Financial incentives in function of cattle production

• Main Authors: Igor Kralik, Zdravko Tolušić
• Format: Article
• Language: English
• Published: Faculty of Economics in Osijek 2009-07-01
• Series: Ekonomski Vjesnik
• Subjects: Financial incentives; agriculture; cattle production
• Online Access: http://hrcak.srce.hr/file/66996
• ISSN: 0353-359X; 1847-2206

Recovery reform and financing of agricultural production started with passing the Law on Agriculture, Strategy of Agriculture and Fishery of the Republic of Croatia and the Law on State Support in Agriculture, Fishery and Forestry. The reform simplifies the system of support in agriculture, equalizes the incentive levels according to sown area and the volume of area for which the incentives will be paid. With already existing financial incentives for production, the new models of support to income, new capital investments and rural development are introduced. The users of financial incentives are now farms that are engaged in agriculture and act as companies, handicrafts or cooperative society. The Republic of Croatia as a membercountry of WTO has a limited amount of means for support to agriculture tied to level of production, prices and use of factors of production. Therefore, the support per kilogramme, ton etc. is not acceptable according to the WTO rules and so its part in total support is expected to decrease gradually. The support that is paid per area (hectare) is now acceptable but it will soon become a part of red basket (a part of prohibited measures). Introducing the state incentives and other measures of land politics in the course of the years 2006 and 2007, a significant increase in the number of cattle and poultry is expected as well as the increase in growth production, milk, eggs, wool and honey in the forthcoming period.