About 45 percent of EU`s budget is invested in agriculture, and it`s no wonder that the European Union is often considered as an "agrarian community". Closer look to this fact proves that this economy branch is the most important for Serbia as well. Since it is the sector which acquires the budget surplus, for the past few decades it is the only economic branch Serbia could relies on. Serbia has managed to export agricultural products worth two billion dollars, and has spent 1.3 billion dollars for the agricultural imports. Even under the global recession, the 700 million dollars of profit is for 100 million more than a year before.

But all praises to Serbian agrarian situation are ending here. This economic branch is about to face the most profound reforms in all its history. The future of Serbia`s countryside and farmers is determined by what we`re about to undertake in the next four years. There are certain segments which have never experienced reforms, for example co-operations, and only six important legislations regarding agriculture policy, out of 50, have been adopted.

With the application of Interim Trade Agreement and the ratification of Stabilisation and Association Agreement to come, Serbia started abolishing custom duties on EU imports. It won`t bring a significant damage, for this abolishing regards only to products which are no made in Serbia. But the irretrievable process has begun, and the time is right for Serbia to begin agriculture reform so as to adjust to the rich, yet very fastidious and demanding EU market, for our agriculture is not competitive at all.

"We haven`t even fulfilled conditions for using EU funds, and although importation increases, we are still not competitive enough to adjoin the EU and World Trade Organization. I do however believe that we have predispositions for conducting agricultural reforms necessary for EU access. It is also important to encourage our farmers to become competitive in the meantime," Sasa Dragin, the Minister of Agriculture, explains.

Numbers perfectly explain how much money from EU funds is needed. Bulgaria was granted five billion euro for the agricultural purposes in the period 2007-2013, more than ten billion was given for Hungarian agriculture and Poland was approved 28 billion euro. Compared with two billion euro of total exchange, it is clear that Serbia is imperceptible on global plan.

Milk and dairy producers are first to become the targets of severe competence as the custom duties will be reduced and eventually abolished. The second phase includes fruit and vegetable growers, especially because their European competitors share enormous export subsidies.

The fact that Serbia hasn`t defined its export development strategy remains obscure, but the truth is that there is still not enough money for such project at the moment. But the farmers` approach to this issue is something that can be changed, for in a few years they will become part of the market which counts 460 million people.

"The agrarian policy`s measures must be focused on motivation, one needs to accept the `you can get this, but you`ll have to do something else first` concept. This is the only way to make people competitive on European and world market, until the full liberation. Of course, we need to create our own market, and to start accepting the fact that a farmer should be not only a basis, but also a pole of the system. It is important that both manufacturers and processors understand that they are parts of the same chain, but that the state administration protects a farmer first, and that this interrelationship should be correct and long-term," minister Dragin adds.

Forming cartels would be a good start. When the old-fashioned cooperative agricultural model was rejected by the end of 1980s, Serbia was left without a contemporary one, and now only one agricultural cooperative runs, which is located nearby the town of Subotica.

"Their perspective lies in unification and instead of wasting their time talking to every household in countryside, they should encourage negotiating with representatives and that is much simpler," Dragin says.

Organised farmers are the only true partners not only to the government but to the wholesalers as well. Considering efforts our country makes on its way to the EU and the World Trade Organization accession, this fact is of a great importance. Export subsidies which Serbia implements are considered unallowable from the WTO`s point of view, but while waiting to become a part of the World Trade Organization these inappropriate measures will continue to be implemented, after which they shall be replaced by the new ones.

Good news is that the first European institution, the Agricultural Payment Organisation, was recently established in town of Sabac. This highly specialised institution deals with subsidies payments in agriculture, in order to provide money both from Serbia`s budget and EU funds.  It basically means that our farmers will finally enjoy finances as soon as Serbia is officially recognised as a candidate for EU membership, and Agricultural Payment Organisation completes the accreditation process.