1 September 2017 the area limit was raised from 25 decares to 35 decares. Acquiring a plot that the municipality has designated for residential or holiday purposes, and acquiring undeveloped land that the municipal or zoning plan designates for purposes other than agriculture, is also usually exempt from concession. Acquiring most types of flats is also exempt from concession.
Some important practical examples:
Agricultural properties:
The property has buildings and is 90 decares in total. It has 20 decares of fully cultivated land and 10 decares of surface-cultivated land. The acquisition is exempt from concession because the property is less than 100 decares in total, and also because it has less than 35 decares of fully cultivated or surface-cultivated land.
The property has buildings and is 90 decares in total. It has 20 decares of fully cultivated land and 20 decares of surface-cultivated land. The acquisition requires a concession because the property has more than 35 decares of fully cultivated or surface-cultivated land.
The property has buildings and is 110 decares in total. It has 10 decares of fully cultivated land and 10 decares of surface-cultivated land. The acquisition requires a concession because the property is more than 100 decares in total.
The property is undeveloped and 90 decares in total. It has 10 decares of fully cultivated land and 10 decares of surface-cultivated land. The property is designated as an agriculture, nature and outdoor recreation area and for reindeer husbandry in the land-use part of the municipal plan. The acquisition requires a concession because the property is undeveloped and designated for agricultural purposes.
The property is undeveloped and lies in an area zoned for agricultural purposes in a zoning plan. The acquisition requires a concession because the property is undeveloped and lies in an area zoned for agricultural purposes in a zoning plan.
Other properties:
The property has a residential house on it, and the plot is 5 decares. The acquisition is exempt from concession because the property is less than 100 decares in total. The exemption is conditional on your not changing the use of the property in breach of the municipal or zoning plan.
The property is 40 decares in total, undeveloped and zoned for commercial buildings. The acquisition is exempt from concession, provided you do not change the use in breach of the plan.
The property is an undeveloped plot in a residential area that is designated for buildings or facilities under the municipal or zoning plan, and the plot division has been approved by the building authorities. The acquisition is exempt from concession, provided you do not change the use in breach of the plan.
The property is an undeveloped plot for building a cabin, and the plot has been approved for subdivision under the Land Act (jordloven) and the Planning and Building Act. The acquisition is exempt from concession.
Exemption from concession on grounds of kinship or allodial right (odel)
Acquisitions from close family are usually exempt from concession.
See here for whom you can transfer to without a concession.
See here for whom you can acquire from without a concession.
The same rules apply to cohabitants in a marriage-like relationship as to spouses.
Example: The property has buildings and is 1100 decares in total. It has 50 decares of fully cultivated land and 10 decares of surface-cultivated land. The owner has sold it to his daughter. The acquisition is exempt from concession because the transfer is between close family members.
Where the acquisition concerns an agricultural property, the exemption from concession may be conditional on a residence obligation (boplikt). See more about this under the «boplikt» tab in the menu on the left.
The acquisition is also exempt from concession when the acquirer holds an allodial right (odelsrett) to the property. The exemption is conditional on a residence obligation (boplikt). See more about this under the «boplikt» tab in the menu on the left.
When a state-run activity is converted into a state enterprise, exemption from concession may follow from § 55 of the State Enterprises Act (statsforetaksloven). See the letter from the Ministry of Agriculture and Food (LMD) on this under «publications» below.
The information is taken from landbruksdirektoratet.no (reference)
Read more at www.landbruksdirektoratet.no and www.lovdata.no (reference)
What does price control on agricultural properties involve?
The rules on price control in concession (konsesjon) cases were changed from 1 July 2017. Price control is not applied to the acquisition of pure forest properties. Price control on other agricultural properties is retained and applies to the acquisition of developed property with more than 35 decares of fully cultivated and surface-cultivated land. This means that a developed property with forest or other land is exempt from price control if its area does not exceed 35 decares of fully cultivated and surface-cultivated land.
Price control applies to the acquisition of undeveloped property that is to be used for agricultural purposes. If the undeveloped property is a pure forest property, no price control is carried out. A pure forest property means a property without agricultural land. Agricultural land means fully cultivated land, surface-cultivated land and infield pasture.
See the table below for the scope of price control:
Price control
No price control
Developed property
Over 35 da of fully cultivated and surface-cultivated land
Forest, infield pasture and unproductive land
Undeveloped property
Fully cultivated land, surface-cultivated land or infield pasture
Forest and unproductive land
Price control means that the concession authority must assess whether the agreed price is consistent with price development that is justifiable from a public-interest perspective. In exercising price control, the concession authority may set a lower price than the one agreed.
