Now that the future EU Common Agricultural Policy /CAP/ is already approved, Bulgaria will be able to continue with the Single Payment /Farm/ Scheme and also to provide more money for those, lagging behind. “Greening” of subsidies, funds for innovations, as well as encouragement of a “shortening” of all farmer/final consumer supplies… These are some of the measures, implemented in the CAP after 2014 that the member-states, the EC and the EP have already agreed upon. According to the final agreement Bulgaria will continue to pay direct farm subsidies, instead of the previously envisaged rights of payments, the Capital Daily writes.

Although all new member-states were expected to stop paying directly to farmers after 2014 through the current Single Farm Scheme and to start to use the so-called system with rights of payments /where each producer gets the right of subsidy per hectare, as base years are taken into consideration/, actually this might not happen. According to the reform agreement the new member-states have the right to keep the Single Payment Scheme and Bulgaria will most likely do that. At the same time an opportunity is provided to the states to increase the so-called payments, related to production – money that is given to stock breeders, producers of fruits and vegetables and others and are allocated on the amount of the actual production and not based on the decares cultivated. Those can reach 13 percent of all payments and at the same time the list of crops that can be supported has dropped now. Thus practically Bulgaria will have the opportunity to grant such specific subsidies to bee keepers, oil rose producers and others that haven’t received funding till now.

At the same time single farm payments are expected to go “greener” after the adoption of a rule 30 percent of them to be chained to environmental practices. A so-called rule on “active farmers” is being introduced that will result in the creation of a list of activities, which don’t have the right to receive subsidies. Different audits have shown over the past years that money for agriculture have been acquired by airports, real estate companies and others that have nothing to do with the sector.

Changes on direct payments will enter into force as of 2015 and not 2014, as the goal is an opportunity to be provided to farmers to adapt to the new conditions, while payment agencies and governments make the changes necessary in legislation and the way their work is organized.

The “shortening” of supply chains for agricultural products, linking producers with final consumers will be a new priority of the future CAP. It is planned some agricultural branches to be able to sign collective contracts for the selling of their production /for instance milk, beef, crops/. Special budget for innovations and stimulation of science will be provided, the agreement reads.

Bulgaria is expected to receive some EUR 7.5 bln. for agriculture over the next programme period 2014 – 2020. The increasing is due to the regulated rising of direct farm subsidies. At the same time it is expected the Rural Development Programme that amounts to EUR 3.2 bln. now to be cut with EUR 200 – 300 mln.

English version: Zhivko Stanchev