THE ROLE OF FARM HOUSEHOLDS IN THE DEVELOPMENT OF RURAL AREAS OF BULGARIA (2007–2014)

Abstract

The article highlights the role and place of small and medium–sized farms in the system of national agricultural production in Bulgaria in the period 2007–2014. It was revealed that in the specified period, agrarian households were a traditional form of agricultural production and their activities were directly aimed at the domestic market and export. The main problems and factors affecting the effective development of farms are highlighted. It has been proven that the use of resources of small and medium–sized farms led to the improvement of the condition of rural areas and the population, an increase in the production of agricultural products and a decrease in the share of unemployment in the countryside, and an increase in the real incomes of rural residents. State support measures for farms and their integration into the European support system are considered. In particular, the article analyzes the dynamics of financing modernization and technical renewal of the material base of farms. The author revealed the main advantages and disadvantages of the functioning of small and medium–sized farms compared to large agrarian corporations, in the context of increasing their competitiveness. It is proven that during the specified period, there was no legislation that clearly regulated the activities of farms, their specialization and zoning, access to wholesale markets for the sale of produced products without intermediaries. At the same time, there were a number of factors that inhibited the development and functioning of farms, including limited access to national and European financial resources, participation in government orders, and the European sales market. In addition, the principles of organic production were introduced in the agricultural sector of the Bulgarian economy, which involved the use of exclusively ecological means of plant protection and planting material, which reduced the profitability of the industry and made it impossible for small and medium-sized farms to comply with it.