Reform of the CAP 2014-2020 and comparison with instruments of agricultural policy in Serbia

The Republic of Serbia is in the process of joining the EU, which implies harmonization of Serbia's agricultural policy with Common Agricultural Policy (CAP) measures and mechanisms that are constantly in the process of reforming. The aim of the paper is to present the CAP reform solutions for the 2014-2020 programming period, as well as their comparison with the instruments of agricultural policy in Serbia. The analysis is primarily focused on direct payments due to their significance, in the total EU and the CAP budget, and importance in overall agricultural support in Serbia. Comparison of the instruments of CAP with the instruments of agricultural policy of Serbia, within direct payments, indicates significant differences. Namely, agricultural policy of Serbia is characterised by certain forms of direct incentives, which are fully eliminated in the CAP (payments based on output, input subsidies, etc.).