Public call for submission of applications to determine the right to use grants within the project for competitive agriculture in 2021

The Ministry of Agriculture, Forestry and Water Management, together with the World Bank, is starting a project to award grants to small farms and businesses, as well as to modernize its own system for awarding subsidies. The new type of support will be paid in advance to farmers who meet the criteria. The maximum amount that a household can receive for free is 20,000 euros, while companies will be able to count on 200,000 euros. For these purposes, the Ministry of Agriculture will pay 20 million euros by the end of the year through three public calls by the end of the year. What is an additional quality of this project is that, in addition to grants, the farms will also have credit support with minimal own participation. In this way, an additional type of control will be achieved, because the funds will be available only to those whose idea has a perspective in further development, which will be evaluated by the relevant Ministry and also by the banks that will approve the loans.
The first call has just been announced, while the next two will be in July and October. As previously announced by Minister Branislav Nedimović, the funds will be placed through the 50-40-10 scheme, that is, users will be able to receive grants in the amount of up to 50% from the total value of the investment, while 40 % will be financed from loans (repayment period from 3 to 7 years). at the banks that are participants in the project, and only 10% of their own money will be given by the producers at the start as their own participation. The additional convenience of this type of incentive is that the farmer receives all the money in advance, that is, before the start of the investment itself, and there is no obstacle for further investment, but the money will be spent according to a pre-approved project. This new method of support in agriculture will provide agricultural producers and micro, small and medium-sized enterprises with the opportunity to develop, but according to the conditions that are presented to them. Significant attention will be devoted to the application of new technologies and a sustainable approach to the environment.
Among the priority beneficiaries are women, young agricultural producers and those who work in less developed or poor municipalities. In addition to these groups, priority will also be given to those producers who have commercial potential, but still little capacity to compete for financial support measures for agricultural development, such as IPARD.
One request can be supported with a minimum of 10,000 and a maximum of 25,000 euros when it comes to agricultural holdings, while small and medium-sized enterprises will be able to count on 12,500 to 200,000 euros. In the first call, the sectors of fruit growing, viticulture, vegetable growing and flower growing will be supported, in the second, livestock and dairy farming, and in the third, all the others.
"The Competitive Agriculture Project in Serbia" is a joint initiative of the Ministry of Agriculture, Forestry and Water Management and the World Bank and will last for 3 years. The total value of the project will be around 38 million dollars.

The deadline for submitting applications is from May 5 to June 4, 2021.

You can download the public invitation – HERE

You can download the list of commercial banks that have expressed interest in cooperating on the implementation of the Competitive Agriculture of Serbia project - HERE

You can download the list of consulting companies - HERE


Leave a Reply