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Farm cash flow in 2026: the gap between expenditures and public payments

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2026 January 13

One of the most sensitive economic issues for Romanian farms remains cash-flow management. In 2026, this problem is amplified by the structural gap between the timing of expenditures and the receipt of direct and compensatory payments.

From an economic standpoint, the agricultural cycle involves expenses concentrated in the early stages of the farming year: inputs, fuel, mechanized operations. Payments under the Common Agricultural Policy are spread over time and conditioned on compliance with a complex set of rules. Any administrative delay or non-compliance is immediately reflected in financial pressure on the farm.

European data indicate that farms with a low level of capitalization are more vulnerable to these gaps. The lack of financial reserves forces reliance on short-term financing at additional cost, which reduces final profitability, even in years with good yields.

From a managerial perspective, the solution is not increasing production volumes, but planning financial flows. Aligning the work calendar with payment deadlines, negotiating commercial terms, and correctly sizing the operation become essential.

In 2026, the competitive farm is the one that treats cash flow as a strategic indicator, not as a secondary consequence of production.

(Photo: Freepik)

 

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