Stayko Staykov, Chairman of the Board of Directors of the Bulgarian Association of Agricultural Land Owners: “Europe has assigned us the task to play the role of the reserve granary”

“We will not be allowed to develop fruit and vegetable growing because we will harm the old Member States,” says Stayko Staykov. Stayko Staykov is chairman of the Board of Directors of the Bulgarian Association of Owners of Agricultural Land. In an interview with Standard newspaper, he commented on the new CAP, the agricultural land market, and his idea of creating a common chamber of agriculture.

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-Mr Staykov, a national plan for the development of agriculture will be drawn up in relation to the new Common Agricultural Policy/CAP/2020-2027. Is it possible that there is a change of priorities in our country?

-I think what we’re doing right now is not going to change. The backbone of Bulgarian agriculture is conventional and large farms, which grow wheat, rape, barley, coriander-annual crops, which can not be grown on small size areas. This is what Europe assigned to our country in terms of agricultural products. Bulgaria is the reserve granary of Europe, together with Hungary and Romania. Our land is the least contaminated because certain fertilizers and chemicals have relatively recently been used. And a lot of grain, especially the high quality one, is sold in European countries. So I see no reason to change this strategy. Besides, Europe is not going to finance us for cooperative support, for example, for fruit growing or anything similar because this way it will negatively affect the farmers of the old Member States. Farm hand is highly-paid and they wouldn’t allow us to get involved in this area of agricultural production.

-Yes, but we have traditions in fruit-growing as well as in vegetable growing. If we insist, is there no chance of fighting back?

-In Bulgaria not only the most delicious but also the oldest varieties are grown, which however are perishable. We don’t have irrigation everywhere, which is a big problem. If we have to change the whole concept for growing perennials, the investments needed will be huge. In order to make this kind of investment, you have to have markets. For example, there are many vines, most of them planted thanks to European programmes, which, however, could not find a place in the European market. And right now, there’s no one to sell the wine to. Wine cellars in Bulgaria are becoming more, more vineyards are being grown, we have witnessed that this year people were forced to throw their grapes production because there was no one to sell it to. Conventional agriculture is much less profitable. But on the other hand, grain is a stock commodity that has a very fast return on investment. And even if the profit is insignificant when it is quick, it’s still somehow beneficial for Bulgarian agriculture. As there is no one to buy our permanent crops, such as our old varieties, we can not reinvest, we do not receive a lot of support, such as the one Greece has. Greece is undercutting our prices, and there’s no way to change that. I believe that Europe will continue with this policy. In the new programming period, regardless of whether or not there will be a ceiling put on the subsidies, it is certain there will be an increase in the funding for both the rural areas, and for green payments as well. Therefore I don’t think we’re going to change anything in Bulgarian agriculture. I think that traditional and conventional agriculture will become more intense, better. We already have a good practice, we use better chemicals, fertilizer, a lot of things have changed. However, we can’t influence the climate. The problem in southern Bulgaria is a trend with a higher number of warmer days and subsequently smaller yields.

-And what part of the agricultural land in Bulgaria is consolidated?

-There are partially consolidated land plots, some of them large, but those are very few. Besides, that can not be defined precisely as consolidation because land consolidation includes large agricultural plots and territories, infrastructure, irrigation, drainage. There are very few of these plots left. Currently, mainly plots in size between 5 and 50 acres are bought. Our idea for the members of the Association is to exchange and thus consolidate agrcultural land plots. Hopefully, we will have a chance to get into an irrigation program. In other branch organizations there are many farmers who are willing to work with us. It’s time we set up branch chamber where we’re all going to participate. And when we have more trust in each other, things are going to happen easier.

-If you would like to unite in a Chamber of Agriculture, you must set goals that are recognized by all branches

-I think we all share the same opinion as regards the agricultural land law. I am referring to the new project, which was sent back for revision, and in which we all participate in the operational group thanks to the fact that we have common interests and we foresee common problems. We have experts who work together with the Ministry of Agriculture, Food and Forestry (MAFF). Concerns are similar because our members possess agricultural land all over the country. If we do not comply with the Constitution, we violate the rights of the owners-therefore the law was suspended because according to Art. 17 of the Constitution private property is inviolable. Lots of details under the law were decided upon very quickly and perhaps, unintentionally, a lot of mistakes were evident. Over 3.5 million Bulgarians are owners of whole or co-shared plots of agricultural land in joint ownership. We can not ignore their opinion. We are together in everything, we have offered help to the MAFF, they have accepted it and now work with us, so we will continue forward in the same manner. The idea of a common chamber of agriculture is to unite the branch even further. There will be representatives from all the associations that we will be able to trust. I see no reason for any misunderstandings to happen between the representatives from the whole industry.

-You mentioned that there have been a lot of deals lately which see foreigners sell their land. Would you give more details?

-We are talking about foreigners who have acquired land in Bulgaria for investment in the secondary market through intermediaries from the primary market. They paid 200-300 BGN per acre and consolidated the land. Prices are now rising with an acre in northern Bulgaria reaching over 1000BGN. Owner probably do not expect a further rising in the prices, such as the one witnessed in previous years. That’s why they have decided to let go of this particular investment.

-And what happened to the widely planted chickpeas? Why did farmers select this type of crops in particular?

-Chickpeas is nitric acid fixative crop and there is an additional payment for that in the subsidy. For two years, chickpeas retained a good price, especially in southern Bulgaria, where no corn is grown. In previous years, coriander was also grown in southern Bulgaria. But its price fell because the Russians started producing coriander at a very low price. And then hope was directed to chickpeas. But we had overproduction. And at the same time the countries that import chickpeas, had a good year. And it turned out that from 2BGN per kg, the price dropped to 30 cents. Most of the farmers needed money and sold it at a price next to nothing. This automatically incurred them huge losses. And if they have a bank loan for the land or for some other purpose, they can go bankrupt.

-The new CAP is expected to give greater preferences to young farmers. What would you advise a young person who knows about these preferences and decides to start dealing with agriculture?

-Many people see the young farmer as a man who will receive a specific amount of money and make a profit out of it. However, Europe’s requirements are very strict, jobs need to be created, there is real work to be done. A lot of years must pass, during which an entrepreneur makes a lot of expenses and has to do a lot of work, before they make a larger profit. Right now, people think they’re going to take some easy money and that’s not the case. Moreover, in most cases they are penalized and lose money, which is taken on loan or in some other way, and that leads to huge losses. Some people want to return from abroad and become young farmers. But it is very difficult if someone does not help them. For they neither have the land, nor have they the means, nor the experience. It all depends on the climate, the crops, whether or not there are natural disasters. It is a factory under the sky, it is very difficult for a person to embark on such an endeavor without having a partner. And if unfortunately during the first year there is some upheaval within the business, it’s going to bankrupt. Care should be taken when selecting consultants. All programmes and commitments must be read with extreme care. Bulgarians usually sees the money and does not see the commitments behind them. Europe gives a lot of promises, but it is also increasing the commitments and they will be clarified after the election of the new European Parliament. So I can’t advise anyone to carelessly risk and become a farmer. A good agronomist is a prerequisite and they turn to be very expensive specialists and very difficult to find. Extra funds are also needed. Being a farmer isn’t as simple as it looks.

