Assessment of Sustainability of Bulgarian Farms

The New Institutional and Transaction Costs Economics framework is incorporated to transitional Bulgarian agriculture, and level of sustainability of dominating subsistent farming, production cooperatives, small-scare commercial farms, and large agro-firms assessed. New framework for assessing sustainability of farms and for governing of sustainable development is suggested taking into account: role of specific institutional environment, comparative efficiency of various market, private, public and hybrid governing modes, transaction costs and critical factors (frequency, uncertainty, asset specificity, and appropriability) of farm transactions. Analysis of sustainability of different types of Bulgarian farms is made, and further domination of subsistence farming, cooperatives, large agrofirms, and some part of small commercial farms projected.Agribusiness,

Level of agrarian Governance sustainability in Bulgaria

Abstract. In Bulgaria, like in many other countries, practically there are no comprehensive assessments of the governance sustainability of agriculture and its importance for the overall agrarian development. This study tries to fill the gap and suggests a holistic framework for understanding and assessing the governance sustainability of Bulgarian agriculture. The newly elaborated approach is “tested” in a large-scale study for assessing the governance sustainability of country’s agriculture at national, sectoral, regional, eco-system and farm levels. The study has proved that it is important to include the “missing” Governance Pillar in the assessment of the Integral sustainability of agriculture and sustainability of agro-systems of various type. Multiple Principles, Criteria and Indicators assessment of the Governance sustainability of Bulgarian agriculture indicates that the Overall Governance Sustainability is at a “Good” but very close to the “Satisfactory” level. Besides, there is a considerable differentiation in the level of Integral Governance sustainability of different agro-systems in the country. What is more, the individual indicators with the highest and lowest sustainability values determine the “critical” factors enhancing and deterring the particular and integral Governance sustainability of evaluated agro-system.  Last but not least important, results on the integral agrarian sustainability assessment based on micro (farm) and macro (statistical, etc.) data show some discrepancies which have to be taken into consideration in the analysis and interpretation, while assessment indicators, methods and data sources further improved.Keywords. Governance sustainability, Assessment, Agriculture, Subsectors, Agro-regions, Agro-ecosystems, Farming organizations, Bulgaria.JEL. Q10, O31, O33, Q01, Q16, Q18

Assessing Multi-aspects and Integral Sustainability of Bulgarian Farms

Abstract. The issue of assessment sustainability of agricultural farms as a whole and of different type is among the most topical for researchers, farmers, investors, administrators, politicians, interests groups and public at large. Despite that practically there are no assessments on sustainability level of Bulgarian farms in conditions of European Union Common Agricultural Policy implementation. This article applies a holistic framework and assesses sustainability of Bulgarian farms as a whole and of different juridical type, size, production specialization, and ecological and geographical location. Initially the method of the study is outlined, and overall characteristics of surveyed holdings presented. After that an assessment is made of integral, governance, economic, social, environmental sustainability of farms in general and of different type and location. Next, structure of farms with different sustainability levels is analyzed. Finally, factors for improving sustainability of Bulgarian farms are identified, and directions for further research and amelioration of farm management and public intervention in the sector suggested.Our study has found out that overall sustainability of Bulgarian farms is at a good level, with superior levels for environmental and social sustainability, and inferior level for governance and economic sustainability. There are great variations in sustainability levels of farms of different type and location as well as in shares of holdings with unlike level of sustainability. Factors which stimulate to the greatest extent the actions of Bulgarian farms for improving individual aspects of sustainability are Access to Advisory Services, Professional Training of Manager and Hired Labor, Personal Conviction and Satisfaction, Positive Experience of Other Farms, Available Innovations, Financial Capability, Private Contracts and Agreements, and Registration and Certification of Products, Services, etc. National and European mechanisms of regulation and support, which affect to the greatest extent economic sustainability of Bulgarian farms are: Direct Area Based Payments, National Tops Ups for Products, Livestock, etc., Modernization of Agricultural Holdings, Green Payments, Support to Semi-market Farms.Keywords. Farm sustainability, Governance, Ecological aspects, Factors of sustainability, EU CAP impact, Bulgaria.JEL. Q10, Q56, R33