On the acquisition of developed property with a habitable dwelling, price control is not applied provided the purchase price is below NOK 3 500 000. This follows from § 6a of the regulations on exemption from concession for certain acquisitions. The amount limit applies to properties with residential buildings of a habitable standard so that the buyer can move onto the property. In this connection, one factor in the assessment is whether there are satisfactory arrangements for road access, water and sewerage.
The applicable circular is M-3/2017 on concession, price control and residence obligation.
What projects can I get grants for?
You can apply for grants for a range of different projects:
– environmental measures relating to the cultural landscape and pollution (SMIL)
– drainage of agricultural land
– measures in grazing areas
– investment grants/start-up grants (rural development funds). See, for example, innovasjonnorge.no
– a number of measures within forestry
In addition, Innovation Norway (Innovasjon Norge) has instruments to support the further development of existing agricultural businesses or work on new ideas.
Much of the information above is taken from the Norwegian Agriculture Agency's information pages and other relevant sources within agriculture.
Tegneby & Grønnerød Landbruksmegling has focused on the main points that will help you on your way to succeeding as a farmer.
03 / 06
Allodial right (odel) and åsetesrett
22 questions
Who is the national specialist authority for the Allodial Act (odelsloven)?
The Norwegian Agriculture Agency (Landbruksdirektoratet) is the national specialist authority for the Allodial Act (odelsloven). This means the Agency answers general questions about the Act.
What is allodial right (odel)?
Allodial right (odelsrett) is the right of those entitled to it (odelsberettigede) to reclaim the allodial farm when it is sold outside the family. The allodial right can also be exercised if someone with a lower allodial priority than you takes over the farm. To exercise an allodial right, you must bring an allodial redemption action (odelsløsningssak) before the district court (tingretten) where the property is located. Source: https://www.landbruksdirektoratet.no
What is åsetesrett?
Åsetesrett (right to inherit the farm undivided) is the right of the direct descendants (children and grandchildren) of the owner of allodial-qualifying land (odlingsjord) or allodial land (odelsjord) to demand to inherit the property undivided when the owner dies. This right can only be exercised in the distribution of the estate, not otherwise. Priority between the descendants determines which of them may exercise the åsetesrett. Source: https://www.landbruksdirektoratet.no
What changes were made to the Allodial Act in 2014?
From 1 January 2014, only two groups have an allodial right (odelsrett) to a farm:
– Children of someone who has owned the allodial farm. This may be the children of the current owner and of previous owners.
– Grandchildren of the current owner.
This means that the nephews and nieces of the owner of the farm no longer have an allodial right. They therefore cannot claim the farm by allodial right if it is sold outside the family.
Transitional rule
If an opportunity to exercise the allodial right ("blitt høve") arose before 1 January 2014, the old rules apply. This means the old rules apply if the farm was sold before 1 January 2014. In that case nieces and nephews may also exercise the allodial right. It is sufficient that an agreement to sell the farm has been entered into (orally or in writing). The agreement does not need to have been registered, see the Allodial Act § 60. The old rules also apply if the owner of an allodial farm died before 1 January 2014.
For all farms sold or inherited on or after 1 January 2014, the new rules apply. Source: https://www.landbruksdirektoratet.no
What are the area requirements for an allodial property?
An allodial property (odelseiendom) is a property that is large enough to be subject to allodial right (odel) and that the family has owned for 20 years.
The area requirements
Properties that can become allodial must have more than 35 decares of fully cultivated and/or surface-cultivated land or more than 500 decares of productive forest. From 1 September 2017 the area limit was raised from 25 decares to 35 decares. These are absolute area limits. If the property has too little land or forest, it can never become an allodial property.
How much farmland and forest a property has is recorded in Gårdskart. You can check this yourself at http://gardskart.nibio.no/ if you know the property's farm and title numbers (gårds- og bruksnummer). You can also ask the municipality.
Fully cultivated land is defined as "land cultivated to normal ploughing depth that can be used for arable crops or grassland that can be renewed by ploughing". Surface-cultivated land is "land that has mostly been cleared and levelled on the surface so that mechanical harvesting is possible".
The records in Gårdskart are normally up to date. Even so, disputes can arise over how much fully cultivated and surface-cultivated land or productive forest a property has. Gårdskart is not binding, and where there is disagreement, the property sometimes has to be resurveyed. The courts have the final say and can decide whether a property can become allodial, or whether it is still an allodial farm and can be redeemed by allodial right.
