The objective of generational renewal in agriculture risks remaining at a declarative level in the absence of a real adaptation of public policies and financial instruments to the conditions on the ground, and access to financing represents the main challenge for farmers, especially young ones, said the representative of the Alliance for Agriculture and Cooperation (AAC), Matei Titianu, at the round table organized on Tuesday, in Brussels, by the "fi-compass" platform.
According to a press release from the AAC, the event, organized under the auspices of the European Commission and the European Investment Bank, brought together representatives of the agricultural sector, financial institutions and decision-makers, with the aim of identifying solutions to facilitate farmers' access to financing.
During the event, the representative of the Romanian agricultural sector, Matei Titianu, president of LAPAR, gave the presentation "Young farmer in Romania. Points of view on the common agricultural policies in the EU, East versus West", offering an authentic perspective on the challenges in the sector.
"In his presentation, Matei Titianu highlighted a series of major discrepancies between how things are seen in EU offices and the realities that Romanian farmers face every day: the promotion of the idea that small farms are inherently more resilient, without taking into account real economic constraints; the increase in regulatory pressure on European farmers, which causes production costs to increase in conditions of direct competition with states outside the European Union; the impact of the ban on active substances, such as neonicotinoids, which leaves Romanian farmers exposed to specific pests, such as Tanymecus dilaticollis, with risks of production losses of up to 100%," the press release states.
The AAC representative also highlighted that access to finance is the main challenge for farmers, especially young ones. Among the main obstacles identified are: the lack of collateral, given that leased land is not accepted by financial institutions; income volatility, driven by climatic factors and delays in the payment of subsidies; the gap between grant approval and access to credit; increasing costs and the reduction of crop protection tools.
In addition, Titianu drew attention to the fact that modern agriculture requires significant investments, but difficult to finance, such as agricultural machinery (150,000 - 500,000 euros per cycle); irrigation systems (50,000 - 200,000 euros); land acquisition (up to 8,000 - 9,000 euros/ha); storage and processing infrastructure; technologies for the green transition (precision agriculture, sensors, drones).
"However, access to financing for these investments remains limited, especially for farmers just starting out," he stressed.
At the same time, the LAPAR president sent a clear message to European institutions and the financial sector regarding the need to develop instruments adapted to the specifics of agriculture, requesting the introduction of public guarantee mechanisms for loans for farmers; the recognition of payments from the Common Agricultural Policy and lease contracts as complementary forms of guarantee; the development of financial products adapted to the agricultural cycle (grace periods, seasonal reimbursement, extended maturity); the integration of grants, guarantees and loans into a coherent mechanism.
"LAPAR, a member of the Alliance for Agriculture and Cooperation, regularly draws attention through objective positions that, in the absence of a real adaptation of public policies and financial instruments to the conditions on the ground, the objective of generational renewal in agriculture risks remaining at a declarative level. Our organization, as a founding member of the Alliance for Agriculture and Cooperation and a member of the Copa-Cogeca organization, will continue to support, at European level, the need for a balanced approach, which takes into account the diversity of pedoclimatic and economic conditions in the European Union, as well as the specifics of agriculture in Eastern Europe," the press release also states.
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