Източник: https://в. Стандарт, стр. 16

Stayko Staykov, Chairman of the Bulgarian Association of Owners of Agricultural Land (BAALO), “A New Law On Agricultural Land Violating Market Principles Is Being Drafted”

“This project will oblige the tenants to sign contracts requiring them to make fixed payments towards the rent regardless of the amount of the harvest’, says Stayko Staykov, Chairman of the Bulgarian Association of Agricultural Land Owners. Stayko Staykov is the Chairman of the Board of Directors of the Bulgarian Association of Agricultural Land Owners. Owners of the largest agricultural land plots in the country are members of the Association. Mr Staykov was born in 1969 in Sliven. In 1996, he graduated Aleko Konstantinov Institute of Tourism in Burgas. He also has a degree in Tourism from Burgas Free University and specialised Finances in St. Cyril and Methodius University in Veliko Tarnovo. He has been the Managing Director of Staven Ltd since 2010.

-Mr. Staykov, yet another law concerning agricultural land is now in a drafting process, however, grain producers have already declared themselves against it-they believe that it will interfere with free trade. Where do you think the problem lies?

-The proposals are completely chaotic thus our negative attitude. Instead of improving the relationship between owners and land users, we make them worse. It turns out that we will not get any clear foreseeability but a chaos that will in fact violate the constitutional law of every citizen. First of all, the deadline for public discussions of the proposed texts was extremely inadequate-the proposals were released just before Christmas and the discussions ended soon after. One of the biggest problems is the imposition of fixed amount for a minimum payment, which must be stipulated in the contract and must be higher than the average payment. This violates free bargaining and leads to abnormalities. For an agricultural land plot falling in a lower category, for example, will be paid as much as for a higher quality agricultural land plot. This is not the only problem however, heavy administrative rules are also imposed and impossible deadlines for their implementation are set. What’s more, lease contracts are meaningless because they practically can not be terminated, or in the cases they can be, it is a very difficult procedure and takes more than one business year. In short, the proposed law, instead of providing the so much needed help, it will actually incur more difficulties. Laws that violate the Constitution shouldn’t be made. In addition, the problem with the so-called ‘white spots’ also persists. This will bring neither Bulgarian nor foreign investors. Every businessman wants to plan investments in the long term and these proposals will make it highly unlikely for that to happen.

-In that case, what follows next?

-First, we will be awaiting for a response from the Ministry of Agriculture and whether it will take any measures as regards the issues above. Together, we have formed a working group but so far only a single meeting has been held. In order to come up with a proper law, recommendations from all parties concerned must be considered. Agriculture, along with Tourism, is an industry that is leading Bulgarian Economy. It is the only one that is 100% following the market principle. I am absolutely confident in my claim because on the first place the production is exported, and then it is also stock-exchange tradable at market prices. For us and for the agricultural land trade this is very good. Certainly, there have been a number of problems since 2007, but still, this is the only industry that has continued to work and has not plunged into such a deep crisis. Speaking of problems, there’s something else which needs to be mentioned. Currently, land expropriation executed by the state and the local municipalities, is carried out at prices, which are relevant to the ones of 30-40 years ago. Therefore, the compensation amount does not in any way allow one to buy land as it is highly insufficient. One can only appeal in court the amount paid as compensation, but this is practically fictitious. In some cases, huge sums of money must be paid for bureaucratic procedures: for having a land plan issued by the relevant authorities, to have tax assessments prepared, visits to various institutions, waiting in lines, etc. In the end, the compensation given back turns out to be a lot less than the money invested to get the whole set of paperwork required.

-Is it true that there is high demand for land but supply is almost inexistent?

-Usually, at the beginning of each calendar year agricultural activities tend to be inactive. This is a quiet and far less active period of about a month and a half. There are buyers but in Bulgaria agricultural land is very fragmented and there is no irrigation. This can in no way appear attractive and can neither motivate big investors to establish their activities in Bulgaria. Initially, there is an interest on their behalf but once they realize there is no land consolidation and proper irrigation, they reconsider and move away. All of them are looking for plots sizes of more than 1000 acres, even of 5000 acres. There is something else-foreign investors expect very low prices. Everyone who comes with investment money assumes that in Bulgaria there are no people with purchasing power and that all must be sold at low prices. The expectation is, for example, for a consolidated agricultural terrain to be sold at 1000 BGN per acre! Prices have long passed these rates!

-What are the prices right now?

-In southern Bulgaria, in the nice areas near Bourgas, Stara Zagora, Plovdiv and Pazardjik, an acre price can run between 800-1000 BGN, as in some specific agricultural territories around Stara Zagora, it is as high as 1100-1200 BGN. This, however, depends on the market and the local tenants. There have also been some deals where 1500 BGN per acre were offered, however, the point of discussion is land used for agricultural purposes. The cheapest prices are indicated in Strandja, Sakar, Haskovo and Harmanli. In this areas, the soil is not so fertile, there is less rainfall in summer and accordingly, yields are more modest. In the north, cheap lands are no longer on offer with the exception of the areas near Stara Planina. I won’t be discussing Smolyan area since the arable land available is limited. Similar is the situation along the river Struma, where Greek companies have been working the land for years. Prices do not exceed 1000 BGN per acre. In Dobrudja, buying offers of as much as 2000 BGN and above per acre have been made but even at these price levels, there is no serious supply.

-To what extent do agricultural subsidies determine the cost of land?

-Subsidies are a catalyst for what has been happening in Bulgaria since 2007. Thanks to them, we managed to accumulate funds and thus create a real market. By 2007 there were no subsidies and the prices of the production were very low, there weren’t many people willing to work the land and as a consequence, large agricultural plots were left deserted. Without the subsidies, it would have been very difficult to build a properly working market. And it also helped for the gradual elimination of speculators by distinguishing the genuine-working companies and investors. There are also many agricultural equipment programmes that are closely tied to subsidies and which continue today. These programmes and equipment purchase, in practice, assure the return of the money from the investment. Without these new machines we couldn’t get to today’s intensive farming.

