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Serbia: implementation of a Crop Receipt system

In recent years in Serbia, FAO and the EBRD contributed to the development and implementation of a new law on Grain Warehouse Receipts (GWRs), which has facilitated post-harvest credit by allowing local grain traders and producers to use grain as collateral. In order to improve access to credit before harvest (with a view to facilitate the acquisition of seeds, fertilizers and other production inputs), FAO and EBRD conducted a feasibility study on the introduction of pre-harvest financing instruments in Serbia following the example of Brazil’s Cédula de Prodotto Rural (CPR). The study demonstrated a strong demand for pre-harvest financing but concluded that the existing legislation did not specifically provide for secured pre-harvest financing instruments.

The current project aims to:

1. support the implementation of this new Law and enable farmers to use future crops as collateral when approaching financiers of agricultural production.

2. providing technical support to the MAEP and the Serbian Business Registry Agency for the estabilshment of a well functioning Register of Agricultural Finincing.

3. Awareness-raising and training activities will be conducted in favour of selected groups of stakeholders (farmers, commercial banks, agribusiness companies and government institutions) to learn about the opportunities and benefits of the system. The first National Conference on Promotion of Pre-Crop Financing took place the 13th of May with great attendance and success.

4. train finance managers and other employees of selected companies involved in pre-harvest financing, transferring knowhow and training techniques to transfer the gained knowledge further.

The Ministry of Agriculture and Enviromental Protection (MAEP) confirmed its interest in supporting the development of a specific law to introduce a secured instrument and asked for the support for that purpose from the two institutions.

As a result, a working group was set up to develop a draft Law on Pre- Corp Financing with the support of FAO and the EBRD technical assistance project, which provided the Working Group with local and international legal advice.

The Law was adopted by the Serbian Government and Parliament (end of 2014) and has been effective since the 1st June 2015.

Project Achievements
2011: FAO and EBRD conducted a feasibility study on the introduction of pre-harvest financing instruments in Serbia
2011: Working Group was established by the Ministry of Agriculture and Enviromental Protection (MAEP)
2012-2013: FAO and EBRD financed the technical assistance project providing international and local legal advice in support to the Working Group
2012-2013: FAO and EBRD supported the public debate with interested parties on the Draft Law on Pre-Crop Financing
2012-2013: Development of the Law on Pre-Crop Financing
November 2014: Adoption of the Law
November-December 2014: FAO and EBRD tendered and contracted an IT company to develop the software for the Register of Agricultural Financing
January-April 2015: FAO and EBRD assisted to develop supporting by-laws needed for the implementation of the Law
January-June 2015: Development of the software
13 May 2015: First National Conference on Promotion of CPR
Law is effective from June 1st 2015
Register of Agricultural Financing being developed and operational on June 1st 2015
September/October 2015: FAO And EBRD provided Financial trainings on all the operational aspects of the CPR to: selected groups of (1) bankers and processors, input suppliers and traders (2) relevant staff of Serbian Business Register Agency and Governmental bodies - representatives of Ministry of Agriculture, Ministry of Finance, Ministry of Economy, Chamber of Commerce, National Bank of Serbia etc
November-December 2015: FAO and EBRD is organizing 15 promotional regional workshops

Project Leader:

Milos Milovanovic; Milos.Milovanovic@fao.org

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