The Ministry of Economy of the Sarajevo Canton informs the public that, starting from the beginning of 2025, the Law on Financial Incentives in Agriculture and Rural Development has come into effect in the Sarajevo Canton. This law represents a significant step towards aligning domestic regulations with EU standards and improving the agriculture and rural development sectors.
“The innovations introduced by the Law include measures for direct support to production, income support for producers, including payments to young farmers for taking over farms. It also provides incentives for preserving biodiversity, landscapes, and the environment, as well as support for organic production based on the area of cultivated land and certification. Additionally, new measures include support for rural development, encompassing capital investments such as the procurement of machinery, equipment, and breeding livestock, encouraging the development of rural tourism, processing of agricultural products, diversification of the rural economy, and agri-environmental measures to mitigate climate change. We particularly highlight measures for general agricultural services, which include knowledge and skills transfer through education and professional support, incentives for research and innovation in agriculture, as well as preventive measures and accountability. The Law also stipulates that if misuse or improper spending of funds is established, the beneficiary is obliged to return the funds within 30 days and is banned from applying for incentives for the next five years,” explained Zlatko Mijatović, the Minister of Economy of Sarajevo Canton.
The Law is accompanied by a Regulation on Financial Incentive Measures, Conditions for Eligibility, and Procedures for Exercising the Right to Incentives. The Regulation specifies the types of incentives, eligibility conditions, and the documentation required for application.
Significant changes and innovations have been introduced with the aim of strengthening agricultural production and improving rural areas. Special focus is placed on young farmers, who can now receive multi-year incentives for taking over farms, while forage crop production is included for the first time. The threshold for milk production incentives has been raised to 600 liters per head, encouraging increased production. New incentives have also been introduced for the preservation of endangered domestic animal breeds, such as the Bosnian mountain horse and the Tornjak dog.
The new Regulation also supports the diversification of the rural economy through investments in product processing, rural tourism, and agri-environmental measures that mitigate the effects of climate change. Additionally, capital investments in modern equipment, such as agricultural drones and meteorological stations, as well as rural infrastructure, are enabled. For the first time, farmers can, as part of capital investments, procure beef cattle heifers. These measures are aimed at increasing farmers’ competitiveness, preserving traditions, and improving the quality of life in rural communities.
The Law is the result of years of work, consultations with the academic community, experts, and the Cantonal Administration for Inspection Affairs. For the first time, rural development is recognized at the cantonal level as a key segment of agricultural policy. This document is harmonized with EU policies, ensuring financial incentives that are secure, flexible, and geared toward sustainable development.
The Ministry invites all agricultural producers in the Sarajevo Canton to familiarize themselves with the new rules and opportunities and to utilize the available incentives for the development of their farms. Detailed information can be obtained through the official channels of the Ministry of Economy of Sarajevo Canton.
The Law is available at the link: https://mp.ks.gov.ba/sites/mp.ks.gov.ba/files/2025-01/Zakon-o-novcanim-podrskama-u-poljoprivredi-i-ruralnom-razvoju.pdf, and the Regulation is available at the link: https://mp.ks.gov.ba/sites/mp.ks.gov.ba/files/2024-12/Pravilnik-o-mjerama-novcanih-podsticaja-uslovima-za-ostvarenje-novcanih-podsticaja-i-postupku-za-ostvarenje-prava-na-novcane-podsticaje-u-poljoprivredi-i-ruralnom-razvoju.pdf.
