The Montenegrin government plans to establish an Agency for Payments in Agriculture, Rural Development and Fisheries by 2028, with an estimated cost of around 26.13 million EUR. This agency will manage and oversee funds allocated to agriculture, fisheries, and rural development from both EU funds and the national budget.
Its responsibilities will include subsidy payments to farmers, verification of claims’ compliance with regulations, and financial record management. This initiative is part of the implementation plan recently approved by the government.
The agency must be operational before Montenegro joins the EU, as failure to do so could result in the country and around 16,000 farmers losing access to EU funds. The agency will also implement and control the IACS system, which governs agricultural and rural development policy measures.
Funding will come from donor funds, World Bank loans, and national budget allocations over the next three years. Approximately 14 million EUR is earmarked for salaries and office/information technology equipment, 4 million EUR for building costs (via loans), and the remaining funds for software, databases, consultancy, vehicles, and operational costs.
The new agency will take over functions and staff (currently 94 employees) from the Ministry of Agriculture’s Directorate for Payments.
By establishing this agency and fully aligning the IACS system with EU regulations, Montenegro aims to temporarily close Chapter 11 – Agriculture and Rural Development – in EU accession negotiations.
