Challenges to agricultural holdings: CAP 2015 - 2020

Krasimira Kaneva

Abstract: The paper discusses direct payments and new RDP measures of the CAP 2015–2020. Based on regulations, assumptions and estimates for tariff rates per decare under different scenarios are made. Basic SAPS payment is calculated after deduction the amounts for green payments, young farmers, redistributive payment and coupled payment from the national direct payments’ envelope and the rest is divided into the current and growing size of the reference area. It is argued a reasonable size of farms, over which producers will receive less direct payments if the redistribution payment is involved, compared to only applying the SAPS. The minimum size of farms over which subsidies will be reduced or eliminated is determined. Two scenarios are developed: with and without reduction of subsidies with the cost of labor and social security. An assumption is made about the impact of the Scheme for small farms and the expected number of its beneficiaries. Considered measures of the RDP concern the thematic sub-programme for development of small farms and measures for the environment, climate and organic production. Results of similar measures in the previous programme period are analyzed and some assumptions about the expected impact of the new measures are made. General conclusion is that challenge for farmers is to acquire two billions leva for green and eco- policies during the new programming period, which requires fast and targeted preparation. An assumption is made that the most popular measure in the thematic sub-programme will be the business start up aid for the development of small farms.

Keywords: CAP; redistributive payments RDP; SAPS; small farmers; thematic sub-programme

Date published: 2017-10-03