Lease of Agricultural Land in State Ownership - Possible Economic Effects

Rajnović, Ljiljana and Kovačević, Vlado (2018) Lease of Agricultural Land in State Ownership - Possible Economic Effects. In: Sustainable Agriculture and Rural Development in Terms of the Republic of Serbia Strategic Goals Realization within the Danube Region : support programs for the improvement of agricultural and rural development. Institute of Agricultural Economics, Belgrade, pp. 352-369. ISBN 978-86-6269-061-6

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Abstract

Agriculture is a significant factor in the economy of the Republic of Serbia, first of all taking into account the size and quality of agricultural land, and considering the fact that investments by tenants in state-owned agricultural land are at a very low level. Therefore, there have been amendments to the law that regulate the matter of agricultural land, in order to create opportunities for improving agriculture, by increasing investments in agricultural land owned by the Republic of Serbia, introducing new technologies, increasing the income, increasing productivity and efficiency in agriculture, and recruit additional labor. In order for an investment to achieve the goal for investors and the state in a sociological sense, the law regulated long-term lease of land for thirty years, in a way that ensures the economic efficiency of tenants interested in land cultivation, prevailed the elimination of deficiencies and barriers that prevent the efficiency of agricultural land management, and more efficient use of land, prescribing sanctions for unfounded use of agricultural land, the possibility of using land free of charge when legal requrimenets arise. In order to further motivate the potential tenant, the Law regulated the active identity in the case of the right to lease the lease and the right of priority lease agricultural land, and in the process of transparency of the procedure, it was prescribed that the procedure for determining the right of priority lease is realized through a public call and procedure conducted by a local government unit in whose territory the land is located.

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