Application by procedure through selection of project proposals No BG06RDNP001-4.002 under sub-measure 4.1.2. "Investments in Agricultural Farms under Thematic Subprogramme for Development of Small Farms" for the purchase ofagricultural machinery - tractor without cab brand LS model J27, milling machine GEO model TL 105, plow with 3 bodies brand SURUM model 3x23, disc mower 125 cm brand SURUM

The investment amounts to BGN 26796.00 with VAT includes the purchase of: LS model J27 tractor without a cabin with total price 21600,00 BGN includes VAT, milling machine GEO model TL 105, 2400 BGN with VAT, plow with 3 bodies brand SURUM model 3x23, price 696,00 BGN VAT included, 125 cm mower, brand SURUM, price 2100,00 BGN VAT included. The total value of the investment is 26796.00 BGN VAT included.The technique will be purchased from Mercury Agro amp; Co. EOOD, Samovodene village. The good relationship between price and quality features of the technique and the available spare parts network are the main criteria for choosing the supplier as well as the afore mentioned brands and models of agricultural machinery. This agricultural machine corresponds to the maximum extent of the needs and opportunities of Dimitar Krasimirov Vassilev's farm for the development of the agricultural activities.The technique covered by the investment will be exclusively used to process the own crops and land. The main subsidy is 60% of the total eligible costs, with a 10% surcharge, due to the fact that the activity on the holding develops in the territory of a mountainous less-favored area or a total subsidy is of 70%. For the implementation of the project Dimitar Krasimirov Vasilev will use an investment loan in the amount of 70% of the approved investment costs.The economic effect of purchasing the new equipment on the business is proven in the current business plan. The purchase of new modern equipment will reduce the cost of external services, and hence mechanized processing and unit cost in general. This in turn leads to higher profitability of the activities in the farm.After realization of the investment, it is envisaged to restrict the dependence on performing external mechanized or manual labor whose use adversely affects the economic development of the farm, its profitability from agricultural activity and the quality of the production.

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