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Direct Payments as a Risk Management Tool in Bulgarian Agriculture

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  • Tanya Georgieva

    (University of Economics - Varna, Varna, Bulgaria)

Abstract

Òhe purpose of this article is, based on a review of existing opinions on the role of direct payments in the risk management process and assessment of the impact of these subsidies on the income of agricultural holdings in Bulgaria, to draw some conclusions about their potential as a tool for prevention of the risk faced by farmers. It is concluded that if secure revenues from direct payments do not provoke risk-balancing behavior of farmers, their role in income stabilization increases, but not to the same extent for farms with different types of specialization. In addition, the policy of direct income support puts Bulgarian farmers in a situation of relatively high risk of problems in adapting to new conditions, in case of a change in support mechanisms

Suggested Citation

  • Tanya Georgieva, 2020. "Direct Payments as a Risk Management Tool in Bulgarian Agriculture," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 9(2), pages 160-168, August.
    • Handle: RePEc:vra:journl:v:9:y:2020:i:2:p:160-168
    DOI: 10.36997/IJUSV-ESS/2020.9.2.160
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    References listed on IDEAS

    as
    1. Robert Finger & Niklaus Lehmann, 2012. "The influence of direct payments on farmers’ hail insurance decisions," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 343-354, May.
    2. Yann de Mey & Frankwin van Winsen & Erwin Wauters & Mark Vancauteren & Ludwig Lauwers & Steven Van Passel, 2014. "Farm-level evidence on risk balancing behavior in the EU-15," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 74(1), pages 17-37, April.
    3. S. Severini & A. Tantari & G. Di Tommaso, 2016. "Do CAP direct payments stabilise farm income? Empirical evidences from a constant sample of Italian farms," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-17, December.
    4. S. Severini & A. Tantari & G. Di Tommaso, 2016. "Do CAP direct payments stabilise farm income? Empirical evidences from a constant sample of Italian farms," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-17, December.
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    Cited by:

    1. Damyan Kirechev, 2021. "Assessment of the Financial Efficiency of Enterprises in the Agricultural Sector in Bulgaria," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 10(3), pages 202-212, December.

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    More about this item

    Keywords

    risk-balancing behavior; direct payments; risk management;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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