Bulgaria Sees Sharp Decline in Farms Over the Past 15 Years

Business » INDUSTRY | November 15, 2024, Friday // 15:39
Bulgaria: Bulgaria Sees Sharp Decline in Farms Over the Past 15 Years @Pixabay

Over the past 15 years, Bulgaria has seen the disappearance of 401,871 farms, as reported by Prof. Bozhidar Ivanov, director of the Institute of Agrarian Economics at the Agricultural Academy of Sofia. This data was presented at the international symposium on "Sustainable agriculture and rural areas in the context of climate change," held in the capital. The findings, based on the last agricultural census conducted in 2020, reveal a significant decline, particularly among smaller farms. The overall reduction is estimated at 75%, with a clear trend of the smallest farms being hit hardest.

The greatest loss is observed in farms with annual incomes below 2,000 euros. From 2005 to 2016, the number of these small holdings plummeted from 299,240 to 104,898. However, the period between 2016 and 2020 saw the most dramatic drop, with the number of such farms falling by 84%, down to just 49,043. Similarly, farms with incomes between 2,000 and 4,000 euros dropped from 166,598 in 2005 to 21,983 in 2020, an 87% decrease after a sharp decline from 59,473 in 2010.

On the other hand, farms with incomes between 8,000 and 15,000 euros have shown growth, largely thanks to European Union subsidies. These holdings, which numbered just 8,238 in 2005, surged to 42,086 by 2007, following the introduction of subsidies. Despite a sharp drop in 2010 to 12,509, the numbers have steadily risen again, reaching 14,784 by 2020, a clear sign of stabilization.

In contrast to the struggles of smaller farms, large farms have seen substantial growth. Holdings with incomes between 8,000 and 50,000 euros grew by 138%, reaching 9,225 farms in 2020. Meanwhile, those with incomes between 50,000 and 100,000 euros grew by a staggering 255%, from 1,553 in 2005 to 8,438 in 2020. Farms with even larger incomes—between 100,000 and 250,000 euros—experienced an explosive growth of 740%, expanding from just 380 farms in 2005 to 3,193 in 2020.

Currently, farms in Bulgaria receive an average of 12,000 euros in subsidies, with the smallest and largest farms benefiting the most. However, Prof. Ivanov warns that future changes in agricultural policy, which will focus on differentiated support, could lead to further struggles for small and medium-sized farms. Many farmers rely heavily on subsidies, and the reduction or restructuring of these benefits could prompt more to abandon agriculture altogether. The decline of medium-sized farms may accelerate, as subsidies continue to play a major role in sustaining the agricultural sector.

Prof. Ivanov also noted that Bulgaria, like other Eastern European countries, has a large number of small farms, which remain vulnerable to policy shifts. He pointed to France as an example of a country with a well-developed industrial agriculture model, suggesting that Bulgaria needs to adapt its policies to support its agricultural future.

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Tags: Bulgaria, farms, decline

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