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ROMANIA

Advisory Services Agreement on

Strengthening Planning and Budgeting Capacity and Supporting the Introduction of Performance Budgeting

OUTPUT NO. 6Institutional Strategic Plan 2019-2022 for the Ministry of Agriculture and Rural Development

September 2019

Project co-financed from the European Social Fund through Operational Programme for Administrative Capacity 2014-2020

Copyright Statement

The material in this publication is copyrighted. Copying and/or transmitting portions of this work without permission may be a violation of applicable laws.

For permission to photocopy or reprint any part of this work, please send a request with the complete information to either: (i) the General Secretariat of the Government (1, Victoriei Square, Bucharest, Romania); or (ii) the World Bank Group Romania (31, Vasile Lascăr Street, 6 th floor, Bucharest, Romania).

This report has been delivered in September 2019 under the Advisory Services Agreement on Strengthening Planning and Budgeting Capacity and Supporting the Introduction of Performance Budgeting signed between the General Secretariat of the Government and the International Bank for Reconstruction and Development on June 8, 2016. It corresponds to Output 6 under the above-mentioned agreement.

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TABLE OF CONTENTS

PREAMBLE...........................................................................................................................................

Rationale................................................................................................................................................6

Methodology..........................................................................................................................................6

FOREWORD..........................................................................................................................................

EXECUTIVE SUMMARY.........................................................................................................................

1. INTRODUCTION..........................................................................................................................

Rationale................................................................................................................................................9

Methodology..........................................................................................................................................9

Implementation status for 2018-2021 ISP............................................................................................10

2. CONTEXT..................................................................................................................................

3. MISSION AND VISION...............................................................................................................

MADR’s Mission...................................................................................................................................15

MADR’s Vision......................................................................................................................................15

4. STRATEGIC OBJECTIVES, PROGRAMS, MEASURES AND INDICATORS.........................................

Strategic Objective 1: Increase the share of agri-food consumption covered by domestic production and reinstate Romania as a net agri-food exporter..............................................................................16

Program 1.1: Better market and value-chain integration of agri-food producers......................19Program 1.2: Professional training of farmers and fishers through knowledge transfer, training, and development of necessary abilities/skills............................................................................21Program 1.3: Research, development, innovation and technology transfer (RDITT) in agriculture and fisheries.............................................................................................................23Program 1.4: Optimization and modernization of the supply chain in the fisheries sector........24

Strategic Objective 2: Accelerate structural transition towards professional and economically viable farming and aquaculture, while aligning with demographic trends and ensuring the phasing out of surplus farm labor................................................................................................................................25

Program 2.1: Consolidation, restructuring and modernization of agricultural and fishery holdings......................................................................................................................................26Program 2.2: Encouraging the inter-generational transfer in agriculture..................................28

Strategic Objective 3: Limit the impact of the agricultural and fisheries sector on the environment and promote climate change resilience in agriculture and rural areas................................................29

Program 3.1: Management of main natural resources in agriculture........................................32Program 3.2: Reducing the impact of agriculture and fisheries on the environment and promoting an efficient use of energy resources.........................................................................33Program 3.3: Risk management in agriculture...........................................................................34Program 3.4: Management of natural resources in the fisheries sector....................................35

Strategic Objective 4: Improve living standards in rural areas.............................................................37

Program 4.1: Direct support to increase farmers’ income.........................................................39

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Program 4.2: Diversification of economic activities in rural areas, including within coastal and inland communities dependent on fishing and aquaculture......................................................40Program 4.3 Access to infrastructure and basic services...........................................................41Program 4.4: Encouraging local community involvement in rural development.......................42

Strategic Objective 5: Improve the institutional framework................................................................44

Program 5.1: Improving the administrative capacity of sectoral policy management and implementation..........................................................................................................................46

5. ARRANGEMENTS FOR IMPLEMENTATION, MONITORING AND EVALUATION OF THE ISP...........

6. FINANCIAL RESOURCES.............................................................................................................

ANNEX 1A. STRUCTURE OF BUDGETARY CREDITS FUNDED FROM THE STATE BUDGET PER STRATEGIC OBJECTIVE AND PROGRAMS (thou RON)..........................................................................

ANNEX 1B. STRUCTURE OF BUDGETARY CREDITS FUNDED FROM THE STATE BUDGET PER STRATEGIC OBJECTIVE AND PROGRAMS (thou RON)..........................................................................

ANNEX 2. INSTITUTIONAL STRATEGIC PLAN (SUMMARY TABLE).........................................................

ANNEX 3. PROGRAMS AND RELATED MEASURES (SUMMARY TABLE).................................................

