Agricultural Budget in the Function of Organic Agriculture Development in Serbia and Montenegro

Abstract

Organic agricultural production requires higher financial investments than conventional agricultural production. Seed prices are higher, labor costs are higher, and there is the additional cost of certification. That is why the existence of incentive measures of agricultural policy is necessary for organic agriculture. The aim of the paper is to present the incentives paid from the agricultural budget for organic agriculture in Serbia and Montenegro. The authors conclude that subsidies for organic agriculture, although they are paid continuously and are a significant incentive, have a small percentage share in the agricultural budget in both countries. In Serbia, 1% and 3% of registered farms in Montenegro practice organic agriculture.

Comparing the Economic Effects of Open Field and Protected Area Organic Tomato Cultivation Systems

“…The production models assume that the entire yield of tomatoes is sold. Sale to a retailer is assumed as the most common marketing channel in the case of organic tomato production (Abebe et al, 2022), while possible government incentives are neglected given their relatively small share in the value of this production (Radović et al, 2023). The need for human labor is covered by the work of farm members, i.e.…”