Agri-Environmental Policy in Serbia

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1 Assessment of the application of the Agri-Environmental Policy in Serbia PhD Dragana Vidojević Ministry of Environmental Protection Serbian Environmental Protection Agency PhD prof. Jovica Vasin Institute of Field and Vegetable Crops Laboratory for soil and agroecology PhD Nenad Brkić Agency for consulting services - ND Consulting

2 INTRODUCTION Republic of Serbia was granted EU candidate status on March 1, Stabilisation and Association Agreement entered into force on September 1, 2013 between Serbia and EU. Chapter 11 - Agriculture and rural development has not been opened yet. Explanatory screening for Chapter 12 -Food safety, veterinary and phytosanitary policy was held in March Bilateral screening for Chapter 12 was held in May Sector for International Cooperation includes the Department for European Integration, Multilateral and Bilateral Cooperation in the field of agriculture

3 Main country indicators 88,499 km 2 (77,589 km 2 excluding Kosovo and Metohija). 7,186,862 Inhabitants excluding Kosovo and Metohija 92.6 inhabitants per 1 km 2 excluding Kosovo and Metohija GDP for 2016 is 38,295.6 mil USD (Conversion according to annual average exchange rate), 5,426 per capita, USD Agricultural land share in total country area (excluding Kosovo and Metohija): 49.8 % (3,861,477 ha). Gross Value Added for Agriculture, forestry and fishing in GDP: 8.67 % (2015). Major crops (by area) are Maize, Wheat, Sunflower, Soya, Cabbage and kale, Peppers, Plums, Tomato, Lucerne, Clover, Sugar beet, Potatoes etc. Major livestock (by number) are Pigs, Sheep, Cattle, Goats etc.

4 AGRICULTURE IN COUNTRY Share of utilized agricultural land in total land* Share of Arable Land in agricultural land Share of Permanent Crops in agricultural land Share of Agricultural GDP in total GDP Share of Agricultural Labour in total Labour Share of Agricultural Export in total Export Share of Agricultural Import in total Import / / 6, (ha) 2016 in % of total land Land Total 7,758, Forest 2,168, Utilized agricultural land 3,439, Arable land & gardens 2,597, Permanent crops (fruit, grapes, 187, nurseries) Pastures 311, Wooded pastures No date No date Agroforestry No date No date Fallow 16, Abounded land 424, Agricultural land/capita (ha) 0.48 Arable land & permanent crops/capita (ha) 0.39 Key agricultural indicators Land Use

5 AGRICULTURE IN COUNTRY 2012 Number of holdings Farm Structure Percentage of holdings Total 631, No land 10, Up to 2 ha of UAA 293, Above 2 ha to 5 ha 185, Above 5 ha to 10 ha 90, Above 10 ha to 20 ha 32, Above 20 ha to 50 ha 13, Above 50 ha to 100 ha 4, Above 100 ha UAA 1, Above 100 ha to 300 ha 1, Above 300 ha to 500 ha Above 500 ha to 1,000 ha Above 1,000 ha to 2,500 ha Above 2,500 ha to 5,000 ha Above 5,000 ha UAA Crop Production (total) Areas (ha) Production (t) Cereals 1,605,215 10,258,245.1 Oilseeds (Sunflower, Soya, Rape seed) 396,137 1,236,977 Sugar beet 49,237 2,683,859 Tobacco 5,256 7,811 Fruits (Apples, Plums, Sour Cherries, Raspberries, Grapes) 147,918 1,079,784 Vegetables (Beans, Cabbage, Kale, Peppers, Tomatoes) 37, ,744 Potatoes 31, ,070 Meadows 313, ,317 Pastures 230, ,067 Other crops (Lucerne, Clover, Maize for fodder)152, ,305 Livestock (total) Heads Number Number of farms Cattle 893, ,252 Pigs 3,021, ,052 Ships and goats 1,865, ,902 Horses 15,000 10,095 Poultry 16,242, ,445 Other animals (Beehives) 792,000 / Agricultural production

