Serbia’s Ministry of Agriculture has launched a public consultation on the country’s first dedicated law regulating agricultural land consolidation, with comments open until 30 July.
The proposed legislation aims to address the fragmented structure of Serbian farms, where the average agricultural holding is divided into approximately six separate parcels. The government expects consolidation procedures to improve land use efficiency by reducing operational costs and enabling more effective agricultural production.
Draft Rules Set Conditions for Land Consolidation
Fragmented land ownership increases fuel and labour expenses, reduces the efficiency of agricultural machinery use and can leave smaller or difficult-to-access plots unused. The proposed consolidation framework would allow agricultural holdings to be reorganised without requiring an immediate increase in the total cultivated area.
Under the draft law, a standard consolidation procedure would require notarised approval from owners representing at least 51% of the land area within the proposed consolidation zone. Projects involving related infrastructure investments, including irrigation systems, drainage networks, local roads and other facilities, would additionally require a feasibility study.
Land Valuation System Defines Replacement Parcels
The draft legislation establishes that land valuation would consider multiple factors, including productive capacity, crop yields, soil analysis, access to irrigation and drainage, terrain characteristics and estimated market value. Following consolidation, the value of land assigned to an owner would be allowed to differ by no more than 10% from the value of the property contributed to the process. The difference in land area allocated after consolidation would be limited to 20% compared with the area originally contributed.
Implementation Capacity Remains Key Challenge
The proposed reform targets a structural productivity issue in Serbian agriculture, but its impact will depend on how quickly procedures can be completed. Existing land consolidation processes can continue for years, during which construction activities and permanent planting may be restricted. A more efficient statutory process could support agricultural investment, while lengthy procedures could delay property decisions without creating economically functional land structures.
The requirement for majority owner approval provides protection against fully imposed consolidation schemes, but disputes may still emerge over valuation methods, access arrangements and the location of replacement parcels. The effectiveness of the new framework will depend on municipal administrative capacity, geodetic accuracy and the handling of appeals in determining whether consolidation reduces transaction costs or creates another layer of administrative procedures.
