The strategy of agriculture and rural development of the republic
Priority areas of the strategic changes
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- 4.4. Operational goals according to priority areas
- Priority area 2. Establishing the efficient agriculture and rural development financing system and risk management
- Priority area 3 Efficient land management and improved accessibility of land resources
- Priority area 4 Improved physical resources
- Priority area 5 Improvement of the knowledge transfer system and human resources development
4.3. Priority areas of the strategic changesThe concept of the sustainable agricultural development and meeting the set strategic goals will be realized through interventions in several priority areas of the agriculture policy, such as: Stabilization of income in agriculture Financing of agriculture and rural development and risk management; Efficient land management and improved accessibility of the land resources; Improved physical resources; Improvement of the knowledge transfer system and human resources development; Adjusting to and alleviation of the climate change effects; Technology development and modernization of the agricultural production and processing; Market chains development and logistic support to the sector; Protection and improvement of environment and preserving of the natural resources; Preserving of agriculture, human and natural resources in the areas with limited conditions for agriculture; Diversification of the rural economy and preserving of the cultural and natural heritage; Improvement of social structure and strengthening of the social capital; Modernization and adjustment of institutions and legal framework; Improvement of the products quality and safety; The selection of the priority areas is a result of the situation analysis and perceived internal and external challenges the sector is facing. The selected priorities are to a significant extent adjusted to the budget support structure according to pillars and groups of measures, presented in the chapter The Budget plan 2014-2024. The selected priority areas however, may be accompanied with the combination of various budget support measures. Since the legal framework in agriculture is subject to frequent changes, this document provides concept definitions which have a long-term strategic effect, and which could be applied even in the case of expected changes to the agriculture policies in the next ten years. 4.4. Operational goals according to priority areasPriority area 1 Stabilization of the income in agricultureThe issue of the stabilization of the income of the employed in agriculture is a key issue of the agricultural policy. This issue is resolved through support to sector development, but the nature and character of agriculture require other forms of state interventions as well when it comes to farmers’ welfare. Namely, the significant instability of production and prices caused by natural conditions and global economic trends, low level of competitiveness of some products and some producers, demand a more complex system of support to income stability than the one that can be provided by random market mechanisms and by the standard set of measures intended for production growth. Farmers in Serbia lack stability of production conditions and stability of income. Their income, apart from mentioned risks, is also exposed to other risks, resulting from insufficiently regulated business environment. Aiming at creation of more favorable, just and equal conditions for domestic producers, the government must launch the eligible mechanisms for supporting their income. Such obligation is at the same time the part of harmonization process with EU policy, which has its own ways and mechanisms of income support that Serbia must adjust to. The planned operational goals for reaching the more stable agricultural income are the following: Ensuring the equal competitive conditions for domestic producers in accordance with the planned solutions that can be found in foreign trade agreements of the Rpublic of Serbia; Support for market regulation during disturbances on the market (safety net).
Increasing of the available support schemes for different purposes (grants); Increasing the number of beneficiaries and scope of the available financial capital intended for agriculture and rural areas development; Development of the loans market and ensuring the improved access to loans for agricultural producers, including the new forms of loans; Improved insurance system, adjusted to the needs of agriculture.
The agricultural production in Serbia over the last two decades has been based on excessive use of land. The usage of manure has been insufficient, as well as investments in improvement of physical and chemical characteristics of land and of land infrastructure. As a result, the main threats for preserving the land potentials are: permanent loss of land, depleted organic matter, increased acidity, erosion, pollution, increased amount of salt, flooding and loss of biodiversity. Besides, the lack of favorable loans intended for improvement and regulation of households and land, inadequate tax policy, unclear policy in the area of land inheritance, unfinished restitution process and relatively long probate proceedings, further slow down the process of changing of the agricultural structure and of increasing the average area of the land in possession. That is why the preserving and improvement of the agricultural land fertility as well as the creation of the efficient land resources management system are the priorities of the agriculture policy. The defined operational goals are: Increased usage of agricultural land; Increased amount of average land area owned by farmers; Establishing of the functional land market; Improved land infrastructure; Increased area of meliorated land and improved land fertility; Accelerating the restitution (including the land owned by cooperatives) and (re)privatization processes; Decrease in loss and land degradation; Controlled change of purpose for the agriculture land; More efficient usage of poor quality land and/or non-arable agriculture land; Systemic land quality monitoring; Establishing the efficient land management system (cadastre, GIS, LPIS). Principles and mechanisms Realization of the mentioned principles requires significant changes to the laws, tax policy and budget subsidies. Adopting and adjustments to the set of laws will regulate the issues in the area of land inheritance, lease and trade, and introduce the obligation to maintain the land in good condition for production. The special emphasis will be placed on the protection of the agriculture land in terms of limiting the change of purpose of the best quality agriculture land. The tax policy and budget subsidies will encourage the land consolidation in the sustainable households and establishing of a more active land market. The special attention will be devoted to improvement of land quality and its production capacities. Apart from conditioning the subsidies to farmers by the obligation to observe good agriculture practice that helps maintain the land in good production shape, the melioration and land infrastructure improvement projects will also be supported. A separate set of activities is planned for institutional capacities strengthening aimed at efficient land management, such as establishing the functional ledger, registries and data base systems (LPIS, land register, pedological maps, etc.). Priority area 4 Improved physical resourcesThe current state of the physical resources (machinery, equipment, plantations, cattle, and facilities) is not favorable. They are obsolete technology-wise and as such cannot provide the competitiveness improvement of the sector and meeting the environment protection and hygienic standards. Besides, the successful response of the sector to climate change challenges is impossible without the resources improved in terms of technology, usage of improved seed sorts, aiming at change of the production structure production technology and agricultural measures used. In that regard, it is necessary to plan rational and uniform solutions for technological improvement of machinery, equipment and facilities, adjusted to the size of households, health safety and animal welfare standards and climate change. Investments into new plantations must take into account the recommendations of zoning of fruit and wine production areas, while in cattle breeding the emphasis should be placed on improvement of cattle selection improvement. Operational goals for this priority implementation are: Technical and technological modernization of facilities and equipment; Increased number of cattle, improved cattle breed and improved usage of the genetic potential from domestic herds; Increased area of perennial plantations (including mother plantations); Adjustment of the fruit and grapes sorts to the production conditions and improved production technology; Improvement of the complete seed production and distribution system; Establishing the more efficient service system in both plant and animal production areas; Improved health protection system for both animals and plants.