-How will the market change after 2020, if some of the subsidies are limited or eliminated?

-There will be no upheavals, but rather a balanced demand and supply of agricultural land. Any farmer or investor who is working and has invested in land should have already accumulated some funds. Subsidies will not have such a substantial effect because agriculture in Bulgaria produces stock-market products that are in demand not only on the European but also on the world market. In other words, the cost of agricultural land will be influenced by the price of the grain, rather than the amount of subsidies. And now there’s not that much land to sell as for any extraordinary or unusual change to happen. It used to be the opposite-there was a large supply but no buyers. Farmers accumulated funds and this led to real competition between large and small companies, most of which land tenants. Good conditions were created for authentic market sale of agricultural land and not for a speculative one.

-How will Brexit affect the export of agricultural production there?

-Everyone is concerned as regards Brexit because it’s hard to predict anything. I hope that ultimately sense will prevail in Europe and in Britain. In Bulgaria at the moment both land owners and land users are very cautious.

-What could be the worst-case scenario?

-A bad scenario would be if, after a possible exit from the EU, customs duties on our products are imposed. We had great difficulties reaching certain markets and if things turned for the worse, new realignment would have to be considered. We will have to seek new markets again but within the framework of highly competitive Europe, that will be very difficult. For example, our wine is exported to England at relatively good prices. European markets are difficult because a number of countries are getting much more support compared to our producers and this makes them more competitive. A possible levy on our producers would lead to serious market stress.

-What about exports to the so-called third countries-Russia, China, the Arab world?

-The state itself must work much more closely with branch organizations and have a strong policy. We can offer production, but if there is no government policy and guarantees, how do we go out on our own in a new market? You see, for example, Turkey, how it advertises its tourism and how it supports its agriculture. They have created the largest water project, thanks to which 38 million acres of agricultural land is irrigated by using the water source of Tundja and Maritsa rivers. Greece operates in a similar mode, which is equal to Bulgaria in terms of land size. Greece managed to solve the irrigation problem through drilling. In contrast, how do we proceed in this case-we have water meters installed and we pay the price for drinking water which we use for irrigation. And at the end of the day, if we need to irrigate, we have to sell our production at a loss. Back in the past, southern Bulgaria used to produce everything on its own and the area would even sometimes have two harvests per calendar year. Not to mention that there were two varieties of beetroot, cotton and other crops grown widely. However, nowadays we are forced by circumstances to grow only one crop type. It’s just that everyone is aiming towards production of easily tradable agricultural commodities due to the higher prices offered.

-Part of the agricultural land in Romania is cheaper, are there Bulgarian farmers who prefer to develop their business there?

-The arable land in Romania is exactly three times more than that in Bulgaria-120 million acres, however, it isn’t cheaper everywhere in Romania than in Bulgaria. The area near Hungary is more expensive and there is no great supply. There are Bulgarian investors who buy land but not for agricultural purposes. Still, there are some agricultural land investments indeed, but they are very difficult to manage. Romanian market has been stimulated, still it is twice cheaper there than in Bulgaria. The average cost of the acre near Calarasi is about 350 EUR per acre, while on the other side of the Danube-in the region of Silistra, it is significantly more expensive-about 750-800 EUR per acre.

Източник: https://в. Сега , Стр. 12

An Initiative to Create Agricultural Land Code

The Ministry of Agriculture, Food and Forestry (MAF) Opens a Public Discussion on its Views on the Future Land Relations Bill and the Protection of Agricultural Land

“The field office has published on its website a draft law, whose public discussion begins today, 27 August and will continue until 26 September 2018.

The project establishes an organised and coherent comprehensive land-use arrangement to overcome the shortcomings of the present regulation in separate and different normative acts, to eliminate the contradictions between them, to give a comprehensive, sufficient and optimal regulation, consistent with the current public relations in the country “, as the main aims of the document state. The basic rules of ownership and use of agricultural land are regulated in the Land Ownership and Use Act (ZSPZZ), which was adopted at the beginning of the 90s as an important part of a group of laws aimed at conducting the process of restitution and organizing the land relations resulting from it.

See some of MAF’s ideas on key points below:

In the chapter “Consolidation of Agricultural Land by Ownership” a possibility that the map of restored property and cadastral map and cadastral registers can be modified in view of the creation of consolidated agricultural land plots by order of the Minister of Agriculture, Food and Forestry, is provided. It is foreseen that the change in the way of permanent use of properties included in the scope of the specialized layer “permanent grassland” can be carried out only after their exclusion from the layer by order of the Minister of Agriculture, Food and Forestry. It is obligatory for the MAF to maintain a specialized software product for each land, in which the municipal services are obliged to register the submitted regulations for use of agricultural land (contracts, administrative, judicial and other Legal Acts demonstrating the possession of a right which includes the right to use agricultural land, as well as agreements on their modification or termination, concluded in compliance with the requirements for the specific form.

In addition, the lease agreement on agricultural land for a period of over one year, as well as the arrangement for its modification or termination, should be concluded in writing with notarized signatures of the parties and be subject to registration with the land registry office of the property’s location. Where the lease of agricultural land with a term of more than one year is concluded by the co-owner or co-owners of agricultural land having more than 25% of the ideal parts of the property or by an authorised person, it is indicated that the duration of the contract is up to 3 years, under the terms of art. 229 of the Obligations and Contracts Act.

Authorization must be given with the explicit power of attorney with a notarized signature of the grantors. It is explicitly stated that in these cases the relations between the co-owners are governed by art. 30, para. 3 of the Property Act. A new approach is foreseen to ensure the rights of the owners of the so-called “properties-white spots”, namely the order with the Director of the Regional Directorate “Agriculture” approves the massifs for use, which is valid after payment of the amounts due for the use of the properties. Where a participant has not paid the sums due within the prescribed period, the Director shall exclude his/her designated “properties – white spots” of the agreement.

With regard to the land of the State Land Fund (DPF), it was found that neither the law nor the rules give a clear definition of the term “State Land Fund” and the Institute is important because it has a broad practical application. The definition is derived from provisions of the two normative acts in a systematic interpretation, and there is in some cases a discrepancy. The rules on the use and disposition of the UFF land are not systematically laid down in the law and the Rules of Procedure, there are no clearly defined institutes concerning the management and disposition of farmers from this fund, and the land in the former farmyards – a private state property, which requires that the relevant provisions be sought in all the law and regulation and the relationship between them. In addition, the practice of applying part of the written procedures shows that they need improvement, in view of the new socio-economic conditions in the country.

