The program of support to the implementation of the measures of a balanced regional development of the Republic of Serbia through the state's economic-financial incentives for the establishment of new cooperatives and investment projects of the existing cooperatives in 2017, in particular in the Nis, Toplica, Pirot, Jablanica and Pcinj districts, is conducted by the Office of the Minister without Portfolio responsible for regional development and the operation of public enterprises, in cooperation with the local self-governments.

The funds were earmarked for the following measures:

1. The maximum amount of 6,250,000.00 dinars intended as a special-purpose economic and financial incentive for the formation of new agricultural cooperatives to increase production volume and the impact on agricultural development in the communities where they are established.

2. The maximum amount of 12,500,000.00 dinars is intended as an economic and financial incentive for the projects of the existing cooperatives aimed at increasing the volume of production and providing opportunities for growth and creation of jobs. 

Eligible to use the grants are:

1. Groups of individual registered farms that want to form agricultural cooperatives and that have the support of the local self-government for it. 

2. The existing agricultural cooperatives that have put their operations in line with the law governing cooperatives and that are registered at the Business Registers Agency, which regulated the tax and other due obligations related to the public budget for 2016, against which no bankruptcy or liquidation proceedings were instigated and which have the support of the local self-government for the project with which they apply.

Cooperatives are entitled to funding for the following program activities:

1. Procurement of live animals for the purpose of increasing the livestock.

2. Purchase of the equipment for the purpose of improving the quality and capacity of dairy and meat-production farms.

3. Purchase of perennial plants to expand the area under crop production.

4. Procurement of the equipment and agricultural machinery to increase the production and improve the quality of fruits, vegetables and other plant products.

5. Construction of the facility and purchase of the equipment for the purpose of increasing the capacity of the existing production, increasing productivity and quality, providing higher produce-processing stages.

6. Purchase of the equipment for the production, increase in export opportunities, expansion of the sales market or improvement in the market position.

Costs include Value Added Tax (VAT).

Grants are allocated in accordance with the intended use of the financial resources.

The funds will be used through making direct payments to a special purpose RSD account with the Treasury, while when it comes to incentive funds, the cooperative is obliged to provide a blank promissory note with a letter of authorization.

Cooperatives can not alienate the assets (the equipment, facilities, machinery and the like), which were obtained through financial incentives of the program, for at least 3 years.

The application deadline is October 1, 2017.

Funds will be allocated according to the received applications – until the funds earmarked for this purpose have been spent.

The full text of the call for applications and the application form are available on  http://subvencije.rs/vesti/100-000-e-bespovratnih-sredstava-za-poljoprivredne-zadruge/

Source: Subsidies in Agriculture and Coordination Body