How do farmers respond to rural development policy challenges? Evidence from Macedonia, Serbia and Bosnia and Herzegovina

Abstract

Rural development policy reforms and necessary institutional adjustments are of particular importance in overcoming the transitional challenges for the Western Balkan countries, whose economies are highly dependent on agriculture. The complex rural development context in these countries triggers the need for better understanding and explaining of the factors influencing the use of rural development policy funds. The research aim is to identify how the behavioural determinants and some socio-economic characteristics influence farmers' intention to apply for rural development support (RDS). The analytical framework is based on the theory of planned behaviour and structural equation modelling by using farm survey data collected in Macedonia, Serbia and Bosnia and Herzegovina in 2014. The results suggest that the success of RDS depends on farmers' underlying psychological constructs. The intention to use RDS funds is stronger with farmers with positive attitudes (in all three countries), support from the social environment (in Serbia and Bosnia and Herzegovina) and higher perceived behavioural control (in Bosnia and Herzegovina and Macedonia). Prior experience with applying for RDS funds has positive effects on forming farmers' intention to apply for RDS, while the influence of age, education and perceived farm profitability on the behavioural determinants is less pronounced. Investigating the farmer's behaviour in these Western Balkan countries provides novel insights that could be used for related policy strategies.