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.