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One of the most challenging issues for the countries that are in the process of accession to the European Union is the reform of agriculture, precisely agricultural policy and its compliance with the Common Agricultural Policy of the European Union (CAP). The strategic orientation of the Republic of Srpska and Bosnia and Herzegovina is a full EU member status, which is defined with signatory to the Stabilization and Accession Agreement in 2008 and confirmed with Application for membership in the European Union, submitted in February 2016. Considering the upcoming accession negotiation process, the reformation of agricultural sector is necessary in all areas of development: production, policy and legal framework and institutional development. Until 2015 Republic Srpska made and adopted two key strategic documents that determine the directions, objectives and measures for developing of agriculture and rural areas. Recently the Republic of Srpska adopted a new strategic plan for the development of agriculture and rural areas for the period 2016- 2020. Considering that agriculture budget represents a first indicator of the countries sector priorities, objective of this paper is to provide analysis of agricultural policy through the agricultural budget of the Republic of Srpska and its compliance with Common Agricultural Policy of the EU. Comparative analysis is related to the period 2006 – 2014 using EU methodology for the classification of agricultural measures (pillars and axis). Research results show that the structure of measures and scope of budgetary support, defined within agricultural policy of the Republic of Srpska is not compatible with Common Agricultural Policy of the EU.

EU COMMON AGRICULTURAL POLICY AND AGRICULTURAL POLICY OF THE REPUBLIC OF SRPSKA (BOSNIA AND HERZEGOVINA)