Financing Romanian Agricultural Cooperatives’ Investments for the 2023–2027 Horizon

Climate change not only affects weather conditions, patterns, and the frequency and severity of extreme weather events but also changes the structure of government spending. Agriculture is an important sector of the European Union (EU). However, by 2050, the industry will most likely decrease by 16%. One-third of the EU’s budget has been spent on agricultural funding, adaptation, and climate action. The effect of climate change on agriculture is mixed and dependent on the location of the region. The southern EU is adversely affected, while the northern EU is positively affected by the changes in weather patterns. The main goal of this paper is to gain insight regarding the effect climate change has on public spending in relation to the agricultural sector of the EU, using the pooled Ordinary Least Squares (OLS) and Generalized Method of Moments (GMM) methodology. The study concludes that public spending is influenced by government expenditure and government support in agricultural research and development in the EU region. In the southern EU region, the variables impacting public spending are greenhouse gases from the agricultural sector, temperature, and GDP, while in the northern region, no variable has a significant impact on public spending proxied by agricultural subsidies. The policy recommendations include a better allocation of agricultural subsidies, reconsideration of the efficiency of Common Agricultural Policy (CAP), and a focus on expanding investment in research and development in the agricultural sector.

Section: Discussionmentioning

confidence: 99%

Analyzing EU’s Agricultural Sector and Public Spending under Climate Change

Dincă,

Netcu,

El-Naser

2023

“…In Western Europe and North America, Contractual Agriculture finance mechanisms were launched almost a century ago and now cover 40 to 90% of the production of some products. And of course, the banking system has taken care of the financial aspects of Contractual Agriculture for the benefit of all parties involved (indicated in [5][6][7][8][9]).…”

Section: Literature Reviewmentioning

confidence: 99%

Value-Chain Finance in Greek Agriculture

Boufounou,

Lathiras,

Toudas

et al. 2024

The primary sector is particularly important in Greece, especially considering the country’s current financial crisis, which has lasted since 2010. In an innovative way, this paper investigates the role of Contractual Agriculture as a tool for financing farming production costs in Greece. This study presents the findings of a survey of 222 producers, almost half of whom had used the Contractual Agriculture financing tool, utilizing descriptive statistical analysis via correlation analysis, statistical tests and visual plots such as bar charts. The main findings are that financed farmers are more positive than non-financed farmers about the importance and contribution of the value-chain finance of Contractual Agriculture in covering the cost of production. It ensures an uninterrupted supply of agricultural inputs, improves the possibility of negotiating the purchase price of pesticides and achieves more satisfactory bank terms and conditions for agricultural product financing, as well as the possibility of negotiating the purchase price of pesticides. Finally, in line with previous research, this study found that younger age groups are more hesitant to use this innovative financial tool, and producers with a higher level of education are more likely to use it. This study delves into the advantages and disadvantages for banks, farmers and commercial or manufacturing enterprises involved in such contracts, and its findings offer a comprehensive understanding of the practical implications for participants in Contractual Agriculture and for regulators. Hence, it demonstrates potential areas for improvement in the implementation of Contractual Agriculture in Greece, which could contribute to the growth of the Greek primary sector.

“…These factors have resulted in the loss of jobs in agriculture, significant increases in fuel prices, and an increase in fertilisers for agricultural crops. Taking into account climate change, there are several meteorological causes affecting the agricultural sector (e.g., significant increase in temperatures, floods, and pedological droughts) and very tense geopolitical situations, meaning that ensuring the supply of food and water to the population [1][2][3][4][5] represents a national and international priority for countries worldwide. In the case of agricultural crops that represent a large share of Romania's cultivated area, such as wheat, corn, and sunflower, their spatial distribution in the most favourable areas creates conditions for obtaining important yields proportional to the share of these crops without needing to increase cultivated areas.…”

Section: Introductionmentioning

confidence: 99%

Spatio-Temporal Distribution and Trends of Major Agricultural Crops in Romania Using Interactive Geographic Information System Mapping

Drăguleasa,

Niță,

Mazilu

et al. 2023

This research study presents the spatio-temporal distribution of the main agricultural crops in Romania using a modern digitalisation technique, namely interactive GIS mapping. Interactive GIS mapping includes various features specific to the development of sustainable Romanian agriculture, including the arable area of Romania, information on the area (hectares) cultivated with corn, wheat, sunflower, and rape during the 1990–2018 period, the degree of mechanisation, the number of tractors, and information regarding the landforms, a natural factor in relation to cultivated surfaces. Agricultural land should be properly used based on its ability to meet the demands of consumers of traditional Romanian products with an ecological label, but also the needs of the local population, and, at the same time, to ensure the sustainability of the natural environment through the practice of ecological agriculture. The purpose of this research is to provide an overview of the current state of the main agricultural crops in Romania. From a theoretical but also practical point of view, this research presents, for the first time, a retrospective analysis of each county in Romania in terms of the geospatial distribution of major agricultural crops using interactive GIS mapping. Geospatial data were processed in ArcGIS Geographic Information System 10.7.2. The results of this study show that the most extensive cereal areas at the county level in Romania are corn and wheat. The largest areas cultivated with corn and wheat in 2018 were recorded in the Western Plain, the Romanian Plain, and the Moldavian Plateau. For wheat, increases were also recorded in the Dobrogea Plateau. The intensification of labour productivity and the promotion of the sustainability of the natural environment in Romania is presented through the main indicator (the number of tractors) of the degree of mechanisation of agriculture. The higher values of this indicator are in the counties of Bihor, Timiș, and Maramureș. Limitations in Romania’s agricultural data present substantial challenges to the sector’s development and sustainability. Addressing these challenges is essential for informed decision making, policy formulation, and effective resource allocation.