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Rising farm costs – constant pressure on profitability

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infoFERMA.ro

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Romanian farmers continue to face high financial pressure, driven by rising costs of inputs, energy, and transportation. According to data from the National Institute of Statistics (INS), agricultural input prices increased by approximately 18% between 2021 and 2024, while the cost of energy used in agriculture has doubled over the past three years.

According to Eurostat, Romania remains below the EU average in terms of agricultural labor productivity, with around €12,000 in added value per worker, compared to the European average of €27,000.

Support programs managed by the Agency for Rural Investment Financing (AFIR) and the Agency for Payments and Intervention in Agriculture (APIA) cover only part of these losses. For example, in 2024, payments to the crop and livestock sectors exceeded €3 billion, yet their impact on competitiveness remained limited.

Experts believe that the long-term solution lies in investments in renewable energy, efficient irrigation systems, and digital monitoring technologies. Without these measures, small farms will continue to lose ground to larger, more capitalized, and better automated operations.

(Photo: Freepik)

 

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