There is a risk that Serbia could lose approximately €74 million from the European Union’s IPARD programme, allocated for farmers, due to the funds not being utilized in time, reported the European Western Balkans portal, citing unofficial sources.
The funds that the EU could retract are from the IPARD 2 programme, valued at €175 million, which Serbia needs to spend by the end of 2024. Meanwhile, the IPARD 3 programme, valued at €288 million, has been launched and will run until 2027, according to Euronews Serbia.
The Ministry of Agriculture explains that the IPARD 2 budget is allocated by year and by accredited measures, and the rule mandates that these funds must be used within three years of the year they were allocated.
They add that funds allocated for the initial years of the programme remain unused, as the number of completed projects and user payment requests was low, while both users and administration had yet to adapt to the new system and methods for obtaining incentives.
They note that similar experiences have been reported in all countries implementing this programme.
Farmers’ experiences
Milan Bogunović, from the Initiative for the Survival of Serbian Farmers, is one of the farmers from Banatsko Karađorđevo who bought a new tractor with grant funding received through the IPARD programme.
He applied for funds in 2021, and his tractor arrived nearly two years later.
“A brand-new tractor—I can work 24 hours straight with it without fear of something breaking down, unlike before when it was mostly about lying under the tractor, making repairs, and losing precious time. In modern agriculture, with tight timeframes, you don’t have the luxury of repairs when you have just five days to plant before the rain comes,” Milan said.
Fear of the unfamiliar initially kept him from applying, he says.
When they saw that the IPARD programme was viable, other farmers in Banatsko Karađorđevo also bought new tractors using the same method.
However, many are discouraged, Milan explains, citing several reasons: lack of funds, negative experiences with corruption in domestic programmes, slow bureaucracy, and inconsistencies in the process.
For example, disqualification due to tax arrears: “My quarterly tax is due on September 1, let’s say, and I pay it on September 2. A tiny late fee of 25 cents or two dinars could be enough for disqualification. Give us an eight-day grace period to settle any tax issues,” Milan said.
Authorities appear to have heeded these criticisms, as the IPARD 3 programme now grants farmers an 8- to 20-day period to settle tax debts.
Fifteen calls for proposals launched
The ministry states that, overall, 15 calls for proposals have been issued within this programme cycle, resulting in 3,180 applications. Of these, 1,556 projects have been approved, with a total incentive value of approximately €197 million, of which €148 million comes from the EU budget.
So far, around €116 million has been disbursed, including €87 million from the EU budget, and approximately €20 million (or €14.7 million from the EU budget) is in the process of being approved for payment.
The ministry also reports that IPARD 3 is being implemented in parallel, with two calls for funding under this programme already issued and a strong response from farmers.
Growing interest among farmers
IPARD consultant Miloš Jandrić from IPARD System Novi Sad finds it unclear how the state could risk losing funds due to unutilized resources, as interest among farmers in the recently opened public call for tractor procurement is high.
“Currently, the situation on the market suggests that the number of applications will likely exceed the funds available in the budget for this purpose. According to our estimates, there should be funding for around 400 tractors. Based on consultations with colleagues in this field, we determined that in less than two weeks, the number of applications has likely already surpassed that amount,” Jandrić told Euronews Serbia.
Now, requests are being processed significantly faster than at the start of the IPARD programme, when there were numerous uncertainties, Jandrić added.
Permits pending
However, issues remain, as permit approvals from various institutions often take a long time, causing applications to lapse despite high interest.
When asked how complicated the IPARD application process is for farmers and whether it could be simplified, IPARD consultant Bojana Adžić noted that there were difficulties from the start, but that 2024, with the launch of the IPARD 3 programme, has brought many benefits and positive changes for farmers.
“In terms of the documentation submitted, the conditions that must be met, and the procedures, everything is very clear and regulated by the Agricultural Payments Directorate’s guidelines. With the help of consultants, the procedures can be followed quite smoothly. After all these years, I wouldn’t call it complicated anymore. In fact, looking back, I’d say it’s really been simplified,” she said.
Does applying for IPARD funds affect eligibility for state subsidies?
Experts say that one reason for unutilized IPARD funds is that farmers hesitate to respond to ministry calls because, as they believe, applying for IPARD funds disqualifies them from state subsidies in the same year.
When asked if applying for IPARD funds and failing to receive them would cause a farmer to lose subsidy eligibility, Adžić explained that this is a common question among farmers. She added that misinformation may lead farmers to mistakenly believe that applying for one form of assistance disqualifies them from another.
“No, they don’t lose eligibility. Of course, you can’t apply for every public call and every measure, but what’s important is that the Ministry of Agriculture and the Agricultural Payments Directorate have, in my opinion, very clearly aligned these measures,” she said.
Fear of bureaucracy
Apart from misinformation, Adžić identified farmers’ fear of bureaucracy and complex documentation as a major obstacle to applying for IPARD funds. She specified that young farmers under 40 are eligible for up to a 70 percent refund on consultancy services, as well as for tractor purchases.
(Vreme, 28.10.2024)
https://vreme.com/ekonomija/ipard-programmei-eu-kakva-su-iskustva-poljoprivrednika-i-koje-su-prepreke/
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Publish date : 2024-10-27 17:00:00
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