The Government of the Federation of Bosnia and Herzegovina, at a telephone session today, at the proposal of the Federal Ministry of Agriculture, Water Management and Forestry, adopted a Decision adopting the Program for the Expenditure of Funds with the Distribution Criteria for “Subsidies to Private Enterprises and Entrepreneurs – Incentives for Agriculture” established by the Budget of the Federation of BiH for 2026 to this Ministry in the amount of 190,000,000 BAM.
The funds approved in this year’s budget for incentives for agriculture are eight million BAM higher than in last year’s budget, the Office of the Government of the Federation of BiH for Public Relations announced.
As explained by the proposer, among other things, the purpose of the Support Program is to implement measures from the Strategy for Agriculture and Rural Development of the Federation of BiH 2021-2027 in order to achieve the set priorities and strategic goals. By implementing direct support and structural measures, the Government of the Federation of BiH is creating an environment for increasing competitiveness and implementing structural transformation of agricultural farms, i.e. business entities from the food industry sector.
Based on the proposed amounts of financial allocations in the Financial Support Program for 2026, 25,000,000 BAM is planned for plant production, and 116,550,000 BAM for animal production. The available amount of 47,300,000 BAM is intended for structural measures and is distributed in such a way that 41,680,000 BAM is planned for rural development measures and 5,620,000 BAM for the model of other types of support. An amount of 1,150,000 BAM is planned for requests from the previous period, decisions on appeals and court judgments.
The proposer states that it is expected that the provided level of funds will enable the preservation and increase of the achieved level of agricultural production in the Federation of BiH. Financial support under the production incentive model, and measures through the rural development model and the model of other types of support represent overall support to agricultural producers in order to improve the quality and competitiveness of agricultural and food production and the resilience of agricultural producers on the domestic and foreign markets.
It also states that financial support for strategic production will contribute to increasing the sown land area and the production of agricultural and food products with higher added value in the Federation of BiH, as well as increasing the technological level of farms and modernizing agricultural holdings and living conditions in rural areas of the Federation of BiH.
