resilient farming: semi-subistence in romania

Resilience 2014 – 4 and 5th May – Montpellier, France

Resilient farming: semi-subistence in Romania

Marie-Luce Ghib, Rural’est – Dijon and co, France – [email protected]

Daniela Giurca, – The Foundation for an Open Society Bucharest, Romania

Lucian Luca, IEA –Bucharest, Romania

Monica Tudor, IEA – Bucharest, Romania

mailto:[email protected]


Questions?

1. Resilience : What Romanian farming can show us? -> small farm and self-subsistenceand their place in global economy

2. From Pouliquen first analysis in 2001:

>> Does semi-subsistance farming block the development of global farming in Romania? And on global economy? (importance of self subsistance, evolution in food consumption and food market...)

3. Self susbsitence and policies: social or agricultural one?


1 . Semi-subsistence farming an adaptation to overpass the

transition in Romania

> Economic difficulties since 1990

> Restitution and redistribution of land: creation of a social buffer through self consumption/semi-subsistance farming

> Evolution of farm structure, more over since UE adhesion


Romanian agriculture and rural area at a glance

post-communist post-communist socio-economic environmentsocio-economic environment

- reconstitution of the private ownership on the agricultural land

- the restructuring of the other sectors of national economy

- lack of non-agricultural occupational opportunities in the rural area

effectseffects

- rural area and agriculture became the main absorber of the shocks generated by the

restructuring of overall economy (Urban→Rural migration)

- private land ownership being one of the main means to meet the subsistence needs

of the rural household members

The Romanian rural area and the The Romanian rural area and the land ownership become aland ownership become a

“ “social buffer” for more than 40% social buffer” for more than 40% of the population of the population

holdings under 5 ha holdings under 5 ha

93% of the total number of holdings 93% of the total number of holdings


Population in Romania in total and by area, 1960-2010 (in million and percentage)


Importance of agriculture in the Romanian economy, as compared to EU-28 and some EU countries'


Farm population (upper panel) and farm land (lower panel): distribution by agricultural size (%, 2010) [figures in square brackets indicate average agricultural farm size)

0%10%20%30%40%50%60%70%80%90%

100%

Slovenia Croatia Romania Lithuania Latvia Poland Hungary Estonia Slovakia Bulgaria Czech R.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

[6.5 ha] [5.6 ha] [3.4 ha] [13.7 ha] [22 ha] [10 ha] [8.1 ha] [48 ha] [77 ha] [12 ha] [152 ha]

0-10 ha 10-50 ha 50-100 ha >100 ha

Source: Eurostat, Agricultural Census 2010


Structure roMain characteristics of Romanian farms according

to their economic dimension (2010)

Standard output group

% in total no.

of holdings

% in total UAA

SO/holding

SO/AWU

UAA/holding

AWU/holding

UAA/AWU

LSU/UAA

< 2 000 € 72.98 21.5 666 2772 0.9 0.2 3.8 0.4

2000 - 3999 € 15.61 10.6 2845 4469 2.3 0.6 3.7 0.8

4000 - 7999 € 8.11 9.7 5387 5532 4.1 1.0 4.2 0.9

8000 -14999 € 2.03 5.2 10426 7532 8.8 1.4 6.4 0.9

15000- 24999 € 0.58 3.8 18960 10916 22.9 1.7 13.2 0.6

25000- 49999 € 0.35 6.4 34359 16192 63.3 2.1 29.8 0.3

50000- 99999 € 0.17 8.3 69429 24012 171.8 2.9 59.4 0.1

100000- 249999 € 0.11 13.1 153885 30988 423.6 5.0 85.3 0.1

250000- 499999 € 0.04 9.3 345317 32920 855.1 10.5 81.5 0.1

500000 € or over 0.03 12.1 1909287 58613 1588.4 32.6 48.8 0.5 Source: EUROSTAT database

The distribution of farm sizes in Romania (2005, 2007 and 2010)


Source: Eurostat (2013). * ESO refers to European Standard Output, which measures a holding's monetary output by multiplying its production of each output (crop, livestock) by a corresponding regional average value at farm-gate prices based on five-year centred moving averages.


non connu

[1-2[

[5-10[

[20-50[

[100-500[

>=1000

0% 20% 40% 60% 80% 100%

Repartition of the destination of production of corn by size of farm (ha) - (Ghib, 2013)


Structure of average monthly money income by income category and area in Romania in 2012

