Resource information
Although Bulgaria now implements the
European Union's (EU's) "common"
agricultural policy (CAP), national policymakers still
maintain responsibility to tailor CAP implementation to meet
the specific development needs of the country. The National
Rural Development Program (NRDP) very appropriately lays out
the challenges that Bulgarian agriculture and rural
development face, but the early implementation of a
relatively high number of support schemes falls short of
adequate administrative capacities and planning. With CAP
resources projected to increase substantially over the
coming years under pillar two, Bulgarian authorities must
take appropriate corrective measures now so that the
opportunity to impact long-term sector growth is not missed.
The major challenge facing Bulgaria's rural sector is
the significant fragmentation of land ownership and the
highly polarized farming structure. As of 2003, there were
665,500 agricultural holdings operating in Bulgaria. About
75 percent of agricultural holdings account for less than 7
percent of the utilized agricultural area (UAA). They
cultivate plots of no more than one hectare. In contrast,
about 78 percent of UAA is farmed by 0.8 percent of
holdings. The fragmentation of land ownership is a
significant barrier to long-term investments in agriculture,
land improvements, and efficient use of agricultural
machinery. Other challenges facing the sector include: an
aging labor force (54.6 percent aged 55 and over);
relatively few young farm-holders (less than half the EU
average); low educational attainment of those employed in
agriculture; low labor productivity due to worn-out assets
and outdated technologies; and poor access to credit for
small and medium-sized producers.
