This research focuses on building a specific framework and to measure the contribution of landscape to the development of rural economy. The main issues are to be determined how CAP connected what the landscape and how it contributes to the competitiveness of rural economy. Analysis is made in key sectors of rural economy of Pazarjik district in Bulgaria. The empirical result indicates that there is demand of the following landscape services: food, raw materials, fresh water, climate and air quality, spiritual experience and sense of place. Based on cascade approach it was defined the influence of CAP on rural competitiveness. Following the analysis in the paper are presented recommendations and suggestions for the improvement of the common agricultural policy.