In view of the findings, in the new legislation the existing laws and regulations relevant to the agricultural land of the DFF and the former farmyard lands are systematized in successive chapters and sections, in some of the procedures new rules for the management and disposition of these lands are being introduced as follows:

– A legal definition of the scope of agricultural land which is included in the notion of ‘State Land Fund’ is given, thus distinguishing them from land in the farmyards, part of which do not constitute agricultural land and have land status – private state ownership, which are managed by the Minister of Agriculture, Food and Forestry in way different from that for agricultural land;

– The powers of the Minister of Agriculture, Food and Forestry for the management and disposition of the land from the State Land Fund have been clarified with a view to the later new procedures currently in force;

– General considerations are laid down by the state and the Municipal Land Fund for the agricultural land on its status, purpose, management and procedure for use by tender and without tendering at market prices, with minimum and maximum time limits for leasing for the cultivation of annual arable crops and for the establishment and cultivation of permanent crops;

– In the procedure specifying rules for renting agricultural land by the State Land Fund or lease through a tendering procedure, the time limit was changed (from 31 March to 15 February of the current calendar year) to which the Minister of Agriculture, Food and Forestry issued an order for the opening of the auction for the following marketing year, given that the current period slows the conduct of the auctions and the award of the contracts, which makes it difficult to include the leased properties in the array-using agreements stipulated in the law;

New provisions are laid down which allow registered farmers up to the age of 40 to participate in the auction for leasing agricultural land by the DFF for rent or lease, for properties defined by the Minister of Agriculture, Food and Forestry in an approved methodology, in order to encourage young farmers to set up farms or to expand existing ones, with a view to European regulations for the rejuvenation of the sector; – The competitive procedure for renting or leasing lands by the State or Municipal Land Fund will be abolished, given that the conditions for the competition are determined by the discretion and criteria set by the Minister to whom a certain range of entities reply and may be considered to be subjective and not so clear and transparent as laid down in the tendering procedure in which all interested parties can participate, in conditions of free competition. It should be noted that over the past 15 years, a competition for the lease of farmland from the State Land Fund for rent and lease has not been conducted; – The provisions concerning renting of agricultural land by the State or the Municipal Land Fund without an auction procedure, have been clarified and the exclusion of leasing of undersized and unused for a period longer than two years agricultural property, was proposed. The stipulated procedures will also concern the lands of the Municipal Land Fund; – The procedure for distribution of municipal and state pasture and meadows is refined, as a significant point is that the relevant commissions will allocate in the existing sequence first estates from the two funds in the area where the animal farm is situated. Once the resources from municipal and state lands in the same land are exhausted, properties of the other two neighboring fund territories will be allocated; – An annulment of Order No 19 of 2012 regarding construction work on agricultural land without change of purpose is foreseen and the provisions of the same will be included in the bill. A prohibition of construction work under Order No 19 of 2012 on agricultural land with permanent use status under the categories of pastures and meadows included in the layer “permanent grassland” will be regulated; – An explicit document will be required proving the period of validity of the decision to change the use of agricultural land for non-agricultural purposes for the execution of a concession contract; – The payment of a local fee, determined by the municipal council when changing the purpose of agricultural land by the Municipal Land Fund, is abolished. The hypotheses under which the municipality has to pay for itself a fee for changing the purpose for land use by the Municipal Land Fund, will represent cases in which no fee is actually paid, because the owner of the land actually pays this fee to himself. That would be contradictory on the grounds that in case of a change in the purpose of use of agricultural to non-agricultural land, a fee is paid because it ceases to be used according to its main constitutional purpose. The main argument when changing the purpose of the land use, are the qualities of the agricultural land, not its ownership.

The bill envisions explicit hypotheses in which the municipality will not owe a fee for changing the use of agricultural land for non-agricultural purposes, namely: for land for which a detailed development plan has entered into force, providing for construction of a national or a municipal site of paramount importance which becomes public state or public municipal property; for land plots remaining outside the building boundaries of urban settlements, defined by a building and regulatory plan or by a ring polygon, when again the inclusion within the same boundaries is sought; When the purpose of agricultural land is changed by the Municipal Land Fund for the construction of sites which will be public municipal property; When the purpose of agricultural land is changed for the construction of sites which will be public municipal property and for which expropriation procedures will be carried out; The competence of committees will be clearly regulated, especially those whose powers are to authorize temporary use of agricultural land for non-agricultural purposes; The texts concerning the necessary documents for the procedure for authorising the temporary use of agricultural land have been clarified;

– A new procedure has been introduced – a change of use of non-agricultural land into agricultural one. The legal possibility is granted to landowners located outside the urbanized territories, which according to the cadastral registers, by type of territory and way of permanent use, are not intended for agricultural use but in fact are used for agricultural purposes, to submit an application to the Commission for Agricultural Land for a permanent change of status from non-agricultural land to agricultural land.

With regard to administrative penal provisions, the powers of issuing penal decrees in relation to violations of the new bill will be comprehensive. It is proposed that the sanction \/fine in criminal decrees issued against persons who use agricultural land for non-agricultural purposes to be defined as 10% of the doubled size.

Източник: https://fermer.bg

Land Consolidation Can Keep People in the Villages

– Mr. Staykov, how would you comment on the state of the land market in Bulgaria?

-The land market is stable, there are no signs of turbulence. We expect to have normal growth. The land relations are developing very well in Bulgaria. Better yields are expected, a higher profit for farmers, which is a prerequisite for interest in agricultural land.

-Is there any interest on behalf of foreign investors?

– It would be difficult and unlikely for foreign investors to be interested. One of the reasons is that the most fragmented land in the EU is located in Bulgaria. The plots are not consolidated or irrigated, or if there used to be an irrigation system, these are now destroyed. Also, it would be quite difficult for a foreigner to deal with the current laws related to the use of land. The reason is that such a foreigner, will have to negotiate with other lease holders and/or land tenants, whereabouts and which lands in particular will be granted, because the foreign investor will not actually cultivate the land in its actual physical borders. Therefore, I believe that there is not much pressure on the market, because the real competition in this case comes only from Bulgarians as foreigners from third countries are not allowed to buy land.

– We, as Bulgarians, do we have a reason to fear that foreigners will buy our land?

– I believe, it is good to seek foreign investors, generally speaking. Especially in Tourism, Agriculture and in general, in other industries as well, otherwise, there is no way to develop our economy. The know-how will be introduced in Bulgaria by foreign investments. But they tend to be less and less in Agriculture. Foreigners strive to sell and terminate their investments in Bulgaria. I am referring to buyers of agricultural land mainly from the European Community, as businessmen from the third world, Africa, USA, America, Russia, etc., are not allowed to buy land. They mostly had a speculative attitude towards the land market and they used to buy the land at lower prices. However, five years passed since then and they can now come up with a good profit by selling these arable areas because the land prices have increased. These businessmen now prefer to invest in Romania because the price of land there is lower. As I said, they are such players who do not cultivate the land, but have made investments in it for speculative purpose. They sell it because at this point the land prices are profitable. It is not known what will happen in the next four years because so far the new CAP 2020 does not provide any guarantees as to the amount of subsidies in Bulgaria. If so, the prices of the land can drop.