6 ENVIRONMENT AND ENVIRONMENTAL POLICY IN THE COUNTRY The Republic of Serbia is characterized by high genetic species, and ecosystem diversity. The Republic of Serbia hosts: 39 % of European vascular flora, 51 % of European fish fauna, 49 % of European reptile and amphibian fauna, 74 % of European bird fauna, 67 % of European mammal fauna. Contribution to the total quantity of emissions of GHG - agriculture (92% for NH 3 ). According to the latest data, methane emissions (CH 4 ) in the agricultural sector and other land use declined, and nitrous oxide (N 2 O) emissions are with slight fluctuations in the period

7 ENVIRONMENT AND ENVIRONMENTAL POLICY IN THE COUNTRY Surface and ground water quality monitoring, performed by the Serbian Environmental Protection Agency, shows that in most cases concentrations of nitrates. and orthophosphates remain within range defined as excellent or good ecological status. The results from fertility control show that the largest number of samples has low content of organic carbon. Average content of soil organic carbon in agricultural land is 1.98%. Very low content has 5.24% of samples. The total area of agricultural land on which the conversion is made into artificial surfaces in the period is 11,367ha.

8 Implementation of EU Directives The Water Framework Directive (WFD) has been partially transposed by the Water Law and several implementing acts. The main responsible institution is MAFWM. Responsible institutions for monitoring are Ministry of Environmental Protection - Environmental Protection Agency and Republic Hydrometerological Service of Serbia. Implementation of the WFD is in an initial stage. The Nitrates Directive has been partially transposed by the Water Law. MAFWM is the authority responsible for determining the vulnerable zones and their boundaries, proposing for adoption the action programs with mandatory measures for protected areas designated as vulnerable zones, proposing for adoption the Code of good agricultural practice. Proposal for the Nitrates Vulnerable Zones and draft of the Code of Good Agricultural Practice has been developed.

9 Implementation of EU Directives Transposition of Directive 86/278/EEC on the protection of the environment, and in particular of the soil, when sewage sludge is used in agriculture into the legislation of the Republic of Serbia is in progress. The Habitats Directive is almost fully transposed except of the Article 8, which refers to financing, and articles, which refer to the reporting. Main legal act transposing Directive - Law on Nature Protection. Competent authority for transposition and implementation - Ministry of Environmental Protection. The implementation of the provisions of the Directive is ongoing. In accordance with the Regulation on Ecological Network established ecological network includes 101 international and national ecological important sites. The Birds Directive is almost fully transposed through following national legislation: Law on Nature Protection and Law on Game and Hunting and the accompanying by-laws. Regulation EU Monitoring Mechanism - Regulation 525/2013 (MMR) is not aligned, however the draft Law on Climate Change and accompanying by-laws that transpose MMR are prepared.

10 AGRI-ENVIRONMENTAL STATE IN THE COUNTRY Strategy for Agriculture and Rural Development of the Republic of Serbia for the period (2014) includes, in particular, sustainable resource management and climate change. Operational goals for the implementation of the priority area related to the protection and improvement of the state of the environment include: protection of waters against the negative effects of agriculture; greater application of sustainable agricultural practices that are environmentally friendly; establishing and promoting an integrated production system; improvement of integral pest management and organic production, system of control, certification and control in organic production; raising awareness about the importance of using renewable energy sources and the production of energy crops; controlled waste and effluent management from primary agricultural production; development and improvement of the system of managing by-products of the food industry; conservation and sustainable management of plant and animal genetic resources; preservation of landscapes and agroecosystems, agricultural areas of high natural value and their resources.

