Calculating against the climate change

December 28, 2021


In the next six years (until 2027), the Ministry of Agriculture, with the support of the European Union, will implement the IPARD III program, which brings numerous innovations compared to previous cycles of the Program and assures farmers that they will have even better support in their activities.

Compared to the previous program, IPARD III introduces new sectors in various measures, such as: fisheries, processing of cereals and industrial plants, direct sales of agricultural and food products, as well as the provision of non-agricultural services. The draft program envisages the following measures: M1 - Investments in physical assets of agricultural holdings; M3 - Investments in physical assets related to processing and marketing of agricultural and fishery products; M4 - Agro-ecological-climatic measures and measures for organic production; M5 - Implementation of local rural development strategies - LEADER approach; M6 - Investments in rural public infrastructure; M7 - Diversification of agricultural holdings and business development and M9 - Technical assistance.

Under the European Union-funded project "Strengthening the Resilience of the Agricultural Sector to Natural Disasters", FAO supported the Ministry in defining Measure 4. Measure 4 provides annual financial support to farms, as a compensation for loss of income and additional costs resulting from compliance with special agro-ecological measures that exceed the mandatory ones - prescribed by law.

The application of crop rotation, grassing of inter-row space in perennial plantations, establishment of pollinator strips and proper maintenance of meadows and pastures are operations envisaged under this measure. As climate change makes agricultural production less predictable and expensive, these examples of good agricultural practice have a positive impact on plant development, water consumption, soil quality, biodiversity, reduced pesticide use, leaching of organic matter and prevents erosion. By applying these measures, the pressure on resources is reduced, and the production itself becomes more adaptable and resistant to new conditions, while at the same time reducing the negative impact that agriculture has on the climate.

The Faculty of Agriculture in Belgrade, in cooperation with the FAO and the Managing Authority of the IPARD program, prepared a calculation of these costs, which they presented at a meeting held on November 29 of this year, attended by a large number of experts from the Ministry of Agriculture, Water Management and Forestry and experts from the academic and professional spheres.

At the meeting, the participants had the opportunity to hear speakers from various domains, in order to see the problems from different angles, and then to discuss the best solutions together. The meeting was opened by Jasmina Miljković, Head of the IPARD Managing Authority and Head of the IPARD Program Management Department, and Aleksandar Mentov, National Program Coordinator from the FAO Regional Office for Europe and Central Asia. Description of Measure 4 - "Agro-ecological-climatic measures and measures of organic production" and methodological approach for the preparation of calculations of lost profits and additional costs was presented by Lidija Acimovic, on behalf of the IPARD program. Prof. Vlade Zarić from the Faculty of Agriculture in Belgrade presented the process and results of making calculations, while prof. Đorđe Moravčević and prof. Dragan Radivojević clarified the specifics of calculations in field, vegetable and fruit production.

The possibilities for participation of potential beneficiaries, who are registered agricultural farms that voluntarily accept the obligation to apply appropriate practices and methods of agricultural production, which exceed the "baseline", were also explained in detail at the meeting. "Baseline" means compliance with the requirements of "multiple compliance", ie good agricultural and environmental conditions and mandatory requirements in terms of environmental protection, human, animal and plant health, as well as animal welfare. Financial support for farms will be provided in the form of annual payments per unit of area, as compensation for loss of income and additional costs, which arose as a result of adhering to special conditions that exceed the "baseline". A clearly defined "baseline" is a precondition for calculating the amount of compensation that corresponds to the real costs of implementing this measure.

In the next steps of the project, further information will be offered to farms, as well as local governments and advisors of agricultural professional and advisory services, how they can best achieve the effects of the IPARD III program and protect themselves from natural disasters.