TRANSITION IN AGRICULTURE – REVIEW ON SUBSIDY AND CUSTOM RATES EFFECTS IN APPLE PRODUCTION IN BOSNIA AND HERZEGOVINA
Speaking about transition in agriculture, we think on agriculture in transition countries, that is Central and Eastern European Countries. Such development is observed from the perspective of the European Union, discussing about possibilities as well as restrictions brought with accession of the CEECs to the Union, but also from the CEECs point of view. In this analysis we examine some consequences of changes in agricultural policy in the case of Bosnia and Herzegovina. The general conception should help in recognizing strategical guidelines for local development of agriculture and rural areas within the current and coming frame of Bosnia and Herzegovina. By the process of adjusting the agricultural sector, but also the agricultural policy, it should be improved competitiveness of domestic agriculture. That is why in this paper we use the cost-benefi t analysis in estimation the consequences of changes in subsidies and custom rates in specifi c case of construction new plantations and production of apples, that is in evaluation advantages and limitations of agriculture. The results of the analysis provide more objective illustration of domestic agricultural sector in internatioal environment.