The first time it happens, the second time it can be a coincidence but for the third time it is already confirmed the establishment of… Mai mult›
Draft / Employers who do not pay employees’ contributions to state budget are at risk of up to 6 years of imprisonment
The intentional non-payment of taxes and contributions due to the budget, subject to the withholding regime, will be considered a tax evasion, according to a… Mai mult›
Fiscal Council, on 2018 draft budget: Deficit target depends on exceptional revenues. Overvalued revenues, undervalued expenses
The Fiscal Council published a preliminary opinion on the 2018 draft state budget on Wednesday, stating that this draft remains within the already traditional pro-cyclical… Mai mult›
BNR made a thorough analysis of Romania’s status in terms of real convergence with Western economies. A precondition for adopting the euro, in line with… Mai mult›
Keeping the national currency under a controlled float exchange is a way to optimize the sustainable economic growth towards getting closer to the West but… Mai mult›
de Marin Pana 31.12.2016
The ratio between the standard income obtained by a farm from the Netherlands and a farm from Romania is 92 to 1, according to the Eurostat data. They would have an average of 303,760 euros, while we would have only 3,303 euros.
To keep in mind, this average level also includes large farms, in which case the ratio drops to less than 4 to 1, with 4,101,551 euros for the Dutch and 1,104,177 euros for us.
The explanation is simple and devastating for the gap that we should recover. In their case, the fifth of the agricultural production from the poorest farms is at an average of 87,451 euros per year, while in our case it is a tiny amount of 856 euros because production is primarily intended for self-consumption and not for the market.
Below, a report about the relationship between large and small farms, valid for 2015:
Revenues (euros/ year)
Country Average Poor farms Large farms Number of poor/large farms
Property fragmentation has played the key role. Romania holds slightly more than a third of the number of farms from the EU (33.5%), followed at a big distance by Poland (13.2%).
This is the situation although we rank the sixth, with only 7.5% representing the utilised agricultural land, after France (15.9%), Spain (13.3%), the UK (9.9%), Germany (9.6 %) and, again, Poland (8.3%).
Classification of farms according to Eurostat:
Classification of farms into five categories by the economic volume (value of annual production, in euros):
- Very small farms under 2,000 euros
- Small farms 2000-7999 euro
- Medium farms 8000-24999 euro
- Large farms 25000-99999 euro
- Very large farms at least 100,000 euros
Classification into small and large farms by the total revenue obtained.
The small ones are those of smallest sizes that obtained 20% of total production. The largest are those that have the highest achieved all sizes and 20% of total production. Note: according to this criterion, definitions differ from country to country but the sizes of small and large farms at the national level are relevant.
Classification of farms into four categories by the size (area in hectares):
- Very small farms under 2 hectares
- Small farms at least 2, but less than 20 hectares
- Farms average at least 20, but less than 100 hectares
- Large farms over 100 hectares
Poor structure of farms by surface
Small and very small farms (under 20 hectares) represent over 95% in five EU member states. Along with us (it was expected to fall in this category), in the same category we find Slovenia, Malta, Greece and Cyprus, but when they make a more detailed analysis, Eurostat records that more than half of the very small farms (less than 2 hectares) are in Romania, 54.4% respectively.
Obviously, at the other end, we are among the seven EU member states (along with the same above mentioned countries, plus Croatia and Poland) where the number of large farms is less than 1% of the total. To get the picture of the distance that separates us from the developed West, we mention that this number exceeds 20% of the total in four states (the UK, Luxembourg, France and Denmark).
Moreover, farms with areas larger than 100 hectares cumulated, in 2013, 52.1% of the EU utilised agricultural land, following a quite clear process of concentration (they represented only 45.2% in 2005). This matter also concerns the former socialist countries, including the Czech Republic that became the leader in terms of average size of the farm in the EU, with 133 hectares, surpassing the UK (only 93.6 hectares).
Here we find the key to the effective shift from feudalism, with the society characterized by the majority of self-consumption, without extensive relationships of the employed and taxed workforce, and capitalism, in which what matters is production for the market with the work of employees like those from industrial enterprises.
