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Economic sustainability of small farms – how they can become viable in 2025

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Small Farms — The Heart and Challenge of Romanian Agriculture

Small farms represent the heart of Romanian agriculture, but also its most economically vulnerable segment. According to Eurostat (2024), over 90% of Romanian farms have less than 10 hectares, yet they generate only 25% of the total value of agricultural production. The lack of capital, difficult market access, and high certification costs hinder the development of this sector.

Under the CAP Strategic Plan 2023–2027, AFIR has opened dedicated funding lines for microfarms through interventions DR-12 (installation of young farmers) and DR-30 (development of small farms), offering support of €60,000–70,000 per project. By September 2024, 3,800 small farms had applied for funding, according to AFIR’s report, with the absorption rate increasing by 35% compared to the previous cycle.

To become viable, small farms must embrace cooperation and niche production. Studies by DG AGRI show that farms selling directly or through cooperatives obtain prices 25–40% higher, retaining more added value within the community. At the same time, digital integration and renewable energy help reduce production costs and increase competitiveness.

Economic sustainability is not just about subsidies, but about the ability of farms to adapt, collaborate, and diversify. In 2025, the future of Romanian agriculture will depend on the strength of these small producers who, with smart support, can become the foundation of a modern rural economy.

(Photo: Freepik)

 

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