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EU funds for Bulgarian agriculture: green transition & innovation

EU-funded programmes for Bulgarian agriculture are finally getting shape.

LAN-Bulgaria commission a study of Bulgaria’s plans, objectives and available funding in the field of agriculture in the period of 2023 - 2027. The study was done by the Economic Policy Institute, and resulted in three concise  factsheets zooming on the following topics:

  1. Bulgaria’s climate and environment policy according Bulgaria’s flagship strategic documents
  2. Bulgaria’s reforms and investments in the digitalization and innovation of agriculture within country’s National Recovery Resilience Plan
  3. Bulgaria’s investments and interventions in climate smart agriculture (incl. water management) and digitalisation according to CAP strategic plan

Download the factsheets from the links below the article.

Highlights

  • Bulgaria plans to make significant efforts in becoming green and sustainable.
  • Transition to a circular and low-carbon economy will be facilitated largely by EU money and co-financed with national funding. 
  • Clean air, biodiversity, and sustainable agriculture gain considerable attention and support.
  • Bulgaria’s CAP strategic plan outlines a variety of interventions in the digitalization and innovation of agriculture.
BG MinAgri at NL Greenhouse
Beeld: ©BG MinAgri / BG MinAgri
Bulgarian Deputy Ministers of Agriculture, Mr Hristanov and Mr Nekov visiting a Dutch greenhouse grower

National Recovery and Resilience Plan: for technological and environmental modernisation of farmers

Green transition is in the DNA of the Bulgarian National Recovery Resilience Plan, approved in April 2022. It consists of four thematic pillars, the larger of which is the “Green Bulgaria” one (42% of the overall financing or EUR 2,6 bln). This pillar includes investments in the sector of agriculture grouped in the component ‘Sustainable agriculture’: an investment in promoting the technological and ecological transition of agriculture, and an investment in the digitalization of processes from farm to fork.

Under that first investment, support will be provided to a minimum number of 636 project agricultural holdings for technological and environmental modernisation; preparation of centres for marketing and storage of fruit and vegetables; construction/reconstruction and equipment of establishments for the rearing and evaluation of male breeding animals, including the harvesting of biological material from them; efficient water management on agricultural holdings. The total value of the investment is EUR 447.3mln, whereas EU 223.6 mln (VAT excluded) will be provided by the Recovery Resilience Plan, and another EU 223.6 mln (VAT excluded) will be in the form of private co-financing. The beneficiary under Investment 1 that will manage the above-mentioned amounts is the State Fund Agriculture

Digital
Beeld: @Unsplash - rupixen

National Recovery and Resilience Plan: digitalization of processes

The second investment aims to ensure a more efficient and uniform flow of data, as well as to avoid the need for maintaining redundant document formats. The measure consists of two milestones that include setting up a centralised electronic agricultural information system, as well as a communication network of field and rain sensors to provide information on soil moisture, air and soil temperature, and rainfall. The total planned resource is EUR 12.2 mln (EUR 10.2 mln at the expense of the RRF and EUR 1.9 mln national co-financing) with an implementation period of 2022-2025. The beneficiary under Investment 2 is the Ministry of Agriculture.

New CAP
Beeld: EC

CAP strategic plan of Bulgaria

Alongside Bulgaria’s Recovery Resilience Plan, the country's CAP strategic plan for the period 2023-2027 envisages investments in climate smart agriculture, including water management, and digitalization. The total budget is around EUR 3.5 bln. It includes several investments, most notable of which are the following: 

  • Investments for the processing of agricultural products with a total amount of the financial allocation of EUR 420 mln;
  • Investments for the processing of agricultural products aimed at the protection of the environmental components with a total amount of the financial allocation of EUR 148 mln;
  • Investments in irrigation infrastructure with a total amount of the financial allocation of EUR 140 mln;
  • Investment in non-agricultural activities in rural areas with a total amount of the financial allocation of EUR 138 mln;
  • Investments in agricultural holdings with a total amount of the financial allocation of EUR 346 mln.

The CAP strategic plan, however, is not final and is subject to comments on behalf of the European Commission. It remains to be seen whether and what types of new investments will be introduced by Bulgaria, following the European Commission’s intervention.

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