This study challenges traditional economic models of farm competitiveness by highlighting the underexamined role of legal structures. It argues that a farm’s governing structure significantly impacts its ability to thrive in the market. The authors propose a novel framework for assessing farm competitiveness that encompasses three key dimensions: economic efficiency, financial health, and governance effectiveness. This framework is then applied to evaluate various agricultural governing structures in Bulgaria. A multi-layered evaluation system with four pillars is employed to assess competitiveness across these structures. The research reveals a generally positive competitiveness landscape for Bulgarian agriculture, with cooperatives demonstrating the highest level of competitiveness. However, some critical areas for improvement are identified, including low productivity, income, financial security, and adaptation to environmental challenges. The study also finds that a significant portion of Bulgarian farms struggle with low competitiveness. The research emphasizes the need for targeted interventions to address these weaknesses, including public support and improved management practices. Additionally, it highlights the importance of restructuring struggling farms and implementing better management approaches. Furthermore, the study underscores the crucial role of government support in preventing farm closures. Finally, the research reveals that farm size, specialization, market focus, and ecological location all play a role in competitiveness, but the significance of these factors varies depending on the specific governing structure employed.