The Ministries of Agriculture, Forestry, Water Management and Economy are set to announce two public calls for proposals aimed at small agricultural holdings, with a total of 500 million dinars allocated, according to Aleksandar Martinović, the Minister of Agriculture, Forestry, and Water Management. One competition will focus on providing new tractors for farmers cultivating smaller plots of land, while the other will support the construction of small livestock farms for farmers with up to 29 heads of livestock.
The announcement of the tractor purchase competition is seen as a positive step for small farms, which have previously been excluded from such competitions that favored larger agricultural farms. Radoslav Adamović, president of the Initiative for the Survival of Serbian Farmers, welcomed the move but suggested changes to the competition’s criteria. He proposed that the competition should not require unpaid contributions to the PIO fund and should give preference to farmers who have not participated in previous competitions.
Agricultural analyst Čedomir Keco expressed concerns over the livestock farm competition, arguing that the threshold for eligibility should be raised to 49 heads of cattle, instead of the current 29. He argued that farms with fewer than 29 heads are not economically viable, and that farms with 49 heads are more productive and profitable, especially in dairy farming. Keco emphasized that small farms, like those in the EU, should be the backbone of dairy farming in Serbia.
Adamović also pointed out that in past competitions, larger farmers who cultivate hundreds of hectares have often applied and received incentives for machinery they didn’t need. He suggested that the new public call for tractors should prioritize small farms that have not previously participated in such competitions. He also advocated for removing the condition that applicants must have no debt to the PIO fund, as many small farmers struggle with unpaid contributions and fear reprogramming.
While the exact incentive for tractor purchases has not been disclosed, Adamović estimates that the 500 million dinar budget could fund around 500 tractors if the incentive covers 50 percent of the cost, with tractors typically priced between 2.5 and 3 million dinars.
Despite previous tractor purchase incentives, Adamović noted that many farmers still use outdated machinery, with only 10 percent of agricultural machinery being renewed. In 2024, 2,144 new tractors were purchased, alongside 973 used ones, as well as 262 new combines and 36 second-hand ones, and 81 new forklifts and telehandlers, with 89 old ones still in use.
