Low level of capitalisation in agriculture

Romania is in last but one place in the European Union as regards capitalisation of agricultural holdings. One of the causes of this low level of capitalisation is the high fragmentation of agricultural holdings, small revenues within farms, and a lack of agricultural training among farmers.

The low capitalisation of agricultural holdings has many symptoms, which significantly affect production yields. The main issues which limit system development are: high fragmentation of agricultural holdings leading to small and very small farms, which do not have the necessary economic resources to restart the irrigation systems or to redesign irrigation systems for large agricultural holdings due to the very high fragmentation of the agricultural holdings and to the obsolete and energy-intensive infrastructure and irrigation equipment.

Romania is behind the other EU Member States as regards the expenses allocated to farmers for plant protection products, another factor that affects agricultural yields.

Romania is in last but one place in the European Union as regards the expenses allocated from the state budget for agriculture.

What tools does the Commission have to identify solutions to increase the capitalisation of Romanian agriculture?