BULGARIA: ESTIMATES OF SUPPORT TO AGRICULTURE

DEFINITION AND SOURCES

            Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes with specific sources indicated in square brackets. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures, as well as the method of allocation of the corresponding transfers among commodities. "MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table 2.

            Market Price Support (MPS) and CSE by commodity in Table 2 are calculated for the following commodities: wheat, maize, barley, sunflower, sugar, milk, beef and veal, pigmeat, poultrymeat, sheepmeat and eggs. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

            Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

The description of budgetary measures in Table 1 covers the period 1995-2005.

Table 1. Total Support Estimate

Definitions:

I. Total value of production (at farm gate): total agricultural production valued at farm gate prices, i.e. value (at farm gate) of all agricultural commodities produced in the country [1].

1. Of which share of common commodities (%): share of commodities for which MPS is explicitly calculated (in Table 2) in the total value of agricultural production.

II. Total value of consumption (at farm gate): consumption of all commodities domestically produced valued at farm gate prices, and estimated by increasing the value of consumption (at farm gate) of the MPS commodities according to their share in the total value of agricultural production [(II.1) / (I.1) x 100].

1. Of which MPS commodities: sum of the value of consumption (at farm gate prices) of the MPS commodities produced in the country as indicated in Table 2.

III.1 Producer Support Estimate (PSE): associated with total agricultural production, i.e. for all commodities domestically produced (Sum of A to H, when negative, the amounts represent an implicit or explicit tax on producers).

A. Market Price Support: on quantities domestically produced (excluding for on-farm feed use -- excess feed cost) of all agricultural commodities, estimated by increasing the MPS for the common commodities according to their share in the total value of agricultural production [(A.1) / (I.1) x 100].

1. Of which MPS commodities: sum of the MPS (net of price levies and excess feed cost) for the MPS commodities as calculated in Table 2.

B. Payments based on output

1. Based on unlimited output

Payments for extra and first grade cow milk (from 2001): payment per litre of quality milk sold on the market.

2. Based on limited output

Support for tobacco (from 2000): price premium, payment per tonne and additional quality premium per tonne of tobacco sold on the market. Production is limited by quotas.

C. Payments based on area planted/animal numbers

1. Based on unlimited area or animal numbers

Payments for crops (2001): per hectare payments, allocated to wheat, potatoes, sunflower seeds, maize, sugar beet, rice. Budgetary expenditures are identified for each commodity.

Payments for spring plantings (2001-02): per hectare payments for wheat, maize, sunflowers and potatoes planted.

Subsidies for livestock (1997): credit subsidies to producers who accepted to sell a part of their output to the 'Fund Agricola' at a given price, but often the farmers didn't sell anything to the Fund.

Payments for breeding animals (2000-01): payments per head of livestock.

2. Based on limited area or animal numbers

payments for livestock (2000): payments per head of cattle, pig, poultry and sheep.

D. Payments based on historical entitlements

E. Payments based on input use

1.      Based on use of variable inputs

Subsidies for fertiliser and pesticides (from 1999): budgetary expenditures on subsidies for fertilisers and pesticides used for crops.

Subsidies for fertilisers for wheat, maize, barley, sunflower, rice and potatoes (from 2001): budgetary expenditures on payments per hectare of the above mentioned crops.

Payments for bio-chemicals (2000-01): budgetary expenditures on payments for bio-chemicals applied to crops.

Short term credit subsidies (2001): budgetary expenditures on interest concessions for short-term loans to buy farm inputs.

Fuel subsidies (1995, 2004): budgetary expenditures on fuel subsidies paid per hectare.

Credit subsidies for fuel (2000, 2002): budgetary expenditures on interest concessions for short-term loans to purchase fuel for wheat and barley production.

Subsidies for irrigation (2000, 2002, 2004): budgetary expenditures. 

Short term credit (2002-2003): budgetary expenditures on interest concessions for short-term loans to purchase inputs for wheat, maize and sunflower production.

Short term credit from 1997 (1997, 2002): budgetary expenditures on interest concessions for short-term loans to purchase farm inputs.

Short term credit for wheat, maize, sunflower, potatoes (1998-2000, 2002): budgetary expenditures on interest concessions for short-term loans to purchase inputs for above mentioned crops.

Subsidies for animal feed (1998, from 2003): budgetary expenditures on payments to cover part of the costs of feeding cattle, pigs and poultry.

Credit subsidies for livestock feeds (1999, 2002): budgetary expenditures on interest concessions for short-term loans to purchase feed for livestock.

