The redesigning of the 8 billion euros agricultural subsidies plan

Now, in addition to higher requirements, some of the proposals also see an increase in project funding ceilings as well as adjustments to a number of requirements. It is possible that until the final submission to Brussels, there will be additional changes in the current proposals, some of which are in clear opposition to the government's request that the focus in agro-subsidies be small and medium-sized farms.

Redistribution of money

The changes presented to the parliament's commission did not contain many details and calculations, so until the publication of the document, the specific parameters of the changes will not be completely clear. However, it was understood that one of the big changes in the strategic plan is related to direct subsidies and key eco-schemes, for which 825 million euros, or 1/4 of all direct payments by 2027, are allocated. The changes will tackle the redistribution of the budget between support schemes, support rates, requirements that farmers must meet in order to receive the funding.

The Ministry of Agriculture is also planning to increase the money for eco-programs in which there is a high demand, at the expense of those for which not many farmers applied this year. Thus, the most new funding, if the adjustments in the Bulgarian plan are approved by Brussels, will go to the programs for reducing the use of pesticides, the funding of which will increase by 204 million euros. Another significant change will be in the support for preserving the soil potential, where the support should become 166 million euros, or 50 million euros more than now. These two schemes are the most interesting for producers this year, according to the data of the Ministry of Agriculture.

Correspondingly, less money is proposed to be in the program for maintaining and improving biological diversity and ecological infrastructure, where the budget will decrease by more than €120 million to a just over €17 million.

With a budget of up to 1.7 million euros, it is planned to remain the program for maintaining and improving biodiversity in forests - a downward adjustment of nearly 24 million euros. There is also a reduction for the maintenance of permanently grassed areas up to 70 million euros.

No segrgation

Another of the key changes proposed by the Ministry of Agriculture is the elimination of the ranking of applicants for investment projects according to their size and an increase in the maximum subsidy for one project in some of the support interventions. In the current plan for a number of support programs, including investments in farms or straight processing, it is envisaged that applicants will be grouped according to their size - small, medium and large, and accordingly this is tied to the requirements for the applicant's business history.

However, according to the new idea of the ministry, the division in question should be dropped for part of the interventions related to investments in agricultural holdings, processing and non-agricultural business in the villages. Thus, a requirement will be introduced for them that applicants have a standard production volume of 8,000 levs and a two-year history in general, and a three-year history for large businesses applying for processing financing.

Another main change is that in some of the programs, the support ceilings are being raised. For example, for one agriculture project 850 thousand euros are proposed to be granted, and specifically for agricultural machinery, the ceiling should be 400 thousand euros. Currently, the rule sets three different ceilings - 250,000 euros for small companies, 500,000 euros for medium and 750,000 euros for large ones. For medium and large ones the maximum for agricultural machinery is 250,000 and 375,000 euros.

According to the plan of the Ministry of Agriculture, there will be a new higher aid for one project and for processing, where up to 1 million euros can be received for small and medium-sized enterprises and up to 2 million euros for large ones, which according to the current plan can apply for 1.5 million euros maximum. A double increase in the support of projects for non-agricultural activities in the villages is planned - for them the subsidy could reach 400 thousand euros per project compared to the current 200 thousand euros now.

An increase in the subsidy in the "repair" of the strategic plan is also planned for the measure to support young farmers up to 40 years old. The Ministry of Agriculture proposes that they can receive funding of 40,000 euros to start a business, not 25,000 euros, as it is at the moment.

It is also planned to create a completely new scheme to support new farmers who do not fall into the "young" category. They will be able to receive a subsidy of 20,000 euros for an agricultural business, with the category covering people aged 40 to 64.

Increase in market requirements for animal husbandry

Another significant change will be made to the subsidies in animal husbandries. Under various programs, animal breeders now have to prove that they have produced and sold a certain amount of stock - meat or milk - in order to receive support. Now, with changes in a large part of the support programs for cows, sheep and goats, the requirements for the amount of production sold on the market are also increased - on average by between 20 and 50%.

The issue of proof of production has been controversial for years: it is argued that some of the smaller breeders keep non-productive animals in order to receive a subsidy, which in the end is bad for their business, and they make under the table deals. At the same time, however, smaller companies have the biggest difficulties with the sale of the production, due to lack of cooperation and difficult access to markets, as they are often completely dependent on the dairies in their own region.

The Ministry of Agriculture also proposes dropping the so-called a modulated cattle rate that provides higher funding per animal for the first 150 animals on the farm - a way to support small producers. In the current plan, for the first 150 animals, the subsidy is 219 euros per head, and after that - 175 euros. If the "modulation" is dropped, the financing would be a little over 201 euros per animal, which, however, is in favor of larger breeders.

It was this amendment that led to the most serious criticism in the parliament, and it is not clear whether it will be included in the final plan that will be sent to Brussels.