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A Study Of The Net Income - Subsidy Relationship On Small Farms In Bulgaria

Author

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  • Damyan Kirechev

    (University of Economics - Varna, Bulgaria)

Abstract

The study evaluates the correlation between net income and subsidies on smaller farms in Bulgaria for the period after the country's accession to the European Union. The study includes farms with an economic size of € 2 000 - € 25 000 and analyses seven types of specialised farms. Small farms show a very strong correlation of their net income with the level of subsidisation. There is a very strong correlation between net income and subsidies on farms in the "permanent crops", "dairy", "other grazing livestock" and "mixed farm" sectors. There is a strong correlation between net income and subsidies in the "fieldcrops" and "horticulture" sectors. There is a weak correlation between net income and subsidies for the "granivores" sector. Public support is important for the financial sustainability of small farms in Bulgaria. The focus of income support should be on "income sensitive" sectors that are market-oriented and adaptable to sustainability, without contributing to confrontation between different actors in the agricultural system.

Suggested Citation

  • Damyan Kirechev, 2024. "A Study Of The Net Income - Subsidy Relationship On Small Farms In Bulgaria," Conference of the Department of Agricultural Economics, at the University of Economics - Varna, Publishing house "Science and Economics" Varna, issue 1, pages 146-181.
    • Handle: RePEc:vrn:cfabre:y:2024:i:1:p:146-181
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    More about this item

    Keywords

    agricultural holdings; small farms; net income; specialised farms; subsidies; FADN analysis;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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