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| Support for Romanian Farmers |
| (2011-10-06) |
| Last updated: 2011-10-06 16:59 EET |
2011 was one of the most successful years ever for Romanian agriculture. According to official estimates, this sector will account for a considerable portion of national GDP. The Government has decided to give agricultural producers it full backing.
According to PM Emil Boc, support for agriculture is and continues to be a vital goal for Romania, given that this sector represents one of Romania’s major modernization and development opportunities. The PM said that the government’s medium and long-term goal is to transform Romania from an importer into an exporter of agricultural foodstuffs. PM Emil Boc:
“Romania has the capacity to feed 80 million people. Everything we invest in agriculture will remain here; it cannot be relocated or moved to other parts of the world. Agricultural investment is and will remain in Romania. We have the financial means to guarantee different forms of payment to support farmers and this has been provided for the in the draft budget”.
Between 2011 and 2012, Romanian farmers will benefit from state support worth a total of 800 million lei (just under 200 million euros). Approximately half of this sum will be used to buy diesel for the sector. From October 16, advance payments amounting to 400 million euros will commence for cultivated lands. In December remaining payments with a value of 500 million euros will be made from European Funds, with a further 500 million euros to be allocated through the state budget.
Agriculture Minister, Valeriu Tabara, says that 2011 has been one of the best years ever for farming in Romania. Production levels for the most important crops – wheat, corn, sunflowers and other vegetables – were higher than last year. In the animal husbandry sector, increases in meat, milk and egg production were also recorded.
According to Tabara, production levels posted this year could mean that agriculture will account for 8% of GDP, amounting to 12 billion euros, which is double the amount posted last year. The Minister also pointed out that the excellent results for 2011 cover the losses incurred last year and possible losses of this year, incurred as a result of the recent drought.
Specialists are of the view that Romanian agriculture is far from achieving its maximum potential and the results posted in 2004, when the sector accounted for 12.6% of GDP. According to the Agriculture Census carried out in 2010, Romania has approximately 8.3 million hectares of arable land, representing 62.5% of the country’s agricultural surface area. Romania ranks 6th in Europe after France, Spain, Germany, Great Britain and Poland in terms of used agricultural surface area, and ranks 5th in terms of arable surface area.
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