Effect from the Implementation of the CAP of EU on the Agriculture and Rural Regions

The analyzed period in the paper spans over 2004-2008, immediately before and after accession of the country in EU. The goal of the paper is firstly based on the statistical data to be illustrated the main characteristics of the economic and agricultural development as it was mentioned immediately before and after joint of the country in EU and secondly on that fundament to be done estimation for the impact of the CAP and SAPARD on the development of the agriculture and rural regions together with rendering recommendations for improvement of their situation. The economic development of Bulgaria in the period 2004-2008 could be described as successful. Real GDP growth was significantly higher than in most EU countries - 6.3% on average. Unemployment decreased from 12.1% in 2004 to 6.9% in 2007. At the same time the economic growth was accompanied by inflation increase - from 6.1% in 2004 it has reached to 12.5% in 2007, mainly the result of the gradual approximation of interior prices to EU ones and of the prices' increase of energy inputs and food products. The relative share of agriculture and forestry in the national GDP has been decreasing for the last decade, as this trend also sustained in the period 2004-2007, going down from 11% in 2004 up to 6.2% in 2007. Besides, the GVA in the agricultural sector also declined from 2.18 billion in 2004 to 1.79 billion in 2007, which is mainly explained by adverse weather in 2007 which caused low crop yields, shortage of forage and reduction of livestock production. The total UUA continually fell from 5.3 Mha 2004 to 5.1 Mha 2007, which is attributed to lasting withdrawals from agricultural activity. The reform of the farm structure is characterized with the raising significance of the market-oriented farms at the expense of the small households. Although the trends into consolidation strengthen, the dual production structure is still prevailing form of national agriculture. One year from our accession to the EU is a very short time for some significant conclusions. There are not any significant changes in relation to the production volume and the land use. The farms number continues to decrease and there is also a diminution of the number of employed in the agricultural sector. However, the trade balance of agriculture for the first time for long time in 2007 is indicated to be negative, which unarguably can be attributed up to some extent to the EU accession and weak competitiveness in the sectors of meat, vegetables and fruits. However, the accession in EU found the Bulgarian agriculture and food sectors in the situation of uncompleted reforms and a great number of impending problems, especially in the livestock production, as the support measures that must have cushioned their effect Programme for Rural Development 2007-2013 shows an inadequate progress. Therefore, in the short run, the effect from the accession on the agri-food sector is expected to be burdening due to significant structural problems, afterwards, the country is assumed to fulfill its comparative advantages climate, soil resources, free land resources. The analysis illustrates that goals and objectives laid down in the NSPRD 2007-2013 and PRD are thought as very far from the achievement. There has not been notice any increase of the competitiveness of the agriculture. The share of this sector within GDP and GAV keeps downward mostly due to the crisis in the sector. Meanwhile, the effect on the environment and support of the agriculture in the less-favored regions is relatively weak. Moreover, there has not been noticed significant change in the social-economic situation in the rural regions. Contrarily, the economic growth slows behind that in the urban regions and regarding the quality of life these regions also relegate compared to urban ones. The trends in the development indicate that in the middle term span and within framework of current CAP, the Bulgarian agriculture will not be able to fulfil its natural potential. The main reason is seen in the disparities of the Bulgarian farmers in terms of agricultural support.