Subsistence farming in transitional economies: lessons from Bulgaria

Transition to market economies in Central and Eastern Europe has increased the practice of small-scale subsistence farming. Consequently agriculture is characterised by a dualistic structure of market-oriented commercial farms and much small-scale subsistence farming. An important part of the production and consumption of many food products is not marketed and this large share of subsistence makes agriculture performance unpredictable. The widespread prevalence of subsistence farming is a problem in predicting the aggregate effects of agricultural and rural policies. Analysis of this phenomenon is therefore important for policy making which will lead to adjustments in the agricultural and rural economy. Detailed study of one country in transition, Bulgaria, is presented. Findings and conclusions are then expanded to other CEECs.