Why Farmers Aren't Getting Rich, Even in Good Harvest Years: Who Really Profits from Agriculture?

Despite favorable agricultural conditions this year, with good wheat and barley yields and hopes for a strong corn harvest, Romanian farmers are struggling to see significant profits. The core issue lies in how the agricultural sector operates, with a growing dispute between landowners and the farmers who cultivate their land.

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In general, in the commune, and even in neighboring communes, what one gives, the others give too, between 800 and 1,000 kg/ha.

Farmers are not selling their produce directly. Instead, they rely on traders, and the considerable cost of transportation eats into potential earnings. This intermediary system means that even when grain prices increase, the farmer's actual gain is often delayed or diminished. Adding to this pressure, landowners are increasingly renegotiating rent agreements, particularly in years with abundant harvests, demanding higher payments than previously agreed upon.

The rent, or "arenda," is the price farmers pay landowners to cultivate their fields. In Romania, this payment can be in cash, agricultural products like wheat or corn, or a combination. While a "medium rent" is often discussed publicly, actual rates vary significantly by region, soil fertility, land consolidation, irrigation availability, and competition among farmers for land leases.

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Each gives according to production, it's not something standard. It can reach 1,200 kg/hectare if the owner pays their own taxes to the municipality.

In western counties and major agricultural plains like Câmpia Română, where productivity is high and competition fierce, rents are generally higher. In Olt county, for example, rents range from 800 to 1,200 kg of grain per hectare, depending on land quality and specific agreements. Some areas even see rents reaching 1,500 kg per hectare or more. When paid in cash, rents are often benchmarked against current grain prices, but the long journey to markets like the Constanța port, with transport costs around 100 lei per ton, further erodes farmer profits.

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The price of wheat wasn't great, it has only just started to rise again. Good prices are those in the port of Constanța, but it's a long way to get there.