The government will pay 578 million kuna (nearly 80 million euros) in production incentives in two instalments by mid-April, Agriculture Minister Petar Cobankovic told reporters after the meeting.
It was agreed that a separate law would be drafted to grant long-term concessions to farmers for the use of state-owned agricultural land, which would go into force on 1 January 2008. The present Agricultural Land Act would remain in effect until then.
The talks also focused on the existence of a black market for agricultural products in the country, and Cobankovic said that if that problem were solved there would be fewer demands for incentives.
The head of the National Farmers' Federation, Darko Grivicic, said that about 90 per cent of the farmers' demands had been dealt with at the talks.