Economics of Agriculture

APPLICATION OF CONTROLLING AND IT SYSTEMS IN BUSINESS OF MEDIUM-SIZED AGRICULTURAL AND OTHER ENTERPRISES ACCORDING TO ASSESSMENT OF TOP MANAGEMENT

Slobodan Popović — 2026-09-30

The aim of the paper was to present the functioning ofcontrolling in the operations of agricultural enterprises.Methodologically, the authors presented in an objective andsystematic manner the importance of applying controllingin making valid management decisions by top managementin the operations of medium-sized agricultural and othermedium-sized enterprises. The clarity of the applicationwas made by comparing the two types of analyzedenterprises. The contribution of the authors of the studyis reflected in the presentation of a strong connectionbetween the management decisions of top managers inboth types of medium-sized enterprises in relation to theanalyzed factors: legality of operations, accuracy, dataprotection, efficiency of application and their overall result.The author’s recommendation is that controlling in theoperations of the analyzed enterprises be continuously usedin order to increase the efficiency and legality of operations.

IMPACT OF CROP DIVERSITY ON FOOD AND NUTRITIONAL OUTCOMES OF FARM HOUSEHOLDS IN OGUN STATE, NIGERIA

Chioma Patricia Adekunle — 2026-09-30

Using cross-sectional data from 386 arable crop farmersin Ogun State, Nigeria, this study examines the effect ofcrop diversity on farm households’ food and nutritionoutcomes. Three nutrition indicators were considered: percapita food consumption expenditure, per capita calorieconsumption, and dietary diversity. Crop diversificationwas measured using the Herfindahl–Hirschman Indexbased on agricultural revenue generated from cropscultivated by households. Ordinary least squaresregression was employed to estimate the effects of cropdiversity on the selected nutrition outcomes. The resultsindicate an average per capita calorie consumption of2,822.34 kcal, exceeding the recommended daily intakeof 2,500 kcal. Households in the Abeokuta and IjebuOde zones demonstrated better nutritional outcomes thanthose in Ikenne. Approximately 63.5% of householdswere moderately diversified, while 30.8% were highlydiversified. Crop diversity significantly improved calorieintake, real food consumption expenditure, and dietarydiversity, highlighting its importance for strengtheninghousehold food and nutrition security.

ASSESSING EU AGRICULTURAL PERFORMANCE TOWARD A CIRCULAR ECONOMY: EVIDENCE FROM CLUSTER ANALYSIS

Tamara Rađenović — 2026-09-30

The purpose of this paper is to evaluate the structuralperformance of European agriculture in the contextof the circular economy transition. The methodologyapplies a two-step cluster analysis to three indicators:AgroBioDiversity Index, Livestock Density Index,and Farms by Economic Size, using Eurostat data. Theresults identify five agricultural models, ranging fromextensive small-scale systems with high biodiversity andweak economic strength, to industrialized structures withlarge farms and strong economic capacity, but greatersustainability risks. Findings show one-size-fits-all policyis ineffective. The recommendations emphasize the needfor differentiated policies that enhance the resilience ofextensive systems, mitigate environmental pressures inindustrial systems, and maintain balance in mixed models.The study provides additional empirical evidence fortailoring circular economy strategies to diverse agriculturalstructures across the European Union, supporting contextspecific approaches to sustainable agriculture.

CONSUMER BEHAVIOR TOWARD ECO-LABELED AGRI-FOOD PRODUCTS: EVIDENCE FROM TÜRKİYE

Sinan ÇAVUŞOĞLU — 2026-09-30

This study investigates consumer behavior toward ecolabeled agri-food products by integrating eco-label trust,perceived support for local producers, perceived pricefairness, and purchase intention into a comprehensivestructural model. Data were collected from 410 adultconsumers in Türkiye through an online survey andanalyzed using Structural Equation Modeling afterconfirming the validity and reliability of the measurementmodel. The findings indicate that both eco-label trust andperceived support for local producers significantly enhanceconsumers’ perceptions of price fairness as well as theirintention to purchase eco-labeled products. Moreover,perceived price fairness emerges as a meaningful directpredictor of purchase intention. Overall, the resultssuggest that consumer decisions regarding sustainableagri-food products are shaped not only by environmentalconsiderations but also by the combined influence oftrust mechanisms, social value orientations, and fairnessevaluations.

