"Established 1935

Historical background and presentation
The Institute of Agricultural Economics (IAE) is a public research organization recently celebrating its 70th anniversary. Since 2000 the IAE is one of the main institutes within the National Centre for Agrarian Research, and the only one specialized in agrarian and rural economics research in Bulgaria.
The Institute of Agricultural Economics carries out:

• fundamental, applied and policy-forwarded research;
• analytical, policy and technical assistance projects;
• doctoral and vocational training;
• academic and experts conferences and workshops;
• consultancy activities.

IAE has been actively involved in all major projects for transformation of Bulgarian agrarian, rural and food sector, and for harmonization of institutional framework with EU – development of legislation, government regulations, strategies, programs, expertise etc. for privatization of farmland and regulation of land market, restructuring of farms and agro-companies, forms of government support to agrarian and rural sector, various aspects of CAP implementation, trade regime and competitiveness, agrarian and rural finance, food security, rural development issues, assessment and governing of sustainability, reorganization of agrarian research, setting up agricultural advisory system etc.

The main research priorities in IAE are following:

• EU CAP implementation in Bulgaria;
• Agrarian policy in Bulgaria;
• Rural development;
• Agrarian financial system;
• Organsiational structures;
• Marketing and competitiveness;
• Sustainable agriculture and agro-ecology;
• Food industry in conditions of common european market.

The Institute of Agricultural Economics has been also involved in successful institutional building projects. It designed and set up in its structure a System of Agro-market Information, and Agro-business Center. Both have been very efficient and had further development - first on them as an independent national-wide network while the second one as an important part of the newly established National Agricultural Advisory Service.
IAE organizes regularly national and international conferences, seminars and workshops on various issues of agrarian and rural development. It also carries out various national and international training programs for scholars, government officials, farmers, private agents etc.
Most projects of the IAE involve close collaboration with other institutions and organizations (academic, government, non-government, international etc.) where the Institute is either the coordinator or a key partner in the project. Bilateral and multilateral research cooperation of the Institute includes more than 20 countries.

Institute of Agricultural Economics is a member of following networks or related organizations: National Center for Agricultural Research and Bulgarian Association of Agricultural Economists. The Institute has got informal networks with leading foreign institutions and experts in agrarian and rural economics from EU, East Europe, Balkan countries, and former USSR countries, USA, Canada, Japan and other Asian countries. Individual experts of the Institute take part in a great number of projects and working groups carried out by the Government, Parliament, EU, FAO, World Bank, OECD and other international and private organizations etc.
IAE publishes all research work as well as the prestigiouse journal “Agricultural Economics and Management”. It also posess own library.
The Institute of Agricultural Economics is located near city center Sofia, on the main highway going to Southers Bulgaria, and in a short distance from the airport.

Current research priorities
The Institute of Agricultural Economics is the leading national center for research, consultancy, and advance study in the area of Agricultural, Rural, and Food Economics and Policies. It carries out fundamental, applied, and policy-forwarded research in all areas of Agricultural, Rural, and Food Economics. Major clients of the Institutes are the National Center of Agrarian Research, Ministry of Agriculture and Forestry, various Government agencies and private organizations, and a number of international institutions such as European Commission, FAO, OECD, World Bank, NATO etc.
Research and analyses of the IAE cover all major aspects of Agrarian, Rural and Food Economics and Policies. Current research of the Institute is focused on:

• agrarian and rural policies;
• food security;
• EU accession and implementation of CAP;
• modernization of property rights and institutions;
• restructuring and modernization of farms and food industry;
• trade regime, prices, markets, and competitiveness of agrarian and food products;
• land market and management;
• agrarian and rural finance;
• organization and management of labor and production;
• agrarian and rural development;
• governing and assessing agrarian and rural sustainability;
• organization of agrarian research and innovations;
• economic and sociological problems of rural areas etc.

