FBiH Government Adopts Agricultural Incentive Program in the Amount of 106 Million KM

SARAJEVO, (Patria) - The Government of the Federation of BiH, at the proposal of the Federal Ministry of Agriculture, Water Management and Forestry, at today's urgent, telephone-held session, adopted the Program for the expenditure of funds with distribution criteria "Subsidies to private companies and entrepreneurs - Agricultural Incentives", determined by the Budget of the Federation of BiH for 2022, in the amount of 106,000,000 KM.

In the FBiH budget for 2022, the approved funds for agricultural incentives are 19 million KM higher compared to last year's budget.

The Program for monetary support in agriculture and rural development for 2022 plans higher funds for crop and animal production incentives compared to last year.

16,165,000 KM has been secured for monetary support of crop production, and new crops have been introduced into the Program for monetary support that were not included before, primarily due to lack of funds. Thus, within the measure related to fodder crops, support has been introduced for grass-clover mixtures and clovers, as a replacement for expensive imported concentrates. For vegetables, support has been introduced for the first time for the production of cabbage, kohlrabi, watermelon, and beans, and for fruit, support has been introduced for the cultivation of walnuts, almonds, blueberries, cranberries, and aronia.

An amount of 71,025,000 KM is foreseen for animal production, and monetary support has also been introduced for poultry production, with funds planned for broiler farming, i.e., fattening of chicks.

The remaining funds are directed towards structural measures within the rural development model and the model of other types of support. The available amount of 14,170,000 KM is intended for structural measures, i.e., rural development measures. Monetary support for rural development is also directed towards measures to increase competitiveness and protect the rural environment. Within the measures to increase competitiveness, which are key to the survival and development of agricultural farms and the food industry, 12,100,000 KM is foreseen. This is funds intended for supporting investments in agricultural machinery and attachments, equipment for crop and livestock production, and the procurement of breeding stock, as well as the construction, expansion, and equipping of facilities for agricultural production and processing. Then for the legalization of construction facilities and meeting environmental standards, and for establishing perennial plantations, of which up to 30 percent of the value of eligible investment costs will be financed.

These projects are also financed through the credit line of the Development Bank of the Federation of BiH, in which the Federal Ministry of Agriculture participates with a grant of 2,000,000 KM, from which up to 25 percent of the value of eligible investment costs will be financed.

70,000 KM has been allocated for measures to protect the rural environment, which are planned to support the certification of organic production, which ensures the application of production technologies with reduced use of pesticides and fertilizers, thereby protecting the environment, and ensuring healthy and natural food products.

Within the model of other types of support, an amount of 4,140,000 KM has been allocated, which is planned for supporting co-financing of agricultural insurance against damages, organizing professional gatherings and fairs, and exhibiting at fairs. In addition, support is intended for co-financing farmer organizations, product standardization costs, and support for various production start-up programs and encouraging autumn sowing.

Beneficiaries of the Monetary Support Program are clients registered in the Register of Agricultural Holdings/Register of Clients.

The purpose of this program is to retain priority monetary support measures from the Law on Monetary Support within the available budget, in order to ensure their continuous payment during 2022. The measures foreseen in the Program for monetary support in agriculture and rural development for 2022 should contribute to the improvement of agricultural production and the increase in the use of agricultural land with the aim of strengthening competitiveness in the domestic and foreign markets, and increasing the supply of domestic agricultural products while improving the quality and health and hygienic correctness of products in accordance with consumer demands. In addition, they should ensure a stable income in agriculture, as well as the living standard of agricultural producers, and gradual harmonization and integration of the agricultural sector into the global and European Union market.