SOCIO-ECONOMIC DETERMINANTS AND BARRIERS TO ORGANIC PRODUCT CONSUMPTION IN BOSNIA AND HERZEGOVINA

Stoja Jotanović — 2026-09-30

The aim of the paper was to examine the impact of socioeconomic characteristics on organic product consumerbehavior in Bosnia and Herzegovina. The research wasconducted via a structured online survey on a sampleof 336 respondents. Results indicated a specific trustparadox, where high consumption was not accompaniedby knowledge of the certification system but relied on thesubjective perception of domestic origin. Women wereidentified as primary decision-makers, while income leveldirectly determined purchase frequency. Dominant marketbarriers were high price and unavailability, confirmingthe high price elasticity of demand. It is concluded thatthe observed market is in an early development stageand burdened by information asymmetry, where organicfood retains the character of a premium good. For furthersector development, strengthening the recognition of thenational organic label through consumer education anddeveloping short supply chains to reduce transaction costsis recommended.

PROFITABILITY DETERMINANTS OF AGRICULTURAL ENTERPRISES: EMPIRICAL EVIDENCE FROM RURAL ECONOMIES

Ivana Miklošević — 2026-09-30

This study investigates the profitability determinants ofagricultural firms in rural economies and has focused onfive Eastern European countries for time period spanningfrom 2005–2023. The aim of research is to evaluate the keystructural, economic and technological factors that influenceand effect the performance of agricultural enterprises. Themethodology focuses on panel data analysis by employingfixed effects regression, stationarity analysis, examiningcorrelation analysis and performing diagnostic tests forvalidity. The findings suggest that farm size, agriculturalinvestment, exports and use of fertiliser influence profitabilitypositively and significantly whereas labour employed inagriculture enterprises showcase a negative linkage indicatingefficiency concerns. The results suggest that structuraldevelopment, integration of markets and advancement intechnology are crucial for enhancing agricultural performance.The study concludes that policy makers should promote landconsolidation, investment support, export facilitation toenhance profitability in rural agricultural economies.

THE ROLE OF HUMAN CAPITAL IN SHAPING ATTITUDES AND ADOPTING ORGANIC AGRICULTURE IN KOSOVO AND METOHIJA

Andjelka Tripkovic — 2026-09-30

This paper examines the role of human capital andworkforce characteristics in shaping attitudes andadopting organic agricultural practices in Kosovoand Metohija. The research is based on a quantitativeapproach, using survey data collected from agriculturalproducers and analyzed through multiple linearregression. The results indicate that the level ofknowledge, perception of the importance of humancapital, and workforce characteristics have a statisticallysignificant impact on attitudes toward organicproduction, with the model explaining a substantialportion of the variability. The findings confirm thathuman capital represents a key determinant in theadoption of sustainable agricultural practices. Theresults further suggest that enhancing education, skills,and access to information can positively influencethe development of organic agriculture. Therefore,strengthening training programs and institutionalsupport for producers is recommended.

ADVANCED PLS-SEM APPLICATIONS IN MANAGEMENT RESEARCH: MODERATION, PREDICTION, AND MANAGERIAL INSIGHTS FROM THE RAKIJA CASE

Milan Bubulj — 2026-09-30

Recent methodological developments have expandedpartial least squares structural equation modeling (PLSSEM) beyond parameter estimation toward predictiveand decision-oriented analytics. Building on a previouslyvalidated baseline PLS-SEM model of consumer purchasingbehavior in the rakija market, this study demonstratesthe analytical value of advanced PLS-SEM techniquesusing SmartPLS software. The analysis incorporatesconfirmatory tetrad analysis (CTA-PLS), bootstrappedmediation and moderation analysis, multigroup analysis(MGA), importance–performance map analysis (IPMA),and out-of-sample predictive assessment using PLSpredict.The results reveal conditional effects, segment-specificdifferences, and predictive patterns that remain undetectedin baseline SEM applications. By systematically integratingmultiple advanced procedures within a single empiricalframework, the study illustrates how PLS-SEM canfunction as a comprehensive analytical toolkit for consumerand agribusiness research. The originality of the paper liesin demonstrating how advanced PLS-SEM techniquesenhance interpretative depth, predictive relevance, anddecision-oriented insights in culturally embedded markets.