Staff, network, and equipment

Currently there are 55 researchers and technical assistance permanently working at the IAE, out of which 22 Senior Researchers and Professors, 2 Junior Researchers. In addition there are a great number of scholars from other universities and institutions affiliated to various projects of the Institute.
All researchers held PhD and rest of the staff is with university diplomas. Up to date more than 90 students completed their PhD studies in the Institute. Currently there are 10 PhD researchers enrolled in the regular and part-time doctoral programs of the Institute.
The permanent and associated researchers of the Institute are the leading country’s experts in all major aspects of Agrarian, and Rural, and Food Economics and Policies. They have different background such as economics, agricultural economics, agronomy, sociology, mathematics etc. and their qualification is recognized nationwide and internationally.
Great majority of researchers have been trained in leading European, USA and Japanese academic institutions and other organizations such as EU, USDA, FAO, JAICA, KOIKA etc. Some of scholars have done long-term in house research in some of the most prestigious research centers in Europe, America and Japan.
In addition there are more than 20 researchers from other institutes, universities, and private agencies associated with the programs of Institute of Agricultural Economics.
The IAE is the home of the Bulgarian Association of Agricultural Economists and has the data base and access to all experts in the area.
The Institute of Agricultural Economics is equiped with modern research technologies (pc, internet etc.).

Most important projects
Assessment of Likely Impact of EU CAP on Agriculture and Food Industries, 2006, National Center for Agricultural Research.
Assessment is made on likely impact of CAP implementation on agriculture and processing industries. Problems are specified and suggestions are made to improve mechanisms of implementation of CAP for achieving economic and social goals of development. Six major tasks are being worked out: methodical approach for study and assessment of impact of CAP on farming and processing industry; impact of CAP on crop production; impact of CAP on livestock production; approach for determination of compensation payments for unfavorable regions and agro-ecology; impact of CAP on income and sustainability of different type of farms; assessment of economic and social implication of restructuring of sectors and enterprises in agro-processing industries. Suggestions for improving measures for national support for different products and productions will be also prepared.
Modern Agriculture in Central and Eastern Europe: Tools for the Analysis and Management of Rural Change, MSCF-CT-2005-029522, European Commission, 2006-2008.
The present project seeks to enhance the capacity of agricultural research for problem analysis and thus contribute to managing the agricultural modernisation process. The project proposes a coherent series of conferences, summer schools, and training courses on modern agriculture in CEE, including partners from Bulgaria, the Czech Republic, Germany, Hungary, Poland, Romania, Russia, and Slovakia. Four annual conferences with varying themes will take place every year in conjunction with the International Green Week in Berlin, inviting participation by agricultural researchers from all disciplines. Four summer schools will provide training on a focused range of theories, approaches, and methods for junior researchers. The conferences and summer schools are complemented by a series of six training courses targeting important issues for modern agriculture in CEE. This series of events will offer unique training opportunities for junior researchers who are challenged by new research needs and shrinking agricultural research institutions. The conferences will provide special forum for eligible researchers to build contacts with their peers from across Europe and leading researchers. The summer schools and training courses will enable junior researchers to gain access to state-of-the-art knowledge and methods, employing a variety of proven and innovative work forms.
Technology adoption in the Black Sea region, 2006-2007, German Government.
This bilateral project (in cooperation with IAMO-Germany) focuses on the decisions which lead to the establishment and implementation of new technologies and finally the technologies which are adopted. An analysis is made on the decision-making process and the specific determinants leading to the adoption of new technologies at farm level. We expect that not only farm-specific determinants (management, legal form, organization), and the political framework conditions influence the adoption process, but also specific site conditions such as the proximity to harbors. Case study covering 100 farms in Black sea region and a simple agent-based modeling (ABM) approach is used to simulate behaviors and decision processes determined in the survey analysis as well and interactions between different actors regarding the spread of technologies. In addition to pure economical factors sociological factors also taken into consideration. In a final step we will confront a selected group of stakeholders with the model and interactively validate the model with stakeholders through their views and perceptions. The dataset will provide a detailed set of farm level data which can be aggregated to derive results at a higher level of scale (e.g. structure, region). The analysis of the decision making process and how information about innovation spread gains insight in how a farmer in the region arrives at his decision and how he gains information about a new technology.
Agrarian Sector in Candidate Countries and EU: Econometric Models for Policies Forecasting and Analysis in Agriculture, Forestry and Environment (AGMEMOD + CEEC), 2001-2004, European Commission, V Framework Programme.
Different scenarios for analyzing impact of agrarian policies on development of agriculture until 2010 have been worked out and analyzed taking into account negotiated terms in chapter “Agriculture”. Basic scenario, considering preservation of the state in the last year with statistical data. Scenario simple area payment scheme (SAPS), including payment per ha for crop products, and keeping support scheme for livestock and dairy products approved for the courtiers from the first group. Scenario payment for utilized agricultural area (SPS) including determination of potential financial aid for agriculture, its distribution between the two sub-sectors, and calculation of payments for individual productions. Results of the projects have been aggregated with the data of the rest 9 of CEEC.
Twining Light Project, Developing National Policy for Support of Agricultural Producers in Less-favoured Areas of Chapter V of EC Regulation 1257/1999. 2004-2005, European Commission.
Main criteria and indicators for defining and specifying the scale of less-favoured areas have been determined. Five pilot municipalities have been selected for implementation of measures for compensatory payments for less-favoured areas as well as set of documents for implementation of pilot scheme. The Institute has been major participants in the project as well as in training of farmers from pilot municipalities in measures and ways for application.
Twining Project Bulgaria – The Netherlands – Greece, “Support pre-accession strategy in the field of agri-environment”. 2004-2005, European Commission.
A methodical approach for defining compensatory payments for organic farming has been worked out. Specific levels of payments for field crops, vegetables, essential oil crops and medicinal crops have been determined.
Agrarian Policies during Pre-accession and Accession of Bulgaria to EU, 2002, National Center for Agricultural Research.
Analysis has been made on goals and priorities of agrarian policy of the country as well as on state of production of major farm products. Trends in the development are elaborated on the base of the National Plan for Agricultural and Rural Development. Necessity for modernization of agrarian policies and forms of state intervention in agriculture in pre-accession stage to EU has been justified. Impact of CAP on production and consumption of major farm products has been assessed. Different models for impact assessment of policies have been evaluated and their applicability to Bulgarian conditions estimated. Issues of price policies have been analyzed on the base of EU projection for international prices until 2006. Possibilities for price support and for introduction of some of mechanisms of CAP have been justified. Social aspects of agrarian policies have also found place in the study including level and structure of incomes, employment in rural areas and opportunities for alternative occupation, financial and institutional conditions for implementation of CAP in social area. Serious problems have been identified related to food security. Suggestions have been made for improving legislation and regulations associated with Standardization Law, European Directives for safety of food products, machinery, labor security as well as strategies for implementation of recommendation of the White paper.
Efficiency of Economic Organizations in Agriculture, 2002-2003, National Center for Agricultural Research.
A modern approach and methods for analysis and evaluation of efficiency of economic organizations in agriculture has been worked out which incorporate the absolute and comparative pay-off of production resources and expenditures, and estimates of comparative transaction costs in alternative governing forms. Attempt has been made to determine production efficiency of different type of economic organizations in agriculture trough integral assessment of use of major production factors – land, capital, and labor. Comparative analysis of transaction costs has been also applied to explain economic logic of variety of market, private, hybrid, informal etc. modes for organization of agrarian activities. Forms and microeconomic factors for governing of different type of transactions (land supply, labor supply, inputs supply, service supply, finance supply, marketing) has been identified for major forms of farms in the country. Effective economic horizontal and vertical boundaries of different type of agrarian organizations in the present stage of development have been determined. Recommendation for improvement of institutional environment, agrarian public policies, farm management etc. associated with amelioration of private and social efficiency of economic organizations in agriculture have been suggested.

