The Common Agricultural Policy (CAP) represents one of the most important economic stabilization mechanisms for the European agricultural sector. In Romania’s case, the financial impact of direct payments is even more significant given that the structure of agriculture is characterized by climatic volatility and relatively low margins in certain segments of crop production.

According to data published by Eurostat and the European Commission, Romania receives approximately €3 billion annually from the funds of the Common Agricultural Policy. A large part of these resources consists of direct payments granted to farmers through the Agency for Payments and Intervention in Agriculture (APIA).

The basic payment per hectare stands at around €95–100 per hectare. In addition to this, there are redistributive payments for the first hectares, eco-schemes and other support instruments, meaning that total support can exceed €200 per hectare in many cases.

However, compared with Western European countries, the level of subsidies remains lower. In France or Germany, total support frequently exceeds €250–300 per hectare. These differences reflect the historical structure of the Common Agricultural Policy and the successive negotiations among Member States.

For many Romanian agricultural holdings, subsidies represent an essential component of farm income. In agricultural years characterized by low prices or production losses caused by drought, direct payments can even become the factor that maintains the financial balance of the farm.

(Photo: Freepik)