PROGRAM OF GOVERNMENT 2017-2020 Investments for Sustainable Growth Agricultural Development The priority of the Government is to increase the agricultural land and the yield and quality of agricultural products. It will also mean higher revenues for all families dealing with agriculture and animal husbandry. The policy will be directed towards increasing industrial processing facilities that will be export-oriented and create products with higher added value. Important tasks in the field of agriculture: direct agricultural subsidies to profitable and market-oriented agricultural holdings; budget transparency of the National Program for Agriculture and Rural Development; consolidation of agricultural land per farm; and horizontal integration of entities in the agricultural food sector and the formation of cooperatives. The Government will provide annual financial support for agriculture amounting to 160 million EUR. Additional financial incentives will be available to increase agricultural areas and the basic herd. Increased support will go along with increased fairness and transparency, in order the funds to come to the right farmers and herdsman. For this purpose, a system based on aerial imagery will be put in full operation, in order to determine the current state of agricultural land, and reduce the opportunities for abuse. At the same time, the system will be changed to speed up and simplify procedures for granting subsidies and easier access to EU funds for rural development. In line with the reforms envisaged in the tax system, citizens whose main activity is agriculture and are eligible for lump sum taxation, shall be exempt from paying tax. Older agricultural population, with experience of 15 years and over 64 years of age, will be allowed to use retirement benefits. The Government will introduce subsidies for oil for agricultural machinery with mechanism to prevent possible abuses. The Government will set up obligations for payment of purchased agricultural products to be made not later than 90 days after the purchase. The law will introduce bank guarantee obligations for the planned purchase of agricultural products. For that purpose, the Government will mediate negotiations between producers and buyers of agricultural products (wheat, rice, vegetables, fruits, grapes, etc.) to arrange purchase and purchase price no later than 30 days before the start of the purchase. In terms of agricultural land, the Government will undertake the following activities: 39 ∎ review of already granted state agricultural land and categorization of land according to its quality. Size and duration of the concession will be established base on these parameters ∎ regionalization of agriculture based on soil and climatic conditions of the regions planned for crop and livestock production, and development of lists of recommended crop varieties, taking into account traditional production. ∎ enlargement of agricultural land will be done through the exchange of parcels with or without changing their form, until complete change of borders of land plots in view of getting larger land areas with proper form, suitable for agricultural production. ∎ arable land will increase by investing in irrigation systems.