Employment, Incomes and Development of Labor Market in Rural Areas of Bulgaria, 2002-2003, National Center for Agricultural Research.
The main goal of the project has been to propos was to increasing the level of employment and incomes in Bulgarian rural regions and developing labor market. Existing level and diversification of employment and incomes in rural regions has been analyzed, in particular: social and economic peculiarities of the rural regions; use of labor resources, unemployment, and incomes; legal and institutional framework of labor market: achievements and disadvantages from the viewpoint of rural regions; employment and incomes in the regions with ethnically mixed population; participation in labor market of Roma workers; realization of female labor resources. Strategies for increasing the employment and incomes and for development of labor market in Bulgarian rural regions has been proposed including: actualization and development of the National Plan for Development of Agriculture and Rural Regions; diversification of economic activities; development of local entrepreneurial potential; programs supporting the development of regions with mixed population (of Bulgarian and Turkish origin), including use of the pre-accession funds of the EU; programs for attaining professional qualification by Roma and for possibilities of their participation in labor market at equal; equalization of women participation in labor market; alternations in institutional and legal basis of labor market. Both quantitative and traditional methods have been applied in the project - GVA per capita, density of population, development of infrastructure, social and cultural characteristics, educational level, traditional culture and expectations etc.
Economic, Social, Ecologic and Institutional Problems of Sustainable Agrarian Development, 2002-2003, National Center for Agricultural Research.
Different interpretation of sustainable development has been analyzed and integral approach including economic, social and ecological dimensions suggested. A system of indicators has been worked out for assessing economic, social, institutional, and environmental aspects of sustainability at various levels - national, sectoral, farm, and agro-eco system. Evaluation of sustainability level has been made on the basis of first-hand data collected from 120 farms of different types and regions of the country. The analyze shows that Bulgarian agriculture is not sustainable as a result of lack of investments, decline of production, delay of structural reform, distortion of institutional links. Suggestions for transition to sustainable development have been also prepared.
Financial Tools for Rural Development, 2002-2003, National Center for Agricultural Research.
The project aim has been to define the elements of Rural Financial System, and suggest ways of creating capacity to absorb the EU funds and stimulate rural economic growth. A methodical approach for assessing the financial potential of rural regions has been worked out. Analyze of financial system of rural regions has been made which shows the necessity of restructuring of that system through transition from farm credit to developed funding system oriented to agrarian and other entrepreneurs. An institutional model and legislative framework for developing inter-assistance financial mechanisms has been also suggested.