11 AGRI-ENVIRONMENTAL STATE IN THE COUNTRY National Program for Agriculture for the period (2017) (NPP) is an operational program for implementation of agricultural policy, which contains measures classified as direct payments, measures for market regulation, as well as special subsidies and credit support in agriculture. Draft of National Program for Rural development for the period is submitted for adoption and it includes set of various agri-environmental measures under the group of rural development measures intended for environmental protection and sustainable rural development. National Environmental Protection Program (2010) Biodiversity Strategy of the Republic of Serbia for the period (2011) defines the objective to improve the integration of biodiversity concerns into all relevant sectors. National Strategy for Sustainable Use of Natural Resources and Goods (2012) defines the main goals that include the goals related to agriculture. (Renewable Energy Sources, Land Resources) Waste Management Strategy for the period (2010) is the basic document that provides the conditions for rational and sustainable waste management in the Republic of Serbia.

12 Institutional and Legal Settings Ministry of Agriculture, Forestry and Water Management Agriculture Land Directorate Veterinary Directorate Plant Protection Directorate Water directorate Forest Directorate Ministry of Environmental Protection Environmental Protection Agency

13 Agri-environmental policy Water Law ("Official Gazette of the RS" No. 30/10, 93/12, 101/16) is in line with the recommendations of the Water Framework Directive of the European Union (Directive 2000/60/EC of the European Parliament and Council, WFD) - protection of water quality. Law on Agricultural Land ("Official Gazette of the RS" No. 62/06, 65/08, 41/09, 112/15, 80/17), set rules about planning, protection and management of using agricultural land. Further, the law prescribes prohibition of discharge and disposal of hazardous and harmful substances on agricultural land, drainage canals and irrigation system. Law on Agriculture and Rural Development ("Official Gazette of the RS" No. 41/09, 10/13, 101/16) set the basic definitions, rights and responsibilities of agricultural producers, involving a duty for protection of environment, animal health, animal welfare and soil protection.

14 Agri-environmental policy Law on Subsidies for Agriculture and Rural Development ("Official Gazette of the RS" No. 10/13, 142/14, 103/15, 101/16) define measures to support agriculture and rural development: Article 3. - type of subsidies: 1) direct payments; 2) rural development measures; 3) special subsidies; 4) credit support in agriculture; Law on Organic Production ("Official Gazette of the RS" No. 30/2010) set criteria for organic production, controlling and certification of organic production, processing, labelling, storage, transport, export and import. The Law is mostly in the line with Council Regulation (EC) on organic production and labelling of organic products and Commission s implementing Regulation No. 834/2007 on organic production and labelling of organic products. Law of Animal Welfare ("Official Gazette of the RS" No. 41/2009), set up: prevention and treatment of disease and injury of animals; prevention and mitigation of pain, distress and other negative states; and provision of diets and living conditions that are suited to the needs and nature of animals. Law of Animal Husbandry ("Official Gazette of the RS" No. 41/09, 93/12, 14/16) regulate the treatment of animal waste (feces and urine) and using as an organic fertilizer.

15 Agri-environmental policy Law on Veterinary ("Official Gazette of the RS" No. 91/05, 30/10, 93/12) Rulebook of veterinary, sanitary conditions of facilities for breeding and keeping ungulates, poultry and rabbits ( Official Gazette of the RS, No. 81/2006) Law on Environmental Protection ("Official Gazette of the RS" No. 135/04, 36/09, 36/09 other low, 72/09 other low, 43/11 decision of the Constitutional Court and 14/16) regulates the integral system of environmental protection to ensure healthy environment. Among issues relevant for agricultural policy, the Law specifically relates to protection of natural value (landscapes), biological diversity, species and ecosystems diversity, public natural goods as waterfronts, forests.

16 Agri-environmental policy Law on Nature Protection ("Official Gazette of the RS" No. 36/09, 88/10, 91/10 - cor. and 14/16), include NATURA 2000 strategy and the protection of special areas for conservation of habitats and species and areas of special protection for conservation of habitats and certain species of birds. Law on Forest ("Official Gazette of the RS" No. 30/10, 93/12, 89/15). The Forest Law covers the conservation, protection, planning, cultivation, forest use, management of forests and forest lands, monitoring the implementation of this law and other issues relevant to forests and forest land.