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Urban Rural Total

Other income

Income fromremittances

Income fromagriculture

Income fromindependent non-agricultural activities

Gross salaries andother salary rights

Source: NIS


2. A social buffer against development?

> Pouliquen, 2001 – Neo-peasant blocked a global reflation ? (land market, consumption…)

> Then Pouliquen, 2011 change his mind : acceptation that duality cannot be avoid – not a rapid disparition of semi-subistence farm as employment is not firstly solved in the other sector/ migration

> Ambilavence of the semi-subistence farm (Luca, )


2007 2008 2009 2010 2011

Rural households

Average monthly income (euro/pers./month)

139.55 157.63 150.36 151.15 167.34

Equivalent value of consumption from own resources

(euro/pers./month)45.11 44.93 42.20 44.04 55.87

% of self-consumption in monthly income 32.32 28.50 28.07 29.14 33.39

Farmer households

Average monthly income (euro/pers./month)

114.57 128.83 123.55 116.11 142.46

Equivalent value of consumption from own resources

(euro/pers./month)

53.77 57.32 52.14 49.40 71.22

% of self-consumption in monthly income

46.93 44.49 42.20 42.54 50.00

Source: NIS, TEMPO On-line data base / Monica Tudor

Total average monthly income per person


The contribution of self-consumption to the welfare of rural households in RomaniaSource : our calculations after NIS data, TEMPO On-line data base,

www.insse.ro

Rural households

87.6

88.4 93.9

102.

6

105.

2

0

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010 2011

euro

/per

s./m

onth

equivalent value ofconsumption of agriculturalproducts from own resources

soc ial transfers

disposable income (beforesoc ial transfers)

risk-of-poverty threshold (60%of median equivalised incomeafter soc ial trans fers)


The contribution of self-consumption to the welfare of agricultural households in Romania

Source : our calculations after NIS data, TEMPO On-line data base, www.insse.ro

Agricultural households

87

.6

88

.4

93

.9

10

2.6

10

5.2

0

20

40

60

80

100

120

140

2007 2008 2009 2010 2011

euro

/per

s./m

on

th

equivalent value ofconsumption of agriculturalproducts from own resources

soc ial trans fers

disposable income (beforesoc ial trans fers)

risk-of-poverty threshold(60% of median equivalisedincome after soc ial transfers)


3. Self consumption and policies: social or agricultural?

Ghib, 2013

> question of a social of economical role? Evolution of CAP and lack in the ESF


What Romania intends to take from the new Common Agricultural Policy

menu

• Maintain SAPS (base payments+greening) until 2020 (advantage for vegetal sector and disadvantage for livestock sector (National Transitory Payments from state budget for vegetal and livestock sector)

•Payments for young farmers under 40 years old (25% from base payments /5 years / 60 ha limit) + measures from PNDR (50 000 euro for installing in a farm between 12 000 – 50 000 euro SO and 15 000 euro for developing small farms between 8000 – 12 000 euro SO)

•Redistributive payments for farms between 5-30 ha – (unfair transfer from very small farms and medium farms with NO previsible effects on consolidation)

Level and structure of subsidies Pillar 1 (EURO) for Romanian farms in the period 2015-2020 – MADR

estimations


2015 2016 2017 2018 2019 / 2020

1-5 ha 173130

80 – SAPS 187 145

89 188 147

90 188149

92 190152

93

50 - Greening 56 57 58 59

0 – Redistributive payments

0 0 0 0

23 – Young farmers.

23 23 23 23

20 – TNA veg. 19 18 16 15

5-30 ha 220 157

80 – SAPS 240 198

89 242 201

90 244203

92 245207

93

50 - Greening 56 57 58 59

47 – Redistributive paymens

53 54 55 55

23 – Young farmer.

23 23 23 23

20 – TNA veg. 19 18 18 15

30-60 ha 173 130

80 – SAPS 187 145

89 188 147

90 188 150

92 190152

93

50 - Greening 56 57 58 59

0 – Redistributive payment

0 0 0 0

23 – Young farmer 23 23 23 23

20 – TNA veg. 19 18 16 15

> 60 ha 150130

80 – SAPS 164 145

89 165147

90 165147

92 167152

93

50 - Greening 56 57 58 59

0 – Redistributive payment

0 0 0 0

0 – Young farmer 0 0 0 0

20 – TNA veg. 19 18 16 15

Still not decided !

• Applying small farm scheme

• An exit scheme from PNDR



Thank you!

resilient farming: semi-subistence in romania

Documents

agricultural land

romanian farming

romanian rural area

romanian economy

franceresilient farming

development of global

farm land lower panel

redistribution of land