Page 21 of 32

Page 22 of 32

Page 23 of 32

Bulgarian
Association of
Agricultural
Producers

Institute for
Market Economy

CAPA

(Centre for Agri-
Policy Analysis at
the Institute of
Agricultural
Economics, Sofia,
Bulgaria)

 

suıgarıa

Stakeholders

.Q isational struch
- - Chairman of the board

« CAP position

- More equal payment, retaining a strong pillar I (as
problems with using pillar II), against upper and lower
limits of payments, more freedom in using pillar II funds
(less for environment more for modernisation), decreasing
cross compliance, more water management, encouraging
biofuels, end of dairy quotas and availability of risk
management tools

Following the adoption of proposal it welcomed the concept
of "Small Farmers", "Young Farmer="; the simplification of
the procedures and the measures related to fostering
knowledge transfer and innovation; The measures
enhancing competitiveness and the "coupled" option linked
to fruits, vegetables and animal products;

On the other hand, the "capping" and the "degressivity"
present a concern, especially for the grain producers in
Bulgaria who appeal for a higher ceiling;

Bulgaria is not prepared that for some of the proposals - for
example, the environmental objectives and the requirements
for association and joint-venturing between farmers.

(Chairman Management

(Chairperson Advisory Board)
CAP position

- During the first reactions on the overall MFF the NGO
sector (Institute for Market Economy and Forum Civil
Participation) expressed a radical view for a total
elimination of the agricultural subsidies. The latter are
considered creating imbalances and overproduction. They
argue that elimination of the subsidies would increase the
competitiveness of the Bulgarian agriculture.

CAP Post 2020 position
Keep the two-pillar structure.

Introduce = compensatory payment for income losses
based on indices.

Regroup BPS and Greening and link to environmental
requirements.

In favour of capping.
Raise the threshold for redistributive payment.

Page 24 of 32

Bulgaria

CV of Agriculture Minister

Mr. Rumen Porodzanov
Minister of Agriculture, Food and Forestry

 

Page 25 of 32

Page 26 of 32

Page 27 of 32

Annex 2 Page 28 of 32

Tobacco growers are located in the less favored arcas and areas, planted with Oriental
tobacco, can hardly be used to grow alternative crops. That is why ihe process of establishing
alternative activities in Bulgaria is very difficult.
period 2015-2020, which is a continuation of the National Payment Scheme. It is aimed at
additional support for tobacco growers provides an opportunity for a structural reorientation of
the sector and redirects farmers from traditional tobacco production areas to alternative activities,
while adapting to the new market conditions and requirements of the agricultural policy.

During the period of application of the two tobacco specific schemes - from 2013 10
2017, the Compound Annual Growth Rate (CAGR) of reduction of tobacco arcas in the country
is 14%. The harvested areas for the period 2013-2016 show an average annual rate of decrcase of
21%. The downward trend in Oriental tobacco is the strongest (27%). which occupies most of
the tobacco areas in the country. The average annual rate of decline in tobacco production in
Bulgaria for the period 2013-2016 is 25%. In 2016, 15 211 tons of tobacco were produced in
Bulgaria, while in 2013 the production amounted to 36 446 tons. A significant decrease is also
observed in the value of the final tobacco production, with the average annual rate of decline of
14% for the period 2013-2017. The number of tobacco producers is also decreasing every year.

Transitional National Aid makes it possible for farmers, who have previously relied

prevention of abandonment of farming and less favored areas depopulation.

Tobacco production in Bulgaria is in the process of significant restructuring which has
not finished yet. Abolition of the complementary support of the tobacco producers income could
lead to further deterioration of the social and demographic situation in Ihe regions, which will
aggravate the local economy, which goes against CAP efforts to ensure balanced regional
development. It carries the risk that agricultural producers return to this production before the
end of the sector restructuring process, going on in the country. It is therefore necessary to
continue the policy of support until the final restructuring. The sector needs a longer period of
time to find its balance, without causing serious damage to the vulnerable regions of the country
which have no other economic alternatives.

The cessation of cultivation of this type of crop in ihe EU will not lead to the suspension
of its use, but to an increase in its import.
DEAR COMMISSIONER,

By emphasizing my strong concem about the future of tobacco producers and the need to
smoothly and painlessiy finalize the restructuring of tobacco production and its gradual
replacement with other agricultural and non-agricultural activities in sensitive regions, I hope
that the Commission will take into account the above information. We should treat tobacco
producers like all other farmers in the EU. I expect the possibility for continuation of the support
for tobacco producers’ incomes to be provided beyond 2020, by decoupled national transitional
tobacco aid being eligible for inclusion in the National Strategic Plan.

Please accept, Mr. Hogan, the assurances of our highest consideration

 
  
 

Best Regards

Page 29 of 32

IE Ref. Ares(2018)2145304 - 23042018

 

PHIL HOGAN Rue de la Loi, 200

MEMBER OF THE EUROPEAN COMMISSION 8-1049 Brussels

AGRICULTURE AND RURAL DEVELOPMENT Tel +32-2 295 52 86
Brussels,

(2018)1504465 70. &. 209

->—

Thank you for your letter in which you express your concerns about the future of tobacco
growers in your country. I understand the cultivation of tobacco has a special
importance in certain regions of your country, and that its cultivation would be very
difficult to replace by another crop or another activity.

You ask for a possibility to continue paying Transitional National Aid (TNA) under the
current Single Area Payment Scheme (SAPS) after 2020.

The preparation of the future legislative framework is currently ongoing. In preparing its
proposals, the Commission will carefully assess the needs in terms of direct payments for
farmers, including by means of the SAPS to which the granting of TNA is related. At this
stage of the preparations, | am however not yet in position 10 reply to your question
whether the proposal will provide for the possibility to continue granting such national
aids after 2020.

 

Page 30 of 32