Economic measures of the government of Republic of...

Economic measures of the Government of the Republic of Serbia – help to the registered farmers

On April 16 2020, Government of the Republic of Serbia has adopted two regulations with economic measures in the agricultural area, in order to improve the position of the farmers, caused by the Covid-19 pandemic. Adopted are:

  1. Regulation on the financial help to registered farmers in order to reduce negative effects caused by the Covid-19 pandemic (“Official Gazette RS” no 57/2020), and
  2. Regulation on the financial help to registered farmers through facilitated access to credit funds in difficult conditions caused by the Covid-19 pandemic (“Official Gazette RS” no 57/2020).

Previously, the Government of the Republic of Serbia has adopted the Regulation on fiscal incentives and direct grants to the private sector and assistance to all citizens with aim to reduce negative effects on the economy caused by the Covid-19 pandemic (,,Official Gazette RS" no 54/2020), which benefits can be used by farmers as well.

The use of the rights established by the adopted regulations does not exclude the possibility of using other types of assistance, such as subsidies, incentives or donations.

Below in this text you may find more detailed information on the content of financial help and support, as well as who can use these benefits and how.

  1. Financial help

Who is entitled to financial help?

Entitled to the financial help are legal entities, entrepreneurs and natural persons - holder of a commercial family farm inscribed in the Registry of Farmers as an active entity.

Beside these general conditions, proscribed are the following alternative conditions:

  1. the applicant has registered areas under the vegetable growing in the protected area in the Registry of Farmers;
  2. the applicant is the owner of the animal (cow, sheep or goat) which is marked and registered in the Central Animal Labelling Database or the owner of the animal is a member of register farmer’s family;
  3. the applicant is the owner of the bee hive, which is marked and registered in the Central Animal Labelling Database or the owner is a member of register farmer’s family, if he is 70 or more years old.

What is the financial help amount?

It is a one-time assistance in absolute amount of money, which depends on the alternative condition fulfilled by the applicant, i.e. it is determined by the unit of registered area, number of throats of animals or number of beehives, in the amount:

• RSD 25,00 by the square meter of the registered area under the vegetable growing in the protected area, not more than RSD 90.000,00;
• RSD 3000,00 by the animal throat (cow), not more than RSD 30.000,00;
• RSD 500,00 by the animal throat (sheep or goat), not more than RSD 20.000,00;
• RSD 800,00 by the beehive, not more than RSD 20.000,00.

How to be entitled with the financial help?

In order to be entitled with the financial help, it is not necessary to submit any application. The payment of the financial help shall be made on the basis of the data from the Ministry of Agriculture, Forestry and Water Management database, directly to the assigned account registered in the Registry of Farmers.

Entitled funds cannot be subject of the enforcement procedure.

  1. Financial help through facilitated access to credit funds

What is prescribed with the Regulation?

Through subsidizing the part of the loan interest, facilitated is the access to the use of loans for certain purposes, such as: development of animal husbandry (purchase of animals and animal insurance premiums), development of fruit growing, arable farming, viticulture, vegetable and floriculture, investment in agricultural machinery and equipment, food supply for animals, investment in certain types Interested parties must be registered in the Registry of Farmers as active. of machinery and equipment used in crop production and for liquidity.

Ukupna sredstva za sprovođenje Uredbe utvrđena su u iznosu od 1.450.000.000 RSD.

Ko ima pravo na kreditnu podršku?

Kreditna podrška ustanovljena je u korist: fizičkog lica – nosioca komercijalnog porodičnog poljoprivrednog gazdinstva, preduzetnika i pravnog lica, i to zemljoradničke zadruge sa minimum pet članova koji su upisani u Registar kao nosioci ili članovi pet različitih registrovanih poljoprivrednih gazdinstava ili ukoliko je razvrstano u mikro ili malo pravno lice u skladu sa Zakonom o računovodstvu.

Interested parties must be registered in the Registry of Farmers as active.

In the article 4. the Regulation proposes the specific conditions in order to be entitled with loan support (loan must be paid in RSD, conditions regarding the deadline for use of the loan funds, purpose).

What is the maximum amount of the loan?

For the natural persons - holders of the commercial family farm, the maximum amount is RSD 6.000.000, for business entities RSD 18.000.000, and for the liquidity purpose loans the maximum amount is RSD 3.000.000.

How to be entitled with loan support and within which deadline?

It is necessary to submit the written application for approving the loan support to the bank, which has concluded the agreement with Ministry for agricultural businesses.

The deadline for submission of the application is November 2020.

The applicant is obliged to submit the necessary documentation as well, proscribed in articles 12. to 16. of the Regulation, which depends on the purpose of the loan.

Are there any restraints?

Both regulations proscribe the penal provisions for persons who unfoundedly were entitled with financial help or use the funds non-purposely. Proscribed is the obligation to return the unfoundedly paid amount. If the funds are not returned, proscribed are fines in the range of RSD 10.000 – RSD 100.000 for the natural persons, RSD 100.000 – RSD 500.000 for entrepreneurs, and RSD 300.000 – RSD 1.500.000 for business entities.

The Ministry of Agriculture shall supervise the implementation of this Regulation.