To find out whether a property can become allodial, you can go to the district court (tingretten) and have the question decided by an allodial assessment (odelsskjønn). This is a special type of court case. Where the dispute concerns allodial farms, the district court decides whether the property is large enough and can be redeemed by allodial right when someone brings a redemption action.
The municipality has no authority to decide anything concerning the allodial right to a farm.
From allodial-qualifying land to allodial land.
When the first person in a family buys a property that can become allodial, the 20-year allodial acquisition period (odelshevdstid) begins. The farm is then called allodial-qualifying land (odlingsjord). After 20 years the property has become allodial land (odelsjord), i.e. an allodial farm. On allodial-qualifying land there is only åsetesrett (right to inherit the farm undivided), while on allodial land there is both åsetesrett and allodial right.
When the area limits change and the farm is no longer large enough
The area limits in the Allodial Act have been raised several times. When the Act is amended, an allodial farm may have had enough land under the old rules but be too small under the new ones. In that case the allodial status of the property lapses on the day the new rules take effect. If the farm was sold or inherited shortly before the amendment, the old rules can normally be applied to carry out an allodial redemption from the person who bought or inherited it. After that the allodial status lapses. Source: https://www.landbruksdirektoratet.no
What is allodial right (odelsrett)?
The allodial founder (odler)
The person who owns the farm when the 20-year allodial acquisition period expires becomes the allodial founder (odler). Normally the same person has owned the farm for all 20 years, but periods can also be combined when the property passes from parents to children in a generational transfer. The allodial founder acquires an allodial right (odelsrett) to the property.
Other persons with allodial rights
The allodial founder's descendants also acquire an allodial right to the farm, but they must be sufficiently closely related to the owners of the farm.
You have an allodial right if you are:
– a child of someone who owns or has owned the whole property with allodial right, or
– a grandchild of the person who owns the whole property with allodial right today.
Previously the circle of persons with allodial rights was wider. You can read about this under the tab "Changes to the Allodial Act".
"Owned the whole property with allodial right"
This means the owner must both have held an allodial right to the farm and been its sole owner for the descendants to acquire an allodial right. If siblings own the allodial farm together, their children do not acquire an allodial right. There is one exception: if spouses or cohabitants each own half of the property, their joint children and grandchildren acquire an allodial right.
Grandchildren of the owner
Grandchildren have an allodial right as long as their grandparents own the farm. When there is a generational transfer, some of the grandchildren lose their allodial right. For example: Grandfather owns the allodial farm and has two children, Anne and Bjørn. Anne has two children of her own and Bjørn has three. Both Anne's and Bjørn's children have an allodial right as long as Grandfather is the owner. When Grandfather sells the farm to Anne, Bjørn's children lose their allodial right. At the same time, Anne's grandchildren acquire an allodial right. Source: https://www.landbruksdirektoratet.no
Is there a register of persons with allodial rights?
No. You have to keep track of the family yourself.
Priority: who has the best allodial right in the family?
Even though many people may have an allodial right (odelsrett) to a farm, not all of them have an equally strong right. Your priority determines how strong your allodial right is, from first to last in the allodial order of succession.
The eldest child of the current owner has the best allodial right. Next come the eldest child's descendants (also known as the line) in order of age. After them comes the owner's second child with his or her line, then the third child with his or her line, and so on. Men and women are treated entirely equally. Adopted children take their place in the order of priority according to the date of adoption, not their date of birth. Source: https://www.landbruksdirektoratet.no
What is the deadline for an allodial redemption action?
When the farm changes hands, those with allodial rights may exercise their allodial right (odelsrett). This can be done from the moment a written or oral agreement has been made to sell the farm to someone outside the family, or to someone with a lower allodial priority. The sale does not need to have been registered. When the owner of an allodial farm dies, the allodial right can also be exercised in the distribution of the estate.
To claim the farm by allodial right, you must issue a writ of summons in the district court (tingretten) and obtain a judgment that the property is to be conveyed against the allodial valuation (odelstakst). This court case is called a redemption action (løsningssak).
Although the allodial right can be exercised from the time the agreement is made, there is a rule on when it must be exercised if it is not to be lost:
Once the new owner has registered the deed (skjøte) to the property, those with allodial rights have six months to issue a writ of summons for allodial redemption. If you wait longer than that, it is too late. The allodial right has then lapsed (become time-barred). Source: https://www.landbruksdirektoratet.no
Must the buyer notify those with allodial rights?
No. You have to keep track yourself. Neither the buyer nor the municipality has any duty to notify those with allodial rights (odelsberettigede) of the sale and its registration. Source: https://www.landbruksdirektoratet.no
Can allodial right and the right of redemption be waived?