17 Agri-environmental measures in place The Ministry of Agriculture, Forestry and Water Management for 2018 allocated funds to support agricultural production. Subsidies are allocated for the following activities: 1. direct payments; 177,791, eur; 2. rural development measures; 44,310, eur; 3. credit support in agriculture; 6,751, eur; 4. special subsidies; 2,154, eur; IPARD subsidies; 20,542, eur, of which MAFWM budget is 5,135, eur and 15,406, eur supporting from EU funds;

18 Agri-environmental measures in place Rural development measures include support of the following agro-environmental measures: 1. improvement of competitiveness in the amount of 12,057, eur, of which for: 1.1. investments in physical assets of agricultural holdings - the amount is 9,957, eur, 2. subsidies for the preservation and improvement of the environment and natural resources in the amount of 1,721, eur, of which for: 2.1. organic production in the amount of 928, eur, of which for: eur 2.2. preservation of plant and animal genetic resources in the amount of 793,248.00

19 Agri-environmental measures in place In accordance with the objectives of the Strategy for Agriculture and Rural Development of the Republic of Serbia for the period it was identified in the line with IPA II and IPARD II Programme investments with focus on the following measures: support the competitiveness of the agri-food sector, alignment with EU veterinary, phytosanitary, food safety and environmental standards, as well as its restructuring and modernization; contribute to the development of sustainable land management practices by supporting organic farming and other agro-environmental practices; contribute to sustainable rural development by supporting diversification of economic activities and strengthening the LEADER approach; support the efficient Programme implementation, monitoring, evaluation and publicity under the Technical Assistance measure.

20 Agri-environmental measures in place Ministry launched first advertisement for IPARD II, Measure 1 - Investments in the physical property of agricultural holdings, on 25. December and 04. January The Ministry of Agriculture, Forestry and Water Management through IPARD II will support the following measures: - Measure 1 - Investments in the physical property of agricultural holdings; - Measure 3 - Investments in physical assets relating to processing and marketing of agricultural products and fishery products; Objective of IPARD II, Measure 1, is to support investments in technical improvements and investments in new machinery and technologies can increase the productivity and competitiveness of agricultural production. In addition, the farms should to be harmonized with a set of national requirements and as well as EU standards for the protection of the environment and animal welfare. Objective of IPARD II, Measure 3, is to support investments in processing and marketing of agricultural products and fishery products. This measure should to increase the overall performance of the milk, dairy, meat, fruit and vegetable sector, as well as products of these Sectors.

21 Agri-environmental measures in place Connection of IPARD and national measures: - National measures under the new NPRD ( ) will support small holdings and farms to up-grade to a more competitive agriculture production and to diversify to non-agriculture activities. - IPARD II programme will mainly support viable agricultural holding and private recipients (farmers, small and medium enterprises (SME) from agro-food sectors etc.). Farms/households above the IPARD II limits will be eligible only for investment in manure management or for farm investment in energy production from renewable sources. Large companies are not considered for support neither from the national budget nor from the IPARD II Programme.

22 Agri-environmental indicators MAFWM, Ministry of Environmental Protection, Statistical Office of the Republic of Serbia, Institute for Nature Protection and Environmental Protection Agency. Sector for rural development of the MAFWM monitors result/output and impact indicators for every measure being designed and implemented both under National program of rural development or IPARD. Sector for rural development is also entitled to monitor measures of local rural development programmes implemented in the municipalities and Autonomous province of Vojvodina Animal genetic diversity of autochthonous breeds of domestic animals is monitored by the MAFWM.

