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The polarized structure of Romanian agriculture continues to generate major differences in economic efficiency between small and large farms. According to data from Eurostat and the National Institute of Statistics (INS), over 70% of agricultural holdings in Romania are under 5 hectares, but they control less than 20% of the utilized agricultural area, while large farms concentrate the majority of commercial production.
The difference is not only one of size, but of economic structure. Large farms benefit from lower unit costs, better access to financing, and superior bargaining power in the market. In 2024, the average cost per hectare for large commercial farms was 15–25% lower than in small holdings, according to Eurostat analyses, due to mechanization and centralized procurement.
Small farms remain dependent on manual labor, limited capital, and restricted access to markets. Even though redistributive support and direct payments account for a higher share of their income, these instruments do not offset the lack of economies of scale. In many cases, the subsidy becomes the main source of income rather than support for production.
For 2026, the central issue is not the existence of small farms, but their economic viability. Without integration into functional cooperatives or access to short marketing chains, the efficiency gap compared to large farms continues to widen.
(Photo: Freepik)