Just before the New Year’s, Serbian Government adopted the Regulation on the Conditions, Manner and Procedure for Exercising the Priority Rights to Lease, and the criteria for determining the lease fees.
Those legal entities that are registered and have an active status in the Registry of Agricultural Holdings, and submit a plan for investing in agriculture and food processing industry with a view of launching a new business activity, expanding the existing one and diversifying the existing production programme with new products will be given priority in leasing state-owned land to the period of 30 years.
The general criteria for assessing the quality of investment plans are the following:
- the investment money will have to be spent on acquiring new fixed assets, and this is not limited only to crop growing;
- the investment should be at least 3,000 EUR per hectare of land, out of which at least 500 EUR per hectare should be invested in processing capacities;
- the total investment, over the three year period starting with the day when the investment has been made, should be at least 500,000 EUR;
- in the first year, at least 30% of the amount should be invested with the exception of the investments in those municipalities that dispose of less than 1,000 hectares of agricultural land, and in which the total investment amount could be less than 500,000 EUR.
The Law on Agricultural Land also states that only up to 30% of the state-owned agricultural land in a particular municipality can be leased in this way.
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