The deadline of 15 days given to the Serbian government by united agricultural associations to begin addressing their demands has passed. These demands were agreed upon with former Prime Minister Ana Brnabić following last year’s protests. Dissatisfied with the government’s responses, farmers are now planning a new protest.
A letter outlining their demands was sent to the government, signed by the Agricultural Association of Aradac, the Agricultural Producers’ Association of Subotica, the Federation of Agricultural Associations of Banat, and the Initiative for the Survival of Serbian Farmers, with support from the Novoseljanski Farmers Association, Banat Crnica, and Dolovac Farmers. The farmers are calling for urgent measures to address the impact of drought, including deferring agricultural loan repayments, a payment of 17,000 dinars per hectare for certified seeds without requiring purchase receipts for this year, tax-exempt fuel at gas stations starting in 2025, resolving debts owed to the Pension and Disability Insurance Fund, regulating the commodity exchange, and immediate payment of all unpaid subsidies of 18,000 dinars per hectare.
In its response, the Serbian government stated that farmers receive subsidies for insurance premiums against drought. Miroslav Matković, President of the Agricultural Producers’ Association of Subotica, explained that insurance companies have discouraged farmers from insuring their crops against drought. Local authorities maintain that the Ministry of Public Investments must first propose a declaration of natural disaster to the government, after which a commission can be formed to assess damage.
“They need to clarify who will initiate the procedure instead of making us run in circles. Two years ago, we went to Belgrade and Novi Sad countless times, and still nothing has been resolved,” Matković said.
The government mentioned proposing a loan restructuring to banks, which most farmers had previously accepted. However, there was no mention of the new extensions that farmers are requesting due to the severe drought and significantly reduced yields, which are estimated to be down by up to 80%.
The government also rejected the request for subsidies for certified seeds without purchase receipts, arguing that when the request was accepted, sowing had already progressed, and farmers did not retain receipts.
The government stated that approximately 98% of subsidies and premiums have been paid so far. It also indicated that a public call for the payment of subsidies for certified seeds would be issued by the end of October, asserting that allowing payments without receipts could lead to manipulation.
The request for tax-exempt fuel at gas stations was denied, with the government explaining that the Oil Industry of Serbia (NIS) lacks special tanks for “blue” diesel.
Matković clarified that farmers are not asking for diesel to be dyed blue, which would require NIS and other dealers to build special tanks, but simply for the fuel to be available tax-free at the pump.
He pointed out that the promise to restore the excise tax reduction of 50 dinars within the agreed 15-day period is not being met, with farmers waiting for the funds for a month or longer. The government also rejected the request to waive interest on debts for unpaid contributions to pension and disability insurance, offering instead a five-year repayment plan, which would require farmers to pay both the debt and current installments simultaneously, with interest reduced by only 50% as stipulated by existing law.
The request to register parcels with unresolved ownership in the e-agriculture system to enable farmers to receive subsidies per hectare is still “in process,” as the commission is seeking a model, alongside the request to regulate the commodity exchange.
Matković questioned what the government has been doing for nearly a year since the signing of the agreement to fulfill these demands and why no accountability has been established for the ongoing delays.
