The Journal "Agriculture and Forestry"
Časopis "Poljoprivreda i šumarstvo"
- Since 1955 -
Year 2018, Volume 64 Issue 4 (15.12.2018)
| Year : | 2018 |
| Volume : | 64 |
| Issue : | 4 (15.12.2018) |
| Authors : | Merima MAKAŠ, Sabahudin BAJRAMOVIĆ, Emil ERJAVEC, Miro REDNAK |
| Title : | ASSESSMENT OF OVERALL SUPPORT TO AGRICULTURE IN BOSNIA AND HERZEGOVINA |
| Abstract : | The previous analysis of support to agriculture in Bosnia and Herzegovina (BiH) implied only budgetary transfers without taking account of the support originating from market-price policy measures. The purpose of this paper was to provide, for the first time, an estimate of the total support to the agricultural sector in BiH as well as the level of protection of producers through the price of agricultural products. This estimate was done using relative support indicators (Ag incentives, Erjavec, OECD), Total transfers to producers (TTP), Nominal rate of protection (NRP) and Nominal rate of assistance (NRA). The computation of these indicators for Bosnia and Herzegovina was done using the original method (Erjavec et all, 2017) suitable for use in countries with underdeveloped agricultural statistics. Percental TTP represents the share of total budget and market-price support to agriculture in the total value of agricultural production, while NRP and NRA indicators show the level of protection of producers through domestic prices of agricultural products. The NRP is defined as the percentage ratio between domestic market price and the reference one, while the NRA represents the difference between gross revenue of agricultural producers calculated based on domestic prices and gross revenue calculated based on reference prices. In this paper, EU reference prices were used for comparison with BiH domestic prices. The results of the research have shown that there is a difference between BiH and EU reference prices indicating the significant protection of BiH agricultural producers which according to the NRP averages 9 %. On the other hand, the comparison of agricultural producers' revenues calculated based on BiH prices and revenues calculated based on EU reference prices shows a significantly lower total support – by approximately 4%. Finally, looking at the share of total transfers within the value of production (TTP), it can be seen that this indicator has almost the same trend as %NRA, which shows a more significant impact of market price transfer in comparison budget support. |
| For citation : | Makaš, M., Bajramović, S., Erjavec, E., Rednak, M. (2018): Assessment of overall support to agriculture in Bosnia and Herzegovina. Agriculture and Forestry, 64 (4): 165-172. DOI:10.17707/AgricultForest.64.4.18 |
| Keywords : | support, indicator, Bosnia and Herzegovina, reference price, domestic price |
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