Opportunities for Financing in Agriculture - The Example of the Republic of North Macedonia

Abstract

To achieve sustained economic development of RNM should include agricultural development while reducing the differences in development of certain sectors of the economy. Since a long time pursued the search for a universal model of agriculture financing it is concluded that the creation of such a model is impossible. So, it takes a combination of several different models of funding that do not involve only funds from the agricultural budget, but also from foreign sources. Since there is no universal model provides an overview of agriculture financing from several sources such as loans from commercial banks, National and Regional funds, leasing, securities, concessions, public-private partnerships, joint ventures, donations and international funds. The above-mentioned ways of financing can be similar to each other but also different because each of them has its own characteristics, advantages and disadvantages. It is necessary to harmonize all potential sources and make them available to farmers because each of them knows that the financing model suits them and whether they can borrow. Although RNM has its own policy for the development of agriculture, it obviously varies by periods of observation. Thus, the aim of the work is to show the importance of combining and harmonizing the different models of financing of agriculture of RNM as well as their implementation.

Keywords: Agriculture, Financing, Agriculture budget, Funds, IPARD

DOI: 10.7176/EJBM/16-1-04

Publication date: January 31^st 2024