Agriculture also is the dominant activity in the rural household economy. Agricultural production is a very important part of total household income, comprising about one-half of total income on average. In Bulgaria, rural poverty is extensive, with the incidence of rural poverty about twice as high as in urban areas. Poverty reduction in the country as a whole thus requires a substantial emphasis on poverty reduction in rural areas. This in turn depends on progress in generating broad-based agricultural growth, as at least one component of a poverty reduction strategy.
Agriculture has considerable potential in Bulgaria.
The country has good natural growing conditions on the two-thirds of its area that are not mountainous. Summer crops require irrigation, but water supply has not in the past been a constraint. Historically the country was a significant exporter of agricultural and processed products. Bulgarian exports, however, are now in a poor position to compete in the global economy. Agriculture continues to be plagued by a past legacy of central planning and state-ownership.