Over 30 years in Romania, we have spent about 22 billion euros on agricultural subsidies, says economist Jancu Huda. “We have the largest arable area on the surface of the country with the most fertile land and have the lowest productivity per hectare. We are doing something wrong,” he said during an event organized by CursDeGuvernare.ro.
According to him, it is impossible to have this indicator and the lowest productivity in Europe.
“I think I understand what we are doing wrong: we are throwing money at subsidies without conditioning the farmer to develop, combine areas, think about business at the cooperative level. Now they are protesting. I have been looking at the CAEN 0111 code for the past 5 years. 9 out of 10 farmers paid their dividends, received an average net profit of 20% over the last 5 years. When a bad year comes, what happens, whether it’s a drought, or it’s Ukraine, or the price of grain? They go to the country and want subsidies. This is not business,” he added.
Yangu Gooda also said that the state should come and say: I will subsidize you if you deserve it.
“What does ‘deserve’ mean?” Do you care about your business? Why should I care, Stet? what for Am I subsidizing you? I understand that all students eat cheaply in the cafeteria, but only the good ones get a scholarship. do you deserve Let’s see, are you out of your comfort zone? What is your surface area? 94% of Romanian farmers have an exploited area of less than 5 hectares. This is the largest agriculture in Europe. How to be competitive if 2 farmers out of 100 have a tractor? Why a tractor if they only have 3-4 hectares? This is not justified“, he also showed.
- “So how do we stimulate them? They only give you a subsidy if you have a minimum floor space or a percentage of the reinvested profit. Why should I give you a subsidy if you don’t reinvest your profits? That is, endurance is trained in good weather.”
“I cannot pay dividends all the time, and when there is bad weather, drought, complain that I have no stability, that the business cannot withstand shocks,” said the economist.
Source: Hot News
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