How do Bulgarian farmers spend money from direct payment – some evidences for future CAP design

This paper analyses farm household strategies and investment behaviour of Bulgarian farmers with a particular focus on the perceived effects of Common Agriculture Policy (CAP). The survey is based on a sample of 83 Bulgarian farms, carried out during 2007 by the Institute of Agricultural Economy (IAE). The farms were selected from 6 less favourite areas in the country which participate in a pilot project aiming to pre-test the effect of direct payments on different farm types. Based on this, three farm types with different specialisation (arable crops, livestock and vegetables), all implementing conventional technology were chosen. The survey includes information about farm and household structure, expectations, reaction to planned and intended investment. Direct payments are normally used in the farm with aim to cover current costs and investment expenditure.