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Aim: This study examines the current state and challenges of implementing contractual arrangements in Bulgarian agriculture, with particular emphasis on their potential contribution to the provision of agro-ecological public goods and rural development. Against the background of the European Union’s Common Agricultural Policy, contract farming represents a promising instrument for strengthening cooperation among producers, processors, and other stakeholders in Bulgaria, where agricultural production is characterized by fragmented farm structures and diverse regional conditions. Method: The analysis is based on a review of the scientific literature, existing conceptual models of contract farming, and an assessment of their applicability under Bulgarian conditions. Results: The findings indicate that well-designed contractual relationships can improve market access, reduce transaction costs and production risks, facilitate technology transfer, and enhance cooperation within agricultural value chains. At the same time, their successful implementation depends on appropriate institutional support, legal certainty, transparent governance mechanisms, and mutual trust among participants. Conclusions: The paper concludes that contract farming and related contractual approaches have significant potential to promote sustainable agricultural development in Bulgaria, particularly when integrated with policy instruments supporting environmental objectives and collective action within the Common Agricultural Policy.
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