– What are the main factors for better land prices here?

– First, there should be a consolidation, consolidation of land plots, a comprehensive law for hydromelioration with consolidation. As for irrigation, there was a promise that measures would be taken in the period 2014 to 2020, however, nothing has been initiated yet. Currently, there are not any concrete specific plans either.Also, the European subsidies had to be equalized and adjusted, however, this did not happen. We are now under the influence of Brexit and therefore measures to reduce subsidies are sought.

– You believe that it is not you but the EU is to blamed for not initiating any irrigation measures, is that right?

– I don’t know why any such measure have not been started yet. I think it is as much our fault as it is the EU’s. It’s our fault that we didn’t defend our interests. The fact that there are signed contracts which were supposed to start in 2014 means that we, ourselves, didn’t defend our interests. Now Europe is looking for a way to save money. But we need to be proactive about the irrigation issue. For example, climate change and climate warming is already a fact in southern Bulgaria and it is becoming increasingly difficult to grow crops such as sunflower there. The lack of irrigation facilities will make it more and more difficult in time and sooner or later this type of farming will lead to soil erosion. At the moment we have one of the most fertile agricultural lands in the EU. This is because we have recently begun to use different types of fertilizers. Also, the soil is not contaminated and until recently, there were no diseases. They have recently begun to spread, the same like in the other EU countries. How that happens exactly is not for me to say, but probably diseases get into the soil with the seeds and then they must be treated with certain chemicals. Very often on the agricultural seminars it is commented that because we are all in the same community-the EU, there is no way to protect ourselves from such diseases. But in the end, I can’t claim that all of this is completely true. However, it is impossible not to notice the fact that certain companies offer a decontamination product long before the arrival of the disease. The most important thing to notice for our soil, is that we have recently treated it with European chemicals. Another point is that our land is the most preserved, which is proved by the taste qualities of fruits and vegetables. We are one of the few countries that can boast with fruits and vegetables with such great taste qualities.

– Considering what you’ve said so far, shall we assume that you urge is to buy Bulgarian seeds?

– I wouldn’t say so because we have almost destroyed our research and science institutes, and there’s no turning back. We had many institutes, even more than necessary, but our specialists are now working in Serbia in various types of scientific establishments, including seed production. When there are constant redundancies in these establishments, there is no way to continue research and development in Bulgaria. We, the farmers, cannot rely solely on local crop varieties, which are used as part of experimental sowing and therefore it is uncertain what the harvest will be. On the other hand, there is a tendency for Bulgarians to give preference to foreign products rather than choosing the ones produced locally. So for many years, we have refused to appreciate the qualities of local products. For example, a Bulgarian variety of wheat, which does not need any chemical treatment, currently yields less harvest because for many years only few people have used it. Everyone used to prefer the more productive western French varieties of wheat, which very often have a 20-30 percent higher yields.

– Which regions have the highest prices of agricultural land and the lowest ones in Bulgaria?

– The lowest prices are in the Haskovo region where the worst pedo-climatic characteristics are found. The land is very fragmented and parcels of only five acres are common. Typically, there is no rainfall after May each year, consequently, the yields are lower than the ones in central and northern Bulgaria. And the highest prices of agricultural land are in Dobrudja and Silistra.

– What are the agricultural land prices?

-Currently, Silistra and Dobrichagricultural land prices vary between 1400-1500 BGN, on the primary market and in corporate transactions – between 1600 BGN and 1800 BGN. Although there are not many deals there, there is still a misconception that the agricultural land market and trading is active in those regions.

– You said there was a difference between the data of the NSIS and those of the BAALO, is that correct?

– Yes, it’s due to certain exceptions. For example, the NSI provides data based on closed deals. This year, there may be deals at high corporate prices and for example one of them could be at 2500 BGN per decar, however, that is not essential. BAALO closes deals at 1500 BGN, 1600 BGN and 1700 BGN per decar. The truth is, in the area itself there is no longer a large supply of farmland available at the market. This is normal since agricultural farming there developed quite early back in time.

– Tell us something about Northwestern Bulgaria?

– There is a boom in the agricultural land market in Vidin. In the area there is a concentration of speculative players, also a great competition, because the land there is treated on a market principle. There is a sharp increase in agricultural land and even a cost surcharge in Vidin region. In Bregovo, for example, prices have always been very high, as well as territories from the region of Vratsa and Montana to the Danube River. There, for example, there are individual agricultural land deals that are highly priced but they have nothing to do with the primary market.

– According to your statistics, what are the prices in Vidin? And in Montana and Vratsa?

– In Zlatiata the prices can reach 1300 BGN, but normal prices are 800 to 1100 BGN, in Montana they start from 900BGN to 1100 BGN. In the semi-mountainous areas, prices are slightly lower. Deals are always negotiated along the Danube, because of the scarce supply.

– Do you think that land consolidation can stop depopulation? I am referring to the examples given during your seminar on how land consolidation in Germany improves infrastructure, houses are painted so people would return to the villages, etc.

– If there is a real land consolidation in which both the State and Europe are involved, there is a chance to save the population in rural areas. Where there are no people, there’s nothing/noone to be returned. But for some others, land consolidation could provide a viable opportunity to retain the local village population and to even gradually attract younger people. Land consolidation is the rearrangement of the infrastructure in the whole village, and in the area respectively. It is kind of a guarantee for some structure and order. For example, a smaller parcel with an orchard should not be placed in the middle of a larger, wheat land plot, right? Also, the restoration of municipal and other socially significant buildings is needed, such as Kindergartens, roads, etc. This, together with better support, is expected in the new CAP, to keep local population in the villages and at the same time to attract other people should they wish to live in the countryside. It is vital that young families are presented with decent job opportunities there. In the EU, many member states subsidize their farmers to a much larger scale.. That’s because they think that farmers are the ones who make the state more beautiful and look good, and they also provide the food. These processes must be comprehensively developed.

– How long have you been a member of the EU ELO?