Agri-food implications of Fukushima nuclear disaster: 10 years later

Abstract. On March 11, 2011, the strongest ever recorded in Japan earthquake occurred which triggered a powerful tsunami and caused a nuclear accident in Fukushima nuclear plant. The latter was a “manmade” disaster having immense impacts on people’s life, health, and property, infrastructure, supply chains, economy, policies, natural and institutional environment, etc. This paper presents work in progress and assesses preparedness for and agri-food impacts of the Fukushima nuclear disaster, identifies challenges in post-disaster recovery, and withdraws lessons for improving disaster risk management. Japan was not well prepared for such a huge disaster while the agri-food sector and consumption have been among the worst-hit areas. The triple disaster was a rare but high-impact event, therefore, it is necessary to “prepare for the unexpected”. Risk assessment is to include diverse hazards and multiple effects of a likely disaster, it is to be discussed with all stakeholders, and measures taken to educate and train all for complex disasters. It is necessary to modernize property rights, regulations, safety standards, and norms, enhance the capability of responsible public authorities and improve coordination between diverse actors. It is important to set up mechanisms for effective public resource allocation and reduction of agents’ costs. Different elements of the agri-food chain have dissimilar capabilities requiring differential public support. There is a strong “regional” interdependency of agrarian, food, and rural assets (and damages), and it is important to properly locate risk and take prevention and recovery measures. Disaster response demonstrated the important role of small-scale farms and food organizations, and the high efficiency of private, market, and collective governance. Before, during, and after a disaster, all available information from all sources is to be immediately publicized in understandable form through all possible means. Disaster provides an opportunity to discuss, introduce and implement fundamental changes in agricultural, economic, regional, energy, disaster management, etc. policies. It is important to learn from past experiences, prepare for multiple disasters, and make sure that “lessons learned” are not forgotten.Keywords. Agri-food, Fukushima nuclear disaster.JEL. Q10, O31, O33, Q01, Q16, Q18

Mapping sources, types and importance of ecosystem services from Bulgarian agriculture

Abstract. Agricultural ecosystems of different types and their specific “agro-ecosystem” services are among the most widespread in the world. However, in Bulgaria the state of practical progression of the studies of agricultural services in mostly at the methodological level and very limited to general classification and qualitative “assessments”. This article tries to fill the gap and present initial results of large scale studies on mapping the sources, types and importance of agroecosystem services in Bulgaria. The identification of the type, size, efficiency and importance of “produced” services of agro-systems is based on the assessments of the managers of 324 “typical” farms of different legal status, size, production specialization, ecological and geographical location. The study has found out that there are significant differences in the participation and contribution of agricultural holdings in the protection and provision of agro-ecosystem services in the various specific and principled ecosystems of the country, and major subsectors of agricultural production. The latter requires special measures to improve, diversify and intensify this activity of farmers through training, information, exchange of experience, public incentives and support, etc. Analyzes of the structure and importance of agro-ecosystem services in the country are to be expanded by improving the accuracy and representativeness of the information by increasing the number of surveyed farms, avoiding “double” accounting, applying statistical methods to verify the reliability, special "training" of and those involved in surveys, applying direct field measurements experts and stakeholders involvement etc.Keywords. Ecosystem services, Agriculture, Ammount, Structure, Importance, Bulgaria.JEL. Q12, Q13, Q15, Q18

Diagnosis of the agricultural information, training and advices system in Bulgaria

Abstract. Despite the great theoretical and practical significance, in Bulgaria there are no comprehensive analysis of the state and evolution of the system of agricultural information, training and advices in Bulgaria. The goal of this paper is to analyze the state and evolution of the system of agricultural information, training and advices in Bulgaria during the period after country’s EU accession, identify major trends in that area, make a comparison with other EU states, specify main problems, and suggest conclusions for improvement of policies during next programing period. The analysis has found out that in years after accession of the country to EU the number of the farm managers who undertook full agricultural training increases, but despite that almost 93% of them are still with practical experiences and without any agricultural training. The extent of participation of rural areas rests weak and constantly decreasing, and Bulgaria is among the last in EU in hours of formal and informal education and training. In years of EU membership the number of provided consultations is doubled and in recent years 17% of all registered agricultural producers and each tenth farmer in the country are consulted while the subjects of provided consultation widened. Also hundreds of events associated with knowledge and innovation transfer and sharing are organized as most of them are jointly organized by the National Advisory Service with the institutes of Agricultural Academy, agrarian and other universities, research and development organizations.  The number of organized events, the overall number of participants, and the average number of participant per event tend to decrease.Keywords. Training, Consultation, Advices, Agriculture, Bulgaria.JEL. Q10, O31, O33, Q01, Q16, Q18

Impact of governing modeson agrarian sustainability in Bulgaria

Abstract. Specific system of governance in different countries, regions, subsectors, etc., eventually determines the speed and type of socio-economic development. Despite its big academic and practical importance, in Bulgaria and other countries in East Europe, there are very few empirical studies on dominating governing structures in agriculture, and their impact(s) on agrarian sustainability. In this paper the interdisciplinary New Institutional Economics framework is incorporated, and the impact of diverse market, private, collective, public and hybrid modes of governance on agrarian sustainability at the current stage of development in Bulgaria assessed. First, the methodological framework of the study is outlined. After that dominating governing modes in Bulgarian farms of different juridical type, size, specialization, ecological and geographical location are identified, and their impacts on agrarian sustainability and its economic, social, and environmental pillars evaluated. In conclusion implications for further research, public policy improvement, and private managerial strategy formation are presented. Agricultural producers of different use quite unlike mixture of effective market, private, collective and hybrid modes for governance of their activities and relations. Individual factors and modes most contributing to improvement of agrarian sustainability at the current stage of development are: manager’s personal convictions and initiatives, farms resources and innovation potential, near future profit and benefits strategies, market prices levels and dynamics, area-based EU subsidies, and informal agreements. Research on relations between the governing structure and agrarian sustainability is to continue though increasing representation, and the spectrum of specific governing modes used by farms of different type as well as assessments of the impact of institutions on agrarian sustainability and the impact of the governance at different hierarchical levels. The latter however, requires a new kind of micro and macro data, and a close cooperation between all interested parties. Keywords. Agrarian Governance, Sustainability, Market, Private, Collective, Hybrid modes.JEL. Q13, Q12, Q18, D23, E61, H23, L14, L22, L33, L51

