Wednesday, 8 July 2015

28th Sitting of the Agriculture, Forestry and Water Management Committee

At the sitting held on 8 July 2015, the members of the Agriculture, Forestry and Water Management Committee deliberated on the proposed amendments to the Law on Agricultural Land for the purpose of boosting investments.


The sitting was attended by representatives of the Ministry of Agriculture and Environmental Protection, Agricultural Land Directorate, Directorate for Agrarian Payments, Serbian Chamber of Commerce and several farmers’ associations.

Committee Chairman Marijan Risticevic said that before a bill amending and modifying the Law on Agricultural Land is forwarded into Assembly procedure, the Committee needs to first discuss its members’ proposals and the proposals it had received from farmers concerning agricultural land, aimed at boosting investments on state-owned agricultural land and land not belonging to the state. The point of this particular item on the agenda is to supply the relevant Ministry with suggestions so that they may be included into the draft law and not have the provisions adjusted by submitting amendments, said the committee Chairman.

Dragana Godjevac, Acting Director of the Agricultural Land Directorate, briefed the Committee members on the Draft Law amending and modifying the Law on Agricultural Land, saying that in the past several months of work on the Draft, representatives of farmers’ associations have had the opportunity to share their proposals at several meetings with the Government and the Ministry of Agriculture and Environmental Protection.

“The chief amendment concerns the introduction of investments into agriculture according to which the registered agricultural households would be given 30% of land on the territories of local self-government units for up to 30-year investments, with the aim of boosting the gross national product. The second important amendment relates to the farmers’ demand for the sale of up to 20 ha of agricultural land to small farmers viz. those owning up to 20 ha, though some agricultural associations suggest that the amount be boosted to 80 ha. The period of lease is to be extended from 20 to 30 years, preferential right to lease is clearly defined, vesting into property has been resolved, funding of anti-hail protection is regulated, it introduces the option of free use of land which had not been used for three or more years and prescribes a triple fine for usurpers”, said Godjevac.

In the ensuing debate the Committee members opined that there should be a public hearing once the bill enters Assembly procedure where the MPs and producers’ associations could be briefed further on its provisions. They also discussed land lease as a means of boosting cattle farming, the export of livestock and cattle food and the preferential right to lease for registered domestic agricultural households. They also opined that vegetable farmers should be included. The Committee members criticised the agricultural land lease period saying that 30 years is too long. They concluded that, though foreign investments are welcome, domestic producers should be protected. They also discussed how registered domestic farming households could be given preferential treatment for the lease and sale of state-owned agricultural land.

The Committee then went on to discuss securing funds for the agricultural stimulus packages and subsidies.

Zoran Rajic, State Secretary at the Ministry of Agriculture and Environmental Protection, explained to the Committee members how the Ministry had allocated the funds and organised the payment of the stimulus packages.

“The Government’s policy mainly focuses on the development of livestock breeding so cattle farming had been allocated 1.8 billion RSD more than last year, while the 6.5 billon RSD cut had an impact on the amount allocated to plant production. The realisation is 45% higher than last year and all we have to do is coordinate a detailed analysis with the colleagues from the Ministry of Finance on how to transfer funds from some of the positions to those most important to us, which is plant production”, stressed Rajic.

The MPs asked from which funds and how would the subsidy requests be paid since some of the positions lack the necessary funds, that is whether the lacking funds would be 13 or 14 billion RSD. They suggested that a reallocation of funds be used to pay the accrued obligations for plant production, and also suggested holding a Committee sitting about the payment of agricultural stimulus packages and subsidies.

The Committee members were also briefed on the case “Energo Zelena” versus the Republic of Serbia, regarding animal waste management.

The Committee Chairman relayed to the Committee members the information he got from the Ministry of Justice about the case. It was suggested that the relevant Ministry and other state bodies investigate whether there have been any irregularities in the case, and the Committee members also asked how the animal waste problem in Serbia would be handled further. The Committee members were also informed that the Government had set up a legal team to deal with the issue.

The Committee then discussed the seasonal protection of agricultural production (fruit and vegetables) from excessive import.

The topic was brought up because of the low price of fruit and vegetables this year, with a special focus on the situation in Leskovac. This area is the producer of best vegetable products, and as much as 80% of the vegetables are a surfeit which is brought to market. The problem is that every year at least one of the products has a low price, for example in 2013 the tomato cost 5 to 6 RSD, this year it is cucumber – 2 to 3 RSD, while the cabbage will not be harvested because it is not profitable. The Committee members agreed that a mechanism needs to be found to boost the seasonal protection of vegetable cultures, prompt the producers to join forces and venture onto the market together, and announced that in the upcoming period the agricultural and food products market would be given better legislation, as would the producers’ collectives, both fruit and vegetable and dairy. They also discussed the import and export of agricultural products.

The Committee members then discussed the proposed amendment of the Law on Flood Damage Repair in the Republic of Serbia.

They suggested that the deadline for flood damage repair be extended to 31 December 2015.

State Secretary at the Ministry of Agriculture and Environmental Protection Zoran Rajic informed the Committee that the Land Directorate, in cooperation with the Office for assistance and repair of the flooded areas, have prepared a land repair programme, which is to be followed by a repair programme for cattle farming and finally fruit production.

Finally, the Committee members discussed land restitution and the requests sent to the MPs regarding the amendment of the law regulating the matter.

Having discussed all the items on the agenda, the Committee members adopted several conclusions.

The sitting was chaired by Committee Chairman Marijan Risticevic.


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