Who is a farmer in Republika Srpska: commercial and non-commercial farms

The Law on Agriculture of Republika Srpska defines who counts as a farmer and how family farms are divided into commercial and non-commercial ones. The category affects the contributions the holder pays and the amount of subsidy the farm can receive. It concerns anyone who has a family farm or plans to register one, including households that offer accommodation or sell their own produce.

Note: the classification rulebook was amended in 2023 (Službeni glasnik RS 8/23), and we could not read the text of that amendment. Check the threshold and coefficients given below with APIF.

In short

• A farmer (poljoprivrednik) is the holder or a member of a family agricultural holding who works in agricultural production (Law on Agriculture, Article 2).
• The holder (nosilac) is the individual farmer entered in the Register of Agricultural Holdings as holder of the farm.
• A farm is classified as commercial or non-commercial by land use, work in agriculture, type of production, sales value and farm income (Article 27 of the Law).
• The contribution base is 30% of the average gross wage in the Republic for the holder of a commercial farm and 20% for the holder of a non-commercial one.
• Only farms entered in the Register can claim subsidies (Article 28), and the annual caps differ by category.

Who it applies to

Individuals who farm together with their household and live in Republika Srpska. Sole traders and legal entities are not family farms. The subsidy rulebook gives them a separate, higher cap.

How a farm is classified

Classification is set by the Rulebook on classifying family agricultural holdings as commercial and non-commercial (Službeni glasnik RS 89/13 and 8/23), which is listed on APIF's register page. The 2013 rulebook and its 2023 amendment are both in force.

A farm is classified when it is entered in the Register or when its data change. The Agency for Intermediary, IT and Financial Services (Agencija za posredničke, informatičke i finansijske usluge, APIF) checks the conditions automatically from the land and livestock data the farm reports. A commercial farm is one that is market-oriented and has reached a minimum total volume of production (Article 3). This status requires at least three production units (Article 4(5)). Volume is the quantity multiplied by the coefficient in Table 1 of the rulebook, for example 1.0 per cow, 0.10 per sheep or goat, 0.06 per bee colony and 0.12 per hectare of natural meadow. The rulebook in force sets no age limit for the holder. The limit of 65 years existed only in the 2010 rulebook (Službeni glasnik RS 100/10), which the 2013 rulebook repealed. We could not confirm what the 2023 amendment changed.

What to do

1. Register the farm at the APIF office for the holder's place of residence and report land and livestock accurately. The category depends on these data. Registration and updates are described in the article on registering a farm in the Register of Agricultural Holdings.
2. A farm with passive status (Article 17 of the Decree on entry in the Register of Agricultural Holdings and the Register of Subsidy Beneficiaries) cannot receive subsidies. Ask APIF how and by when the data must be updated.
3. For 2026 subsidies, the holder of a family farm must have reported the 2025 contribution obligation to the Tax Administration of Republika Srpska, and the anti-hail protection fee for 2025 must be paid (subsidy rulebook, Article 5(1), points 2 and 3). The same conditions apply to 2026 capital investment subsidies (Službeni glasnik RS 29/26, Article 3(1), points 3 and 4). Both are covered in the articles on farmer insurance contributions and on the anti-hail protection fee.

Why the category matters

Contributions. The holder of a commercial farm, if insured as a farmer, pays pension and disability insurance and health insurance contributions on a base of 30% of the average gross wage. The holder of a non-commercial farm pays health insurance on a base of 20% (Law on Contributions, Articles 4, 5 and 12). Pension rights depend on what is paid, so the holder of a non-commercial farm does not build pensionable service on that basis. For rates and amounts, see the article on farmer insurance contributions.

Subsidies. The 2026 subsidy rulebook sets different annual caps per beneficiary (non-commercial farms, commercial farms, sole traders and legal entities). Examples, in that order: premium for dairy cows (muzna grla) up to 30,000, 50,000 and 100,000 KM; milk premium 50,000, 250,000 and 650,000 KM; diesel rebate 50,000, 100,000 and 200,000 KM. A new rulebook sets the caps and conditions each year. The amounts above come from the rulebook published in Službeni glasnik RS 16/2026, 27/2026, 52/2026, 65/2026 and 80/2026.

Some measures depend on status. The self-employment subsidy (Article 42) is open to unemployed graduate agricultural engineers, food technology engineers and doctors of veterinary medicine up to 40 years old who hold a non-commercial farm. The beneficiary must register a commercial farm and keep it registered as commercial for at least three years.

Tax status. The category does not change income tax or VAT. See the articles on income tax and on VAT for small farms.

Where to go

• APIF, the office for the holder's place of residence: apif.net
• The municipal agriculture department (Trebinje, Bileća, Gacko, Ljubinje, Nevesinje, Berkovići) for help with forms.

Laws and sources

• APIF page on the Register of Agricultural Holdings, listing the classification rulebook (Službeni glasnik RS 89/13)
• Rulebook on classifying family agricultural holdings as commercial and non-commercial (Službeni glasnik RS 89/13 and 8/23), Articles 3 to 6 and Table 1: text from Službeni glasnik 89/13 on the APIF site, amendment 8/23 in the official e-register of Službeni glasnik RS
• Law on Agriculture (Službeni glasnik RS 70/06, 20/07, 86/07 and 71/09), Articles 2 and 26 to 29: base text 70/06 and amendments 71/09 on the site of the RS Ministry of Agriculture, Forestry and Water Management
• Law on Contributions (Službeni glasnik RS 114/17, 112/19, 49/21, 119/21, 56/22, 132/22, 112/23, 110/24 and 114/25), Articles 4, 5 and 12: contribution regulations on the site of the Tax Administration of Republika Srpska
• Rulebook on the conditions and procedure for cash subsidies for the development of agriculture and villages (Službeni glasnik RS 16/26, 27/26, 52/26, 65/26 and 80/26), Articles 5, 16, 17, 32 and 42: text from Službeni glasnik 16/26 on the site of the Agency for Agrarian Payments