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Resilient farming: semi-subistence in Romania

Resilient farming: semi-subistence in Romania. Marie-Luce Ghib, Rural ’ est – Dijon and co, France – ml.ghib@gmail.com Daniela Giurca, – The Foundation for an Open Society Bucharest, Romania Lucian Luca, IEA –Bucharest, Romania Monica Tudor, IEA – Bucharest, Romania. Questions?.

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Resilient farming: semi-subistence in Romania

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  1. Resilience 2014 – 4 and 5th May – Montpellier, France Resilient farming: semi-subistence in Romania Marie-Luce Ghib, Rural’est – Dijon and co, France – ml.ghib@gmail.com Daniela Giurca, – The Foundation for an Open Society Bucharest, Romania Lucian Luca, IEA –Bucharest, Romania Monica Tudor, IEA – Bucharest, Romania

  2. Resilience 2014 – 4 and 5th May – Montpellier, France 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?

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

  4. Resilience 2014 – 4 and 5th May – Montpellier, France post-communist socio-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 Romanian agriculture and rural area at a glance effects - 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 land ownership become a “social buffer” for more than 40% of the population holdings under 5 ha 93% of the total number of holdings

  5. Resilience 2014 – 4 and 5th May – Montpellier, France Population in Romania in total and by area, 1960-2010 (in million and percentage)

  6. Resilience 2014 – 4 and 5th May – Montpellier, France Importance of agriculture in the Romanian economy, as compared to EU-28 and some EU countries'

  7. Resilience 2014 – 4 and 5th May – Montpellier, France Farm population (upper panel) and farm land (lower panel): distribution by agricultural size (%, 2010)[figures in square brackets indicate average agricultural farm size) Source: Eurostat, Agricultural Census 2010

  8. Resilience 2014 – 4 and 5th May – Montpellier, France Structure ro Main characteristics of Romanian farms according to their economic dimension (2010) Source: EUROSTAT database

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

  10. Resilience 2014 – 4 and 5th May – Montpellier, France Repartition of the destination of production of corn by size of farm (ha) - (Ghib, 2013)

  11. Resilience 2014 – 4 and 5th May – Montpellier, France Structure of average monthly money income by income category and area in Romania in 2012 Source: NIS

  12. Resilience 2014 – 4 and 5th May – Montpellier, France 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, )

  13. Resilience 2014 – 4 and 5th May – Montpellier, France 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 Total average monthly income per person Source: NIS, TEMPO On-line data base / Monica Tudor • Source: NIS, TEMPO On-line data base

  14. Resilience 2014 – 4 and 5th May – Montpellier, France The contribution of self-consumption to the welfare of rural households in Romania Source : our calculations after NIS data, TEMPO On-line data base, www.insse.ro

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

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

  17. Resilience 2014 – 4 and 5th May – Montpellier, France What Romania intends to takefrom 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)

  18. Payments for young farmers under 40 years old (25% from base payments /5 years / 60 ha limit) + measures from PNDR (50000 euro for installing in a farm between 12000 – 50000 euro SO and 15000 euro for developing small farms between 8000 – 12000 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)

  19. Resilience 2014 – 4 and 5th May – Montpellier, France Level and structure of subsidies Pillar 1 (EURO) for Romanian farms in the period 2015-2020 – MADR estimations

  20. Resilience 2014 – 4 and 5th May – Montpellier, France Still not decided ! • Applying small farm scheme • An exit scheme from PNDR

  21. Resilience 2014 – 4 and 5th May – Montpellier, France Thank you!

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