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The price of agricultural land will increase after 2014

One of the most significant reforms from 1992 till present day in the common agricultural policy of the European Union is being prepared at the moment. The changes will affect directly the agricultural sector.


This was announced in a seminar in Plovdiv by Slavi Kralev, expert in directorate "Direct payments and market support" in the ministry of agriculture and foods, in relation to the upcoming changes in the European legislation, associated with the direct payments for the farmers over the nex program period of 2014 - 2020.


For the first time after 2014 the agricultural producers will receive rights over the payment which will be kind of obligations and will be a subject of purchase and sale. In this way if one farmer has 10 hectares, he will be able to buy 10 rights for payment from another farmer willing to sell.


The goal is in case of refusal of agricultural production the size of the arable land to remain the same and to avoid termination of the lease contracts between the owners and the farmers.


According to the forecast of the experts, with the introduction of the new regulation, there will be a significant increase in the price of the agricultural land as the farmers will have stimulus to cultivate it and the abandoned lands will decrease.


Kralev explained that over the new program period is important the introduction of the multilayer system for payments. The base payment of the subsidy will still be per hectare arable land, to that payment will be added 30% green payments. They will be obligatory for the farmers and will be related with the preservation of the soil and the waters.