It is possible to waive either the right of redemption (løsningsrett) or the allodial right (odelsrett) under the Allodial Act § 25. A declaration waiving the right of redemption and allodial right must be in writing. Oral declarations made before 1.7.2009 are nevertheless valid.
You can waive your allodial right entirely, in which case you will no longer be able to exercise an allodial right in any context.
It is also possible to waive the right of redemption only in relation to one or more specific persons. For example, you can write a declaration that you will not exercise your right of redemption against X and his or her descendants. If you choose this option, you can later exercise your allodial right if X sells outside the family.
Minors
Minors cannot waive their allodial right or right of redemption unless their guardian obtains consent from the County Governor (fylkesmannen). This is set out in the Guardianship Act § 39 (a). If parents waive the allodial right on behalf of their children, the declaration is invalid. Source: https://www.landbruksdirektoratet.no
The offer rule: how can allodial rights be clarified before a sale?
The Allodial Act §§ 20-20c contain rules on offering those with allodial rights (odelsberettigede) the opportunity to take over the property before it is transferred to others. This is called the offer rule (tilbudsregelen) or interpellation rule (interpellasjonsregelen). The agricultural estate agent will always have an overview of those with allodial rights and the possibility of their waiving them if a decision is made to sell the property.
An owner of allodial land who intends or is considering selling the property may offer those with allodial rights the opportunity to take it over on the same terms as the buyer. This can be done whether the owner intends to sell to someone with or without allodial rights, and can also be done before the owner has an agreement with a specific person. The owner may make the offer to one or more persons with allodial rights. If any of those with allodial rights lack legal capacity, the offer must also be sent to the guardianship authority (overformynderiet).
The offer must be in writing, set out the terms of sale and give the person(s) with allodial rights a deadline of at least two months to respond. The owner is not obliged to sell to those with allodial rights even if one or more of them accepts the offer.
If those with allodial rights decline the offer, or do not respond, they cannot exercise their allodial right to redeem the property if it is sold, on the terms set out in the offer, within two years of the expiry of the deadline for responding. Making a reservation that the price of the property is to be set by allodial valuation (odelstakst) is not regarded as declining the offer.
Source: https://www.landbruksdirektoratet.no
What are the rules for a surviving spouse or cohabitant on a farm?
A surviving spouse and a surviving cohabitant (in a marriage-like relationship) are protected against allodial redemption when their spouse or cohabitant holding the allodial right (odelsrett) dies, cf. the Allodial Act §§ 34-36. The survivor may remain the owner of the property for a period without fear that children, the deceased's children from a previous relationship (særkullsbarn) or others with allodial rights will bring a redemption action to take the property from him or her. It is a condition of this protection that the survivor complies with the residence and operating obligations (bo- og driveplikt), cf. § 39.
In relation to his or her own children, the survivor is protected until pensionable age. The protection against the allodial right of children from a previous relationship lasts until that child turns 18. In relation to those with allodial rights further out in the family, the survivor is protected until pensionable age, provided he or she had community of property with the deceased for at least five years.
In all cases, those with allodial rights may allow the survivor to remain the owner for longer than the minimum period laid down in §§ 34-36 without losing their right to redeem the property, cf. § 48. Source: https://www.landbruksdirektoratet.no
What are the challenges with allodial right and co-ownership?
The combination of allodial right (odelsrett) and co-ownership (sameie) has led to many disputes. Today it is not possible to acquire allodial right to a co-ownership share. If you take over an allodial farm as co-owners, this has consequences for the allodial right that already exists on the farm.
It is now a condition for acquiring an allodial right that parents or grandparents have owned the "whole" allodial property. This means that if parents or grandparents have owned or own the property together with siblings, neither their children nor their grandchildren acquire an allodial right.
In addition, the deadline for exercising the allodial right starts to run when a co-ownership is established. This happens, for example, when siblings take over a farm together. It means the co-owners must bring redemption actions against each other within the six-month deadline in order to retain the allodial right to the whole property.
We have gathered some typical questions about co-ownership:
A. My siblings and I want to take over the allodial farm from our parents. What happens to the allodial right?
You can take over the farm together, but neither your children nor your grandchildren will then acquire an allodial right. In addition, the sibling with the best allodial right will lose the right of redemption (løsningsrett) over the others' co-ownership shares unless he or she brings a redemption action within six months of the deeds to the co-ownership being registered.
