State Initiatives

1) Direct Incentive Subsidies Reduced to RSD 4,000 per Hectare

February 23rd, 2021, http://www.agronews.rs/subvencije-smanjene-sa-5-200-na-4-000-dinara-po-hektaru/

The government of Serbia has passed amendments to the Decree on Incentives in Agricultural and Rural Development that will reduce incentives per hectare from RSD 5,200 to RSD 4,000. This will reduce the overall amount available for direct incentive payments from RSD 24.80 billion to RSD 22.54 billion. The amendments also mean a reduction in funds available for rural development measures from RSD 1.71 billion to RSD 1.40 billion. At the same time, RSD 4.73 billion will be made available for requests based on direct payments from previous years and planned for payment in the current year. This is up from RSD 2.47 billion.

It should be noted that, at the same session these amendments were approved, the government also passed the Decree on the Allocation and Use of Funds for Subsidizing Protected Natural Assets of National Interest. This decree allocates RSD 264.8 million in subsidies to finance works and other costs related to protecting natural areas in Serbia.

2) Ministry of Agriculture Supports Request to Start Frost Insurance Coverage

Sooner

February 19th, 2021, https://beta.rs/ekonomija/ekonomija-srbija/141865

The president of the Association of Raspberry and Blackberry Producers in Serbia has met with representatives of the Ministry of Agriculture, resulting in an agreement that frost insurance coverage for fruit producers should start on March 1 (instead of April 4) of this year. The request for the date change came from the Association after insurance companies changed their regulations and moved the validity period into April. This upset many fruit growers in Serbia, who stated that frost insurance was, essentially, meaningless so late in the season. For their part, the Ministry will strongly recommend insurance companies move the date of frost insurance to March 1. For his part, the president of the Association stated that he will call of producers to suspend all insurance with companies that fail to adopt the Ministry’s recommendation.

3) RSD 500 Million Allocated for Cooperative Development

February 10th, 2021, https://beta.rs/ekonomija/ekonomija-srbija/141423-krkobabic

The Minister for Rural Welfare, Milan Krkobabic, recently announced that the allocation of RSD 500 million in non-refundable funds to cooperatives will soon begin. The funds will be distributed under a competition scheme aimed at helping cooperatives develop and, thereby, support rural development and the improvement of livelihoods for those living in rural areas. Under the state program, new cooperatives are eligible to receive up to RSD 7.5 million, and existing cooperatives are eligible for up to RSD 15 million. A priority will be given to cooperatives in Southern Serbia and other underdeveloped or devastated areas.

4) Subsidy Payments to Agricultural Producers to Begin at the End of March

February 7th, 2021, http://www.rtv.rs/sr_ci/ekonomija/aktuelno/nedimovic-isplata-subvencija-od-marta_1206358.html

Minister of Agriculture Branislav Nedimovic has announced that subsidy payments to agricultural producers will begin at the end of March 2021. The Minister also requested that qualifying agricultural producers submit their subsidy applications on time so that the distribution of the RSD 53 billion in subsidies can commence promptly. It should be noted that the amount allocated for subsides this year

has increased as compared to last year. Additionally, a new support measure is being introduced this year that will help farmers by providing them financing in the “50/40/10” format (50% grant, 40% loan and 10% own contribution).

5) CERES Project Focuses on Bringing AI Solutions to Serbia’s Agricultural

Sector

February 3rd, 2021, http://subvencije.rs/vesti/ceres-projekat-vestacka-inteligencija-stigla

The CERES project has launched with the goal of developing a series of artificial intelligence (AI)-based tools that will enhance Serbia’s agricultural sector, especially has related to improving soil conditions and reducing the impact of climate change. Specifically, the project will develop models based on comprehensive data from a variety of sources and then use this to feed AI-powered algorithms that provide the most accurate solutions to ongoing issues in agriculture. Currently, the project is focused on developing models related to the early identification of changes in plant growth, automated inferences about the causes of changes, yield estimates, soil conditions and appropriate tilling activities.

The application of AI in agriculture is important for Serbia as agriculture represents a key branch of the country’s economy. As such, the CERES project represents an important step forward in this direction.

6) EU Organic Production Project Completed

February 3rd, 2021, https://www.novosti.rs/vesti/ekonomija/961242/uskoro-registracija

The Ministry of Agriculture has completed a European Union (EU) project on organic production and organic product quality. The project includes the development of two specific geographical indications –Authentic Serbia and Wine Treasure of Serbia. Brochures on quality schemes for agricultural and food products and on organic production were also developed under the project. The project also resulted in the draft Law on Organic Production as well as the draft Law on Quality Schemes for Agricultural and Food Products.

7) RSD 200 Million in Grants to Support Young Entrepreneurs in Rural Areas

February 2nd, 2021, https://www.novosti.rs/vesti/ekonomija/960762/bespovratna-pomoc

Government funds are being allocated to support young people in rural areas as well as encourage young people to return to rural areas. Specifically, RSD 200 million in non-refundable grant funds has been made available to young entrepreneurs in rural areas in the form of co-financing for the procurement of machinery and equipment for organic production. The grants cover up to 90% of the total cost of investments up to RSD 1.5 million.

8) Applications for Livestock Production Subsidies Now Being Accepted

February 1st, 2021, https://www.novosti.rs/vesti/ekonomija/960348/uprava-agrarna-placanja-pocela-prijava-subvencije

Applications for livestock production subsidies are now being accepting by the Directorate for Agrarian Payments. A total of RSD 24.8 billion in subsidies are available for breeding and fattening activities as well as for dairy production activities. Applications will be accepted through June 30, 2021. All farm owners and agricultural enterprises are eligible to apply.