FINANCING GRASSLANDS AND FORAGE CROPS PUBLISHED

Daniela Haranguş
This research aims both the analysis of financing sources, as well the conditions of accessing them by farmers that use grasslands and forage crops. Considering the fact that grasslands and forage crops are organic crops (along with grain, oilseeds and protein), they are funded by the European Union, which supports organic agriculture through a global approach to sustainable agriculture. The projects submitted by farmers using grasslands and forage crops are financed from European funds at a rate of up to 80%, following that investors pay only 20% of the expenditures. Another source of funding may be a bank loan, whose mechanism, size and share are being explored in this research.The main methods used in this research are: the method of criteria, classifications, and a systematic information processing method provided by observation. Materials used cover the European regulations in financing agriculture, as well as the banking rules and legislation on agricultural credit.The increase of surfaces on which organic agriculture is practiced in Romania led to the increasing interest of farmers for new sources of financing. Development of organic agriculture in Romania is favored by the existence of traditional agricultural systems, mostly extensive, and the low consumption of fertilizers and pesticides compared with the EU average. The surface on which organic agriculture is practiced has increased 5 times between 2000 and 2004 respectively from 17,348 ha to 75,500 ha. The development of organic agriculture is financed by the European Union with about 7.5 billion euros. These new priorities emerging in Romanian agriculture require accessing by farmers, in addition to European funding sources, of the single area payment, complementary national direct payments, compensatory payments to farmers in areas with natural handicaps - mountain areas, and approach of bank loans. Bank loans can be an important source of financing for agricultural holdings that own natural grasslands and forage crops.Analyzing the share of agriculture credits and their evolution during the years 2005-2009, we ascertain difficult access agricultural holdings and the lack of interest of commercial banks to agriculture in general. The share of agriculture credits in total bank credits, of only 2,1- 2,6%, is totally unsatisfactory and leads to the conclusion regarding the lack of flexibility of the mechanisms for granting agricultural credit, but also lack of vocation to credit of agricultural holdings.This research presents theoretical and practical importance for a new approach to the mechanisms of agricultural credit and the guarantees required by banks, as well as for detailed analysis of other financing sources for grasslands and forage crops, and the conditions of their access by farmer users.
financing sources; grasslands and forage crops; bank credits; agricultural farms
Presentation: oral

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