B. My cohabitant/spouse and I are going to take over a farm together. Will our children acquire an allodial right?
As long as you each own 50 % of the farm, you can take it over and your joint children and grandchildren will acquire an allodial right to the whole property. You do not need to redeem from each other. This is a practical exception to the main rule and applies whether you take over an allodial farm that is in the family or buy a farm on the open market and establish allodial right to it yourselves.
C. We are siblings and have owned the allodial farm together for many years. Will neither our children nor our grandchildren acquire an allodial right?
If you have owned the farm since before 1.7.2009, certain transitional rules may apply to you. Those of you who are already co-owners have an allodial right and do not need to worry about the six-month deadline for bringing a redemption action. But for new co-owners, and for your children and grandchildren, the current rules apply in full. This means the allodial right normally lapses when the original co-owners transfer their shares to their children, because there is no longer anyone who is the child of a sole owner. Source: https://www.landbruksdirektoratet.no
What are the rules when a younger sibling takes over the allodial farm?
The Allodial Act § 43 is a rule that allows older siblings to let a younger sibling take over the allodial farm while still being able to exercise their allodial right (odelsrett) if the younger sibling later sells the farm outside the family.
If the third child in a family takes over the allodial farm and holds it with full title for more than six months, the older siblings cannot redeem it from the third child or his or her descendants. But if the third child later sells outside the family, the older siblings can exercise their allodial right and bring a redemption action against the outside buyer within six months of the registration of the acquisition. Source: https://www.landbruksdirektoratet.no
What are the allodial valuation and the åsetes valuation?
Many people ask how to find the allodial valuation (odelstakst) of a farm that is for sale. The allodial valuation is set by the court when someone has brought an allodial redemption action. It is determined on a discretionary basis under the Allodial Act § 49. In a voluntary sale, an ordinary agricultural valuation can be used.
An åsetes deduction (åsetesfradrag) may be granted when an heir entitled under the åsetesrett (right to inherit the farm undivided) takes over the property in the distribution of the estate. It is to be determined under the Allodial Act § 56.
It must be assessed whether an åsetes deduction should be granted. The valuation cannot be higher than the allodial valuation, and the assessment may take into account whether the åsetes heir's finances are strong or weak, i.e. whether a deduction is necessary for the heir to be financially able to keep the property after the estate has been settled. Source: https://www.landbruksdirektoratet.no
What does the unreasonableness rule in § 21 of the Allodial Act involve?
In some cases the courts may refuse allodial redemption even though the person seeking to redeem has the best allodial right (odelsrett). The Allodial Act § 21 provides that allodial redemption may be refused if it would be clearly unreasonable. This is a strict requirement.
A typical case might be where a younger child has helped out on the farm and has now taken it over from the parents, while the older child has moved away from home and has a different occupation. The court may then refuse to let the older child redeem the farm from the younger.
With the amendment of 1 July 2009, the power to refuse redemption was extended to cases where the new owner is not the owner's younger child. The unreasonableness rule can be applied in favour of a new owner further down the allodial order of succession, or of someone with no allodial right at all. The unreasonableness rule can also be applied in the distribution of an estate. Source: https://www.landbruksdirektoratet.no
Where can I get help with an allodial case?
The Norwegian Agriculture Agency (Landbruksdirektoratet) can explain the rules and answer general questions, but cannot help you with an individual case. If you need help with a specific case, you must contact a lawyer or legal adviser.
Source: https://www.landbruksdirektoratet.no
What do I need to know about my allodial case?
An allodial (odel) case can be complicated and may also involve strong emotions. When seeking advice on an allodial case, it is wise to have established a few things in advance:
1) Who has owned the allodial farm? Has it always been owned by one person, or has there been co-ownership?
2) When did the farm change hands? This is important to know because older rules may still be relevant.
3) An overview of the family – in practice, a family tree.
This makes it possible to say which rules applied at each change of ownership, and who has an allodial right and the best priority today.
Source: https://www.landbruksdirektoratet.no
Is the Allodial Act going to be repealed?
The Norwegian Agriculture Agency (Landbruksdirektoratet) says it receives many questions about this.
The Allodial Act (odelsloven) is a somewhat special law because it is protected by the Constitution. Article 117 (§ 117) of the Constitution states that "The allodial right and the åsetesrett shall not be abolished" ("Odels- og Åsetesretten må ikke oppheves"). To repeal the Allodial Act, the Constitution must therefore first be amended.
Constitutional amendments take longer than other changes in the law. The Storting must vote in favour of amending § 117 twice, before and after a general election. Source: https://www.landbruksdirektoratet.no
Where can I find the new circular on release from allodial status under §§ 30 and 32 of the Allodial Act?
