Farmers in Serbia are expressing frustration over the slow and partial realization of promises made by the government following the farmer protests this fall. The government had reached an agreement with the Ministry of Agriculture to provide support for agricultural producers, but many are seeing only limited progress so far, according to reports from the Beta agency.
Despite promises to pay seed incentives for 2023 and 2024, only about 50% of the incentives for this year have been paid out, even after the subsidy was reduced from 17,000 dinars per hectare to 10,000 dinars in an effort to speed up payments. This agreement was signed on October 27, following negotiations between farmers, the Ministry of Agriculture and government representatives, including Prime Minister Ana Brnabić and Žarko Mićin, the chief of staff of Minister Miloš Vučević.
However, farmers are facing additional challenges. Some seed companies have already raised the price of corn seeds for the upcoming planting season, despite the government’s efforts to keep prices stable. According to Miroslav Matković, president of the Subotica Farmers’ Association, seed prices have increased by as much as 10%, with the cost of corn seeds now ranging from 21,000 to 30,000 dinars per hectare—significantly higher than the previously agreed subsidy amount of 17,000 dinars per hectare.
Matković voiced concerns about the government’s failure to prevent seed price hikes and said the government had promised to intervene with seed producers but had not taken action. He also highlighted that no meetings have taken place in the Ministry of Agriculture or among the working groups responsible for regulating the seed market for the coming year.
Goran Filipović, president of the Initiative for the Survival of Agricultural Producers of Serbia, said the government had started paying the promised 10,000 dinars per hectare for this year, but the payments are expected to be completed only by the end of the year. He added that the government had committed to paying 18,000 dinars per hectare in subsidies for 2024 by March 31, with a public call for applications for seed incentives planned for April 1.
One of the ongoing issues for farmers is the excise tax refund for diesel, which remains at 50 dinars per liter, contrary to requests for a full exemption. Farmers also face difficulties with the process for submitting refund claims due to issues with the e-agrara system, which prevents them from registering fuel purchases for refund claims.
A major unresolved issue is the farmers’ debts to the Pension and Disability Insurance Fund (PIO). After protests last year, the government proposed a repayment plan in installments, but farmers rejected this offer due to the ongoing financial struggles caused by repeated droughts in recent years. Filipović noted that farmers’ debts to the PIO fund amount to roughly 320 billion dinars, with around 200 billion dinars owed by deceased farmers.
Filipović criticized the government’s stance, which prevents debt cancellation despite the recognition that much of the debt is uncollectible. He argued that farmers who have passed away should not be held responsible for these debts, especially since they never received benefits from the PIO fund. He also questioned why farmers are required to pay a fixed annual amount, regardless of income or the size of their farms, a proposal that was rejected by the government.
Moreover, farmers without health insurance contributions are forced to pay for private medical care, as they are not entitled to state healthcare services. This presents a significant burden for many farmers who already struggle with financial hardship.
In summary, while the government has taken some steps to support farmers, many of the promised measures have yet to be fully realized and several issues remain unresolved, leaving farmers in a difficult position heading into the new year.
