Finansijske strategije u agrobiznisu / Financial strategies in agribusiness
2011
Bećirović, Suad | Ujkanović, Enis
Money is a production factor which is indispensable for any industry and any commercial project. Therefore, it is very important to know how to receive money. If we cannot receive money under favorable circumstances, we will not be able to implement any projects. The same is also valid for agriculture. Keen competition and bad organization of farms cause small earnings for farmers. When there are, additionally, high financing costs under such circumstances, then the majority of investment projects are judged to fall through. However, such circumstances exist in Serbia at the moment. Average interest rates for short-term loans are 25 percent or even higher, whereas 15-20 percent for medium term loans denominated in Serbian dinars. In order to revive agricultural production, it is necessary to offer favorable alternatives for financing investments in agriculture so farmers are motivated to continue with their business due to adequate earnings.
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