Vlado Kovacevic from the Institute for Agricultural Economics said that the non-refundable aid to farmers is important, but that other measures are available to farmers. It is not enough in itself, but within all other measures – it will be enough, Kovacevic pointed out.
The Ministry of Agriculture proposed to the American International Development Financial Corporation DFC three projects that are important for Serbia, and which relate to novice farmers and their starting a business, women’s entrepreneurship in agriculture and the food industry. Non-refundable loans of 15,000 euros are planned.
In addition, beginners can count on subsidies if they start a business in agriculture or the food industry. To whom can this change lives, provide jobs, and bring profits?
Vlado Kovacevic from the Institute of Agricultural Economics said that in the last few years there have been great changes in agriculture – we are witnessing the entry of information technologies, digitalization, robotics in agriculture and new agro-technical methods.
– Certainly, the first condition is good knowledge, the second is necessary – agriculture requires a high level of investment and the second characteristic is a long period of return on investment in agriculture – said Kovacevic.
If we take the example of fruit production, after the establishment of orchards – the farmer will need 3-4 years to wait for the first income that is something he must keep in mind, money cannot be returned quickly, Kovacevic explained.
According to him, Serbia follows European trends, and in the last decade there has been a large increase in the price of agricultural land, which is over 10,000 euros per hectare in Vojvodina.
Speaking about the non-refundable aid, Kovacevic says that it is important, and in addition to that aid, other measures are available to farmers – in itself it is not enough, but within all other measures – it will be enough.
He says that these are three measures proposed by the Ministry of Agriculture. The beneficiaries are young farmers, educated, women entrepreneurs – these are grants, but there is a third measure of assistance in securing loans, where the Republic of Serbia would participate with 60 percent, and farmers with 40 percent – which would significantly speed up and facilitate access to loans.
It has a wide purpose – for the purchase of machines, agricultural land. The Ministry of Agriculture has been helping farmers for many years through subsidized loans.
– In practice, there is a situation that farmers often do not have security, they do not have enough collateral, and now with this measure, most of those farmers will be able to get a loan – Kovacevic pointed out.
The grants will cover livestock, fruit and vegetable growing.
– They can be profitable. If we summarize what is necessary for these branches to bring profit, they are new technologies and knowledge, a high level of investment, modern equipment and the third condition is that they be united, especially for small and medium-sized farmers. We don’t have to go far for some positive experiences, in the EU most of the production, processing, trade is done through cooperatives – he says.
The purpose of the new legislation, a rulebook regulating the processing of small quantities of agricultural products – is to facilitate the registration of processing facilities for small producers.
Registration of processing capacities is often too complicated – equipment, facilities, technologists are needed, which is often unprofitable for small producers.
According to him, this regulation simplifies these conditions, the positive practice was transferred from the EU countries where such regulations have been approved for small producers, for their beginning, as in Serbia.
He says that Serbia is on the path to EU membership, and on the path to membership in the World Trade Organization, which means that we cannot expect significant market interventions from the state.
-Farmers themselves have the opportunity to influence traffic on their own. It is necessary to unite turnover, to unite, to jointly introduce group product quality standards – it has proven to be good and has had the effect of reducing market risk. We emphasize the possibility that the products are placed in a set of rural tourism activities – Kovacevic concluded, Srbija Danas reports.
