Agency for Payment Unlocks Millions of Euros of the European Funds
Establishing the Agency for payments in agriculture, rural development and fishery is not only a formal obligation on our path to EU membership, but the key step in the building of reliable institutions that work in the interest of Montenegrin farmers, fishermen and entrepreneurs in food industry, says the Ministry of Agriculture, Forestry and Water Management for Eurokaz. Montenegrin farmers expect the Agency to improve their status, and to provide support and assistance. Experience from the neighbouring Croatia is that the establishment of the Agency for payments brought a number of concrete and measurable benefits.
Decision of the Government of 1st January 2026 provides for establishment of the Agency for payments in agriculture, rural development and fishery in Montenegro. Establishment of this Agency is one of the key obligations of every EU Member State and the key precondition for using the funds from the joint European funds, says the Ministry of Agriculture, Forestry and Water Management. They explain that this institution will be in charge of managing payments from the European Agricultural Guarantee Fund (EAGF), European Agricultural Fund for Rural Development (EAFRD) and European Maritime, Fisheries and Aquaculture Fund (EMFAF), as well as from national sources within the state aid measures.
“Agency for Payments is a strategic investment into the institutional capacities of the state and access to millions of euros of European funds that are available for the Member States. Its establishment ensures that Montenegro, from the day of accession to the EU, can independently manage and implement the Common Agricultural Policy measures. According to the assessments from the Implementation Plan, the total investment for establishment of the Agency and the supporting Integrated Administrative and Control system (IACS) amounts to 26 million euros for the period 2025 – 2028, as it is planned that at that time the Agency will be fully accredited”, explains the agricultural sector of the Ministry.
Farmer from the Municipality of Zeta, Luka Krstović, thinks that, in addition to the Credit-Guarantee Fund, establishment of the Agency for payments in agriculture, rural development and fishery is the key component for progress of Montenegrin agriculture and for the assistance that farmers need.
“We, as farmers, will be very soon faced with even stronger competition than the one we have today. It seems to me that today we are not competitive when compared with our direct neighbours and let alone with the broader market competition. That is why, in my opinion, for the future of Montenegrin agriculture, it is very important that we have a easier and, of course, legally allowed and regulated, access to funds that will ensure we can finance the production cycle, purchase of machinery and technological development in this field. I think that, therefore, the establishment of this Agency should improve the status of farmers in Montenegro”, said Krstović.
Establishing the Agency for Payments in agriculture, rural development and fishery is not only a formal obligation on our path to EU membership, but the key step in the building of reliable institutions that work in the interest of Montenegrin farmers, fishermen and entrepreneurs in food industry, says the Ministry of Agriculture, Forestry and Water Management for Eurokaz.
“And it is not only an administrative alignment either, it is a concrete investment that will ensure Montenegro a direct access to significantly higher amounts from the European funds, several times higher than the amounts available through the current pre-accession programmes like IPARD. Establishing the Agency, Montenegro is creating the preconditions for a sustainable, long-term and financially feasible system of support to its agriculture and rural areas”, claims the Ministry.
On the path of building institutions and meeting European obligations, Montenegro has the assistance and support of the neighbouring Croatia. The Croatian Agency for Payments in Agriculture, Fishery and Rural Development says for Eurokaz that, since 2011, they have been continuously cooperating with the colleagues from the Ministry of Agriculture, Forestry and Water Management in Podgorica.
“A number of bilateral and study visits have been organized. They focused on the implementation of the IPARD programme and establishing of the ARKOD/LPIS system. This exchange of experience proved to be exceptionally useful in the acceleration of the process of alignment with European standards”, says the Croatian Agency for Payments in Agriculture, Fishery and Rural Development.
They say that the Croatian experience clearly shows that the establishment of the Agency for Payments brought a number of concrete and measurable benefits.
“First of all, an effective and secure absorption of the EU funds for agriculture, rural development and fishery has been ensured, with significantly higher level of transparency and control of public funds. Farmers and fishermen got clearer, more predictable and administratively better regulated procedures for exercising their rights to support”, says this institution.
Montenegrin farmers hope for similar results. Luka Krstović expects that establishment of the Agency for payments will ensure that the understands, supports and assists farmers in a better way.
“Without adequate assistance of the system, we will not be able to use the capacities of our agriculture. It would be good that in the period to come we make better results as partners and through better understanding of the entire process”, said Krstović.
Asked what the budget and organizational implications of the establishment of the Agency would be, the Ministry of Agriculture, Forestry and Water Management responded that the money would be secured from donors’ funds, World Bank loans and partly from national funds that would be planned in the budgets for 2026, 2027and 2028. Relevant analyses and documents show that the Agency for Payments, to be fully operational and functional, should employ 264 people by 2028, out of which 48 in 2026, 40 in 2027 and 26 in 2028. As the Ministry explains, the relevant Directorate that has been transformed into the Agency for Payments in Agriculture, Rural Development and Fishery already has 94 employees. The number of employees will increase after the required legal amendments are adopted. They concluded that the required labour undoubtedly existed in the national market.
By: Bojana Milićević, RTCG Journalist