UNOPS has supported the alignment of the country’s agricultural payment system with the EU’s Common Agricultural Policy (CAP), as part of requirements under Chapter 11 - Agriculture and rural development. The EU direct payment scheme plays a vital role in supporting farmers and breeders and ensuring a high-quality sustainable food supply for the EU. Assessing the current coupled payment system in Montenegro and proposing a transition to EU direct payments ensures compliance with CAP regulations in support of sustainable food production, environmental management and balanced territorial development. This work contributes to fulfilling key accession benchmarks, such as establishing the Integrated Administration and Control System (IACS) and a Paying Agency, which are necessary for managing EU farm support and rural development programs.

The goal of the assignment was to support the Ministry of Forestry, Agriculture and Water Management in updating Montenegro’s payment schemes to align with EU objectives. This involved evaluating which sectors should remain in coupled payments and which sectors should be phased out of the current system by defining new payment schemes.

The UNOPS expert has provided a series of workshops and presentations to facilitate the understanding of EU direct payment modalities to the Ministry of Agriculture, Forestry and Water Management. To do this, the UNOPS advisor prepared a detailed analytical document, reviewing EU regulations related to CAP strategic plans and providing a proposal for aligning Montenegro’s direct payments with EU standards through 10 concrete steps. This proposal has argued on the need to move from supporting the production and quantity to supporting the area of agricultural land and the livestock unit, by outlining potential scenarios for decoupled and coupled payment systems. It has, further, revealed that policy should be more focused on “active farmers” and aiming to the development of the agricultural and rural sector, rather than seen as social support to all farmers and inhabitants of rural areas. It has been discussed with and approved by all related stakeholders.

Finally, under the K4R programme, three missions were organised to Podgorica, engaging in consultations and introductory meetings with stakeholders about the implementation of direct payments in EU Member States. During these missions, the K4R programme expert presented the necessary actions for Montenegro to introduce direct payments under the EU legal framework.

The work of the K4R advisor has helped Montenegro meet critical benchmarks, such as establishing the Integrated Administration and Control System (IACS) and a Paying Agency, which are essential for managing EU support to agriculture and rural development programs.

The transition to EU-compliant direct payment schemes supports sustainable food production, environmental management and balanced territorial development. It fosters long-term food security, encourages sustainable farming practices and strengthens rural development, contributing to increased productivity and food availability. Increased capacity of the Ministry of Forestry, Agriculture and Water Management in regard to EU-compliant payment schemes will facilitate Montenegro’s harmonization of its agricultural policies with EU standards and foster long-term sustainable agricultural development.

“The introduction of EU direct payments in Montenegro will contribute to improving the standards of living of farmers and will reduce the abandonment of rural areas. Furthermore, the farmers, with respect to foreseen conditionality, will contribute to ensure a sustainable agriculture and reduce the environmental and climate impact of agricultural practices.” – UNOPS Partnerships Advisor

This assignment contributes to SDG 2: Zero Hunger as the future implementation of the EU direct payment schemes in support of farmers and breeders will contribute to sustainable food production and environmental management. It ensures that agriculture in Montenegro is supported in a way that fosters long-term food security, encourages sustainable farming practices and strengthens rural development, contributing to increased productivity and food availability.