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2018, vol. 65, iss. 1, pp. 323-336
Serbian agriculture loans with the aim of improving the current situation
aUniversity of Novi Sad, Faculty of Economy, Subotica
bUniversity of Kragujevac, Faculty of Hotel Management and Tourism, Vrnjačka Banja

emailvera.zelenovic@ef.uns.ac.rs, zeljko.vojinovic@ef.uns.ac.rs, dvcmmv@gmail.com
Project:
Sustainable agriculture and rural development in the function of accomplishing strategic objectives of the Republic of Serbia in the Danube region (MESTD - 46006)

Abstract
Agriculture is characterized by a number of specificities (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 financing 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 profits, the subject of this work is to discuss the conditions of financing 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 financing of agriculture. Unfortunately, interest rate subsidy programs do not include consultations with the financial 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 financial 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 profit that the primary agricultural production generates makes it impossible to create own accumulation, or own sources of financing.
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About

article language: English
document type: Review Paper
DOI: 10.5937/ekoPolj1801323Z
published in SCIndeks: 31/05/2018
peer review method: double-blind
Creative Commons License 4.0

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