Direct Payments as a Factor of Agriculture Development in the Republic of Serbia

Abstract

Agriculture, as a strategic economic activity, dependent on agro-ecological conditions, can function and develop exclusively with the intervention of the measures of agricultural policy. Measures to support agriculture in the Republic of Serbia in the period from 2015 to 2022 are the subject of research in this paper. Official data of the Ministry of Agriculture, Forestry and Water Management of the Republic of Serbia published in annual reports were used. Using the method of analysis and comparison, the paper concluded that direct payments are the dominant form of subsidy in the agriculture of the Republic of Serbia, as well as that the agricultural budget is at the level of 5% concerning the total national budget. The existing structure of subsidies is assessed as adequate, with a significant increase in the volume of direct payments and other forms of subsidies being recommended in the coming period.