Abstract: The government considers agriculture and rural development to be a priority. Based on the importance of farming and rural development, through this study we have tried to indicate whether the grant application and subsidies have contributed in improving the yield of benefiting farmers. Multiple regression analysis was applied to confirm the main hypothesis. Also, the independent samples t-test showed differences between subsidized and non-subsidized farmers. Based on our findings we have the following results: direct subsidies have had a positive impact on the yield of benefiting farmers. Furthermore, the results of this study further justify that commitment and financial assistance of the Government of Kosovo and many European Community donors have enhanced the farm performance and generally the development of the farming sector in Kosovo
