SERBIAN AGRICULTURE LOANS WITH THE AIM OF IMPROVING THE CURRENT SITUATION

Authors

  • Vera Zelenovi?, PhD University Novi Sad, Faculty of Economics Subotica
  • Željko Vojinovi?, PhD University Novi Sad, Faculty of Economics Subotica
  • Drago Cvijanovi?, PhD University Kragujevac, Faculty of Hotel Managementand Tourism, Vrnjačka Banja

DOI:

https://doi.org/10.5937/ekoPolj1801323Z

Keywords:

agriculture, fnancing, subsidies, credit.

Abstract

Agriculture is characterized by a number of specifcities (seasonal and organic character, high risks of the production cycle, slow turnover of capital, inability to specialize production and low capacity utilization), due to which it is more demanding in terms of fnancing than other economic activities.Considering that the agriculture is one of the most important branches of the economy, which even in such difficult conditions and circumstances still yields profts, the subject of this work is to discuss the conditions of fnancing both by the state and by commercial banks, without which it is almost impossible to imagine the process of agricultural production. The aim of the paper is to point out the importance of stable and continuous fnancing of agriculture. Unfortunately, interest rate subsidy programs do not include consultations with the fnancial sector when programs are designed, and as a result, the way in which the programs are built does not motivate banks to increase lending to the agriculture sector. Farms need constant fnancial support because of the need to invest in production all at once and at a large scale, in accordance with the nature of production, the long retention period of the assets involved, ie the low turnover of the invested funds, and the low proft that the primary agricultural production generates makes it impossible to create own accumulation, or own sources of fnancing.

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Published

2018-01-20

How to Cite

Zelenović, V., Vojinović, Željko, & Cvijanović, D. (2018). SERBIAN AGRICULTURE LOANS WITH THE AIM OF IMPROVING THE CURRENT SITUATION. Ekonomika Poljoprivrede, 65(1), 323–336. https://doi.org/10.5937/ekoPolj1801323Z

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