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_ SME Council launches the White Paper of Romanian Agriculture 2024

SME Council launches the White Paper of Romanian Agriculture 2024

Salaries in the agricultural sector indicate a positive trend in the last two years, with increases even up to 20% in some cases, in a context where, in 2023, the average net monthly salary in the field was almost 3,600 RON, approximately 25% lower than the national average, according to the "White Paper on Agriculture in Romania" survey.

The National Council of Small and Medium Private Enterprises in Romania (CNIPMMR) launched on Tuesday the first edition of the survey "White Paper of Agriculture in Romania", basically an assessment of the current state of agriculture and the identification of the main challenges and opportunities for the coming years.

According to a press release from the organization, in the context of global economic and climate changes, this work provides a detailed overview of the agricultural sector, supported by statistical data, interviews and economic analyzes carried out in 2024. The document focuses on the situation of agricultural SMEs, emphasizing development strategies, access to financing, human resources and market dynamics.

The most important aspects indicated in the analysis for the year 2024 are the following: regarding the objectives of farmers for the next three years, 32.5% of the respondents want to invest in activities that will contribute directly to the increase in profit, 25.5% are oriented towards increasing investments, and 17.25% prefer to maintain the business at its current size; the main developments on salaries in the agricultural sector generally indicate a positive trend over the last two years, with 50% of respondents indicating increases between 1% and 10%, while 15% indicated higher increases, between 11% and 20% of salaries, and 21% of the respondents identified a stagnation in this field.

In 2023, the average net salary in agriculture was approximately 3,600 RON per month, approximately 25% lower than the national average salary, being supplemented by: meal vouchers (36.5%), meals served at the location (26.5 %), annual salary increases (21.75%), health insurance (19.75%), percentage of sales (9%), specialized training (3.25%), others (18.5%), according to a presentation at the event.

The main requests of entrepreneurs from the agricultural sector were the increase in subsidies - 38%, the developent of the irrigation system - 26.5%, the amendment of the Lease Law - 24.75%, equal to the Law on the sale/purchase of land (24.75%).

The main method of financing the activity is self-financing, this being mentioned by more than 55% of the respondents who participated in the study. Also, the main financing needs indicate investments in machinery/equipment (61.25%), investments related to farm/business administration (33.5%), digitalization (28.5%), survival (15.75%), research /development/innovation (11%), human resources training (9.5%), others (5.5%).

The major challenges faced by farmers are: land fragmentation and lack of association between farmers; poor rural infrastructure and limited access to markets; insufficient financing and difficult access to credits for small and medium farms; climate changes and their impact on agricultural production.

Unlike the Romanian entrepreneur, whose profile indicates a mature person, with higher education, male, married, with two children, sole owner, who dedicates approximately 46 hours a week to the business and does not involve family members in the company's activities, the entrepreneur from agriculture in Romania is a mature person, with higher education, male, married, with two children, sole owner, who dedicates an average of 56 hours to the business and involves family members in the company's activities.

560 entrepreneurs from the field of agriculture participated in the survey, with the distribution of responses by region being as follows: Center (16%), South-West Oltenia (16%), North-West (16%), North-East (13%), South- Muntenia (13%), West (12%), Bucharest-Ilfov (4%).

The SME Romania project is co-financed by the European Union.

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