Impact of the CAP on the Structural Adaptation of the Agricultural Farms

D. NICOLOV, M.ANASTASOVA, T. RADEV

Abstract: Irrespectively of its inherent problems, the agriculture is one of the most significant sectors of the Bulgarian economy. The agriculture is strongly impacted by Bulgaria’s EU accession as a full member. Agriculture is one of the heavily regulated sectors in the EC. The objective of the article is to assess the impact of the CAP of EC on the structural changes in the branch and the farms’ development in the near future. In the study are used the results of an achieved survey in the frame of the project CAP-IRE, financed by the VII Frame Program. The analysis of the impact of the CAP on the structural adaptation of the agricultural farms is performed in two stages. The main directions of the study concern the expected structural changes, due to the CAP implementation. During the first stage the stress was upon the production and social-economic structure, the employment of the appropriate rural house holding members, the channels of production realization, utilization of consultancy services, as well as of some new technical means for the purchase of the necessary production resources and for the sale of the agricultural goods and products. During the second stage is used the ч-square test method. It is applied as assessment criteria for the kind and grade of interconnection of the possibility of continuation of farming activity. It is achieved on the potential base of these structural changes, on one side and the selected two basic scenarios of CAP for their support, on the other. The impact of the policy upon the farm’s size, the production resources utilization, the relationships concerning production realization, as well as the possibilities of implementation of innovations in the branch are other investigated topics.

Keywords: agricultural farms; Common Agricultural Policy; structural changes

Date published: 2024-09-04