Romania is a rural and relatively poor country, which, helped by EU accession and subsidies, is making positive, if sometimes gradual strides towards modernisation and improving the lives of its citizens.

Romania is an important agricultural producer. Corn is usually the most important grain and in 2006 Romania was the third biggest corn producer in Europe. Wheat, sunflower seeds, rape and barley are also important crops. However, a drought earlier this year is likely to help lead to a fall in crop production in 2009. Ziarul Bursa quoted the president of farmers' organisation Agrostar Federation saying that a lack of government financial support is also to blame for the anticipated fall in wheat production and there are fears that regular seasonal work in autumn will be disrupted by lack of resources. Nonetheless, the publication also reported that the government is introducing a 'First Silo' programme whereby grain producers should be able to store crops in silos licensed by the agriculture ministry and receive a certificate of deposit which could act as collateral for a bank loan.

Growth in production and consumption of poultry is expected until the end of the forecast period in 2013, although production of pork and beef is forecast to decline reflecting the fall in national herd numbers, problems with disease and limited investment. However, for the pig industry at least, it is worth noting that a corner may have been turned - according to the National Institute of Statistics in June 2009 an estimated 324,000 pigs were slaughtered, up from 309,000 in June last year. The export ban to the EU imposed because of Classical Swine Fever is due to be reviewed in the second half of this year. The number of sheep is on the rise, up to 8.9mn in 2008, making Romania the fourth biggest sheep producer in the EU. It is the fifth biggest producer of sheep and goats meat combined.

In 2005 45.3% of the population was classed as rural and just under a third of the country's population worked in agriculture. Many of these people live on small, family run farms where they grow crops and rear livestock for their own use or to sell directly locally. Fragmentation in land ownership creates a number of serious problems for Romanian agriculture and production has suffered. Small scale owners have not been able to invest in modern technology or inputs. According to a report by Banca Comerciala Romana SA 45% of farms are even smaller than one hectare (ha) and are therefore not eligible for most EU Common Agricultural Policy (CAP) support schemes. The report says average yield per hectare for main crops is well below EU norms, only about 40% of those in France.

The report adds that a significant proportion of the farm population find it difficult to comply with the new and complex set of agricultural requirements and so have been unable to fully utilise market opportunities and EU and domestic financial support to manage their income and assets.