Romania’s Farming Future Hinges on Fixing Deep Structural Divides

Romania's farming sector is standing at a critical moment. A new OECD report on the future of farming and food in the country shows that while agriculture has made real progress over the past decades, deep challenges remain. The study, prepared by the OECD Trade and Agriculture Directorate with contributions from researchers like Francesco Vanni, Jussi Lankoski, Urszula Ziębińska and others, in collaboration with Romania's Ministry of Agriculture, the Romanian Academy and national research institutes, highlights both opportunity and urgency.

Since joining the European Union in 2007, Romania has modernised many of its agricultural policies and benefited from strong financial support. But rural areas still struggle with poverty, ageing populations and weak infrastructure. Agriculture continues to play a much larger role in the economy than in most EU countries, reflecting both its importance and its inefficiencies.

The Big Divide in Farming

One of the most striking features of Romanian agriculture is its imbalance. The sector is split between millions of very small farms and a small number of large, highly productive ones. About 90% of farms are tiny, often producing mainly for their own consumption and using limited technology. On the other hand, a handful of large farms control most of the land and generate a big share of output.

This divide dates back to the 1990s, when land was returned to former owners after the fall of communism. While this created fairness in ownership, it also led to extreme fragmentation. Today, this structure slows down progress. Small farmers struggle to grow, while large farms continue to dominate.

There are some positive signs. Medium-sized farms are slowly increasing, and some consolidation is happening. But overall, change is still slow.

Growth with Limits

Romania's agricultural output has improved in recent years. Farmers are producing more crops, especially cereals and oilseeds like wheat, maize and sunflower. Yields have increased, and the country is catching up with other EU nations in some areas.

However, much of this growth comes from large farms. Productivity across the whole sector is still low compared to EU standards. Also, Romania mainly exports raw or low-value-added products. This means the country earns less than it could if it processed more of its agricultural goods before export.

Another major issue is access to finance. Many farmers, especially small ones and young newcomers, cannot get loans. Banks see agriculture as risky, and many farmers lack collateral or financial knowledge. As a result, investment in modern equipment, irrigation and technology remains limited.

Climate and Rural Pressures

Romania has a strong natural advantage in agriculture. It has large areas of fertile land and high biodiversity, especially in traditional farming regions. These are valuable assets, both for food production and the environment.

But these advantages are under threat. Climate change is increasing the frequency of droughts and floods. Irrigation systems are often old and inefficient, leading to water loss and higher costs. At the same time, greenhouse gas emissions from agriculture are rising, even though efficiency has improved.

Social challenges add to the pressure. Many young people leave rural areas in search of better opportunities, leaving behind an ageing farming population. Although more young farmers are entering the sector recently, they face difficulties accessing land and finance. Women are also moving out of agriculture as jobs shift towards services.

The Need for Smarter Policies

The OECD report points out that policies need to do more to address these issues. While Romania follows EU agricultural rules, the way support is distributed often benefits large farms the most. This risks widening the gap instead of reducing it.

There are also problems with administration and coordination. Farmers often face complex procedures, and different policies are not always well-connected. This reduces the overall impact of government support.

A key weakness is the lack of strong education and innovation systems in agriculture. Many farmers have limited formal training, and advisory services are not strong enough to guide them. Investment in research and new technologies is also relatively low.

The report suggests that Romania should focus more on supporting small and medium-sized farms that are ready to grow, invest more in training and innovation, and improve access to finance. Better environmental policies and stronger integration into food value chains are also essential.

Romania's agriculture has clear potential. With the right reforms, it can become more productive, more sustainable and more competitive. But the path forward will require careful planning and stronger policy action to ensure that no farmer is left behind.