Romanian agriculture enters 2026 in a context of cumulative pressure on profit margins, driven by high production costs, climate volatility, and administrative constraints. Data from the National Institute of Statistics (INS) and Eurostat show that, over the 2021–2024 period, total production costs in crop farming increased by more than 35%, while average prices for major crops fluctuated sharply, without a stable correlation with input costs.

In 2024, expenditure on fertilizers and plant protection products accounted for between 38% and 45% of direct per-hectare costs in cereal production, while spending on energy and fuel rose by approximately 30% compared to the 2019–2020 average. At the same time, direct payments under the Common Agricultural Policy (CAP) remained relatively constant in nominal terms but saw a significant decline in their ability to cover real costs.

At the legislative level, the implementation of the 2023–2027 National Strategic Plan (NSP) introduced additional environmental conditionalities and stricter administrative requirements, increasing farms’ indirect costs. According to assessments by the Joint Research Centre (JRC) and DG AGRI, medium-sized and large farms are the most exposed to the risk of margin compression in the absence of structural or technological adjustments.

For 2026, available data indicate an estimated net margin below 10% for many non-irrigated crop farms under normal climatic conditions. In the absence of compensatory policies or effective investments aimed at reducing unit costs, Romanian agriculture is entering a phase of accelerated economic selection.

(Photo: Freepik)