Direct payments in Serbia and the transition to EU compatible direct support

Abstract

Serbian agricultural policy includes implementation of direct support schemes since 2008. In the last years, direct payment schemes have gradually changed to better address the needs of farmers and to approximate to the EU type of direct support. However, there are still significant differences in the general approach in implementation of direct payments in Serbia, the sectors under support, the eligibility conditions as well as the mode of implementation. The goal of this paper is to make a general assessment of the compatibility of direct payment schemes in Serbia with the EU Common Agricultural policy (CAP) and to propose a path for swift transition to EU compatible direct payment support. In the transition, decoupled support should gradually replace the currently coupled schemes in Serbia. Any possibilities for double funding should be abolished. Simplification in the application procedure should be introduced, as well as improvements in the control systems. The transition shall reflect not only the sectors eligible for support under the CAP but also the type productions, currently subsidized in Serbia, which are not within the direct payments system in the EU.