Support for storage of wheat (1998. 2003-2004): payment per tonne of wheat stored.

Low interest credit for wheat and maize (2000): budgetary expenditures on interest concessions for short-term loans to wheat and maize production.

Seed subsidies (2000): budgetary expenditures on subsidies for rice seeds in 2000, and on subsidies for tobacco seeds in 2000 and 2004-05.

2.      Based on use of on-farm services

3.      Based on use of fixed inputs

Investment credits (from 1998): budgetary expenditures on interest concessions on investment loans.

Investment credits for agricultural machineries (2001-2002): budgetary expenditures on interest concessions on loans to purchase machineries for crop production.

Investment credit for breeding animals (2001): budgetary expenditures on interest concessions on loans to purchase breeding animals.

Investment credits to permanent crops (2000-2002, 2004): budgetary expenditures on interest concessions on investment loans for other crops.

Investment in agricultural holdings (from 2002): budgetary expenditures on capital grants under SAPARD programme, co-financed by the EU, identified for milk, livestock, crops, eggs and other commodities.

F. Payments based on input constraints

1.      Based on constraints on a set of inputs

2. Based on constraints on fixed inputs

Payments for obligatory slaughtering of animals (2000-2002): payments per head of animal (cattle, pig, poultry and sheep) slaughtered.

3. Based on constraints on a set of inputs

G. Payments based on overall farming income

1.  Based on farm income level

2.  Based on established minimum income

H. Miscellaneous payments

1.      National payments

III.2 Percentage PSE [(III.1) / ((I) + (Sum of B to H)) x 100]

III.3 Producer NAC [1 / (100 - (III.2)) x 100]

IV. General Services Support Estimate (GSSE): total budgetary expenditure to support general services provided to agriculture Sum of I to O.

I. Research and development

Research and development (from 2000): budgetary expenditures.

J. Agricultural schools

Agricultural schools (from 2003): budgetary expenditures.

K. Inspection services

Inspection services (from 1999): budgetary expenditures for preparation for joining the EU (animal identification, inspection laboratory, border control laboratories etc).

L. Infrastructure

Support for irrigation system (1986-1999, from 2002): budgetary expenditures.

Development and diversification of economic activities in rural areas (from 2002): budgetary expenditures under the SAPARD programme, co-financed by the EU.

M. Marketing and promotion

Marketing and promotion (from 2003): budgetary expenditures

Marketing and processing (from 2002): budgetary expenditures under the SAPARD programme, co-financed by the EU.

N. Public stockholding

O. Miscellaneous

Payments for removal of out date pesticides (from 2000): budgetary expenditures.

Payment for keeping record of tobacco production (2000-01): budgetary expenditures.

Payment for fighting hailstorms (2000-2002): budgetary expenditures.

V.1         Consumer Support Estimate (CSE): associated with agricultural production, i.e. for the quantities of commodities domestically produced, excluding the quantities used on-farm as feed – excess feed costs [(P) + (Q) + (R) + (S); when negative, the amounts represent an implicit tax on consumer].

              P. Transfers to producers from consumers: associated with market price support on all domestically produced commodities, estimated by increasing the transfers calculated for the common commodities according to their share in the total value of production [(P.1) / (I.1) x 100]

              1. Of which common commodities: sum of the values of transfers from consumers to producers associated with market price support on the common commodities produced in the country as calculated in   Annex Tables IV.2.

              Q. Other transfers from consumers: transfers to the budget associated with market price support on the quantities imported of domestically produced commodities, estimated by increasing the transfers calculated for the common commodities according to their share in the total value of production [(Q.1) / (I.1) x 100]

              1. Of which common commodities: sum of the transfers to the budget associated with market price support on the quantities imported of the common commodities produced in the country as calculated in Annex Tables IV.2.

              R. Transfers to consumers from taxpayers

              S. Excess Feed Cost: associated with market price support on quantities domestically produced and used on-farm as feed as calculated in Annex Tables IV.2.

V.2 Percentage CSE [(V.1) / ((II) - (R)) x 100]

V.3 Consumer NAC [(1 / (100 - (V.2)) x 100]

VI. Total Support Estimate [(III.1) + (IV) + (R)] and [(T) + (U) - (V)]

T. Transfers from consumers [(P)+(Q)]

U. Transfers from taxpayers [(III.1)-(P)+(IV)+(R)]

V. Budget revenues (Q)

Source:

Ministry of Agriculture.