The agro-budget for Montenegro in 2025 stands at 77,063,945 euros, reflecting an increase of approximately two million euros compared to last year. The budget allocates more funds for direct payments in crop farming, the wine industry, rural road construction, well drilling, machinery purchases, old-age pensions, and support for pregnant heifers impacted by Q fever.

This year, funding for the free distribution of fruits, vegetables, and milk in schools, as well as support for cooperatives, associations, producer organizations, sustainable management of freshwater fisheries, and food safety measures will see a decrease.

A total of 56.54 million euros will be sourced from the state treasury for the Agrobudget, with 11.02 million euros derived from donations and 9.5 million euros from loans. This includes 53.85 million euros earmarked for agricultural development, rural development, and fisheries, 2.09 million euros for animal health protection initiatives, 385,500 euros dedicated to food safety measures, and 201,600 euros for phytosanitary activities.

Last year’s Agrobudget included 51.35 million euros from the state treasury, 15.55 million euros from donations, and 8.15 million euros from loans.

This year’s donations total 4.5 million euros less than last year, primarily funded by the IPARD III program, contributing 10.94 million euros, while 82,640 euros came from the GORA project. In 2024, the majority of funding originated from the IPARD II program, which officially concluded earlier this year.

Loan amounts increased by 1.3 million euros compared to last year, all coming from the Second Project for Institutional Development and Strengthening of Agriculture in Montenegro (MIDAS 2). A significant portion, 1.5 million euros, is allocated for establishing regional offices of the Payment Directorate (House of Agriculture) in Pljevlja and Berane.

For direct payments related to livestock production, market milk production support, milk processing, crop production, and young farmer initiatives, 19.46 million euros are earmarked, representing an increase of 1.31 million euros from 2024. For rural development measures, a total of 30.47 million euros will be allocated this year, focused on investments in primary crop production, establishing and maintaining mother plantations, improving animal welfare in livestock farming, rural development, and adapting mountainous areas. However, this reflects a decrease of 2.82 million euros from last year.

The Government approved the Agrobudget in late March, setting the framework for implementing agricultural policy measures concerning market price policy, rural development, public interest affairs, social benefits, food safety measures, as well as veterinary, phytosanitary matters, and fisheries.

Old-age benefits receive a boost

This year, old-age benefits will occupy a critical segment of the Agrobudget, with an additional allocation of 1.57 million euros, bringing the total to 14.2 million euros. Approximately 3,400 beneficiaries are expected, with each receiving a benefit of 315 euros, representing an 11% increase since 2021. The head of an agricultural household qualifies for these benefits if they are over 65 years (for men) or 60 years (for women), reside in rural areas, engage in agriculture, and do not earn income from other sources.

The spending structure indicates a growing trend of directing funds to producers through production-based payments, while investment measures within rural development will see modest enhancements.

This year, total direct payments increased by 1.31 million euros, reaching 19.46 million euros compared to 18.14 million euros last year. Notably, crop production received significant support, amounting to 5.1 million euros, up from 3.8 million euros in the previous year.

Farmers will receive 100 euros less per hectare for establishing crops on previously unused agricultural land, with current subsidies at 300 euros instead of 400 euros. However, the minimum planting area requirement has been reduced to 3,000 square meters from 5,000. Subsidies for production and services have slightly increased to 16.13 million euros, compared to last year’s 16.1 million euros.

This year’s funding for the wine sector is doubled, amounting to 200,000 euros. The support can now cover 50% to 80% of eligible costs, up from a maximum of 50% previously, with investments in processing and innovation receiving a new allocation of 15,000 euros for wine geographical origin certification, tripling last year’s amount.

An additional 1.4 million euros is allocated to support the purchase of purebred breeding animals, with provisions for pregnant heifers for farms affected by Q fever. A budget of 200,000 euros is reserved for female piglets.

One million euros has been designated for machinery, equipment, and attachments needed for primary production, with 400,000 euros specifically for purchasing tractors, exceeding last year’s allocation of 300,000 euros for machinery. More funds are directed towards well construction and clarifiers, amounting to 190,000 euros, compared to the previous year. An additional 55,000 euros is earmarked for organic production support.

Significantly increased funding is planned for livestock grazing for at least three months a year, totaling 480,000 euros, compared to only 50,000 euros last year. Substantial allocations will also address village development and infrastructure improvements—approximately 3.47 million euros to enhance local roads, water, and electricity access, which is 330,000 euros more than last year. The budget for livestock farming improvements rises to 1.27 million euros, about a third more than last year, driven by increased funding for poultry premiums.

For wine geographical origin certification, 15,000 euros is allocated, tripling last year’s amount. A new measure for label name protection, up to 5,000 euros, is introduced alongside increased support for geographical origin certification, ranging from 250 to 1,000 euros.

Support extended to youth and beekeepers

Beekeeping will receive the same allocation as in 2024, amounting to 400,000 euros, with lowered criteria for beekeeping equipment purchases now allowing those with a minimum of 12 hives to apply, down from 20. Additionally, this year’s budget designates 100,000 euros less for the free distribution program of fruits, vegetables, milk, and dairy products to schools, from 300,000 euros last year to 200,000 euros now.

An allocation of 80,000 euros is planned for cooperatives, associations, and producer organizations, reflecting a decrease of 10,000 euros from last year. In 2024, a significant portion of the budget helped establish organizations, but this year, that funding will be evenly split between organizational support and educational initiatives.

Funding for sustainable freshwater fishery management has decreased by 65,000 euros, while an overall increase of about 300,000 euros is expected. Furthermore, allocations for food and feed safety measures dropped by approximately 15,000 euros and by 100,000 euros for the mandatory animal health protection program. The Ministry of Agriculture will receive 2 million euros in support through MIDAS 3,6, reflecting a reduction of 12 million euros compared to last year, to help meet benchmarks for Chapter 1,7 provisions (Food Safety, Veterinary and Phytosanitary Policy).

Last year’s changes were more pronounced

In 2024, the agricultural budget increased by 12% compared to the 2023 budget, with an additional nine million euros allocated.

Young farmer fees for individuals under 40 who have started or taken over a farm saw significant increases, from 70 to 200 euros per hectare.

Support for farmers processing raw milk on their premises was also enhanced, adding 2.5 million euros more than in 2023. Increases were also observed in payments for fruits, vegetables, cereals, potatoes, and olive oil, rising from 100 to 200 euros per hectare.

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