– We’ve been a member of ELO for two years now. This is a very serious organization and together with them we think that we will be able to offer ideas for land consolidation and irrigation. Nowhere can farming be executed successfully without subsidies from the state. ELO provides us with useful information, we believe that they will assist many people. Now we have applied for funding to participate in projects related to ecology and the underdeveloped regions of Bulgaria, but we are still expecting the spheres to be further specified. The future of Europe is strongly connected to protecting the environment and we believe we will help with hydromelioration and land consolidation. ELO can help us solve our problems. There are few NGOs in Bulgaria who participate in such European structures. Many farmers are members of both the ELO and Copa – Kodzheka and most decisions stem from there. This will be environmentally friendly agriculture. We believe that in Bulgaria underdeveloped agricultural land still exist. They are deserted, with bushes and overgrowth which can be cleaned. In a nutshell, these lands could be consolidated into the fund categorized as fields. This will increase the agricultural land of Bulgaria and lead to its consolidation.

Source: http://www.agrotv.bg

The agricultural land market has become sober

THE DARKNESS TO THE NEW PROGRAMME PERIOD LEADS TO NEW FIELD INVESTMENTS REFRAINING


– Mr Staykov, what is the current trend on the agricultural land’s market?

– The trend in 2017 and what we see since the beginning of 2018 shows that the agricultural land market has become sober. We think that the value of the agricultural land in Bulgaria has reached some normal, real levels. Between the years of 2007 and 2015 (with the exception of 2009 when the financial crisis was at its height), the prices were increasing over and over again, because before that the land was underrated. Until the year of 2007, there was no European subsidy /grant/ but after that time many European programmes had been opened and farmers had accumulated a lot of capital. In the beginning, the competition was great but it was rather between the funds and currently there are many byers on the market. Every farmer has a possibility to buy, even during the past years there are many new versions for financial land leasing. At the same time there are no factors that can stress the market.

– Is there any possibility this calm situation to be changed in the near future?

– To happen this, a very big foreign investor must appear, who will invest more money and resources in order to sharply escalate the agricultural land’s price. Currently, the re-grouped plots of land /land consolidation/ in Bulgaria are several. Their price is much higher but this is between 3-5 % of the land’s price that is offered on the market.

The darkness to the new programme period, what kind of support there will be and what the conditions will be, lead to new land investments refraining. That’s why the market is balanced and there is not neither a supply, nor a demand. There are many market players but no one /with some exceptions/ dare to increase sharply the agricultural land’s price. The land’s price has already become expensive with a few hundred per cents and on some places it costs more than 1 000 BGL per decare, which, we think, is real. For the regions of Silistra and Dobrich, the price is between 1 600 and 1 800 BGL. These are the most luxuriant /fruitful/ regions, but the supply is low and that’s why the levels are so high.

– Periodically, the question to lead in a land-tax is being brought up. What is your opinion to this opportunity?

– There is no possibility for the Bulgarian farmers to pay a land-tax. Currently, we pay a corporative tax. Except this we pay dividends, as well as assurances, which is nearly 40 % of the total rate, which no one mentions. If a land-tax is led in, there will be too many taxes /duties/ for the farmers. Currently, the agriculture and tourism are the main sectors which are the most developed in Bulgaria but they try to put additional restrictions and taxes on everything. Except this, currently the farmers have a big problem because there is no algorithm to be checked. I will give you an example – in November they came to us to check the wheat which had been harvested long ago and even the same field was sowed with a new crop.

– Could you, please, make a comment upon the bill which is currently prepared. According to it, farmers together with the State and the Insurance companies, must make payments in order to keep out of natural cataclysms.

– For us this is very important and we firmly stand “For” a similar decision. As an association, we appeal to happen this but without the participation of the State in this process, things will not happen because even now we have hailstorms protection but the percentage of the territory of the country is very small. Every farmer must make payments and this is obligatory but I think it’s necessary the state to take part in all processes. The situation with insurance should be the same. Currently, many of us insure, but very rare the insurance companies pay out the damages. The insurance company always has some small lines down the paper and says that what had happened is not an object of our contract. That’s why I think the State should participate. There is no country in Europe with a modern agriculture which does not subsidize this field. It is not possible to be different in this respect because we not only have lost our old markets of agricultural production, but we are the country with the lowest subsidy and we are very hard competitive on the European markets.

– Exact this low subsidy does not let to pay the labour force as it is in the west countries. What is the exact situation?

– The agricultural sector is the same as the other sectors. Wages /salaries/ are many times lower than the ones in Europe. It is not possible to have small benefits but to pay European salaries and it is normal in this situation our workers to go to work in the old countries members. Europe is an open market for labour force. In our companies they are trained what to do, they work a year or two but we pay daily the same amount of money as they could take in the west for one hour. As a result, we lose already trained people. The problem is nation-wide.

– Do you take part in the process of describing of this Land Code?

– No. Currently we do not know what is happening but we believe that they will invite us together with the other big farmer organizations to take part. We have enough experts and we can help. It is important when all associations work together. If they do not invite us to participate, there will be something for which some money will be spent and later it will have to be overworked. The idea is once this Code is created, it will best serve all farmers and producers in Bulgaria long time. It should give assurance, so even there are new people who would like to invest, to do it easily and to return the investments they had done.

We work close together with the other associations. We help each other because what will be approved refers to all agricultural producers all over the country. The interest is common. The time when we can work together and in a dialog has come. I think that really we can work active since September after our presidency of the European Council and the active summer campaign.

– Everyone is talking about the need of a good hydro meliorative system in the country but we talk about great investments. How this problem could be solved according to you?

– I think that firstly projects should be done no matter what the financing will be. We must work on solving this problem. The South of Bulgaria, without irrigating will be affected by a strong soil erosion and we will destroy one of the most fruitful and the clearest lands in Europe, because it’s a fact – our European colleagues work with fertilizers and detergents for decades past but we have just started.

However, currently the Bulgarian water goes to Greece and Turkey but we do not irrigate. I think that many things must be changed and we can always find money. We will search for a European financing. Hailstorms payments will be deducted but if every farmer irrigates his crops that will lead to keep the soil and the production will be much more. Money which will be deducted per year as payments, will be returned many times but opinions on expert level should be taken into account. It is not possible to do it only with money. There must have a plan on which we can work long time and if it is not possible to do in the whole country, to start from the affected areas. Something must be done because we will start losing the land instead of cleaning and keeping it in a good condition.

***

Stayko Staykov, a Chairman of the Association of agricultural land’s owners in Bulgaria


Source: Agrozona magazine – 81, June 2018; pages 20, 21

Experts: Detailed specifications of the legislation initiative for agricultural lands purchasing are necessary

There is a great interest only to re-grouped plots, where there is melioration but we do not know which lands this amend will concern – whether privately lands or state lands because the Municipal land fund currently has a prohibition to sell agricultural land, no matter if they are Bulgarian citizens or foreign investors. That’s why this problem with the agricultural land is very sensitive. We do not know if this will not lead to cause damages to all Bulgarians. That was said in an interview for „Predi vsichki“ (“Before all other”) by the Chairman of the Bulgarian association of the agricultural land’s owners – Stayko Staykov on the occasion of the legislative amends of the Law to encourage investments, offered by the Minister of economy Emil Karanikolov.

