The Ministry of Agriculture and Food officially revealed the details of the highly anticipated Pie Fund - a strategic instrument to support agricultural producers in managing agricultural risks. The presentation took place during a specialized thematic seminar with the participation of all stakeholders.
Minister Georgy Takhov emphasized the significant progress in developing the mechanism, noting that a month ago there were substantial doubts about the project's implementation. "Today we have a fully structured concept, into which enormous effort was invested," he stated.
The new financial instrument is expected to start working from December 2025, initially formed through a mandatory withholding of 1.5% from direct payments in the crop sector. The fund will be built within the State Agricultural Fund with a classic management structure, including a Management Board, executive directorate, and specialized bodies for damage assessment.
The projected annual budget amounts to an impressive 24.5 million euros, distributed as follows: 44.9% of contributions will be from farmers (11 million euros), another equivalent part will be national co-financing, and the remaining 10.2% (2.5 million euros) will come from the European Agricultural Fund.
The mechanism provides compensation for losses exceeding 20% of the farm's income, caused by adverse climatic events such as frosts, drought, heavy rains, and hail. With insurance, farmers will receive up to 80% compensation, and without insurance - 40%.
According to a report by the European Investment Bank, climate damages in the Union can reach an impressive 90 billion euros annually. Drought has been identified as the main risk factor, with Bulgaria ranking second in crop instability.
During the seminar, leading European practices for climate change adaptation were also presented, including building irrigation facilities, hail protection systems, implementing minimal soil cultivation, and using resistant varieties.
Participants in the thematic working group expressed satisfaction with the presented concept. Further consultations with the agricultural sector and coordination of necessary legislative changes are pending before the final introduction of the Pie Fund.