The harvest of field crops is nearing completion, with farmers now assessing the damage from the drought, which is expected to total at least 130 billion dinars. As they determine the potential profitability of this year’s harvest, they are also facing the imminent costs of autumn sowing.
Professor Dr. Petar Veselinović from the Faculty of Economics in Kragujevac notes that the direct damage from the drought is estimated at around 130 billion dinars. He explains that this significant loss is likely to lead to increased agricultural product prices, a consequence of decades of insufficient irrigation and dramatic climate changes.
Sunflower crops have experienced the least damage, while soybean yields have suffered the most, with yields failing to exceed two tons per hectare—an amount insufficient to cover the costs of investment. Adding corn and beet crops to the assessment, experts predict a total yield loss of 10 to 15 percent, which spells trouble for the upcoming sowing season, even for farmers who have not been directly affected by the drought.
Vladimir Lazarov, a farmer from Omoljica near Pancevo, expresses concern over the high costs of inputs, including seeds. He hopes for state aid of 17,000 dinars per hectare and is optimistic that interest-free loans for raw materials might be available from banks to help mitigate production costs.
Farmers’ potential losses might be partially offset by increased subsidies. However, these subsidies appear to have been absorbed by rising raw material costs. Professor Dr. Zoran Rajić from the Faculty of Agriculture in Belgrade highlights that prices for seeds and other raw materials have already increased, disrupting previous pricing structures. For this year, the Ministry of Agriculture has allocated around 1.3 billion dinars for subsidized loans, injecting approximately 6 to 7 billion dinars into the agricultural sector.
Rajić points out that while subsidized loans are helpful, they come with the obligation of repayment, which makes farmers more cautious in their investments. Many economists argue that investment subsidies are more beneficial than direct payments, a point frequently discussed as the agricultural budget for the coming year is being formulated.