Members from the Association will insist to have detailed specifications of the legislative initiative, in order not to have discriminatory element towards the Bulgarian investors: „If land could be bought only by foreigners but not by the Bulgarians, this will lead to many questions. For example, what about the Municipal landed property. There is enough agricultural land. Minister Karanikolov underlined that foreigners will be able to buy land in fixed circumstances. If there are new conditions, they need to be fixed and the land is an active where currently there is a big interest by both – Bulgarian physical and juridical persons. If only foreigners could receive such certificates, this will lead to a big problem between the Bulgarian and foreign investors.

Staykov said that the branch organization has not been informed for this bill and there are no specifications with other organizations in this sector: „We must reach a consensus that has to be good first for the Bulgarians, and then for foreigners. We must not be against foreign investors but not to do that on the account of the Bulgarian farmer“.

The associate professor Ognyan Boyukliev from the Economic examinations Institute to the Bulgarian Science Academy specified that in the European documents it’s written that the state should impose restriction on selling agricultural land. According to his words, due to the European commission papers there must have reciprocity when selling agricultural land to foreigners: „If a Bulgarian would like to buy land in France, he could do that in the same conditions, as the French can buy land in Bulgaria“.

„The rules in other European countries must be entered into force. I have the feeling these are manoeuvres so that they can buy land. Land is being bought up as papers and tomatoes from people’s gardens are being bought up. I have the feeling that everything possible is being done to finish this process of agricultural land concentration but we have nothing more valueable than it“, said associated professor Boyukliev.

Source: www.bnr.bg

Stayko Staykov: 5 % rise in land’s prices

The land’s market is stable, prognosticated, without any shocking circumstances that could surprise the participants in it, says the Chairman of the Bulgarian association of the agricultural land’s owners.

Mr Staykov, what is your evaluation of the actual condition of the agricultural land’s market in Bulgaria? What was the movement of prices and ground rents in 2017 and what are the trends?

In confirmation of my prognosis in the beginning of 2017, now I can responsibly say that during the last year the agricultural land’s market was stable, prognosticated, without any shocking circumstances that could surprise the participants in it.

All main factors that have influence on the agricultural sector show that after the permanent progress during the period from the year of 2007 to 2015 (exception the year of 2009), currently we can see a long lasting market stabilization. The minimum price growth is up to 5 %, as this also could be marked for the ground rents. I expect this trend to be kept for the current year of 2018.


Has the land market reached its highest point and did the time of speculative interest finally finish?

I think currently the prices are real for the value of the Bulgarian land. Not in vain, its quality is one of the best in the world. It is proved by the varieties of agriculture type that can be practiced by the users. There are still lands where exteremely high prices are being artificially supported but I’d rather think these are rare cases and we cannot talk about great speculative interest.


What kind of land do the investors search for?

Having in mind the priorities of the Rural Development Programme for the next several years, namely the intensive support of fruit-growers, market-gardeners and stockmen, I think that renting or purchasing is directed to big plot of lands. These are such massives where the land could be irrigated by drilling or another method.


Are there displacements of the players of agricultural land’s market? Is the investment profitability decreasing?

Led by the most important rule, that the land is a resource that cannot be produced, I expect the investments in agricultural land to be continued. People who do that will just decrease the purchases’ intensity and will begin to analyze the deals in details.

In the future, the serious investment intentions of the market will be directed to those who want to accomplish agricultural projects, but not to unknown investors only looking for profitability. From that time on, a complex of some factors will be important – a large-scale plot of lands, access to communications (water supply, electricity), labour force availability in the region, access to a road infrastructure, etc…


What are the risks when purchasing agricultural land and what are your advices to avoid them?

As every fastly liquidated stock, the land is not an exception. It is necessary to be careful when purchasing land. The most often abuses with people who would like to purchase a property, are connected with land’s quality. Many of them had bought uncultivated plot of lands but they had paid too much money for them. That means we must check if the property is being cultivated or not.

Burdens are also a hidden minus when purchasing land and if it is not checked, it turns out that we had bought a property with long-lasting contract that had been concluded for low rent. It automatically devaluates the investment. As a whole, I recommend to all people who would like to buy agricultural land, to turn to specialized agencies – people who have already proved in this field.


How does the policy of land consolidation go, that the Bulgarian association of agricultural land owners conducts?

We continue to attract more and more members so that we succeed to increase the potential areas which will be re-grouped in the future. Each project is accomplished with the help of the state. For this aim, we tightly keep in touch with the state administration on expert level. We hope that the Land Code will be approved very soon, in particular the Land consolidation Law so that the re-allocation projects to be accomplished easily.


Statistics shows that for the last year, the least number of agreements to rent an agricultural land had been concluded since 2008 up to now. How would you explain this?

I do not know this information but if there is statistics how many of the plots all over the country have already rented for a period longer that one economic year, an accurative answer of this question will be given. I can add that many of the agreements for previous years have concluded for longer periods of time and they have not expired yet. Respectively a new re-negotiation is not necessary.


Alma Davidova’s interview

Source: Bulgarian farmer – April 19-25, 2018; pages 1, 2, 3; bgfermer.bg

The festival of wine growers and vintners

In the Orthodox Calendar Saint Trifon is celebrated on 1 February. The holiday is included in a cycle of three consecutive days called “Trifontsi” – 1, 2, 3 February, which are celebrated on 1 February – Trifonovden, on February 2 – Candlemas and on February 3 – St. Simeon. The last two days are associated with the introduction of Jesus into the temple of Saint Simeon, and in the folk tradition they are worshiped in honor of the wolves that give birth to their little ones during this period.

During the festival women do not cut with scissors, so that the mouth of the wolf does not open, do not knit, do not spin and do not sew. They prepare ritual bread, and after they hand it out to the neighbors, they put some morsels of the bread in the stern of the animals – to protect both livestock and people from the wolves.

Source: sinor.bg

2017 in agriculture: the market is calm, growth is expected during the summer

What were the prices of agricultural land during the past year, are there still hollow deals and when to expect a new Land Law? Commentary on these topics from the Chairman of the Bulgarian Association of land owners Stayko Staykov.