23 Agri-environmental indicators Rulebook on the National List of Environmental Protection Indicators ("Official Gazette of the RS", No. 37/2011) Areas under organic production; Consumption of mineral fertilizers and plant protection products; Irrigation of agricultural land; Agricultural areas of high natural value. Greenhouse gas emissions Nutrient in surface and groundwater Diversity of species Endangered and protected species Land use change Soil erosion Soil organic carbon content Water exploitation index (WEI) Areas of degradated lands Final energy consumption by sector Figure 1. Trend and average of NO3 concentration in the groundwater monitoring sites of the Republic of Serbia ( ) Figure 2. Trend of median of NO3 concentration in the groundwater of the Republic of Serbia ( ) Figure 3. Frequency distribution of NO3 in groundwater monitoring sites of Serbia ( )

24 Agri-environmental indicators Domain Responses Driving forces Subdomain Public policy Nr Title 1 2 Technolog y and skills 3 Market signals and 4 attitudes Agri-environmental commitments Agricultural areas under Natura 2000 (Archived) Agri-environmental indicator - farmers training and environmental farm advisory services (Archived) Area under organic farming (see Organic farming statistics) Available Frequency Spatial reference/ Responsible How to institutions access the data resolution NO Yes/nation al methodolo gy Yes/nation al methodolo gy Yearly Yearly National scale National scale Yes Yearly National scale INC, SEPA SEPA SORS MAFWM SORS MAFWM, SEPA, SORS 5 Mineral fertilizer NO consumption Input use Consumption of NO pesticides Yes Yearly National SORS SORS, 7 Irrigation scale SEPA 8 Energy use Yes Yearly National MME SEPA scale 9 Land use change Yes 6 years National SEPA SEPA (Archived) period scale Yes Yearly National SORS SORS Land use 10.1 Cropping patterns scale/region al Yes Yearly National SORS SORS 10.2 Livestock patterns scale/region al Yes Yearly National SORS SORS 11.1 Soil cover scale/region al Farm 11.2 Tillage practices NO manageme nt Yes/nation Periodically National SORS SORS al scale 11.3 Manure storage methodolo gy Trends Pollution Resource depletion Benefits 12 Intensification/extensificati NO on 13 Specialisation NO Risk of land abandonment Yes Yearly National SORS, SORS, (Archived) scale MAFWM MAFWM 15 Gross nitrogen balance NO (Archived) 16 Yes/national Yearly National MAFWM MAFWM, Risk of pollution by methodolog scale phosphorus SEPA y 17 Pesticide risk NO Ammonia emissions Yes Yearly National SEPA SEPA scale Agri-environmental Yes Yearly National SEPA SEPA 19 indicator - greenhouse gas scale emissions (see Climate change - driving forces) 20 Water abstraction Yes Yearly National SORS SORS, (Archived) scale SEPA 21 Soil erosion 22 Genetic diversity Biodiversity and habitats 25 High Nature Value farmland Renewable energy production (Archived) Agri-environmental indicator - population trends of farmland birds (see Biodiversity statistics) 26 Soil quality (Archived) Natural Water quality - Nitrate resources 27.1 pollution Water quality - Pesticide 27.2 pollution (Archived) Landscape - state and Landscape 28 diversity (Archived) Yes/national methodolog y Yes/national methodolog y Periodically National, no digital map Periodically National scale Yes (preliminary Periodically National, digital map map) Yes Yearly National scale Yes/national methodolog y Yes/national methodolog y MAFWM, MEP MAFWM, INC SEPA, INC MAFWM MME MAFWM, SEPA MAFWM, SEPA, INC SEPA MME, SEPA 10 years National SEPA, INC SEPA, INC, NGO Yearly National scale MAFWM MAFWM, SEPA Yes Yearly National scale SEPA SEPA Yes Yearly National SEPA SEPA scale NO

25 Agri-environmental indicators Serbian Environmental Protection Agency has published set of indicators for monitoring the integration of environmental concerns into the common agricultural policy; 19 indicators: Mineral fertiliser consumption, Irrigation, Energy use, Land use change, Land cover, Dominant livestock types, Greenhouse gas emissions, Pesticide risk, Agrobiodiversity, Hight natural value farmland, Land cover change, Soil ferility, Water quality - Nitrate pollution, Soil organic carbon, Population trends of farmland birds, Water consuption in agriculture, Areas under organic farming, Agricultural land under protected areas, Farmers training, Agri-environmental commitments

