State Initiatives

1) Berry producers upset with government decision regarding EUR 100 million in aid

April 25th, 2020, http://rs.n1info.com/Biznis/a592920/Proizvodjaci-malina

Serbian berry producers are outraged by a government decision to delay EUR 100 million in state aid as part of relief from the COVID-19 pandemic. The aid, which is meant to support businesses and citizens, was initially planned to be delivered by May 15, 2020; however, the new decision requires interested parties to phone or email their request for aid by June 5, 2020. Berry producers expected this aid around May 15 and need it to complete spring sowing activities. Moreover, many berry producers are inconvenienced in that many do not have computers and fear that telephone lines will be at capacity with tens of thousands of calls, meaning their aid may be further delayed.

2) Farmers need not be registered in VAT system to qualify for state aid package

April 24th, 2020, https://www.danas.rs/ekonomija/nedimovic-poljoprivrednici

The Minister of Agriculture has confirmed that farmers requesting aid under the state’s RSD 2.6 billion farmer assistance package are not required to be registered in the VAT system in order to qualify for the aid. It is enough that they are a registered agricultural holding with an active status. This aid is being provided to farmers in two ways: (1) as direct financial support and (2) as a way of facilitating access to credit. It should be noted that this assistance is not connected with other subsidies offered by the state.

3) RSD 2.6 billion in state aid to help farmers during COVID-19 pandemic

April 21st, 2020, https://www.novosti.rs/vesti/naslovna/ekonomija/aktuelno.239

The state has made RSD 2.6 billion available to assist farmers amid the COVID-19 pandemic. The financial assistance is available via two means: (1) direct payments that will be made to registered agricultural holdings and (2) state-facilitated access to credit. It should be noted that this amount is not related to and is completely separate from other state subsidies available to farmers. Although many farmers welcomed the aid, many were also skeptical that the state-facilitated access to credit would be of benefit to most small- and medium-sized producers, who typically are not interested in credit due to poor prior experiences and a fear of not being able to fulfill their obligations under credit agreements.

4) Package of state support for farmers under development

April 14th, 2020, https://beta.rs/ekonomija/ekonomija-srbija/125908

The state is in the process of developing a special package of measures to mitigate the impact of the COVID-19 pandemic on the agricultural sector. The exact types and methods of support have yet to be finalized as the state is still working with experts and producers to determine the measures most likely to have the greatest impact. Experts believe that measures could include assistance in procuring planting material, relief for the procurement and necessary fuel and/or partial delays or cancelations of liabilities.

5) Digital platform launches to connect food producers with consumers

April 11th, 2020, http://www.psp.vojvodina.gov.rs/VestiCyr.aspx?Id=22356

With markets temporarily closed due to the COVID-19 pandemic, the digital platform https://pijaca.minpolj.gov.rs has launched to help producers of quality food directly connect with consumers in urban areas throughout Serbia.

6) State support for farmers to increase

April 8th, 2020, http://www.rtv.rs/sr_ci/ekonomija/program-mera

The state is in the process of adopting special measures to support farmers during the COVID-19 pandemic. Specifically, the state is planning two types of general measures: one aimed at providing direct financial support to the agricultural sector as a whole (via subsidized loans) and another, more targeted effort aimed at supporting specific industries (e.g. small dairy farms, early vegetable producers). In addition, the state has loosened the curfew for farmers to allow them greater flexibility to complete necessary field work.

7) Ministry of Agriculture offers subsidized loans to farmers through banks

April 6th, 2020, http://subvencije.rs/krediti/subvencionisani-kredit

The Ministry of Agriculture is preparing a program of support for farmers in cooperation with commercial banks. Specifically, the Ministry, through commercial banks, will offer farmers subsidized loans for the purposes of developing animal husbandry, developing arable farming, investing in agricultural machinery and procuring animal feed. All subsidized loans are approved and paid out in the local currency. There is a fixed interest rate of 3% per annum (1% for naturalized persons working in areas determined as difficult for agriculture, persons aged 40 years or older and women), and loans are available up to RSD 6 million (RSD 18 million for legal entities).

8) State planning to impose duties on fruit and vegetable imports

April 3rd, 2020, https://agrosmart.net/2020/04/03/pomoc-domacim

Many Serbian farmers, especially vegetable producers, are facing difficulties in marketing their seasonal vegetables. Much of this difficulty is being caused by states around the world closing their markets. Although these closing are, by and large, temporary, some experts predict that this could cause 50% or more of Serbian production to be wasted. To help farmers, the state is planning to impose duties on the import of fruits and vegetables, with the idea that domestic markets will open more for domestic producers. Such a move is not without precedent. In 2015, Serbia imposed additional duties on the import of dairy products and pork to prevent market disturbances. These measures lasted until the end of 2016.

9) Cooperative assistance program to launch in post-COVID-19 Serbia

April 2nd, 2020, https://agrosmart.net/2020/04/02/krkobabic-zadrugama-nakon-korone-600-miliona-dinara-pomoci/

The government has announced a new RSD 600 million program will launch the day after the COVID-19 pandemic has ended. The program will help cooperatives reestablish their work and the work of their members and return to a state of normalcy. The program is part of a concerted government effort to mitigate the impact of the COVID-19 pandemic.