SOFIA – Over the past 15 years, Bulgaria has witnessed a staggering 75% decline in its farming sector, with 401,871 farms disappearing, according to data presented by Prof. Bozhidar Ivanov, director of the Institute of Agrarian Economics at the Agricultural Academy of Sofia.
The alarming trend, revealed during the international symposium on “Sustainable Agriculture and Rural Areas in the Context of Climate Change” held in the capital, underscores the growing challenges faced by small and medium-sized farms in the country.
The findings, derived from Bulgaria’s 2020 agricultural census, highlight a particularly steep decline among small farms with annual incomes below 2,000 euros.
Between 2005 and 2016, the number of such holdings plummeted from 299,240 to 104,898. However, the period between 2016 and 2020 proved even more catastrophic, with their numbers dropping by 84%, leaving just 49,043 farms.
Similarly, farms earning between 2,000 and 4,000 euros experienced a dramatic 87% decrease from 166,598 in 2005 to 21,983 in 2020. This sharp contraction reflects the mounting difficulties faced by small-scale farmers amid rising costs, market pressures, and shifting agricultural policies.
Growth Amid Subsidies
While small farms struggle, larger agricultural holdings have flourished, thanks in part to European Union subsidies.
Farms earning between 8,000 and 50,000 euros grew by 138%, reaching 9,225 in 2020. Similarly, those with incomes between 50,000 and 100,000 euros saw a 255% increase, climbing from 1,553 in 2005 to 8,438 in 2020.
The most striking growth occurred in farms with incomes between 100,000 and 250,000 euros, which expanded by 740%, from just 380 farms in 2005 to 3,193 in 2020. This dramatic shift underscores the growing dominance of industrialized agriculture in Bulgaria, mirroring trends seen across the European Union.
Farms with incomes between 8,000 and 15,000 euros have also shown signs of stabilization. After an initial surge from 8,238 in 2005 to 42,086 in 2007, driven by the introduction of EU subsidies, their numbers dipped but rebounded to 14,784 by 2020.
The Role of Subsidies
Currently, Bulgarian farms receive an average of 12,000 euros annually in subsidies, with the smallest and largest farms benefiting the most. However, Prof. Ivanov cautioned that upcoming changes in agricultural policy, emphasizing differentiated support, could jeopardize the survival of small and medium-sized farms.
Many farmers rely heavily on subsidies to remain viable. A reduction or restructuring of these benefits could force more to abandon agriculture altogether, particularly medium-sized farms, which have already been struggling.
Lessons from France
Prof. Ivanov emphasized the need for Bulgaria to adapt its agricultural policies to ensure a sustainable future. “Eastern European countries, including Bulgaria, have a high number of small farms vulnerable to policy changes,” he noted.
He cited France as a model for industrialized agriculture, suggesting that Bulgaria must strike a balance between supporting its traditional farming practices and fostering modern agricultural methods.
The crisis facing Bulgaria’s small farms raises questions about the country’s agricultural future and the resilience of its rural communities in an era of climate change and economic uncertainty.