Policy objectives and measures of support to less favoured areas have undergone significant changes during the last reforms of the CAP. Regardless of changes in policy objectives and methods of its implementation, the LFA support remains one of the most important implementation mechanisms of rural development support. This paper aims to overview key issues and challenges of agricultural policy in Serbia related to less favoured areas and deprivileged regions, from the perspective of policy framework, budgetary expenditures and implementation mechanisms. Research indicates that Serbian agricultural policy got stuck in productivism ideologies, with insufficient focus on viability of mountain farming and capacity of LFA to cope with the transitional challenges.


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