Delays in the implementation of the programme for the development of rural areas has significantly reduced the income of growers and slashed their earnings, and this is having an impact on the agricultural land market. The sales prices of fields continue to fall, dropping by up to 20% in some cases, mostly in southern Bulgaria. Official statistics show that in 2013 the number of transactions with agricultural land declined by 7% compared to 2012, and the prospects for 2014 are even more pessimistic.
Despite promises that the new programme for rural development would be launched in May this year, this was not the case. Only days ago, the Deputy Minister for European programmes, Vasil Grudev, said the measures to support young growers are now expected for 1 April 2015, while those for agricultural machinery are expected at a later stage.
"We should not forget that the funds in the new programme for rural areas were reduced from 2.8 to 2.3 billion Euro," said Angel Vukodinov, of the Association of Grain Producers. According to the organisation, the funding for agricultural machinery until 2020 is of just 200 million Euro, less than 10% of the budget for the entire programme, which leads to lower competitiveness compared to other EU Member States.
In addition to this, unexpected weather conditions in 2014, with some torrential rains, hail, and frosts in spring, have reduced crop yields of fruit and vegetables by 20 to 50%. The revenue generated from the harvest has dropped by at least 30%. This, in combination with the delay in the arrival of EU funds, will continue to affect the land market.
Source: frognews.bg
