The Common Agricultural Policy is one of the most important sectors in the EU, both in terms of the number of regulations governing this area and the size of the agricultural budget in the overall budget of the European Union. EU agriculture accounts for almost 40% of the total EU budget. The main objective is to ensure a stable supply of the market for agricultural products at affordable prices, which in turn means adequate income for farmers. The agricultural sector consists of two parts:
- direct payments with market intervention,
- and rural development.
Direct payments imply that, while protecting the environment and human health, food security, respect for animal welfare, keeping the land in good condition, farmers are given incentives regardless of what type of production they are producing and thus have a stable income regardless of market volatility. Market interventions include the withdrawal of products from the market, support for the production of certain products, a quota system, support for farmers in the fruit and vegetable sector. Rural development contributes to strengthening the competitiveness of agriculture and forestry, as well as improving the quality of life of rural areas.
EU projects for farmers in Serbia encourage the use of funds from agriculture and rural development funds, improve product quality, and increase their competitiveness in the EU market with over 500 million consumers. It also strengthens the capacity of the Agency for Agrarian Payments, the body that will be the bridge between Serbian farmers and EU institutions.