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Leasing in agriculture: operational flexibility or loss of value

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2026 February 06

Leasing remains the dominant form of agricultural land use in Romania. According to data from the Ministry of Agriculture and Rural Development (MADR), more than 60% of the cultivated area is farmed under lease arrangements, providing farmers with flexibility and rapid access to large surfaces.

From a financial perspective, leasing reduces the need for capital and allows quick adaptation to market conditions. However, lease rates have increased significantly in recent years. National Institute of Statistics (INS) data indicate steady increases during 2023–2025, in some areas exceeding the equivalent of 800–1,000 kg of wheat per hectare.

This pressure reduces farmers’ margins, especially in years with poor yields or low prices. In addition, the lack of long-term security limits investments in soil quality, irrigation, or infrastructure. From an economic standpoint, leasing favors short-term exploitation rather than long-term optimization.

For 2026, the decision between ownership and leasing must be aligned with the farm’s strategy. Leasing offers flexibility, but it can erode economic value if not supported by productivity and cost control.

(Photo: Freepik)

 

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