Competitiveness of Farm and Food Products during Accession to EU, 2002-2003, National Center for Agricultural Research.
Analyze has been made of state of Bulgarian agriculture and food industry, and the problems of their competitiveness with EU have been identified. Level of competitiveness of export to EU markets has been evaluated comprising both individual commodities (wheat, burley, corn, tobacco, oil and medical products, bee honey) and product chains (flour, bread and related products; milk and dairy products; sunflower seeds and sunflower oil; vine grape – vine. Critical factors for determining competitiveness through food chains–production of raw material-marketing of final output have been specified. Directions for increasing competitiveness of export products have also been suggested.
Problems of Land Relations, 2002-2003, National Center for Agricultural Research.
Evolution of land relations and tenure has been analyzed in the context of formation of efficient agrarian structure. An analysis has been made on character, state, and development of farmland markets and land use. Suggestions have been made for harmonization and improvements of Cadastre Law and Law for Farmlands Consolidation.
Regional Restructuring of Agrarian Production in Bulgaria, 2002-2003, National Center for Agricultural Research.
A model for restructuring of agrarian production in the sixth planning regions of the country has been developed which is based on estimates of agro-ecological potential of farmlands and minimal economic margin of soil fertility. On that base the importance of individual regions for production of major farm products has been specified.
Strategy for Development of Agriculture through chain grain-flour-bread for the period until 2010, 2003, Ministry of Agriculture and Forestry
A strategy for development of the chain grain-flour-bread until 2010 has been worked out. It includes indicators for production of wheat, flour, bread aiming full self-sufficiency of internal demand and export of grains and related products. Projection has been made for a modest increase in prices and preservation of profitability which would allow efficient investment and innovation of production of bread products.
Program for Development of Agriculture in North-Western Bulgaria for 2003-2006, 2002, Ministry of Agriculture and Forestry.
A program has been worked out for development of agriculture in one of the less developed region of the country – North-West Bulgaria. It takes into account projections for evolution of market demand and production capacity of the region. The funding of the program is secured by the SAPARD, Fund Agriculture, other national or regional initiatives as well as private sources.
Evaluation of Activities of Experimental Stations of Research Institutes of the National Center for Agricultural Research, 2002, National Center for Agricultural Research.
An integral assessment of the experimental stations of all research Institutes within the National Center for Agricultural Research has been made. Suggestions have been made for improving efficiency of activities which are directed to separate planning of activities and resources in research, experimental and demonstration activity, production, and gnomon preservation.
Regional Policies for Agriculture, 2002-2003, National Center for Agricultural Research.
Policies and experiences for rural development in countries from EU and OECD have been summarized. Problems facing Bulgaria in that respect as well and means of their resolution identified. Integral approach for development of agriculture and rural regions has been applied. A pilot project for rural development in municipality Pernik has been elaborated.
Competitiveness of Bulgarian farm products on Internal and EU markets – Problems and Challenges, 2004-2005, National Center for Agricultural Research.
Dynamics and assortment structure of agrarian import has been analyzed. Estimate has been made on competitiveness of major food products on internal markets, and negative trends associated with amount of import have been identified, and possibility of country’s farming to meet internal demand determined. Assessment is made on level of competitiveness of export of main fresh and processed farm products according to their market share in national and world export and achieved price competitiveness. A ranging has been made on following commodity groups – disappearing, stagnating, perspective, breaking, stimulating export. Potential competitiveness of farm produce o EU markets has been estimates. Directions and feasible approaches for increasing competitiveness have been suggested.
Approach for Assessment of Sustainability and Agro-ecological Program for Development of a Farm, 2004-2005, National Center for Agricultural Research.
An approach for assessing sustainability of farm has been suggested including economic, social, environmental and institutional aspects. Also an approach for elaboration of a program for sustainable development of a farm has been worked out. That approach has been tested in a pilot farm from Sofia region.

