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Agriculture: Less performance agriculture in Romania; a quarter farms disappeared over 10 years
The Farmers' Association of Romania (AFR) says that fewer farmers do performance agriculture in Romania, while provisional data of the Farming Census show that more than a quarter of farms disappeared between 2010 and 2020.
“In 2020, there were 2,887,000 farms in Romania which used 12.8 million ha of farming land. The provisional data of the General Farming Census 2020 show that over ten years, the number of farms dropped by 972,000, that is 25.2% while the farming area used dropped by 543,000 ha, that is 4.1%. Other provisional data show that the number of farms without juridical personality were about 25,000, 17.3% fewer than in 2010,”, according to an AFR analysis sent to Agerpres, quoting data of the National Statistics Institute (INS).
The drop of the number of farms led to the increase of the average farming area per exploitation by 28%, from 3.45 ha in 2010 to 4.42 ha in 2020.
The average farming area of a farm with juridical personality was 197.78 ha, compared to 190.78 ha in 2010.
“There are fewer people doing performance agriculture in Romania, and the statement is backed by provisional data of the Farming Census. More than a quarter of farms in Romania disappeared between 2010 and 2020, according to INS,” the analysis shows.
The farmers' association points out that European officials agreed that there is a food shortage in this period of time in that difficult context, but not related to food shortage but to the fact that it will be too expensive for many people.
In that context, the association points to the fact that problems brought along by the war in Ukraine adds to difficulties already faced by farmers: agitated markets, sometimes fuel shortage, exaggerate prices for inputs, fodder shortages in the market.
According to the European Commission, 18 member states have included support plans for cultures in their national strategic plans.
In this difficult context, AFR draws attention that there is an opportunity for Romanian farmers too – sunflower cultures – where Romania has excellent results.” That is because sunflower harvested this year by Ukraine may drop by 42%. Ukraine is an important European and world producer in this field.
Market analysts consider that Ukraine may harvest a lower sunflower quantity by 42%, to 9.6 million tons. It is a direct result of the reduced areas cultivated because of the Russian invasion. The area cultivated with sunflower in Ukraine might drop in 2022 somewhere between 4.2 and 4.4 million ha, 35% less than in 2021.
Analysts estimate that rape harvests in Ukraine might drop by 19%, to 2.52 million tons, while soy could drop by 23%, to 2.74 million tons.
“In a favorable year, such as 2021, results in Romania were up to expectations and investments. So Romanian farmers gathered a historic cereal harvest of 34 million tons. But profits were seriously reduced by increases of production costs. Experts in the field see a drop of 8 million tons, which could be compensated by a price rise. In fact, at present, the price index for cereals and oil plants is at a maximum value in the last 22 years. The evolution can be explained considering the Ukrainian war, a situation which allowed obtaining high gains in the cereal and oil seeds markets,” according to AFR.
Official data show that Russia ensures 20% of the world wheat trade and 17% with barley. At the same time Ukraine ensues 15% of the world trade with corn and barley and 10% of the world wheat trade.
“If we take into account what is happening in the two large cereal producing countries in the Black Sea area, we can anticipate a favorable solution for Romanian farmers, who could have access to new markets,” AFR concludes.