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[BUSINESS] · Romania · 3 sources

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Agriculture in Romania faces crisis from weather and costs

Romanian agriculture is facing a severe crisis driven by the combined impact of extreme weather phenomena and economic pressures. In Vrancea County, extreme weather has caused significant damage to crops. Corn and sunflower yields are expected to decrease substantially in non-irrigated areas due to drought, while fruit trees have suffered from late spring frosts and previous hail episodes.

Agricultural expert Cezar Gheorghe identifies drought and high financial costs as the two primary threats to the sector. He notes that a lack of investment in national irrigation systems since 2012 has exacerbated the vulnerability of farms. Furthermore, rising credit costs and the collapse of local commercial networks have increased financial risks, leading some banks to withdraw from agricultural financing.

Financial modeling suggests that many farming operations are struggling to remain profitable. Under current conditions involving high fuel and fertilizer costs, some financing models show direct losses per hectare, even when accounting for subsidies.

Entities

Agency for Payments and Intervention in Agriculture · Cezar Gheorghe · Vrancea County