Agriculture is a small sector in the economy, with its share of GDP and total employment at under 1% and 4% respectively in 2004 [1] (Figure 3.21.1). While the volume of farm production remained stable between 1990 to 1997, it then declined by about 2% to 2004, largely reflecting a drop in livestock output [2]. Chemical input use has declined more rapidly than farm output suggesting production intensity is diminishing, with the volume of purchased farm input use decreasing between 1990-92 and 2002-04 by around 6% and 17% for nitrogen and phosphate inorganic fertilisers respectively, 26% for pesticides (1990- 2003). Direct on-farm energy consumption rose by over 24% (Figure 3.21.2), however, this number should be used with caution because of uncertainties in the data series. Norway is one of a few OECD countries where the area farmed increased by 4% from 1990-92 to 2002-04. This largely reflects the growth in the area under pasture, partly offset by a reduction in the arable and permanent crop area [1]. Some of the apparent increase in area farmed was due to improved registration and reporting by farmers due to the transition from a farm support system based on production to one based on area. Another reason for the growth in agricultural land is related to stricter requirements with regards to the minimum area for manure spreading [3]. The share of farmland in the total area is the lowest across OECD countries at around 3% in 2002-04, because of limits to cultivation due to topography, climate and the length of the growing season [1]. Cereal production dominates the lowlands in eastern and central areas, while grassland, mainly for dairy, accounts for much of the remaining farmland [3].