Diagnosis of the process of agrarian and rural digitalization in Bulgaria

Abstract. Despite its big theoretical and practical importance in Bulgaria there are no comprehensive analysis of the state and evolution of digitalization in agriculture and rural areas. The goal of this study is to analyze the state, development and efficiency of digitalization in the agrarian sphere in Bulgaria, specify major trends in that area, compare the situation with other EU countries, identify main problems, and make recommendation for improving policies in the next programing period. Analysis has found out that in recent years there is considerable improvement of the access of Bulgarian households to internet as well as a significant increase in the persons using internet for relations with public institutions and trading goods and services. Nevertheless, Bulgaria is quite behind from other EU members in regards to introduction of digital technologies in the economy and society taking one of the last places in EU in terms of Integral Index for Introduction of Digital Technologies in the Economy and Society – DESI. There is a great variation on the extent of digitalization in different subsectors of agriculture, farms of different juridical type and size, and different regions of the country. Most agricultural holdings are not aware with the content of digital agriculture as 14% apply modern digital technologies. Major obstacles for introduction of digital technologies are qualification of employees, amount of required investment, unclear economic benefits, and data security. Main areas where state administration actions are required are: support of measures for supplementary training of labor, tax preferences in planning of actions and digitalization of activity, stimulation of young specialists, introduction of internationally recognized processes of standardization and certification, adaptation of legislation in the area of data protection, and securing reliable and high speed networks.Keywords. Digitalization, Agriculture, Rural, Bulgaria, EU CAP.JEL. Q10, O31, O33, Q01, Q16, Q18

Socio-economic and Ecological Sustainability of Smallholder Agricultural Holdings in Bulgaria

Abstract.  The issue of adequate assessment of socio-economic and ecological sustainability of divers agricultural holdingsis among most topical academic and practical problems. It is particularly important for smallholder farms accounting for the majority of all farms in the globe. In Bulgaria unregistered farms of Natural Personsaccount for almost 98% of all farms in the country, cultivate a third of all farmlands, graze 85% of cows, 90% of sheep, and around a third of pigs, and employ almost 93% of workforce in the sectors. This article applies a holistic framework and assesses sustainability of farms of Natural Persons in Bulgaria during current stage of EU CAP implementation. Initially a new governance aspect of farm sustainability is justified and method outlined. After that assessment is made of integral, governance, economic, social, environmental sustainability of farms of Natural Persons of different size, specialization, and location, and comparative sustainability to other type of farms. Finally, directions for further research and amelioration of sustainability assessment practices are suggested. Overall sustainability of Natural Persons in the country is at a good level, with superior levels for environmental and social sustainability, close to the low level governance sustainability, and inferior economic sustainability. Comparative sustainability of holdings is lower than other juridical type. There are great variations in sustainability levels of farms of different kind and location. Share of Natural Persons with good and high sustainability is smaller than other categories of farms and majority of Natural Persons have no comparative advantages in terms of sustainability, and in a middle term will cease to exist.Keywords: Smallholders sustainability, Governance, Economic social environmental aspects, Bulgaria.JEL. Q10, Q56, R33

Agrarian research and development in Bulgaria during EU membership

Abstract. Despite the greattheoretical and practical significance, in Bulgaria there are no comprehensiveanalysis of the state and evolution of agrarian research and development (ARD) activities. The goal of this paper is to analyze the state and evolution of ARD in Bulgaria during the period after country’s EU accession in 2007, identify major trends in that area, make a comparison with other EU states, specify main problems, and suggest conclusions for improvement of policies during next programing period. The analysis has found out that in years of EU membership the expenditures for ARD significantly decreased absolutely and relatively as a share in the total expenditures for R&D, which indicates diminishing importance, and deteriorating financial, personnel and material potential of agrarian knowledge and innovation sector. The most important sector for ARD in the country is the government in which more than 80% of overall expenditures for ARD are invested, as distribution of expenditures and organization of R&D in major sectors differ considerably from other EU member states. ARD in the country mainly are funded by the state budget, and the importance of budget financing relatedly increases during the period, unlike trends in other EU countries.Keywords. Research and development, Agriculture, Sectors, Funding, AKIS, Bulgaria.JEL. Q12, Q13, Q15, Q18