From the Norwegian Agriculture Agency (Landbruksdirektoratet).
Earlier amendments, transitional rules and questions are also covered by the Norwegian Agriculture Agency: https://www.landbruksdirektoratet.no/no/eiendom-og-skog/eiendom/odel#tidligere-lovendringer–overgangsregler-og-spoersmaal
What is release from allodial status (odelsfrigjøring)?
Previously it was possible to release additional land acquired for an agricultural property from allodial status (odelsfrigjøring) under the Allodial Act § 31. This provision is being repealed, so this is no longer possible. The amendment comes into force on 1 January 2014.
As a result of the amendment, the Ministry of Agriculture and Food (Landbruks- og matdepartementet) has issued a new circular on release from allodial status. Source: https://www.landbruksdirektoratet.no
Transitional rules
In cases where the right to allodial redemption arises before the amendment comes into force, § 31 nevertheless applies.
For more information on transitional rules, see the tab "Earlier amendments, transitional rules and questions". Source: https://www.landbruksdirektoratet.no
Much of the information above is taken from the Norwegian Agriculture Agency's information pages and other relevant sources within agriculture.
Tegneby & Grønnerød Landbruksmegling has focused on the main points that will help you on your way to succeeding as a farmer.
04 / 06
Forestry
9 questions
What responsibilities do I have as a forest owner?
As a forest owner (skogeier), you are responsible for all activity in your forest. This applies even if you contract the work out to others.
What do I need to do before I start selling timber or felling?
To sell timber to a reputable buyer, you must be certified. For the vast majority of forest owners, this means joining a group certification scheme (gruppesertifiseringsordning).
Read more about certification on the Norwegian Agriculture Agency (Landbruksdirektoratet) website, or on the NORSKOG website.
What is a timber account?
A timber account (tømmerkonto) is a way of taxing forestry income that allows the forest owner to recognise timber income largely in the same way as entries on a gains and losses account (gevinst- og tapskonto). Read more by searching the Skatte-ABC from the Norwegian Tax Administration (Skatteetaten).
You will also find plenty of useful information from Skogkurs.
What is the forest fund?
When you sell timber from your forest property (except timber for use in your own farming or forestry business), a share must be set aside in the forest fund (skogfond). The buyer withholds the forest fund amount from the settlement with you and pays it to the County Governor (Fylkesmannen), who keeps the accounts. The forest fund belongs to the forest property the timber comes from and is to be used for long-term investments and to safeguard important environmental values. Contact your municipality to have the forest fund paid out. You decide how much to set aside, between 4 and 40 per cent of the gross value. The forest fund is deducted as an expense when it is set aside, and on payout only 15 per cent of the funds is taxed.
After felling, you must ensure that new forest grows back and tend it so that it can produce timber in the future.
Read more about forest management (skogskjøtsel) on the Norwegian Agriculture Agency website.
What is the purpose of the grant schemes in forestry?
Forestry grants (tilskudd) are intended to stimulate greater value creation, sustainable use of forest resources, and the preservation and development of environmental values in forests. Below you will find more information about the various forestry grant schemes.
Which grant schemes can I apply for in forestry?
Grants can be applied for, among other things, for the following forestry projects:
· Construction and reconstruction of forest roads
· Silviculture and quality development
· Forest management planning with environmental registration
· Timber quays
· Logging by cable crane, horse and other harvesting methods
· Forest fertilisation as a climate measure
· Denser forest planting as a climate measure
Which regulations govern grants for the construction and reconstruction of forest roads?
Under the Regulations on grants for business and environmental measures in forestry (forskrift om tilskudd til nærings- og miljøtiltak i skogbruket, NMSK) § 5, grants may be awarded for:
- Construction of new forest roads
- Reconstruction of existing forest roads
What conditions apply to receive grants for building or reconstructing forest roads?
- The road must contribute to a sound overall solution that provides a basis for using forest and outlying land resources.
- The road must be approved under the Regulations on the planning and approval of roads for agricultural purposes (forskrift om planlegging og godkjenning av veier til landbruksformål).
- The road must be built in accordance with the current standards for agricultural roads, with construction specifications, laid down by the Ministry of Agriculture and Food (Landbruks- og matdepartementet).
- Only the forestry share of an agricultural road is eligible for grants.
- A construction plan approved by the municipality must be in place before construction work begins.
- The road must be maintained to the standard to which it was originally built.
- Employees of the agricultural and environmental authorities must be able to use the road free of charge in the course of their duties.
