The Level and Determinants of Farm Investment Behavior

Abstract

Farm investment behavior is an important factor for the agricultural production’s restructuring, in compliance with the market conditions, and for the reach of the necessary competitiveness on the international markets. In the pre-accession period until 2007, in a part of rural areas with unfavorable natural conditions and restrictions, agricultural producers from these regions have obtained opportunity for compensation. The received financial funds have had positive influence on their investment motivation. After the accession to the EU, in the conditions of CAP application, the opportunities for bigger investment activity in agriculture increase. In this respect, it is expedient to reveal farmer’s future investment intentions and the main factors’ influence on their level. Object of analysis are agricultural producers from Bolyarovo municipality, Yambol region, which form 2005 to 2008 have received compensatory payments and other CAP payments like premium for produced milk quantity, for fixed production quality etc. After the EU accession in 2007 have been started the subsidies under the Schema for unified payment per area and the consecutive payments under all the 22 measures, laid in the National Plan for Rural Development until 2013.