ANNOUNCEMENT 17 Feb 2015

In February 2015, the Bulgarian government established the eligibility criteria and requirements of the direct income payment scheme. The scheme aims to support farmers in Bulgaria under the European Agricultural Guarantee Fund (EAGF) 2014-2020 (see related state act).

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

ORDINANCE № 3 OF 17 FEBRUARY 2015 ON THE CONDITIONS AND PROCEDURE FOR IMPLEMENTATION OF DIRECT PAYMENT SCHEMES. Available at: https://www.lex.bg/en/laws/ldoc/2136458717

НАРЕДБА № 3 ОТ 17 ФЕВРУАРИ 2015 Г. ЗА УСЛОВИЯТА И РЕДА ЗА ПРИЛАГАНЕ НА СХЕМИТЕ ЗА ДИРЕКТНИ ПЛАЩАНИЯ. Available at: https://www.lex.bg/en/laws/ldoc/2136458717

EUR-Lex. Official Gazette. "Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy and repealing Council Regulation (EC) No 637/2008 and Council Regulation (EC) No 73/2009". 20/12/2013. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013R1307&qid=1619526760849

Inception date: 27 Feb 2015 | Removal date: 31 Dec 2020

Financial grant

On 17 February 2015, the Bulgarian government announced the ‘Ordinance No. 3 on the Conditions and Procedure for Implementation of Direct Payment Schemes, establishing the eligibility criteria and requirements of the direct income payment scheme. Under the scheme, eligible local farmers receive direct income payments under the European Agricultural Guarantee Fund (EAGF). The 2015-2020 budget for these Bulgarian payments was set out in Regulation (EU) No 1307/2013 at EUR 3.911 billion (approx. USD 4.456 billion). 

Income support measures to farmers take the form of financial grants. According to Regulation (EU) No 1307/2013, beneficiaries are active farmers that meet minimum requirements further specific by member states. In the case of Bulgaria, the mentioned regulation establishes the national eligibility criteria and requirements to be met by applicants, including by referring to a set of provisions included in other regulations and standards. The requirements relate to good agricultural practice and good environmental conditions and must be met by beneficiaries of the scheme.

The payments will be managed by the The State Fund Agriculture – a Bulgarian entity established in 1998 under the Agricultural Producers Support Act to provide financial support to agricultural producers under state aid programmes such as the Common Agricultural Policy (CAP) and the Rural Development Programme. 

The measure entered into force on 27 February 2015 and shall be applicable until the end of 2020. Prior to the measure, Bulgaria was financing its income support payments primarily from the 2007-2013 budget of the EAGF which was established under a different subset of rules. In order to grant income support payments to Bulgarian farmers using the budget from the 2015-2020 budget, Bulgaria needed to establish the national rules for the 2014-2020 CAP framework. 

EU's CAP framework
The CAP framework is the EU-wide agricultural policy established in 1962 that is subject to reforms and new rules every six years. According to the EU, it aims to support farmers and improve agricultural productivity, ensuring a stable supply of affordable food. Under the CAP, Member States provide three main types of support to the agriculture sector: (i) income support measures, (ii) market measures; and (iii) rural development measures. The two first are primarily financed by the EAGF; whilst the third and last support type is financed by the European Agricultural Fund for Rural Development (EAFRD).