Guidelines and conditions for grants are set by the County Governor (Fylkesmannen) in cooperation with the municipalities and the forestry industry. These guidelines should be available on the County Governor's website, or you can have them sent to you by contacting the forestry officer in your municipality directly.
The municipality receives and prepares grant applications, and the County Governor makes the decision and pays out the grant. Contact the municipality where you live for more information about the grant scheme and, if needed, guidance on filling in the application form.
NIBIO has also developed a programme for calculating the profitability of forest roads. This programme can be useful when processing and prioritising grant applications.
The application form for grants for road building in forests is available on the Norwegian Agriculture Agency website.
Where can I find useful links and information about forestry?
Useful links: forests and timber · NIBIO – research and information on forests, soil, plants, outlying land and landscapes www.nibio.no · TreFokus/ByggSkolen/Tresenteret/Treindustrien – joint portal for timber information and research www.trefokus.no · Skogveven – teaching material and reference resource on forestry www.skogveven.no · Bygg og bevar – portal on living in and restoring old houses www.byggogbevar.no · Skogkurs – course and information site of the Forestry Extension Institute (Skogbrukets Kursinstitutt) www.skogkurs.no · SkogsNorge – portal for forestry and the forest industry www.skogsnorge.no · Statskog – offers and information www.statskog.no · Skogbrukets landsforening – trade association within NHO Mat og Landbruk www.skogbruk.no · Norsk Trevare – trade association for timber construction www.trevare.no · Nobio – Norwegian Bioenergy Association www.nobio.no · Skogforsk – Swedish forestry research www.skogforsk.se · Norsk Juletre – Christmas tree and decorative greenery organisation www.norskjuletre.no · Allskog – forest owners' association for northern Norway www.allskog.no · Norwegian Forest Owners' Federation (Norges Skogeierforbund) www.skog.no · Skogselskapet – www.skogselskapet.no · Kystskogbruket – www.kystskogbruket.no · Skogsvei www.skogsvei.no
Much of the information above is taken from the Norwegian Agriculture Agency's information pages and other relevant agricultural sources.
Tegneby & Grønnerød Landbruksmegling has focused on the main points that will help you on your way to succeeding as a farmer.
05 / 06
Support schemes and grants
5 questions
What do I need to do to receive agricultural support?
Most agricultural support schemes go to those running a business. As a new farmer, you therefore need to set up an enterprise (foretak) and register it in the Central Coordinating Register for Legal Entities (Enhetsregisteret, Brønnøysundregistrene). You register your enterprise via altinn.no.
Once you have an organisation number, contact your municipality to have your enterprise and your farm operations centre (driftssenter) registered in the Agricultural Register (Landbruksregisteret).
What are the research levy and the marketing levy in agriculture?
You must pay the marketing levy (omsetningsavgift) on all milk, meat, eggs and grain that you sell. For products sold to slaughterhouses, dairies, egg packing stations and grain buyers, the levy is deducted from your settlement. If you sell these products outside these channels, or to a particular type of egg packing station, you must report the sale to the Norwegian Agriculture Agency (Landbruksdirektoratet), which then collects the levy.
Farmers must pay the research levy (forskningsavgift) on products they sell directly.
Read more about agricultural rates and levies on the Norwegian Agriculture Agency website.
What grants can I receive for producing agricultural products?
You can apply for several grants if you farm:
– Production subsidy (produksjonstilskudd) and relief subsidy (avløsertilskudd) in agriculture (for crop production and livestock production).
– Price subsidy (pristilskudd) (for deliveries of meat, milk, eggs, wool, etc.). Price subsidies are paid by the dairy, slaughterhouse or egg packing station. Price subsidies following the reporting of locally processed milk are paid by the Norwegian Agriculture Agency. Price subsidies for fruit and vegetables are paid by the Norwegian Agriculture Agency.
Read more on the Norwegian Agriculture Agency website.
Read more about regional environmental grants in agriculture (regionale miljøtilskudd).
What projects can I receive grants for?
You can apply for grants for a range of projects:
– Grants for special environmental measures in agriculture (spesielle miljøtiltak i jordbruket, SMIL)
– Drainage of agricultural land
– Measures in grazing areas
– Investment grants/start-up grants (bygdeutviklingsmidler, rural development funds). Read more at Innovation Norway (Innovasjon Norge).
– Forest management – read more on the Norwegian Agriculture Agency website
Innovation Norway has priority lists and support schemes for every county in Norway – read more about these, and about what kind of support you can apply for for your farm, on Innovation Norway's website.
