AGRICULTURAL SUBSIDIES IN REPUBLIC OF MACEDONIA AND THEIR IMPACT ON SECTOR DEVELOPMENT

Abstract

Agriculture is an integral and important economic activity in every na-tional economy. In the Republic of Macedonia, it has great importance for its economy; it has constant contribution of 10% in the national GDP, includes 19% of employed population and share of 9% from the total foreign currency income from exports of goods. Despite the problems and crises that Macedonian agriculture went through the transition period, it proves to be a vital and capable sector. Re-in-troduction of high-value subsidies since 2010, on the amount over 100 million euros have contributed towards confirmation of the role of the sector. The paper analyzes the dynamics of subsidies, in correlation with the change of land struc-ture and the volume of agricultural production in the Republic of Macedonia. It concludes with discussion of possible actions that will enhance development of Macedonian agriculture. The analysis is based on official data obtained from the State Statistical Office, the annual reports on agriculture and rural develop-ment prepared by the Ministry of Agriculture, Forestry and Water Management and data from the Agency for Financial Support of Agriculture and Rural De-velopment