EU funds support Romania’s green and digital agricultural transition

EU funds support Romania’s green and digital agricultural transition

Business

Agriculture maintained its contribution of approximately 4–5% to Romania’s Gross Domestic Product (GDP) in 2025, and when the food industry, processing, and related sectors are also considered, the total contribution exceeds 10% of the national economy, according to the “White Paper on Agriculture,” recently launched by IMM Romania.

“Agriculture holds a central place in Romania’s economy, representing a strategic sector both through its contribution to national food security and through its role in the economic and social development of rural areas. With a long agricultural tradition and significant natural resources, Romania has over 13.3 million hectares of agricultural land, of which around 8.3 million hectares are arable land, placing it sixth in the European Union after France, Spain, Germany, Poland, and Italy. In 2025, agriculture continues to contribute around 4–5% to GDP, and if the food industry, processing, and related sectors are included, the total contribution exceeds 10% of the national economy,” the authors note.

At the same time, around 18–20% of the active population works in agriculture — significantly higher than the EU average of about 4%, CE Report quotes AGERPRES.

This figure confirms the high socio-economic dependence of rural communities on agricultural activities, as well as the need to increase productivity through investments in mechanization, digitalization, and professional training.

In terms of wages, the average net income in agriculture was approximately 3,931 lei in 2024, higher than in previous years but about 20–25% lower than the national average.

The total value of Romanian agricultural production was estimated at over 22 billion euros in 2023, according to Eurostat, keeping Romania in 7th place in the European Union in terms of economic volume generated. Despite these results, productivity remains below the European average due to land fragmentation, low use of modern technologies, and high vulnerability to climate change.

Agriculture is one of the main drivers of Romanian exports. Romania is an important regional exporter of cereals, oilseeds, and agri-food products, with a positive trade balance in this sector. The main exported products are wheat, corn, and sunflower, which reach EU countries, the Middle East, and North Africa.

Moreover, the food-processing industry contributes increasingly to added value through competitive finished products such as vegetable oils, wines, and dairy products.

National agricultural policy is closely aligned with the EU’s Common Agricultural Policy (CAP), which provides support through direct payments and rural development programs. Through the CAP Strategic Plan 2023–2027, Romania benefits from over 15.8 billion euros allocated for farm modernization, the transition to greener and digital agriculture, professional training, and support for young farmers.

At the national level, the National Rural Development Program continues to play a key role in funding rural infrastructure, farm modernization, and agricultural entrepreneurship. However, high bureaucracy, administrative delays, and complex application procedures remain major obstacles, especially for small and medium-sized farms.

According to specialists from IMM Romania, Romanian agriculture is undergoing a structural transition between the traditional model and the modern, competitive, and digital one. This stage presents both major challenges and real development opportunities.

Among the main challenges identified in the White Paper are excessive land fragmentation and the lack of farmer associations; poor rural infrastructure and difficult market access; insufficient financing and limited access to credit; the growing impact of climate change on production; and the lack of digital and technological skills in rural areas.

Regarding development opportunities, the authors highlight farm modernization through digitalization, mechanization, and technological innovation; growth of the organic agriculture sector in line with the European Green Deal; use of EU funds for the green and digital transition; development of short supply chains and strengthening local markets; and promoting cooperatives and agricultural associations capable of generating economies of scale and stronger competitive positions.

“In 2025, Romanian agriculture is defined by exceptional agricultural potential but also by a complex set of structural challenges. Although the sector faces vulnerabilities related to climate, fragmentation, and limited access to financing, the overall direction is one of transformation and professionalization. Through investments in infrastructure, digitalization, and human capital, Romanian agriculture can become a strategic vector of the national economy, contributing not only to GDP growth but also to revitalizing rural areas and strengthening the food security of Romania and the European Union,” the study states.

The research was carried out in 2024 through a questionnaire-based investigation applied to 439 enterprises — micro, small, and medium-sized — from all Romanian development regions and age categories. The sample is considered representative for the agricultural SME sector, offering a solid basis for conclusions and recommendations regarding the current state of agriculture.

The questionnaires were mainly completed by entrepreneurs and managers active in the agricultural field, covering diverse branches — from crop production and livestock to related services and agricultural processing. The research aimed to identify key sector trends, evaluate access to financing, digitalization, human resources, risks, and public policies.

The geographical distribution of the sample ensures balanced representation of the eight development regions, reflecting the regional specifics of Romanian agriculture and structural economic differences. Thus, the research provides a detailed picture of on-the-ground realities and enables comparative analysis between regions, categories of enterprises, and business sizes.

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