Apart from the investments in improved state of the physical capital, special attention will be devoted to improved standards, both from the aspect of adjusted legal framework and establishing the efficient control system. The radical changes in the area of technological improvements of the sector require the mobilization of many other actors – counseling services, research institutions, input producers, and others. For establishing and encouraging cooperation among them, as well as for establishing of all kinds of administrative support, a wide range of general support measures to agriculture will be applied.
The government must participate in proposing and selection of the scientific projects in which the domestic scientists should create the competitive knowledge and technology in the area of agriculture, that have to be in accordance with the realistic needs of beneficiaries. A systematic analysis should be performed in terms of the needs for certain types of knowledge and in terms of the feedback and the way of receiving the feedback by the beneficiaries. Strengthening of the cooperation among institutions that create knowledge (institutes, faculties) with those who finance the knowledge and those who transfer the knowledge would facilitate the path towards the final beneficiaries. Due to insufficient number of advisors involved in the knowledge transfer process, the rationalization of the advisory activities should be done (work with groups, cooperatives and association and use of media). The government needs to ensure the free exchange and transfer of knowledge and information needed for improvement of agriculture, and the existing counseling service and its knowledge transfer model should contribute to that goal, and if needed this system can be widened and improved. Also, the private initiatives should be facilitated and supported and counseling in general should be commercialized wherever there is interest between counselor and beneficiaries. The technological improvement of the sector, investments in new knowledge and technologies and their transfer to beneficiaries, are necessary preconditions for reducing the lagging behind of the Serbian agriculture, and for battle with two major challenges of agriculture and food production in Serbia – productivity growth and adjustment to climate change. The major investments in new technologies and knowledge (equipment and people) on one hand, and the increasing need to respond to climate change and global market changes as efficiently as possible, require the reaction of the government in terms of providing an efficient framework for creation, promotion and implementation of the modern production practices, as well as innovations in the areas that are important for agriculture. Aiming at supporting the producers to introduce the new practices and technologies, the government must try to widen the scope of counseling services and research programs and adjust them to local needs. Improved connections and cooperation between knowledge creators (academic and research communities) and actors in agriculture and food production sector, is of key importance for ensuring the accelerated adoption of the new technology by numerous beneficiaries. The insufficient level of involvement of the domestic science in solving the current issues of the sector, bears the risk of excessive dependence of the sector on foreign technologies. The technological improvement of the sector requires, apart from physical resources modernization, strengthening of the competencies of the employed in agriculture, i.e. their ability to apply new technologies. By excessive relying only on traditional knowledge and skills, the employed in agriculture risk further marginalization of their own economic and social status. The current system of creation and transfer of the agricultural knowledge requires new solutions in order to meet the ambitious demands this strategic document places in front of Serbian agriculture. The operational goals that should contribute to the reform of the knowledge creation and transfer system are the following: Improved education structure of the work force in households; Strengthening and reorganization of the institutional capacities; Strengthening and functional connecting of all the actors in the knowledge creation and transfer system; Technical and human resources improvement of institutions involved in the knowledge creation and transfer system in accordance with the agriculture development needs and Strategy implementation; Improved offer of the training programs of all levels and types of education; Strengthening of the knowledge acceptance capacities, through raising awareness and improved motivation for education.
Introduction of the legal solutions and institutional framework reform will support the creation of the efficient knowledge creation and transfer system that will be able to respond to problems and needs of beneficiaries. The development of the monitoring and evaluation of the knowledge transfer system as well as the functional connections among all the actors in the system will lead to improved and more efficient resource usage. The special attention will be devoted to development of mechanisms and procedures for participation of the sector representatives in the decision making process related to the projects of special national interest, both in the area of applied research and in education programs and consultancy services for which the need arises. In order to respond to all the requirements of agriculture development and Strategy implementation, it is necessary to widen the offer of educational and training programs in the area of agriculture and rural development. Preparation and use of modern counseling tools, improved counseling modules and innovative approach to training and education will be supported. The affirmation of agriculture education of farmers will have the special emphasis and their motivation to attend trainings will be encouraged and supported. The counseling services will be promoted in order to give recognition to this profession.
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