Financing agricultural farms in Bulgaria: Analysis of traditional and innovative perspectives

Financing is a key factor in the competitiveness and sustainability of agricultural enterprises. This study explores various financing mechanisms available to farmers in Bulgaria, including self-financing, subsidies, bank loans, and innovative tools such as Security Token Offerings (STOs) and blockchain tokenization. The research employs a SWOT analysis to assess the strengths, weaknesses, opportunities, and threats of these financial instruments. Survey results from 60 agricultural producers indicate that self-financingprovides autonomy but is often insufficient for large-scale investments. Subsidies offer financial support but are constrained by administrative complexity and restrictive conditions. Bank loans remain a crucial source of funding but are difficult to access due to high collateral requirements and interest rates. Awareness and adoption of blockchain financing and STOs are low, despite their potential to attract global capital and reduce transaction costs. The findings highlight the need for a diversified financing strategy that combines traditional and innovative instruments. Policy recommendations include simplifying subsidy application procedures, making bank loans more accessible, and increasing farmers’ awareness of alternative financing methods such as STOs. Enhancing regulatory frameworks and digital financial platforms could improve access to capital and drive agricultural modernization.