As Minister of Agriculture, I still do not understand why Romanian farmers were not financed by the banking system, because all the credits in Romania that went into agriculture - we are talking about vegetables, livestock and processing - were guaranteed by the state, declared the relevant minister, Florin Barbu, at a specialized event on Thursday.
"I was not satisfied with the way the Romanian banking system financed Romanian farmers in 2024. Therefore, I believe that financing in the coming period must have another component and I am working on a program to integrate most companies, including non-banking financial institutions, to integrate them into financing the Romanian farmer, of course at some decent interest rates and loans, so that we do not create a very big difference between the financing that the Romanian banking system gives and these companies that I still believe can be responsible companies and have proven this, that we can finance agriculture in Romania. "That's why I want to tell you this - and I said I take responsibility: as Minister of Agriculture, I still don't understand why Romanian farmers were not financed, why Romanian farmers were not taken more seriously by the banking system, because all the credits in Romania that went into agriculture - we're talking about vegetables, livestock and processing - were guaranteed by the Romanian state. This is the most important thing. Those billions, over 9-10 billion that we outlined as ordinances to give credit to Romanian farmers, all these credits were guaranteed by the state," the minister said at the National Forum ''The Future of Agriculture''.
He gave assurances that he will continue to fight for Romanian farmers to have access to fair financing.
"I will continue to fight for Romanian farmers to have access to fair financing. I will stick to this commitment and I promise you that next year Romanian farmers will have access to fair loans, without additional taxes on companies in Romania," the head of Agriculture said.
Florin Barbu mentioned the Farmer's Credit, through which loans could be taken with 1.95% fixed interest to which ROBOR was added, the latter being paid by the state.
"If we talk about financing, in the agricultural system in Romania last year we tried and took advantage as the Ministry of Agriculture of certain levers that the Commission gave us regarding the establishment of a state aid scheme on the financing side - the Farmer's Credit - and I believe that it is unprecedented in the economy to be able to access loans with 1.95% fixed interest, and the ROBOR to be paid by the Ministry of Agriculture and the Government of Romania. (...) Of course, we have identified at the Commission level, we will still have support of up to 445 million euros on the de minimis aid. I will try to continue this lending policy on the Farmer's Credit model, so that, in the coming period, on the de minimis aid scheme up to a ceiling of 50,000 per company, it will be possible to access up to one million lei for working capital loans on the same model with 1.95% fixed interest and the ROBOR paid by us," he also mentioned.
The minister specified that a state aid scheme for agricultural credit is being worked on at the ministry level.
"I am also working on a loan, a state aid scheme for agricultural loans, because financing in the banking system at the moment is a big pressure on Romanian farmers because the loans are for a short repayment period and the agricultural loan that I designed together with my colleagues from the Ministry of Agriculture provides for 3 important things. On the one hand, a loan with 1.95% plus ROBOR guaranteed 100% by the state regarding investments in Romania, with a repayment of up to 10 years, including the acquisition of land; a loan for working capital - 50%, but also to integrate the modernization that we could only give 100% for working capital also for a repayment of up to 10 years, so that they can repay those loans they have in the very short term; I would still like the livestock system in Romania to be developed on this loan. The Ministry "Agriculture through its subordinate institutions has signed contracts worth almost 2.2 billion euros for processing in Romania. This makes us responsible so that throughout this chain - we are talking about vegetables, livestock and processing - in the next three years, after the completion of these processing units, we must also ensure the raw material, because this is the reality," Barbu said.
The official expressed his hope that in three years Romania will be the largest processor in Southeast Europe.
"Romania - and I take this on myself - I hope that in three years, when these units are completed, if I am still the Minister of Agriculture or whoever becomes the Minister of Agriculture, we will show that in the southeast (of Europe - ed.) we are the largest processor and this will happen. The next stage of the Ministry of Agriculture is the largest plan to revitalize the pig sector and, from 2023 to 2025, we have managed to complete the farms on the pig side, 70% of which will be populated to produce another 1.5 million piglets in Romania. We have completed the poultry sector in 2 years (...) Romania has reached over 500 million chickens, of which 198 million chickens were exported last year," the head of the MADR pointed out.
According to him, an emergency ordinance is being put in place to ensure decision-making transparency for the relaunch of pig breeding and raising farms, but the current Government can no longer promote it.
"1.4 billion lei - the money is in the budget of the Ministry of Agriculture to relaunch breeding farms, but also pig farms with over 2.9 million pigs in Romania. The ordinance is written, it is made transparent, unfortunately the Government no longer has the constitutional powers to issue this ordinance, but I believe that the minister who will come, the new government, with the money it finds in the budget of the Ministry of Agriculture will promote this vital normative act for the pig sector in Romania," added Barbu.
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