OPPORTUNITIES FOR FINANCING OF AGRICULTURE IN BULGARIA UNDER THE SECOND PILLAR OF THE CAP FOR THE PERIOD 2014-2020

Abstract

This research analyzes out-of-border financial help which is due to our membership in EU dating from 2007. That out-of-border financing has been done with applying of Common Agricultural Policy (CAP) for the program period from 2007 to 2013, as well as for the program from 2014 to 2020. Common Agricultural Policy (CAP) helps Bulgarian farmings using European funds, mainly with first pole – direct helping and second pole – schemes with measures of Program for Developing of Rural Regions (PDRR). Main focus of the current research is the impact of financial flows with second pole of Common Agricultural Policy (CAP) for the period from 2014 to 2020.

There is analysis of strengths and weaknesses of the process. It says recommendations for improving the system of receiving the European help per Program for Developing of Rural Regions (PDRR). It also defends the scientific thesis that distribution of financial funds between first and second pole of Common Agricultural Policy (CAP) is not balanced. The former leads to several basic misbalances in Bulgarian farmings. These misbalances don’t lead to competitive and market orientated agricultural. They don’t stimulate investments and innovations in agricultural. This leads to production of agricultural goods with low added value. The author gives recommendations and conclusions for decreasing of misbalances and for normal effective management of out-of-border financing in Bulgaria.