Where can I find useful links and information about grants, courses and education in agriculture?
Start-up and investment · Innovation Norway www.innovasjonnorge.no · Bedin (part of Altinn) – tools for starting and running a business www.altinn.no · Studenttorget – students and entrepreneurs www.studenttorget.no · Ungt entreprenørskap (Young Enterprise Norway) www.ue.no · Ung tiltakslyst www.ungtiltakslyst.no · Ungdomsfondet www.ungdomsfondet.no · JA-YE (Junior Achievement – Young Enterprise) – international organisation for young people and entrepreneurship www.http://share.jayeapps.com/EEC2015/ · Finansportalen – the Norwegian Consumer Council's portal for comparing financial products · Penger.no – a portal for personal finance, insurance and financing www.finansportalen.no · NTNU – master's in entrepreneurship (application deadline 15 April) www.ntnu.no · Etablerer.no – online courses www.etablerer.no · NKS-studier – overview of online courses www.nks.no · BI – entrepreneurship and business education www.bi.no · Centre for Entrepreneurship – study unit at the University of Oslo www.mn.uio.no · Ferd – social entrepreneurs – the investment company Ferd's social entrepreneurship programme www.ferd.no
Much of the information above is taken from the Norwegian Agriculture Agency's information pages and other relevant agricultural sources.
Tegneby & Grønnerød Landbruksmegling has focused on the main points that will help you on your way to succeeding as a farmer.
06 / 06
Applications, schemes and checklist
4 questions
Which rules, applications and schemes are important to be aware of as a new farmer or smallholder?
- Schemes for agriculture
- Schemes for forestry
- Operating obligation (driveplikt)
- Registering an enterprise
- Project funding in agriculture
- Research levy and marketing levy
- Division of agricultural property
- Milk quota (melkekvote)
- Livestock licence (husdyrkonsesjon)
Where can I find more information?
Fulfilling the residence and operating obligation (bo- og driveplikt)
Everyone who owns agricultural property
The municipality
Permission to cultivate new land (nydyrking)
Anyone wishing to cultivate new areas for agricultural purposes
The municipality
Setting up an enterprise
Everyone running a business
The Brønnøysund Register Centre (Brønnøysundregisteret)
Further information from Altinn
The enterprise's farm operations centre must be registered in the Agricultural Register (Landbruksregisteret)
Everyone who will supply livestock for slaughter, wool, milk, eggs or grain to a buyer and/or apply for grants
The municipality
Notify your dairy and the Norwegian Agriculture Agency of your start-up well before production begins
Enterprises that will engage in milk production
The dairy
Deadlines in the milk quota scheme:
Sale (purchase of quota privately)
– 1 August
Other changes in quota arrangements
– 1 October
Owner of agricultural property
The Norwegian Agriculture Agency
Applying for a local processing quota (lokalforedlingskvote)
Enterprises that will supply milk for local processing
The Norwegian Agriculture Agency
Debio registration
Enterprises that will engage in organic production
Debio
Further information from Debio
Felling, timber sales, regeneration and long-term investments in forestry
Forest owners selling timber. Forest owners who plant, carry out pre-commercial thinning, build forest roads or commission a forest management plan
The municipality
Building an agricultural road
Requires an application
The municipality
Check the RMP guide (RMP-veilederen) for your county
Everyone who will apply for regional environmental grants
The County Governor's website, the municipality
When do I apply for the various grant schemes?
In 2018 the application deadlines are 15 March, with a reference date (telledato) of 1 March, and 15 October, with a reference date of 1 October.
In part 1 of the application (deadline 15 March), livestock producers may submit an application. In part 2 of the application (deadline 15 October), both livestock and crop producers may submit an application.
Where can I find the grant rates?
You will find the rates for the production subsidy (produksjonstilskudd) and the grant for relief cover during holidays and time off (tilskudd til avløsning ved ferie og fritid) in the agricultural settlement (jordbruksoppgjøret) for the relevant period. When you fill in part 1 of the application (deadline 15 March), the rates will not yet be available, as the outcome of the agricultural settlement is only known in May/June. The provisional grant calculation shown in the application submitted in March is based on the previous year's rates.
We recommend searching for the information you need on landbruksdirektoratet.no.
Much of the information above is taken from the Norwegian Agriculture Agency's information pages and other relevant agricultural sources.
Tegneby & Grønnerød Landbruksmegling has focused on the main points that will help you on your way to succeeding as a farmer.
The answers draw on public sources such as the Norwegian Agriculture Agency. Rules change — contact us for advice on your case.