Serbia has prepared draft legislation aimed at modernising the country’s land consolidation framework, with the objective of accelerating the reorganisation of fragmented agricultural holdings and supporting investment across the farming sector.
The proposed Land Consolidation Law was presented during a government round table and is intended to replace procedures that authorities consider overly complex and time-consuming. The draft introduces clearer institutional responsibilities, defines implementation stages and deadlines, and establishes updated rules for land valuation and redistribution.
New Framework for Land Redistribution
Land fragmentation remains a longstanding structural challenge for Serbian agriculture, with many farmers owning multiple small plots located in different areas. This ownership pattern increases machinery travel between fields, raises irrigation, drainage and road-access costs, and limits the efficient use of modern agricultural equipment. It also complicates land leasing arrangements and reduces the effectiveness of agricultural land as collateral.
Under the proposed framework, landowners would receive fewer, better-shaped parcels with equivalent value, while access to redistributed land would be guaranteed. The valuation process is expected to play a central role in implementation, as parcels of identical size may differ significantly in soil quality, drainage, location, road access and development potential. These differences can generate disputes despite maintaining equivalent land area.
Digitalisation and Institutional Coordination
The draft legislation seeks to strengthen legal certainty by introducing revised valuation and redistribution procedures together with a new Land Consolidation Information System. The digital platform is intended to facilitate data exchange between institutions and allow participants to monitor consolidation procedures electronically.
Its effectiveness will depend on the accuracy of cadastral records and the resolution of ownership disputes, inheritance proceedings and unregistered structures before land redistribution begins. Successful implementation will also require close coordination among surveyors, agricultural experts, cadastral authorities, municipal administrations and legal specialists. Meeting statutory deadlines will depend on whether local authorities have sufficient staffing and financial resources.
Broader Infrastructure and Investment Implications
The proposed reform extends beyond agricultural production by supporting future infrastructure development. Larger, consolidated land parcels could simplify the construction of irrigation systems, local roads, flood-protection infrastructure and other public works. Consolidation may also reduce the number of separate negotiations required for electricity transmission lines, renewable energy projects and industrial developments.
For financial institutions, larger parcels with updated ownership records could provide more straightforward collateral assessments. Commercial farming operations could also benefit through lower fuel consumption, reduced labour costs and more efficient machinery utilisation without increasing total land ownership.
The draft legislation also recognises the importance of maintaining transparent valuation methodologies and effective appeal procedures to safeguard landowners’ rights, particularly where parcels have strategic or personal significance. The proposed law has not yet entered into force and does not currently establish new legal rights or binding implementation deadlines. The reform forms part of Serbia’s Reform Agenda under the European Union’s Western Balkans Growth Plan, linking its implementation to access to reform-based European financing.
