AGRICULTURE BULLETIN
Subsidy Payments to Be Made Based on Public Calls
New App Connects Agricultural Traders, Producers and Suppliers
Government Officials Meet with DFC to Discuss Guarantee Scheme
RSD 20.8 Billion in Agricultural Products Sold in First Six Months of 2022
State Initiatives
1) Subsidy Payments to Be Made Based on Public Calls
December 29th, 2022, http://www.sattelevizija.com/vesti/jedna_vest/naredne_godine
Starting this year, the Ministry of Agriculture is introducing applications for incentives based on public calls to shorten the processing of requests and pay out funds faster. This is instead of the previous process of direct submissions by a specific deadline. This way of submitting requests will not bring essential changes to obtaining and using subsidies for agricultural producers but will improve and speed up the administrative process of receiving and processing requests. These changes were introduced in accordance with recommendations provided by the State Audit Institution.
2) 89,700 Hectares of Agricultural Land Returned through Restitution
December 27th, 2022, https://www.agrofin.rs/vesti/restitucijom-vraceno-89-700-hektara-poljoprivrednog-zemljista/
During the 16-year restitution period in Serbia, 89,700 hectares of agricultural land were returned to persons with proper claims. In addition to this land, 29,000 hectares were returned to the church; 32,000 hectares of forests were returned; and 712,000 objects (apartments, buildings and business premises) were also returned.
3) Call for Increased Agricultural Budget, Revamped Subsidy Distributions
December 27th, 2022, https://bizinfo.rs/osim-povecanja-agrarnog-budzeta-potrebna-i-bolja-raspodela-subvencija/
The president of the Independent Association of Serbian Farmers is calling for an increased state budget for agricultural support as well as a better distribution plan and system for subsidies aimed at bolstering the sector. With regard the subsidy distribution plan and system, the president notes that producers whose main activity is agriculture should receive more funds than those whose additional activity is food production and that agricultural holdings that exist in the register and do not engage in agriculture should not receive incentives. In particular, the president is frustrated that some agricultural farms seem to only exist get state subsidies, without producing anything, by leasing their land to others and still receiving subsidies for that land.
4) Farmers Know About Local Budget Support but Often Do Not Apply for It
December 25th, 2022, https://podrskamps.org.rs/2022/12/25/poljoprivrednici
According to a recent survey on investments in agriculture, 69% of farmers from the six cities and municipalities covered by the survey declared having knowledge of available benefits from local resources; however, more than half of them chose not to apply for them. At the same time, most indicated that, in future calls, they would apply for subsidized interest rates on dedicated agricultural loans, subsidized insurance and financial assistance for the procurement of agricultural machinery and equipment. The survey was conducted by the Empowerment of Young Farmers to Use Local Incentives in Agriculture project, which is being implemented by the Association of Young Farmers of Serbia.
5) Additional Funding Allocated to Compensate Millers
December 22nd, 2022, https://nova.rs/vesti/biznis/nova-sredstva-za-mlinare-drzava-nadoknadjuje-razliku-u-ceni-brasna/
The government of Serbia has provided RSD 193.56 million in additional funds in compensation for millers. The compensation is due to a flour price cap imposed on millers during parts of 2021 and 2022, a measure
taken to protect consumers from rising prices. Millers additionally suffered difficulties due to temporary bans on the export of flour, wheat and corn in early 2022.
6) More Than 1,100 New Cooperatives Established in Five Years
December 19th, 2022, https://www.dobrojutro.co.rs/za-pet-godina-u-srbiji-je-osnovano-vise-od-1-100-novih-zadruga/
In five years of operation in Serbia, the 500 Cooperatives in 500 Villages program has resulted in the establishment of more than 1,100 new cooperatives. Further work on cooperative development is expected in 2023, with the state allocating RSD 500 million for a new program aimed at the business improvement and technological development of cooperatives. Cooperatives are considered as important ways of building associations and collaborative measures for collective benefit, especially for smallholder farmers and rural inhabitants with limited access to expand their outreach.
7) New App Connects Agricultural Traders, Producers and Suppliers
December 14th, 2022, https://www.agrotv.net/aplikacija-koja-spaja-proizvodjace-i-skladistare/
A team of experts in the grain and oilseed trade has designed the Cooperation Manager app that facilitates electronic communication between storekeepers (traders) and their subcontractors, agricultural producers and suppliers. The software solution enables the digitization of sales processes between retailers as well as the simplification of communications with subcontractors, which increases revenues and reduces sales costs for all parties. The platform was created in the middle of last year and is already being used by some of the largest companies in Serbia. It is mostly intended for storekeepers and cold storers wanting to improve cooperation with subcontractors and achieve better business results with less time and money spent.
8) New NALED Head Prioritizes Digitization and EU Legislative Harmonization
December 3rd, 2022, http://www.agronews.rs/prioritet-novog
Tamara Penjic has been elected to head the NALED Alliance for Food and Agriculture. Ms. Penjic has noted that, under her leadership, priorities will be placed in two main directions: digitization and harmonization of national legislation with that of the European Union (EU). In this regard, she fully supports the further development of the eAgrar platform as well as other digitization initiatives already begun. She also plans on developing more strategic activities aimed at legislative harmonization as this is a means toward better and safer markets.
Foreign Aid
9) Government Officials Meet with DFC to Discuss Guarantee Scheme
December 14th, 2022, https://www.novosti.rs/ekonomija/vesti/1182546/ekonomskoj
The Vice President, Minister of Finance and Minister of Agriculture held a meeting with the vice president of the American International Development Finance Corporation (DFC) to discuss a number of important issues, including the implementation of a guarantee scheme intended to support micro -, small- and medium-sized enterprises (MSMEs) operating in Serbia. The guarantee scheme, which was officially presented in mid-December 2022, will focus on supporting the agricultural sector, underdeveloped regions, sustainable development, startups and women-owned/operated businesses. Under the scheme, loans for working capital and investments will be available to companies for a period of between six months and ten years. The guarantee scheme support project has a total budget of USD 400 million.
