Economic and Social Effects of the Impact of Direct and Coupled Payments on the Development of the Agricultural Sector in Bulgaria

Abstract

The European programs, the direct and coupled payments for assistance and funding of the agricultural sector are part of the policy of the European Union aiming to create an opportunity for employment and active participation of the people from rural areas and to provide them with options for earning a sustainable income in these poorly urbanized locations.  The direct payments form a part of the Common Agricultural Policy of the European Union and can be divided into several main types: Single Area Payment Scheme  (SAPS), Redistributive Payments and Small Farmers Scheme intended to support small farms with a view to increasing the competitiveness in the field of small-scale agriculture. The purpose of this article is to analyze the economic and the social effects of the direct payments developmental impact during the first and the second programming periods.  In order to achieve the present goal, an inquiry has been conducted together with a few in-depth interviews with small farmers who receive financial support in this way.  The article contains the results of the inquiry involving leaseholders and farmers, conducted in North-East Bulgaria.