ECONOMIC FEASIBILITY OF FARM MACHINERY INVESTMENTS: A FARM-LEVEL INVESTMENT ANALYSIS

Dejan Vukosavljević — 2026-09-30

Investments in agricultural machinery represent animportant factor in the modernization and increase in theproductivity of agricultural production. However, highinitial investment costs and relatively slow returns oncapital often limit the investment decisions of small andmedium-sized farms, especially in transitional agrarianeconomies. The paper analyzes investment in agriculturalmachinery of a typical agricultural farm that cultivates 20hectares of agricultural land. The analysis was conductedusing investment analysis methods based on discountedcash flows, including net present value (NPV), internal rateof return (IRR), scenario analysis and sensitivity analysis.The results show that the investment without institutionalsupport is not financially justified, while the inclusionof the subsidy significantly improves the economicindicators of the project. The findings contribute to a betterunderstanding of investment decisions in agribusiness andindicate the importance of institutional incentives for themodernization of agricultural production.

DEVELOPMENT OF SERBIAN AGRICULTURE THROUGH BRICS INTEGRATION: OPPORTUNITIES AND LIMITATIONS

Branko Mihailović — 2026-09-30

This study looks at Serbian agricultural growth fromthe perspective of BRICS integration, analyzingthe advantages and disadvantages of this kind ofinvolvement. With more than 5 million hectares of landused for agriculture and agri-food exports making upmore than 20% of overall exports, Serbia has enormousagricultural potential, but it is still heavily reliant on theEU market. The study examines the extent of Serbia’sagreements on free trade with the BRICS nations, suchas the historic 2023 China-Serbia Free Trade deal and the2021 EAEU deal, and evaluates how these agreementsalter trade flows in important commodities as raspberries,corn, wheat, and cattle. The study generates datacollected from FAOSTAT, the Statistical Office of theRepublic of Serbia, Eurostat, USDA-FAS, and publishedpeer-reviewed articles using desk research technique.Results show that although BRICS markets presentreal opportunities for diversification, major obstaclesstill exist, such as phytosanitary barriers, regulatorydifferences from European Union (EU) logistical andadministrative bottlenecks, and geopolitical disputesresulting from Serbia’s concurrent pursuit of EUmembership. The study comes to the conclusion thatwhile a dual-track approach is workable, its sustainabilitynecessitates focused institutional modernization.

UNRAVELING THE DRIVERS OF ORGANIC FOOD PURCHASE INTENTIONS: A THEORY OF PLANNED BEHAVIOR PERSPECTIVE FROM SERBIA

Tamara Rajić — 2026-09-30

The study aims to examine the determinants of Serbianconsumers’ purchase intentions related to organic food,building upon and enhancing the well-establishedframework of the Theory of Planned Behavior.Data collection by means of a web-based structuredquestionnaire has resulted in 461 responses, whichhave been subjected to Partial Least Squares StructuralEquation Modeling (PLS-SEM), using SmartPLS 4.The study’s findings indicate that favourable attitudesare the key driver of organic food purchase intentionsand that they are shaped by food safety concern andperceived environmental knowledge. Significant others’expectations directly influence consumers’ willingnessto purchase organic food, and indirectly contribute topositive attitudes towards organic food. Organic foodavailability and affordability directly contribute tocustomers’ purchase intentions and enhance positiveinfluence of attitudes on purchase intentions. Theoreticaland managerial implications have been discussed andlimitations and future research directions are outlined.

MACHINE LEARNING-DRIVEN PREMIUM ESTIMATION IN CROP INSURANCE: LEVERAGING CLIMATE AND COMMODITY MARKET BIG DATA

Marija Koprivica — 2026-09-30

This study proposes a machine learning-driven frameworkfor premium estimation in crop insurance against droughtrisk, integrating climatic and commodity market data. Themethodology combines a Logistic Regression model forpredicting drought probability with an Extreme GradientBoosting model for forecasting commodity prices andcrop yields, using regional datasets from Vojvodina andŠumadija. The results show strong predictive performanceacross regions and metrics. Findings confirm that droughtoccurrence, yield and price volatility are driven by climaticand spatial heterogeneity, underscoring the need forregion-specific premium setting. The study demonstratesthe potential of machine learning techniques to supportmore risk-sensitive and actuarially consistent pricing inagricultural insurance.

