Background information

The Management Board of the State Fund "Agriculture" (SFA) approved financial resources for 2023 in the amount of BGN 22,100,000 (€11,299,551) under the state aid scheme "Aid for compensation of damage to agricultural crops caused by adverse climatic conditions which can be assimilated to natural disasters". Farmers who have a statement of 100% fallen area for damage caused by adverse climatic events which can be assimilated to natural disasters in 2023 are eligible. Financial support under the aid is granted to producers who have suffered damage as a result of frost, hoar frost, torrential rain, heavy rain, prolonged rain, flooding, hail, drought.

Content of measure

From 18 September to 6 October 2023, farmers can submit applications for the aid to the Department of the State Agriculture Fund's regional directorates. Payment of the aid is due by 27 October 2023. Deadline for disbursement of the funds (amended by Decision of the Board of Directors, Minutes No. 218 of 2023) for applications submitted by 26 September 2023 is up to three working days after processing the applications, and for applications submitted from 27 September to 6 October 2023 - by 27 October 2023.

Funding is allocated at the following intensity of production costs per crop:

• Up to 80 % of the actual costs of growing fruit and vegetables (almonds, apricots, plums, walnuts, peaches, cherries, quinces, apples, pears, cherries, hazelnuts, potatoes, dill, watermelons, peppers (outdoor), tomatoes (outdoor), strawberries);
• Up to 40 % of the actual cost of growing cereals and oilseeds, excluding rape (wheat, barley (winter), maize and sunflowers).

In cases where farmers affected by natural disasters do not have any insurance covering such events, they receive half of the calculated amount of support.

The actual production costs are calculated on the basis of a technology map which includes the costs of sowing/planting, irrigation, fertilization, hoeing, etc., excluding the costs of harvesting, drying and transportation of the products.

This short-term state aid is granted to natural persons (individuals), sole traders and legal entities that meet the following conditions: registered as farmers in accordance with Ordinance No. 3 of 1999 on the establishment and maintenance of a register of farmers. The farmer-legal entity or sole trader must be registered with the Registry Agency under the Commercial Register Act (CRA) and indicate a unique identification code (Art. 23 of the CRA). Eligible applicants also need to be included in the Register prepared by the Ministry of Agriculture of the issued finding protocols to farmers for completely failed areas of agricultural crops due to natural disaster or adverse weather event in 2023. Eligible for the state aid must not have outstanding debts with the Fund.

Use of measure

For the affected production as of 31 July 2023, 805 detection reports have been issued to farmers to establish 100% fallen areas from the severe weather events. The fallen areas amounted to 40,518 hectares and the following crops were destroyed: almonds, apricots, plums, walnuts, peaches, cherries, quinces, apples, pears, cherries, strawberries, hazelnuts, rape, wheat, barley, maize, sunflowers, potatoes, fennel, watermelons, pepper (outdoor), tomatoes (outdoor).

The State Fund "Agriculture" has transferred BGN 17,735,000 to 708 farmers who have submitted applications until 26 September 2023 under the scheme.

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	National funds

Social partners

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

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

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

• No involvement
• Main level of involvement: N/A

Involvement

Social partners are not involved in the activity and measures, funded by SF 'Agriculture'. The State Fund 'Agriculture' management board is composed of 11 members. The Minister of Agriculture, Food and Forestry is an ex officio member and the Chairman of the Board. The Executive Director of the Fund is also an ex officio member of the Management Board. Four of the members of the Management Board shall be appointed by the Minister for Agriculture, Food and Forestry, at least two of whom shall be Deputy Ministers. The Minister for Finance, the Minister for the Economy, the Minister for the Environment and Water, the Minister for Labour and Social Policy and the Minister for Regional Development and Public Works shall each appoint one Deputy Minister as a member of the Management Board.

Views and reactions

Social partners are active in comments and statements, related to the legislation such as draft law on prevention of adverse climatic events in agriculture. For example, the Federation of Independent Agriculture Trade Unions supports reforming the anti-hail system. No other social partners' views or statement on the state aid to compensate for damage to crops caused by adverse climatic events which can be assimilated to natural disasters are available.

Sectors and occupations

This case is not occupation-specific.

Sources

• 30 April 2022: Annual Report on the Activities of the State Fund AGRICULTURE and the Paying Agency for 2022 (Version 1.1) (www.dfz.bg)
• 17 August 2023: The Ministry of Agriculture answers us: Loss of farmers' income is compensated by several state aids (zemedeleca.bg)
• 14 September 2023: BGN 22.1 million have been provided for compensation to farmers from natural disasters (www.dfz.bg)
• 26 September 2023: GUIDELINES FOR THE GRANTING OF "AID TO COMPENSATE DAMAGE TO AGRICULTURAL CROPS CAUSED BY ADVERSE CLIMATE EVENTS WHICH MAY BE EQUATED TO NATURAL DISASTERS" OCCURRING IN Guidelines for the state aid (www.dfz.bg)
• 28 September 2023: SF "Agriculture" has transferred BGN 17.7 million to compensate for damages caused by unfavorable climatic conditions (bnr.bg)