Nearly BGN 1.3 million was transferred to 138 producers.
State Fund “Agriculture” (DFZ) transferred a total of BGN 1,287,932 help de minimis to 138 farmers to compensate them for damages suffered by them from fires in 2024
The financial support aims to ease the burden on farmers whose agricultural areas, pastures, animals, livestock buildings were destroyed as a result of the fires during the summer months and affected the viability of their farms. Under the line of state aid, agricultural producers are compensated, both for the loss of agricultural production and for the loss of animals, bee colonies, forage. Thus, they will be able to start restoring their economic activity.
The approved unit rates for the aid are: BGN 8,763/ha for permanent crops (fruit, vineyards); BGN 1,231/ha for other perennials (rosehip, lavender, rose hip, salvia); BGN 2,864/ha for nuts (almonds, walnuts, hazelnuts); BGN 1,900/ha for field crops (wheat, triticale, corn, barley, sunflower); BGN 214/ha for pastures and meadows; BGN 256/ha for meadows; BGN 191/pc. for bee families; BGN 174/pc. for beehives; BGN 324/pc. for ewes.
The maximum amount of de minimis aid for one farmer or the same enterprise cannot exceed the BGN equivalent of 25,000 euros (BGN 48,895.75) for a period of three consecutive budget years (2022 – 2024).
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Minimis aid system has several advantages, such as providing timely assistance to farmers and minimizing bureaucratic delays. However, it can also lead to challenges, such as inadequate compensation for significant losses and potential gaps in coverage for farmers with unique circumstances.
Great, here’s the interview with our first guest, John Smith, an agricultural policy analyst, and Jane Doe, a representative from the State Fund “Agriculture” (DFZ):
Interviewer: First of all, can you tell us your thoughts on the compensation package announced by the State Fund “Agriculture” (DFZ) to help farmers affected by fires in 2024?
John: Well, it’s definitely a step in the right direction. The losses incurred by these farmers were significant, and any form of assistance to help them recover is welcome. However, a single payment of BGN 1.3 million may not be enough to fully compensate for their losses. Additionally, it would have been helpful if the compensation were based on actual losses suffered rather than a flat rate per hectare. This could lead to inaccuracies in the amount of compensation provided and may not cover the full extent of the damages for some farmers.
Jane: Thank you for your comment, John. We understand your concerns regarding the flat rate compensation. However, the de minimis aid system is designed to provide quick and easy financial assistance to farmers who have incurred minor damages. It allows us to reach out to a larger number of producers in a shorter period. Moreover, the compensation rates are established after detailed analysis of the market situation and are aimed at covering the most common types of losses sustained by farmers.
Interviewer: What about the maximum limit on the amount of compensation per farmer or enterprise? Do you think it’s reasonable?
Jane: The maximum amount of aid per farmer or enterprise is set in line with the European Union regulations. It ensures that the aid is targeted towards the small and medium-sized producers who need it the most. It also prevents the possibility of any abuse of the system.
John: I see your point. However, considering the severity of the damages caused by the fires, it’s possible that some farmers may have incurred losses exceeding the maximum limit. In such cases, additional support may be required to ensure their viability.
Interviewer: Moving on to the use of the de minimis system, what are its advantages and disadvantages?
Jane: The de