PSYCHOLOGICAL AND SOCIAL DETERMINANTS OF RESIDENTS’ SUPPORT FOR SUSTAINABLE RURAL TOURISM DEVELOPMENT: A SERIAL MEDIATION MODEL

Vladimir Ilić — 2026-09-30

Based on the Theory of Planned Behavior and theStimulus-Organism-Response model, the aim of thispaper is to determine the role of the organism (subjectivenorms, perceived behavioral control, and attitudestowards supporting sustainable tourism development) asa mediator in the relationship between stimuli (perceivedempowerment and place attachment) and the response(intention to support sustainable tourism development).The stratified sample included 243 respondents from ruralareas of Southern and Eastern Serbia, who are employedor provide services within the tourism sector. Partial leastsquares structural equation modeling (PLS-SEM) wasused to test the proposed model and research hypotheses.The obtained results confirmed the existence of positiveand statistically significant mediating roles between theobserved variables. This findings can contribute to a betterunderstanding of the process through which psychologicaland social factors can shape residents’ intentions to supportthe development of sustainable rural tourism.

FINANCIAL RISKS AND MANAGEMENT PRACTICES IN AGRICULTURE: EVIDENCE FROM RURAL TOURISM FARMERS IN SERBIA

Marijana Živković — 2026-09-30

The aim of this paper is to investigate how farm ownersengaged in rural tourism in Serbia perceive financial risks,adopt financial management practices, and evaluate theeffectiveness of those practices in mitigating financialchallenges. Data were collected through a structuredonline questionnaire administered between April and May2026, using a random sampling approach. A total of 230farm owners participated in the research. Data analysiswas conducted using SPSS 26.0, incorporating descriptivestatistics, reliability analysis, and inferential techniques. Aone-way ANOVA was employed to examine differencesacross socio-demographic groups, with Tukey HSD posthoc tests applied to identify specific contrasts. The resultsrevealed that education is a significant determinant offinancial management practices, with higher levels offormal education consistently linked to more advancedand effective approaches. Age demonstrated a nonlinear effect, as middle-aged respondents perceivedfinancial risks more strongly than both younger and oldergroups. In contrast, years of experience in rural tourismdid not significantly influence perceptions of financialmanagement practices, indicating that longevity in thesector alone does not necessarily enhance confidence inrisk mitigation.

ADDING VALUE TO PLUM AS A POSSIBILITY OF ECONOMICS SUSTANAIBILITY OF ITS PRODUCTION

Zorica Sredojevic — 2026-09-30

The subject of this research is plum production and thepossibility of improving its economic value. The aim is toexamine the economic justification of investing in dryersand distilleries. Three variants were analyzed: productionand sale of fresh plum; dried plum; and plum brandy. From100 kg of fresh plum, 25 kg of dried plum are obtained(ratio 1:4) with an average humidity of 26%, and from 100kg of fresh plum, about 16.5 l of brandy (ratio 1:6) withan alcohol strength of about 40-45%, and in both variants,the economic value of plum is about 6 times higher. Forevery 100 euro invested, 36 euro of accumulation isachieved for fresh plum, 187 euro for dried plum and 171euro for plum brandy. The cost-effectiveness coefficientfor the variants ranges from 2.11 to 2.59, and the paybackperiod is from half a year to two years. Adding value toplum through drying and producing plum brandy achievesgood economic results, long-term stability and economicsustainability of its production.

