Membership in the Croatian Agricultural Chamber (HPK) will be mandatory for farmers receiving support, and the membership fee cannot exceed six kuna per month, according to the proposal from the new HPK law that the Government submitted to parliamentary procedure on Thursday.
The proposal of the new law regulates the status, organization, tasks, membership, and financing of the HPK, aiming to strengthen the influence and market position of farmers and family farms (OPG).
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The new law would establish mandatory membership in the HPK for farmers who are support recipients, which they receive based on at least one basis from the state budget, the European Agricultural Guarantee Fund, or the European Agricultural Fund.
In addition to the membership fee, the law provides that the Chamber can also be financed from funds generated by its own activities, state budget funds, and extraordinary income (gifts, donations, sponsorships, etc.).
Maximum 72 Kuna Annually
The maximum membership fee must not exceed six kuna per month, which means it can amount to a maximum of 72 kuna annually. Based on the projected number of potential members, it is estimated that the annual income from membership fees will amount to 7.5 million kuna.
The HPK was established in 2009, and membership was initially mandatory for all agricultural holdings, individuals, and legal entities registered in the Register of Farmers. However, amendments to the HPK Law in 2012 abolished mandatory membership and introduced voluntary membership.
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“This has resulted in significant membership dilution. Currently, the Chamber has about a thousand members out of more than 164 thousand registered farmers, which does not represent a credible representation of the umbrella institution of farmers, which is also a member of the EU umbrella association of farmers, Copa & Cogeca. The goal of the law is to encompass as many farmers as possible in the HPK through mandatory membership so that it has reliable credibility in representing farmers’ interests in the creation of public policies related to agriculture and rural development, both nationally and internationally,” emphasized Tugomir Majdak, State Secretary in the Ministry of Agriculture, at the Government session.
Register of Farmers
In addition to the membership fee, the law provides that the Chamber can also be financed from funds generated by its own activities, state budget funds, and extraordinary income (gifts, donations, sponsorships, etc.).
In the state budget for 2018, financing for the Chamber is planned in the amount of 300,000 kuna, to ensure its uninterrupted operation until the proposal of the law comes into force, after which the Chamber will be financed exclusively from its own funds.
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Otherwise, as of December 31, 2017, a total of 164,458 farmers were registered in the Register of Farmers maintained by the Agency for Payments in Agriculture, Fisheries, and Rural Development, of which 2,554 commercial companies, 2,174 crafts, 347 cooperatives, 192 other forms of legal entities, and 159,191 family farms were registered.
