Romania agriculture faces rising insolvencies and aging workforce

The Romanian agricultural sector is experiencing significant financial strain, with insolvencies in agriculture, forestry, and fishing rising by 52.5% during the first eight months of 2026 compared to the same period in 2025. According to an analysis by CITR based on data from the National Trade Register Office and the National Bank of Romania, over 270 companies in these sectors entered insolvency, a growth rate ten times higher than the overall economy's 4.8% increase.

Agriculture has become the second least profitable sector in the economy, with non-performing loan rates climbing from 2.7% in October 2024 to 9.8% by March 2026. These difficulties are compounded by seasonal income, climate dependency, and high upfront costs for seeds and fertilizers.

Simultaneously, the sector faces a demographic crisis. Romania has one of the oldest farming populations in the European Union. Data indicates that 44.3% of Romanian farmers are aged 65 or older, significantly higher than the EU average of approximately 32%. This aging trend is driven by rural depopulation and a lack of interest among younger generations, who often migrate to cities or abroad for better-paying opportunities.