Trends in the financing of agriculture in the Republic of Serbia

Abstract

In recent years, there has been an increase in the agrarian budget and subsidies in agriculture, as well as lending to farmers by commercial banks. The goal of the work is to shed light on trends that indicate importance of financing agriculture for the economic development of the Republic of Serbia. The Kruskal-Wallis test was used to compare subsidies in agriculture in relation to other economic activities, as well as to compare agricultural lending between commercial banks, while the Friedman test was used to examine the lending of observed banks. The results showed that subsidies in agriculture are higher compared to other economic activities, and that they are growing, as well as the entire agricultural budget, especially in recent years, when they reach record amounts. The same case was recorded in lending to farmers by commercial banks. The increase in agricultural financing and lending was accompanied by an increase in agricultural production and GVA of agriculture. It is concluded that adequate financing of agriculture has a positive impact on both agriculture and the overall economic development of the Republic of Serbia.