Background information

Ensuring sufficient liquidity for farmers in primary agricultural production - breeders of large and small ruminants, horses and bee colonies, and producers of fruit and vegetables, oil rose, rice, vines, nuts (walnuts, almonds and hazelnuts), salads and lettuce, okra, courgettes and tobacco - to counter the negative economic impact of the Russian aggression against Ukraine and/or of the sanctions imposed or retaliatory measures taken, and to ensure the continuity of economic activity.

The aid is applied after a positive decision of the European Commission on compatibility with the rules in the field of state aid. The aid first applied from the date of the decision of the European Commission - 17 August 2022 - to 31 December 2022. it was then further extended for 2023.

Content of measure

Maximum aid intensity according to point 42, letter a) of the Crisis Framework is up to €250,000 (BGN 488,975) per enterprise active in the primary production of agricultural products (amended by decision of the Board of Directors, Minutes No. 203 of 18 November 2022). The aid is provided as a direct grants to farmers from primary agricultural production - animal breeders, breeders of large and small ruminants, horses and bee families, and producers of fruit and vegetables, rose oil, rice, wine vines, nuts, almonds and hazelnuts), salads and lettuce, okra, zucchini and tobacco, to offset some of the increased production costs.

With the adopted Law on the State Budget of the Republic of Bulgaria for 2023, an additional BGN 150,000,000 (€76,693,782) was provided for Agriculture to be paid to farmers through the state aid scheme in connection with the consequences of the war in Ukraine. An additional BGN 63 million (€32 million) has been secured, to be paid to farmers. The total aid budget is increased from BGN 213 million (€109 million) to BGN 426 million (€218 million), and the approved rates by will be further increased.

In 2023, the payment of the state aid funds is in connection with the commitment to pay by 30 September 2023, according to the Memorandum signed on 20 September 2023 between the Council of Ministers, the Ministry of Finance, the Ministry of Agriculture and Food and the Initiative Committee for conducting nationwide agricultural protest.

Use of measure

State Fund "Agriculture" (SFZ) transferred BGN 178,462,669.74 (€91,246,513) to 34,587 farmers under the state aid "Aid to support the liquidity of farmers to overcome the negative economic impact of Russian aggression against Ukraine" in 2023.

The aid budget for 2023 was increased and amounts to a total of BGN 426,000,000 (€217,810,341), which is distributed in the following areas:

• Large and small ruminants, horses, and bee colonies – BGN 204 million (€104 million);
• Fruits and vegetables (apples, pears, apricots/greens, peaches/nectarines, cherries, sour cherries, Polish strawberries, Polish raspberries, plums, dessert grapes, Polish tomatoes, Polish cucumbers, gherkins, eggplant and Polish peppers, greenhouse tomatoes, greenhouse cucumbers , greenhouse pepper, greenhouse strawberries, greenhouse raspberries, potatoes, onions, garlic, carrots, cabbage, watermelons and melons), butter rose, rice, wine vines, nuts (walnuts, almonds and hazelnuts), salads and lettuces, okra, zucchini , cultivated mushrooms and tobacco – BGN 222 million (€114 million).

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government Trade unions Company / Companies	European Funds National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Informed
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Only trade unions
• Main level of involvement: Peak or cross-sectoral level

Involvement

The import of grain from Ukraine caused tension in the parliament (13 September 2023). The government demanded lifting of the ban, the opposition in the parliament attacked, and the agriculture trade unions and farmers threatened with national protests. The farmers' national protest and road blockage lasted from 15 to 20 September 2023, and increase of this state aid budget is because of negotiations between the protesters and government, resulted in a memorandum. Additional funds in the amount of BGN 213 million (€109 million) will be paid by 30 September 2023, according to the Memorandum signed on 20 September 2023 between the Council of Ministers, the Ministry of Finance, the Ministry of Agriculture and Food and the Initiative committee for conducting a nationwide agricultural protest.

Views and reactions

The Agrarian Chamber insisted on urgent measures to save agriculture because of intentions of the government to lift the ban for import of agriculture goods from Ukraine. Drought hit Dobruja region for another year. In 2022 the sunflower harvest ended in Dobrich region with 259 kilograms per hectare - in 2023, the average yield is 150 kilograms, according to information from the regional agricultural service. "If we harvest an average yield of 200 kilograms, at, say, 70 cents, that's BGN 140 (€72) income in the best case. Which means that with an income of BGN 140 (€72), at most, we can cover our expenses", commented Neli Stoyanova, chairman of the Agriculture Chamber in the village of Paskalevo.

The farmers stated that if grain is imported from Ukraine again, the losses for the native producers will be very large. They assured that there is enough sunflower in Bulgaria, and the lack of imports at the moment will not affect either the production or the price of the oil.

The nationwide agricultural protest to save Bulgarian agriculture began on 18 September 2023. An initiative committee, composed of 24 organizations, formulated requests to the National Assembly, the Council of Ministers and the President of the Republic of Bulgaria, for example:

• Continuation of the ban on the import of sunflower, wheat, corn and rapeseed from Ukraine and the introduction of a ban on the import of unrefined oil, fresh and frozen fruits and vegetables, milk and milk products, meat and meat products, live animals, honey and bee products products from Ukraine, as well as increasing the control of the origin, quality and safety of the import of agricultural products into the country.
• Payment to agricultural producers by 30 September 2023 of the full amount of compensations for increased production costs as a result of the war in Ukraine and dropping the aid ceiling.
• Immediate payment of state aid to compensate farmers with 100% failed areas.

Over 900,000 people are affected by the repealed ban on the import of agricultural products from Ukraine, representatives of 26 branch organizations from the agrarian sector emphasized.

The grain producers reached an agreement with the government to stop the import of sunflowers from Ukraine, while on the import of wheat, corn and rape depends on the ongoing negotiations between the European Commission and Ukraine, together with the agriculture ministers of the member states.

Sectors and occupations

This case is not occupation-specific.

Sources

• 01 September 2022: "Aid to support the liquidity of farmers to overcome the negative economic impact of Russian aggression against Ukraine" - number in the public register of state aid - SA.103875 (2022/N) (www.dfz.bg)
• 26 April 2023: INSTRUCTIONS FOR THE IMPLEMENTATION OF STATE AID "ASSISTANCE IN SUPPORTING THE LIQUIDITY OF FARMERS TO OVERCOME THE NEGATIVE ECONOMIC IMPACT OF RUSSIAN AGGRESSION AGAINST UKRAINE" - AMENDMENT (www.dfz.bg)
• 15 September 2023: Farmers in protest: See which places in the country will be blocked (btvnovinite.bg)
• 20 September 2023: The memorandum signed with the farmers comes into force from today, the prime minister said (www.bta.bg)
• 20 September 2023: The memorandum between the farmers and the authorities (agri.bg)
• 26 September 2023: The DFZ Board increased from BGN 213 million to BGN 426 million the state aid budget "Aid to support the liquidity of farmers to overcome the negative economic impact of Russian aggression against Ukraine", implemented in 2023. (www.dfz.bg)
• 28 September 2023: Farmers received over BGN 178 million in additional payments for state aid due to the war in Ukraine (www.dfz.bg)