Norway's agricultural sector is experiencing a youth boom, but the financial burden on new farmers has reached dangerous levels. Olliver Ullenes, a 19-year-old sheep farmer from Rennesøy in Rogaland, embodies both the promise and peril facing Norwegian society's next generation of agricultural entrepreneurs. Source: Ministry of Agriculture and Food.
Ullenes took responsibility for his uncle's sheep operation at just 15 years old and now manages 230 winter-fed animals. His dream is to eventually take over the entire farm, which includes 120 dairy cows and 50,000 broiler chickens. But the financial reality is sobering. The new chicken house alone cost 17 million kroner, and Ullenes knows he'll need tens of millions in loans to realize his ambitions.
Debt crisis grips Norwegian agriculture
The numbers paint a stark picture of modern farming. According to Peder Skåre, agricultural director at Sparebank 1 Sør-Norge, while the typical farm carries about 5 million kroner in debt, many operations now exceed 20 million kroner, with some pushing past 30 million.
This debt explosion stems from mandatory modernization. New animal welfare regulations requiring loose housing for dairy production by 2034 have triggered a construction frenzy. Combined with rising costs for diesel, feed, and equipment, farmers face a perfect storm of financial pressure.
Skåre warns that high debt fundamentally changes farming from a lifestyle to a high-stakes business venture. "With debt of 15-20 million, you must operate excellently," he notes. Personal crises like illness or divorce, once manageable setbacks, now pose existential threats to heavily leveraged operations.
Youth boom meets financial reality
Despite the debt burden, young Norwegians are flocking to agriculture. In 2025, 1,300 new farmers under 25 established operations, while the number of farmers under 40 grew by 1,300 between 2022-2024.
The Statsforvalteren (County Governor) in Rogaland administers various subsidy schemes to support new farmers, including production subsidies and regional environmental grants. Yet these programs cover only a fraction of modern startup costs.
Educational institutions are adapting to this reality. Vinterlandbruksskulen in Ryfylke now makes economics mandatory for all students, recognizing that modern farmers must be skilled business managers, not just animal husbandry experts.
Lars Johan Rustad from the Norwegian Institute for Bioeconomics warns that today's debt levels create a "larger fall height" than previous generations faced. Young farmers can no longer rely on a spouse's income to weather poor harvests or market downturns.
The risk is a wave of farm bankruptcies within five years as interest rates remain elevated and inexperienced operators struggle with debt service on oversized loans.
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