And here we find the model to follow for Romania. The countries that have changed the fastest their structure of agricultural production, took the model of industrial exploitation and headed toward the practice from the developed West are the Czech Republic and Slovakia, the only EU countries that have more than two-thirds of the agricultural workforce employed on the large farms.
Incidentally, in a manual of military geography from the third decade of the last century, Czechoslovakia was already presented as an industrial-agrarian economy and not the other way around. Along with Germany and Sweden, which shows that processes are slower at the historical level, but also settle. We went after 1989 all the way back where we were before, but apparently, that was not the best idea.
Therefore, it is no surprise that the countries from the Central Europe are more capitalist than us and have a higher work productivity at the national level. It might even appear the suspicion of what sets us apart from them and penalizes us both in terms of GDP / capita and revenues.Accordingly, a relatively large number of people who are not integrated, but marginally into the market that subsists, not exists, economically speaking. If we calculate the national average of our “Czechs and Slovaks” from all the other economic sectors and the farmers lost in time on our homeland we might rapidly explain why we are at only three-quarters of the Czech-Slovak standard of living.
Hope comes from the dynamism that we can bring. Surprisingly, although it has one of the most aging workforces in agriculture, Romania has at the same time the highest proportion of managers under 35 working in large farms among the EU countries (57.3%, about six times more than the EU average!). It remains for the authorities to support the transformation of a major deficiency into a development opportunity.
Lăsați un comentariu
Brussels offers Romania four months to take measures to correct significant deviation of structural deficit
The European Council issued on Tuesday a new recommendation, at the request of the European Commission, based on the significant deviation procedure, with Romania being… Mai mult›
In Romania, the ratio between the revenues that must be collected from taxes (including social contributions - tax/GDP ratio) and GDP was 26% in 2016,… Mai mult›
The nine ambassadors who met on Wednesday with Minister Tudorel Toader shared their "concern over the draft laws on the reform of the judiciary discussed… Mai mult›
Vitruvian Partners investment fund acquired about 30% of Bitdefender from Axxess Capital and becomes the second largest shareholder in the company, valued at over USD… Mai mult›
Split VAT at the Chamber of Deputies: Dilemmas of all kinds. Thresholds for outstanding payments have increased 10 times, Budget Committee to resume debates on Monday
The Budget Committee of the Chamber of Deputies has increased ten times the threshold of the outstanding VAT obligations from which companies will automatically be… Mai mult›
The Competition Council started an analysis, following the request of the Ministry of Agriculture, to establish the causes of the accelerated food price increase this… Mai mult›
Liviu Dragnea at the exit of the DNA headquarters where he was expected by a group of supporters and another of protesters. DNA prosecutors have… Mai mult›
Rompetrol saga, chapter about money: Government asks KazMunaiGaz to pay the historical debt and demand settlement of case in court
The extension of the memorandum between the Romanian state and KazMunaiGaz, the owner of the Rompetrol Group, will be discussed only after the company's historical… Mai mult›
"Not only we have not died, we rank third in the world" - Government approved second budget amendment, deficit of 2.96% of GDP
The second budget amendment this year has been adopted at the government meeting on Wednesday. As the Finance Minister assures, this amendment is "positive", the… Mai mult›
Mayors accepted on Tuesday in the negotiations with Prime Minister Mihai Tudose and several cabinet members, the promises made by the government officials to partially… Mai mult›
The establishment of own companies by local administration to manage the services at the local level is worrying for the competition authority, Bogdan Chiritoiu, President… Mai mult›
The ruling coalition registered with the Chamber of Deputies on Tuesday the draft amendments to the three important laws for the judicial system: Law 303/2004… Mai mult›
Negative opinion and analysis of Fiscal Council on tax changes. "Tax package" costs 5.2 billion, not planned at all
The Fiscal Council issued a negative opinion on the proposal to amend the Fiscal Code, according to the opinion published Friday on the institution’s website.… Mai mult›
The Economic and Social Council, a consultative body of the Parliament and the Romanian Government, issued a negative opinion on Tudose cabinet's draft amendment to… Mai mult›
Romania ranks 45th in the Doing Business 2018 ranking by the World Bank (WB), with a total score of 72.87 points, right under the Republic… Mai mult›