The agricultural land rental market in Vojvodina has seen a notable shift as low purchase prices for basic agricultural products have led to a decline in land leasing for the upcoming sowing season. In particular, rental prices have dropped in most regions of Vojvodina, with some areas seeing reductions of EUR 50 per acre compared to the previous year.
Aleksandar Đuragin, a farmer from Čurug, explained that the cost of leasing land is a significant upfront expense, which many farmers are hesitant to commit to after years of dry conditions that have diminished their earnings. As a result, some farmers are opting out of leasing land, leaving some plots vacant. The price of land leases varies depending on the quality of the land, with first-class land going for around EUR 250 per acre, while lower-quality land leases for approximately EUR 200 per acre. However, the overall trend is a decline in rental prices, which has led to vacant land appearing on the market.
In addition to rental prices, there is also confusion surrounding the right to subsidies for land tenants. The Cooperative Union of Vojvodina raised concerns about unclear regulations, especially regarding the eligibility for subsidies. If farmers lease land from a cooperative, they are not entitled to receive subsidies per hectare. However, if the same land is leased to someone outside the cooperative, they may qualify for subsidies. This has created a discrepancy that the union believes could undermine cooperatives.
To address the issue of land leasing, the Serbian government has enacted a decree that allows farmers who are not landowners but cultivate agricultural land to lease state-owned land. This is especially relevant in cases of land consolidation or probate proceedings, with farmers being able to obtain subsidies under certain conditions.
In state land auctions, rental prices varied significantly across the country. Last year, the average price for leasing state land was EUR 297.51 per hectare, with prices in some areas as low as EUR 10 per hectare and others, such as Srem and Bačka, reaching as high as EUR 690 per hectare.
This shift in the agricultural land rental market reflects broader economic challenges facing farmers and the ongoing adjustments required to navigate the evolving landscape of agriculture in Serbia.
