At the sitting held on 7 December, the members of the Agriculture Committee considered the Ministry of Agriculture, Forestry and Water Management Analysis of the budgetary support for agriculture in 2009 and proposal for financing agricultural production in 2010.

On the behalf of the Ministry of Agriculture, Forestry and Water Management, the sitting was attended by Assistant Minister Milos Milovanovic who briefly outlined the 2009 data and 2010 agricultural financing proposal for the Committee members. Somewhat more than 25 billion RSD shall be allocated for agriculture in 2010, 16 billion RSD of which is intended for subsidies. The funds intended for subsidies, 13.37 billion RSD worth, shall finance direct payment per acre and head of cattle, milk premiums, genetic improvement of cattle breeding, agricultural insurance, improvement of beekeeping production. 600 million RSD shall be allocated for stimulation of export. Funds shall also be allocated for the renewal of mechanisation, growing perennial fruit and vine saplings, education of agricultural managers, as well as for the compensation fund.

In addition to the Agriculture Committee members, representatives of the Society of Agricultural Economists, Serbian Chamber of Commerce, Vojvodina Chamber of Commerce and representatives of agricultural producers, also took part in the long discussion, and agreed that the 2010 agrarian budget is insufficient to stimulate the development of agriculture and is below the level necessary to satisfy it real needs. It was pointed out that the agricultural problems were of agro-economic character and that the existing agrarian policy measures were unstable and had short-term effect. Particular attention was paid to the poor cattle breeding conditions, especially regarding subsidies, as well as financing mineral fertilizers. They also discussed the issue of agricultural foreign trade balance and inadequate credit support for agricultural producers. The funds intended for next year’s agrarian budget were deemed unable to raise the competitiveness of domestic production without special investment into loans, mineral fertilizers, cattle breeding and export stimulation. It was also pointed out that this year shall bring 30% less agricultural income than the previous. The officials agreed that the solution of these problems calls for a consensus all relevant social factors so that the issue and problem of agriculture could be raised to a higher level. It was also deemed necessary to pass a new strategy of agricultural development in Serbia.

The sitting was chaired by Zoran Masic, Chairman of the Agriculture Committee.