Analysis: 176 335 decares of land have changed their owner

When a company is registered and has no cover and history, it should not be allowed for it to use land that is not known to whom belongs. I think that many violations have to be criminalized, said the President of the Bulgarian Association of Land Owners Stayko Staykov on how to limit the abuses in land renting for Farmer.BG. “When a company is transferred, the Parliament refused to give a 5-year period of responsibility limitation for the former owner. But if you take the responsibility for at least 2-3 years and meanwhile the company is effective, there will be no problems. In the new Land Law, this may be mentioned, as well as the problem of ideal parts and many other things that are not good for our agriculture and because of which frauds are still happening. In this way we counter the investors because they are afraid of what will happen to their investment” explained Staykov.

According to him a new Land Law can come out in 2019. “But changes must be made in the new Land Law, in order to prevent the seizure of someone else’s property and I do not think that this will be difficult to be decided” he added. According to Mr. Staykov, the annual land consolidation settlements are convenient for everyone, because no sustainable investments are made, thus the land is depleted increasingly and the added value is less. “I think it is right that the state land should also participate in the consolidation, as well as the expert level should be from all parties, so there is no conflict of interest. In my opinion land consolidation without the participation of the state is meaningless. This is what is called administrative support from the state. For the first five projects we did not have state funding. It is on a voluntary basis, but when something in Bulgaria is on this principle, everyone doubts something will happen, “said Staykov and added:” The idea is to make a mechanism thanks to which the state has some small compensation for its participation, because in order to bring people back to the villages there must be consolidation projects, thus to create some conditions for a normal life. The process of depopulation continues, but it is in Spain too, for example. Everything there is structured around the Mediterranean and in the big cities of Madrid and Barcelona, ​​and there are a lot of problems inside the country.

According to him a new Land Law can come out in 2019. “But changes must be made in the new Land Law, in order to prevent the seizure of someone else’s property and I do not think that this will be difficult to be decided” he added. According to Mr. Staykov, the annual land consolidation settlements are convenient for everyone, because no sustainable investments are made, thus the land is depleted increasingly and the added value is less. “I think it is right that the state land should also participate in the consolidation, as well as the expert level should be from all parties, so there is no conflict of interest. In my opinion land consolidation without the participation of the state is meaningless. This is what is called administrative support from the state. For the first five projects we did not have state funding. It is on a voluntary basis, but when something in Bulgaria is on this principle, everyone doubts something will happen, “said Staykov and added:” The idea is to make a mechanism thanks to which the state has some small compensation for its participation, because in order to bring people back to the villages there must be consolidation projects, thus to create some conditions for a normal life. The process of depopulation continues, but it is in Spain too, for example. Everything there is structured around the Mediterranean and in the big cities of Madrid and Barcelona, ​​and there are a lot of problems inside the country.

Hollow deals
“In principle, it is very difficult to say what speculative deals are, because we as owners periodically find mistakes and have cases for land bought 10 years ago, from which old owners come out,” Staykov said. According to him, the hollow deals have drastically declined because two years ago the notaries gained access to personal data base. So there is no opportunity other people to appear in front of them for the transactions. “There were people with fake ID cards who sold the land because they saw in the registers that there was no movement. This problem is now solved” added Staykov.

The rents
This year there has been a stagnation in rent levels as the agri-environment measure fell down, along with worsening weather conditions in some places, there was a retention or a slight drop amongst the bigger owners where the rents are in leva. Where rents are in grain, I think there is no change at the moment. For Northern Bulgaria, the average rent is about 50 leva, and naturally Dobrich, Silistra and the Danube river region must be excluded because they are the most fertile lands, including Vidin, “said Staykov and added:” If the land is arable, the rents are between 80 and 100 leva. The rents were higher before, but there is also a slight decline. “

The price of agricultural land
The price of agricultural land amongst the whole country, based on statistics from the association, has slightly increased with about 5% from the last year. “But it is not something essential because everyone expects what kind of changes will be made in the agriculture sector. There is not so much offering as well as such a demand because everyone is waiting patiently to see what will happen during our presidency of the European Union Council next year. We expect a lot of money to go into farming, but there is a fear whether everything that we are talking about will happen eventually. That’s why the market is not stressed right now, “Staykov explained. He added that there is a big demand on larger parcels, but the reason for this is that they are not available. “When there is a high price offer, there are usually no deals,” Staykov noted. His expectations for the next year are for stagnation until a decision what will happen is made and in the second half of 2018 may have a more drastic growth of land prices around 10-15%. “For two or three years the market in Bulgaria is stable. The prices of arable land have reached levels that are not a peak but are not low at all. But I do not think there will be new ups or downs on the market. Naturally, in regions that are less fertile at present there is no demand, because with the dropping of the agri-environment measures, many of the funds have been reduced and not compensated in any way. So that is why the prices are low. It is very important for everyone to know what is really buying. Expensive agricultural lands are situated in Northern, Central and South Bulgaria, which are agrarian regions, “said Staykov. The prices of the big parcels – over 200-300 decares can reach over 2000 leva, but this is a matter of negotiation, the chairman of BAAO believes. In his words, everything depends on the investor’s intrest and what kind of culture will be cultivated. “The current trend in Bulgaria at the moment is for growing permanent crops such as lavender, lemon balm, ect. And such an investment is made for permanent plantation. There is no way to invest a lot of money in a fragmented land, then to look for a partial consolidation, because when someone becomes aware of the fact that you want to grow perennials, the neighboring plots can hardly be bought or even blackmail can start and no real consolidation of ownership can take place” added Staykov

Source: fermer.bg

Stayko Staykov: The irrigated land in the country is no more than 10%

At present, the irrigated land in the country is no more than 10%, and it is equipped with many old facilities, which waste a lot of water in fact. This is what Stayko Staykov, the Chairman of the Bulgarian Association of Agricultural Land Owners said for Fermer.bg

Rusalov: Changes in the Land Law will increase the amount of the white spots

“For the past five years in our country there is a tendency for lasting drought. At present, water goes to Turkey and Greece, and it is pointless to be said that groundwater should be changed in Bulgaria. It is a shame that we cannot protect our own interest. We believe that the new Land Law will explain how the irrigation will take place” Staykov said.

Now we are at that stage, as far as we can, the bigger companies and the association, do consolidation of ownership when consolidation projects between us are not planned. But eventually in Southern Bulgaria we will not be able to handle the next 10 years without irrigation, he added.

“Our subvention is very small and we have been struggling in order to keep it, and when it comes to the production, it is some kind of a supplement. This will please everyone, because it is now frivolous to say that we, as an agrarian country with a highly conventional agriculture, will reduce the subventions of the owners and the tenants because it will cause a big problem. And since the difference in subsidies amongst Europe is clearly visible, it is better to target additional funds where they are needed and not to reduce others” the chairman concluded.

Source: fermer.bg