The Journal "Agriculture and Forestry"
Časopis "Poljoprivreda i šumarstvo"
- Since 1955 -
Year 2015, Volume 61 Issue 4
| Year : | 2015 |
| Volume : | 61 |
| Issue : | 4 |
| Authors : | Emilia SOKOLOVA, Petar KIROVSKI, Bozhidar IVANOV |
| Title : | THE ROLE OF EU DIRECT PAYMENTS FOR PRODUCTION DECISION-MAKING IN BULGARIAN AGRICULTURE |
| Abstract : | One of the main instruments of the European CAP – the direct payments - play an important role for the Bulgarian agriculture after country’s EU accession in 2007. Field crops, horticulture, and dairy farming are traditional sectors in Bulgaria with high share of the total agriculture output. The main goal of this study is to determine the impact of subsidies on the production decision-making. The main assumption is that subsidies despite their decoupled characteristic take part in farmers’ incomes and influence the farmers’ behavior due to farmers’ impetus to less risk and costs rather than maximizing their incomes and revenues. The analysis is based on official statistical data and Farm Accountancy Data Network (FADN). Key economic indicators and the impact of Single Area Payment Scheme (SAPS) payments are explored. The data span covers the period 2005-2012. Correlation and regression analyzes based on data are done, aiming to study of dependence on the main economic indicators on subsidies. As a result of the research conclusions are drawn about the level of impact of direct payments and farmers’ behavior and sensitiveness to subsidies and market signals. The analysis shows that farms growing field crops and those in dairy sector are positively influenced by the SAPS payments they receive; and this could be considered a factor in deciding on type of crop and farmers’ behavior in market environment. The direct payments are important instrument driving farmers’ production decision making in terms of land enlargement and expansion and less impact on the level of production and productivity |
| For citation : | Sokolova, E., Kirovski, P., Ivanov, B. (2015): The role of EU direct payments for production decision-making in Bulgarian agriculture. Agriculture and Forestry, 61(4): 145-152. |
| Keywords : | subsidies, Bulgaria, field crops, horticulture, livestock |
| download paper | |