Law on Incentives in Agriculture and Rural Development

Agricultural holdings

In terms of the Law on Incentives in Agriculture and Rural Development (“Official Gazette of RS”, No. 10/2013, 142/2014, 103/2015 and 101/2016), an agricultural holding is a production unit where a business company, agricultural cooperative, institution or another legal entity, entrepreneur or farmer performs agricultural production.

A family agricultural holding is an agricultural holding where a natural person – a farmer, together with the members of his household (regardless of kinship) performs agricultural production.

A family agricultural holding can be:

  • commercial family agricultural holding (agricultural holding which is market-oriented and which can exercise the right to incentives under the conditions established by this law)
  • non-commercial family agricultural holding (agricultural holding that is not market-oriented).

The property of a non-commercial agricultural holding is determined during the registration or renewal of registration in the Register of Agricultural Holdings following the law governing agriculture.

The minister in charge of agriculture prescribes in more detail the types of incentives that non-commercial agricultural holdings achieve following the Law on Incentives in Agriculture and Rural Development (“Official Gazette of RS”, No. 10/2013, 142/2014, 103/2015 and 101/2016).

Agricultural holding is a broader concept than family agricultural holding because it includes the production unit where agricultural production is carried out, regardless of whether it is a legal entity or a natural person. In contrast, the term family agricultural holding is related to the carrying out of agricultural production by a natural person – farmers with their household members.

Register of agricultural holdings

By the Rulebook on registration in the Register of agricultural holdings and renewal of registration, as well as on conditions for the inactive status of agricultural holding (“Official Gazette of the RS”, no. 17/2013, 102/2015, 6/2016, 46/2017, 44/2018 – dr. . law, 102/2018 and 6/2019) it is stipulated that the registration of the family agricultural holding is carried out in the regional unit of the Administration for Agrarian PaymentsMinistry of Agriculture, Forestry and Water Management (from now on: the Administration) according to the residence of the owner of the family agricultural holding, i.e. into the regional unit of the Administration according to the seat of the legal entity, that is, the entrepreneur.

Enrollment in the Register of Agricultural Holdings (from now on: the Register) is voluntary. Agricultural holdings are kept in the Register in active or passive status. An agricultural holding with a passive position in the Register cannot exercise the right to incentives.

The agricultural holding can be deleted from the Register:

  • at the request of the mentioned person
  • ceasing to engage in agricultural activity
  • at the end of six years of passive status in the Registry.

The director of the Administration decides on deletion from the Register. An appeal can be filed against this decision to the Minister through the Administration. The Minister’s decision is final in the administrative procedure.

Agricultural holdings do not have legal personality, but registration creates preconditions for exercising the right to incentives within the agrarian policy. Therefore, agricultural holding represents a form of organizing agricultural production. At the same time, the holders of rights and obligations are legal or natural persons who perform that activity within the agricultural holding framework as a production unit.

Agricultural holding land fund

An agricultural holding with at least 0.5 hectares of agricultural land on the territory of the Republic of Serbia, on which a business company, agricultural cooperative, other legal entity such as an institution, school, monastery, church and other organization, entrepreneur and farmer – a natural person is entered in the Register, perform agricultural production.

An agricultural holding with less than 0.5 hectares of agricultural land, i.e. other land or construction unit on which the said person performs can be entered in the Register:

  • livestock, viticulture or vegetable production (greenhouses and greenhouses), that is
  • other forms of agricultural production (fish farming, growing mushrooms, snails, bees, etc.), that is
  • processing agricultural products, i.e. performing other non-agricultural activities (rural tourism, old crafts, etc.).

The basis of land use

Agricultural holdings are registered in the Register based on the following:

property rights;
solutions – extracts on the distribution of compacted mass;
• a lease agreement or an agreement on the assignment of land for use, provided that these agreements were not concluded with a legal entity, unless the lessor is the Ministry responsible for agricultural affairs (further: the Ministry), a local self-government unit, i.e. a church and a religious community, provided that the term of validity of those contracts cannot expire before October 31 of the year to which the entry or renewal of registration in the Register refers;
rights to use agricultural land in social property acquired through a legal transaction.

Special conditions for registration of family agricultural holdings

In the registration of a family agricultural holding, the farmer – a natural person who is the owner of the family agricultural holding is entered in the Register, and the members of the family agricultural holding can be entered.

In the event of the death of the holder of the family agricultural holding, the remaining registered members of the family agricultural holding agree to appoint a temporary holder from among themselves until the end of the probate process and the implementation of changes in the Real Estate Register, and they notify the Administration within 30 days.

Members of the family agricultural holding who are owners or tenants, i.e. users of the designated land, can, by their statement, define the owner of the family agricultural holding as the user of that land in the sense of the Rulebook on entry into the Register of Agricultural Holdings and renewal of registration, as well as on the conditions for the inactive status of the agricultural holding (“Official Gazette of RS”, no. 17/2013, 102/2015, 6/2016, 46/2017, 44/2018 – other laws, 102/2018 and 6/2019).

Change of status data

If, after registration in the Register, there is a change in the status data entered in the Register, the change in this data in the Register is made within 30 days from the date of the change, namely for:

  • family farm – data change related to:
    – holder of a family agricultural holding;
    – the number of members of the family agricultural holding;
    – the residence of the owner of the family agricultural holding;
    – the number of the particular – dedicated account, that is, the name of the commercial bank where the account is kept
  • agricultural holding – change of data related to:
    – the status of a legal entity, that is, an entrepreneur and an authorized person in a legal entity entered in the Register;
    – headquarters, i.e. residence;
    – the number of the particular – dedicated account, that is, the name of the commercial bank where the account is kept;
    – activities in the Business Registers Agency.

Read more:
Establishment of a cooperative »
Forms of work engagement in Serbia »

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