Analisys of direct payments distribution in Bulgarian agriculture

Direct payments are the main component of the Common Agricultural Policy (CAP). They form approximately 76% of CAP budget in the programming period 2014-2020. The main purpose of the study is to outline the opportunities and challenges for Bulgarian agriculture, based on the analysis of direct payments distribution. The Lorenz curve, as the most widely used measure of inequality, is applied in the paper to surveying the disparities in the direct payments distribution. The results of the analysis show highly uneven distribution of the direct support across Bulgarian farms. The Lorenz curve indicates that payments are accumulated mainly in the larger-scale farms, thereby generating problems for small holdings and structural imbalances. The allocation of EU funds has impacted on the level of investments, productivity and economic efficiency of Bulgarian agriculture.