The EU recognizes only associations of agricultural producers — a Local Action Group is the first step

Our agricultural producers generally know what they can get from the state and how to get it. They are familiar with plans and projects for rural development and use the funds allocated for that purpose. However, if they want to improve their farms and match their European counterparts in efficiency and yields, they will have to make an effort to master the foreign terminology and procedures required by the EU. They may not have to speak English, but to start with, they will certainly have to learn some “codes,” such as LAG—Local Action Group.

The Local Action Group, however, is only the beginning, the first step on a path leading to the rich European funds that hold resources intended for the economic and rural development of countries seeking to join the EU. IPA funds (Instrument for Pre-Accession Assistance) are intended for overall economic development, while IPARD funds (rural development) are for rural development. But our agricultural producers will not be able to access the money from these “mutual assistance” funds unless they join together and form their own LAG. Each in their own village, their own area.

A LAG is, in fact, an association of farmers formed according to European standards. This means that at least 51 percent of its members come from the private sector: independent agricultural producers, private companies and cooperatives. The rest of the LAG is made up of the public sector, for example, local government. The EU recognizes only such associations, and only they can apply for funding from pre-accession funds. We must adopt this terminology and adapt to the procedures in good time, since IPARD funding will be available as early as 2016.

From 2007 to 2013, candidate countries for EU membership had 11, 5 billion euros available through IPA funds, while Serbia will be able to draw 175 million euros from IPARD funds (rural development) by the end of 2020.

Only LAGs that currently operate in accordance with the Law on Associations (of Citizens) will be eligible to apply for these funds. As part of the process of aligning domestic legislation with EU standards, our country will also have to adopt a set of laws that more precisely define the grouping of farmers into LAGs.