The agricultural budget for 2024 is 75,06 million euros, about 12 percent higher than last year's, and it plans more money for the improvement of beekeeping, direct payments for livestock production, young farmers, rural development, old-age benefits, milk production and processing...
The Government adopted the Agricultural Budget on Thursday, and it determines the conditions, method and dynamics of the implementation of agricultural policy measures for market price policy, rural development, public interest affairs, social benefits, measures for food safety, veterinary medicine, phytosanitary affairs, fisheries.
This year's Agricultural Budget foresees almost nine million more than in 2023.
This year, 51,35 million euros will be allocated for the Agrobudget from the state treasury, while 15,55 million will be provided by donations and 8,15 million euros from loans. When it comes to money from the state budget, 48,6 million is planned for the development of agriculture, rural development and fishing, which is 6,2 million euros more than last year. Compared to 2023, about half a million euros more is intended for the implementation of animal health protection measures, which amounts to 2,19 million euros. Only EUR 500 more is planned in the category of implementation of food and animal feed safety measures - EUR 400,5 thousand.
The part financed by loans refers to money received from the program for other institutional development and strengthening of agriculture in Montenegro (MIDAS 2), while donations were provided through the IPARD program. The largest part of the donations, i.e. 14,15 million euros, is money from the IPARD II program, while 1,4 million euros is foreseen through IPARD III. That program contains grant money to support the development of agriculture and the Ministry of Agriculture is responsible for its implementation. The money must be spent within the stipulated time limits, or it must be returned to the EU.
More for milk and young farmers
A significant increase in the Agricultural Budget for 2024 is foreseen for young farmers, i.e. under 40 years of age who started or took over farming. Fees per hectare of land for them have been increased by 185 percent, so compared to last year's 70, they now amount to 200 euros.
The basic premium per liter of milk remained at last year's eight cents, and the fee for those who deliver more than 5.000 liters of milk, which meets the standards, remained at one cent per liter. Premiums for high-quality raw cow's, goat's and sheep's milk were increased to 11 cents. Thus, domestic dairy farmers can now receive 20 cents per liter, compared to last year's 17. 4,52 million euros are planned for these measures, i.e. one million euros more than last year.
The support for those who process raw milk on their farms is also higher and amounts to 12 cents, and a total of about 2,5 million euros more than in 2023 is intended for this sector. Among the significant increases are payments for fruits, vegetables, cereals and potatoes, as well as olive oil, which from last year's 100, now amount to 200 euros per hectare.
According to the Agricultural Budget - category of direct payments in livestock production, there are 50 thousand head of cattle in Montenegro. That number is about 20.000 less than a year ago - in the then Agricultural Budget, it is stated that there are 71 thousand. Thus, this year's premiums for farms in cattle breeding, sheep breeding, goat breeding, fattening of calves, bulls and oxen amount to 5,04 million euros. That is about one and a half million euros less than in 2023, when a total of 6,59 million euros is allocated for these premiums.
On the other hand, this year's premiums have been increased for almost all of these individual livestock categories. Thus, the basic compensation for breeding cows and heifers, for those who keep one or more head of that species for at least seven months, is 100 euros per head, while previously it was 85. That premium has been increased to 150 euros, but in the cow-calf keeping system , while the premium per head of breeding goats and sheep was also increased, from 10 to 13 euros.
The basic slaughterhouse premium for fattened beef cattle, bulls and steers remained the same and amounts to 150 euros per head born and fattened in Montenegro, while the compensation for slaughtering calves is not realized.
Insurance against damage to agricultural crops, livestock and fire insurance this year can also amount to 60 percent of the insurance policy, with the fact that now the maximum amount of support for companies is up to 10.000 euros, and for citizens up to 4.000 euros.
About 65 euros more than last year have been earmarked for the beekeeping improvement program, so 400 euros are planned for this sector.
Elderly benefits significantly increased
In the Agricultural Budget, 12,84 million euros are planned for old-age benefits, which is an increase of 5,4 million euros compared to last year. The head of an agricultural household is entitled to this allowance if he is over 65 years old (for men) or 60 years old (for women), lives in the countryside, engages in agriculture and does not receive income on any other basis. This benefit is defined by the Law on Agriculture, and since 2015 it has been tied to the level of 50 percent of the minimum pension. In 2021, this limit was increased to 70 percent of the minimum pension, at the suggestion of the representatives of Democratic Montenegro. There are about 3.300 of these users, while the monthly fees, due to the increase in the minimum pension, are now 315 euros.
The total money for the improvement of the fishing fleet is the same as last year and amounts to 350 thousand euros, with the fact that for 2024, the largest part, i.e. 240 thousand euros, is destined for the modernization of the professional fishing fleet in small and large fishing. Last year, EUR 100 less was allocated for that category, but more funds were allocated for the modernization of the fleet for catching demersal and pelagic resources. A total of 2024 million euros is intended for fisheries in 1,2. This year, about 6,63 million euros more is going to the Agricultural Budget from the state treasury than last year, while measures for rural development are now 33,29 million euros, or 3,97 million euros more than in 2023.
Compared to last year, 36 thousand euros less is planned from the state treasury for the implementation of phytosanitary measures, for which 2024 thousand euros are planned in 159,9. In addition, less money is planned for the category of production-related payments in plant production, by almost 1,2 million euros.
DRI: Ministry to monitor the effects of agricultural policy measures
The State Audit Institution (DRI) announced at the beginning of February that the Ministry of Agriculture, Forestry and Water Management has not yet established a system for monitoring and evaluating the effects of agrarian policy measures and measures to eliminate identified irregularities in the use of incentives.
DRi carried out the control of the implementation of the recommendations from the audit report "Efficiency of the use of subsidies for production and provision of services in agriculture from budget funds".
The SAI recommended the Ministry to ensure that the Agricultural Budget for 2024 contains all the necessary elements established by the Law on Agriculture and Rural Development, that is, to work on establishing a system for monitoring and evaluating the effects of agricultural policy measures and measures to eliminate irregularities in the use of incentives.
The Ministry should submit the Report on the Implementation of Recommendations to the SAI by the end of July this year.
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