Investment activity of Serbian farms comparing to neighbouring countries: Application of FADN indicators

Ivanović, Sanjin and Nastić, Lana and Jeločnik, Marko (2020) Investment activity of Serbian farms comparing to neighbouring countries: Application of FADN indicators. Ekonomika: časopis za ekonomsku teoriju i praksu, 66 (4). pp. 73-84. ISSN 0350-137X

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Abstract

Investments are precondition for profitable, efficient and sustainable agricultural production. As a consequence of market liberalization Serbian farmers are competing with EU and neighbouring farmers, therefore it is important to compare investments in Serbian farms with investments in farms in neighbouring countries which have already became EU members (Croatia, Hungary, Romania and Bulgaria). The goal of this research was to analyse investments in the most important farm types in Serbia (mixed type of farms and farms specialized in crop production) and to compare it with appropriate investments in above mentioned countries. To achieve this goal authors used FADN methodology and relevant EU and Serbian databases and publications. The research results revealed that investments in Serbian farms are similar or even higher comparing to investments in observed countries, although level of investment’s subsidies in Serbia is modest. Net investments are especially high for mixed Serbian farms, allowing development of even less present livestock production types. Future research should be directed towards evidence and comparison of subsidies on investments according to FADN methodology in Serbia and EU countries.

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