26 Agri-environmental indicators Irrigation ha GHG Emissions

27 Agri-environmental indicators ha Areas under organic agriculture Indicative map of distribution of HNV farmland Education of farmers

28 Conclusions Common policies in the area of environmental protection and agriculture in the Republic of Serbia are mainly related to the protection of water and land. Competencies are shared and there is a lack of a common policy that would integrate problems and challenges, and which would have an ecosystem approach. There is a lack of data, insufficiently defined competencies and exchange of data between individual bodies and organizations. Generally there is a low level of environmental awareness of farmers. Another big challenge and issue is LPIS system (Land Parcel Identification System) for all agricultural plots as major part of agri-environmental payments. HNVF area in Serbia might be lower as was expected. The reason is that the large geographical units of Serbia have not been searched so far and unfortunately data for these regions are missing. During past years Serbia implemented several Projects (DREPR, ENVAP 2, IPPC farms and DSIP) and has already started with process of implementation the Nitrates Directive requirements and good agricultural practices.

29 Conclusions Manure management based on data of agriculture census 2012 show that 95% of farms keep manure in heap on open space without any protection against leakage to surface waters or groundwater. Data of the Agricultural Census 2012 show that mineral fertilizers were used on 67% of agricultural land, manure from livestock farms - 12% and 21% of agricultural land was receiving no fertilization. Through Agricultural Advisory Extension Services farmers (crop, vegetable and fruit production) can get assistance and support in controlling fertility of soil and recommendation for fertilizing. A lot of farms ("hot spots") discharged illegally wastewater into rivers, channels (water bodies). Subsidies (IPARD and NPRD) represent good mechanism for support implementation the ND and good agricultural practices, involved principles of EU Common Agricultural Policy (CAP), environment protection rural development measures for farmers. The biggest challenges for farmers during implementation ND will be to fulfil the conditions for manure storage capacity for 6 months period and mechanization for spreading manure on fields.

30 Recommendations The next step towards applying the HNVF concept in Serbia involves developing and applying indicators to identify the distribution of HNVF and digitalization of all HNVF in LPIS system. It is necessary to prevent the further loss of high nature value grasslands and associated species through abandonment, conversion to arable land and other crops, or overgrazing. It is necessary to support farmers to plan and implement an appropriate programme of activities for significantly reducing the risk of soil erosion by water and wind. It is necessary to support effective nutrient management including the storage and application of livestock manures, as well as manure from slaughterhouses and processing industries. It is necessary to prevent further erosion of genetic resources by increasing the numbers of breeding animals of specified endangered autochthonous breeds which are in danger of further decline in numbers or in danger of extinction. It is necessary to increase the area under organic production and the number of farms managed according to the standards prescribed by the Organic Farming Low.

31 Recommendations - Education and training of farmers should be improved on: fertilizers land application, rate and uniformity of spreading of mineral fertlizers and livestock manure, with aim to prevent nutrient losses into surface and ground water. - Field book has already obligatory by law for rent state land, but it would be recommended to be obligatory for all farmers. - Agricultural strategy should encourage farmers to use organic manure instead of mineral fertilizers. Organic manure has a lot of advantages, improving the mechanical conditions of soil, increasing level of soil organic matter and increasing crop yields per ha. - Subsides for mineral fertilizers should to be decrease from the perspective of years. On this item close cooperation it is foreseen between Sector for Rural Development, Agriculture Land Directorate and Directorate for Agrarian Payments. - Promote the following measures on farms: periods when land application of fertilizer is inappropriate; land application of fertilizer to steeply sloping ground; land application of fertilizer to water-saturated, flooded, frozen or snow-covered ground; conditions for land application near watercourses.

32 Thank you! 15 MAY 2018, PODGORICA

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