Direct Payments Impact on Bulgarian Agriculture Competitiveness

M. Atanassova, Yanka Slavova

Abstract: In the circumstances of the Single European market, Bulgarian agriculture is in increasing dependence on CAP impact. Analysis has been made of the impact of four of the single direct payments schemes on the production development, restructuring and competitiveness. The positive sides have been revealed, the challenges and the problems, accompanying this way of subsidizing the agriculture. It was proved that the used approach of subsidies distribution by sub-sectors and crops – equal per area unit, without taking in consideration the production intensification, has favorable influence mainly on the cereals and the oil-seeds. European subsidies and national complementary payments barely support fruits, vegetable and livestock producers’ incomes, which results in constant diminution of these productions and predominating importation on the internal market. It has been proved that the direct payments per area unit are not suitable for Bulgaria. A proposition has been made: to correct or to change the subsidies distribution approach after 2013. Different scenarios were proposed for possible changes of the direct payments distribution policy.

Keywords: competitiveness; direct payments; scenarios; subsidies

Date published: 2018-01-31