Efficiency, Sustainability and Competitiveness of Farm Structures during Accession to EU, 2004-2005, National Center for Agricultural Research.
Study analyzes land property rights and institutional environment for development of farm structures during pre-accession and accession to EU. Model for assessment of efficiency, sustainability and competitiveness of farms in specific Bulgarian conditions has been worked out. Analyses is made on state and possible impact of CAP implementation on efficiency and sustainability of different type of farms – unregistered, cooperative, agro-firms. Prospects of evolution of farms structures during accession and post-accession stage have been identified.
Development of Rural and Agrarian Tourisms in Bulgaria, 2004-2005, National Center for Agricultural Research.
Major characteristics of agrarian and rural tourism have been identified. Main directions for affecting social and economic development of rural regions by these activities have been specified. Potential for developing agrarian and rural tourism in the country has been assessed. Also major problems hampering business formation of agrarian and rural tourism have been clarified.
Methodical Approach for Identification of Less-favored Regions, 2005, Ministry of Agriculture and Forestry.
An approach for identification and determination of less favored regions in the countries has been worked out. Experiences and approaches in EU countries have been studies, and characteristics of less favored regions in Bulgaria identified. Information sources and available data for identification of less favored regions have been specified. Elaborated approach has been approbated in five pilot municipalities.
Adaptation Problems for Enterprises from Food Industries to Conditions of European Common Market, 2004-2005, National Center for Agricultural Research.
Legislative framework introducing EU norms and standards for food industry in general and individual sub-sectors has been analyzed. Assessment is made on the state of production and readiness of enterprises to face requirements of new market environment. Strong and weak points of enterprises from food industries have been identified as well as opportunities and problems of new market environment after accession to EU. Measures for efficient preparation for accession have been specified.
Assessment of Credit Rating of Farms, 2004-2005, National Center for Agricultural Research.
Existing systems for assessment credit rating in agriculture has been analyzed. A model for consumer-oriented credit for estimating credit rating allowing an increase of access to credit of farms has been worked out based on theory of credit rating.
Integral Development of Farming in Rural Areas, 2004-2005, National Center for Agricultural Research.
Rural regions have been analyzed on the basis of principles and priorities of EU CAP for rural development. Demographic problems of municipalities have been identified. Focus is put on selection of priorities and measures for the period 2007-2010, which will let utilize effectively financial recourses for achieving the goals of rural development.
Regional Aspects in Development of Agrarian Production during EU Accession, 2004-2005, National Center for Agricultural Research.
Analysis has been made of the state of farming production in a regional aspect based of agro-ecological potential, and human and economic recourses. Main changes in production structures and the inter-industry restructuring have been identified. Major problems existing in individual sub-sectors as well as specific potential of each region have been specified. Models for restructuring of production have been worked out.
System for Microfinance in Rural Regions – State and Perspective of Development, 2004-2005, National Center for Agricultural Research.
Analysis has been made on framework environment for development of microfinance system in rural regions, and organizational design and potential of microfinance intermediary in Bulgaria. Directions for improving microfinance services in rural areas have been identified."

Source: Self-entry in March 2014.