TOWARDS SUSTAINABLE GROWTH: ASSESSING THE NEXUS BETWEEN AGRICULTURAL OUTPUT AND CIRCULAR ECONOMY INDICATORS

Boris Radovanov — 2026-09-30

This paper examines the relationship betweenagricultural output and circular economy indicatorsin 36 European countries over the period 2015–2024.Using an unbalanced panel of 360 observations, a panelregression model with fixed effects was estimatedfollowing a series of diagnostic tests that confirmedthe robustness and reliability of the estimates.Agriculture, forestry and fishing value added perworker was modelled as a function of five circulareconomy indicators, alongside GDP per capita, ruralpopulation share and agricultural employment. Allestimated coefficients were significant at the 1%level. The recycling rate of municipal waste andthe share of renewable energy positively affectagricultural value added, while the generation ofmunicipal waste, raw material consumption, ruralpopulation and agricultural employment exertnegative effects. The findings confirm that circulareconomy practices and agricultural productivity arecomplementary rather than conflicting areas, whoselong-term synergy depends on coordinated economicpolicy support.

THE ROLE OF MODERN INNOVATIONS IN THE TRANSFORMATION OF SERBIAN AGRICULTURE TOWARDS SUSTAINABILITY

Anita Klikovac — 2026-09-30

The agricultural sector and food production areincreasingly striving to find answers to complexchallenges, among which climate change stands out inparticular. The paper states the role of innovation in theagricultural sector, as well as the analysis of challengesin the sustainable development of the agricultural sector.From conventional to digital agriculture, the paperanalyzes all aspects in order to find the best solutionstowards creating a sustainable transformation of Serbianagriculture. Strategic investment in innovation is a linkbetween traditional production and modern, ecologicallyresponsible agriculture that will meet the needs of currentand future generations.

THE ROLE OF THE VITICULTURE AND WINE SECTOR IN RURAL DEVELOPMENT AND THE AGRO-FOOD ECONOMY: EVIDENCE FROM NORTH MACEDONIA

Aleksandra Angeleska — 2026-09-30

Viticulture and wine production represent a strategicallyimportant segment of the agri-food economy of NorthMacedonia, combining economic, social and territorialfunctions. This paper analyses the structural characteristics,economic performance and developmental role of the viticultureand wine sector, with particular emphasis on its contributionto rural development, exports and land use sustainability. Thestudy is based on the analysis of secondary data obtained fromthe State Statistical Office of the Republic of North Macedonia,complemented by policy documents and relevant scientificliterature. The results indicate that the sector plays a significantrole in agricultural output and export performance, accountingfor a substantial share of agri-food exports and providingincome for approximately 20,000 rural households. Thepaper concludes that viticulture and winemaking function as apermanent agricultural system with relevance for agroforestryand sustainable land-use frameworks.

STRATEGIC ANALYSIS OF BILATERAL TRADE BETWEEN NORTH MACEDONIA AND SERBIA: ECONOMIC AND FINANCIAL TRENDS

Aleksandar Lukić — 2026-09-30

This study examines bilateral trade between NorthMacedonia and Serbia from 2020 to 2024, with a focuson sectoral dynamics, structural changes, and developmentimplications. Quantitative and qualitative analysis wasconducted using export and import data classified by theStandard International Trade Classification (SITC Rev.4) and descriptive statistical methods. Results indicate asteady increase in trade flows, with high-tech industry,chemicals, machinery, and the food sector showing stronggrowth, while traditional sectors such as raw materials andmineral fuels stagnated. The analysis reveals structuraldiversification and a shift toward higher value-addedproducts, reflecting modernization of production andenhanced competitiveness. Recommendations includealigning industrial policies, fostering innovation, andstrengthening sectoral specialization to support sustainabletrade growth. The findings provide a clear overview ofbilateral trade dynamics and sectoral developments.

ECONOMIC ANALYSIS OF JOB SATISFACTION OF EMPLOYEES IN THE SERVICE OF AGRAR SECTOR IN THE REPUBLIC OF SERBIA

Julija Avakumović — 2026-09-30

In the age of digital economy, the increasingly anddynamic needs of the market require an increasingcompetitiveness of the organization. The competitivenessof an organization based on human resources. Theyshould have knowledge, skills, expertise, creativity andbe innovated. Individual results could contribute to bettereconomic results of whole organization, and it’s haddirect connection with job satisfaction of employees. Jobsatisfaction has to be measured with general satisfactionindicators and some specific partial indicators, too. In thispaper, authors researched job satisfaction of employeesin the service of Agriculture sector of the Republic ofSerbia, used a Survey on sample of 420 employees.The survey conducted from February to May 2025. Theresults could be use like guideline of business, especial inthe digital environment.