The agricultural market has been completely disrupted, making the 110 million BAM allocated for current production in this year’s agrarian budget a crucial aid for local farmers as they face rising costs that will make spring sowing more expensive than last year.
At today’s session, the Government of Republika Srpska approved the Plan for the Use of Funds for the Development of Agriculture and Rural Areas, with a total budget of 180 million BAM, the majority of which will be directed toward current production.
- 110.7 million BAM is allocated for current production support
- 45.1 million BAM for long-term agricultural development
- 24.1 million BAM for systemic measures
Current production support
The primary goal of supporting current production is to increase agricultural productivity and volume.
“Considering the financial challenges faced by agricultural producers and market disruptions, this type of support represents the largest share of the overall budget,” the government statement emphasized.
This support is aimed at both livestock and crop production, providing subsidies that will help ease rising costs.
Long-term investment support
This funding is directed toward investments in farms and the food industry, as well as projects of common interest.
“The goal of supporting long-term investments is to increase the capacity of agricultural producers and processors, expand production, and enhance competitiveness in the market,” the statement added.
Systemic support measures
Systemic measures aim to ensure uninterrupted agricultural production by covering various sectors, including:
- Animal and plant health protection
- Seed production for artificial insemination in cattle breeding
- Laboratory capacity improvements
- Maintenance of agricultural records and registries
Rising costs and farmers’ concerns
The President of the Farmers’ Association of Republika Srpska, Stojan Marinković, told Glas Srpske that their proposal was to direct most of the agrarian budget toward current production, with lower incentives for capital investments since many farmers had already invested in new machinery in previous years.
“Fertilizer and fuel prices are higher than last year, meaning spring sowing will be more expensive. Many farmers are still calculating how much and what to plant,” said Marinković.
He also pointed out that fertilizer prices have been rising almost weekly.
“We expect an increase in oilseed crops this year, given their higher market demand and price compared to wheat, corn, and other staple crops,” he added.
With support from the Ministry of Agriculture, a slight increase in oilseed acreage is expected. However, for corn, the most widely grown crop, livestock farmers must first secure enough for animal feed before deciding on additional planting, depending on market price trends.
Adjusting sowing schedules
Marinković also noted that sowing schedules will have to be adjusted based on temperature patterns.
“Currently, farmers are preparing for fertilization of winter crops and purchasing seeds and fertilizers for the upcoming sowing season of corn, soybeans, and sunflowers—the dominant spring crops,” he stated.
Source: Glas Srpske
