Abstract
Serbia is among few countries that have two ministries, the Ministry of Agriculture, Forestry and Water Management and the Ministry of Rural Welfare, active in solving actual problems linked to living and working conditions in rural space. Establishment of cooperatives, or joined action of rural population could enable developmental processes in rural areas. Both ministries offer certain programs of public support focused on cooperatives advancement or establishment, and indirectly securing the competitiveness and sustainability of cooperative members (i.e. mainly family farms). The main research goal is observing the economic impact of the one of program support lines of the Ministry of Rural Welfare directed to development of cooperatives, and further prevention of disappearing of rural communities in Serbia. Analysis shows that mentioned support has turned over the previous trend of shutting down the cooperatives into situation when over 1,100 new agricultural cooperatives have been established in last several years. Additionally, derived results initiate certain recommendations, useful both for policy makers and cooperatives.
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