ANNEX 4. INFORMATION REGARDING ISP COMPONENTS Institutional Profile..................................101

Annex 4.1. Institutional Profile...........................................................................................................101

Annex 4.2. SWOT Analysis..................................................................................................................102

Annex 4.3. PESTLE Analysis.................................................................................................................105

Annex 4.4. Policies and Strategies......................................................................................................109

Annex 4.5. Organizational Chart.........................................................................................................109

Annex 4.6. Relevant National Legislation...........................................................................................111

Annex 4.7. Relevant European Legislation.........................................................................................114

ANNEX 5. DRAFT LEGISLATION FOR 2019..........................................................................................115

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LIST OF FIGURES Figure 1. Organizing the strategic planning process at MADR level.......................................................6Figure 2. Monitoring Cycle for the Institutional Strategic Plan of MADR..............................................51Figure 3. Structure of the ISP budget, by funding sources (%, 2019-2022)..........................................53Figure 4. Breakdown of estimated total financial resources, by Strategic Objectives..........................54Figure 5. Year-on-year evolution of financial resources estimated per Objectives (thousand RON, 2018-2021)...........................................................................................................................................55

LIST OF TABLES Table 1. Strategic Objective 1: Structure on Programs and Measures.................................................17Table 2. Strategic Objective 1: Impacts and Outcomes........................................................................18Table 3. Strategic Objective 1: Breakdown of financing by budgetary program...................................18Table 4. Strategic Objective 1: Measures included in Program 1.1......................................................20Table 5. Strategic Objective 1: Measures included in Program 1.2......................................................22Table 6. Strategic Objective 1: Measures included in Program 1.3......................................................23Table 7. Strategic Objective 1: Measures included in Program 1.4......................................................24Table 8. Strategic Objective 2: Structure on Programs and Measures.................................................25Table 9. Strategic Objective 2: Impacts and Outcomes........................................................................26Table 10. Strategic Objective 2: Breakdown of financing by budgetary program.................................26Table 11. Strategic Objective 2: Program 2.1 measures.......................................................................27Table 12. Strategic Objective 2: Program 2.2 measures.......................................................................28Table 13. Strategic Objective 3: Structure on Program and Measures.................................................30Table 14. Strategic Objective 3: Impacts and Outcomes......................................................................31Table 15. Strategic Objective 3: Breakdown of financing by budgetary program.................................31Table 16. Strategic Objective 3: Program 3.1 measures.......................................................................33Table 17. Strategic Objective 3: Program 3.2 measures.......................................................................34Table 18. Strategic Objective 3: Program 3.3 measures.......................................................................35Table 19. Strategic Objective 3: Program 3.4 measures.......................................................................36Table 20. Strategic Objective 4: Structure on Program and Measures.................................................38Table 21. Strategic Objective 4: Impacts and Outcomes......................................................................38Table 22. Strategic Objective 4: Breakdown of financing by budgetary program.................................39Table 23. Strategic Objective 4. Program 4.1 measures.......................................................................40Table 24. Strategic Objective 4. Program 4.2 measures.......................................................................41Table 25. Strategic Objective 4. Program 4.3 measures.......................................................................42Table 26. Strategic Objective 4. Program 4.4 measures.......................................................................43Table 27. Strategic Objective 5: Structure on Program and Measures.................................................45Table 28. Strategic Objective 5: Impacts and Outcomes......................................................................46Table 29. Strategic Objective 5: Breakdown of financing by budgetary program.................................46Table 30. Strategic Objective 5. Program 5.1 measures.......................................................................49Table 31. CAP financial allocations in Romania for 2014-2020 (mil. EUR, 2011 constant prices).........52Table 31. Financial resources for operationalizing the 2019-2022 ISP (thousand RON).......................53

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LIST OF ACRONYMSARD Agriculture and Rural Development

ANCPI National Agency for Cadaster and Real estate Publicity

CAP Common Agricultural Policy

CFP Common Fisheries Policy

CMEF Common Monitoring and Evaluation Framework

GSG Chancellery of the Prime Minister

DG Directorate General

EAGF European Agricultural Guarantee Fund

EAFRD European Agricultural Fund for Rural Development

EMFF European Maritime and Fisheries Fund

EU European Union

FTE Full Time Equivalent

GSG General Secretariat of the Government

ISP Institutional Strategic Plan

LEADER Liaison Entre Actions de Dévelopement de l'Économique Rurale

MA Managing Authority

MADR Ministry of Agriculture and Rural Development

MOPF Ministry of Public Finance

NRDP National Rural Development Program

MTBF Medium-Term Budgetary Framework

OPFMA Operational Program for Fisheries and Maritime Affairs

OSPA Office for Pedological and Agrochemical Studies

PPU Public Policy Unit

RAS Reimbursable Advisory Services

RDITT Research, development, innovation and technology transfer

ROF Rules for Organizing and Functioning

SAPS Single Area Payment Scheme

SO Standard Output

TNA Transitional National Aids

UAA Utilized Agricultural Area

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PREAMBLERationale

The General Secretariat of the Government (GSG) has engaged the World Bank in a Reimbursable Advisory Services (RAS) to strengthen the planning, budgeting and policy monitoring capacity in the Center of the Government, Ministry of Public Finance (MoPF), and selected line ministries. With the purpose of enhancing the efficiency of public spending, the RAS focuses on: i) further strengthening the existing Institutional Strategic Plan (ISP) development processes under the guidance of the General Secretariat of the Government (GSG); ii) building capacity in the government to monitor ISP updates and implementation with a common IT tool, developed with support from the Bank; and iii) developing a central dashboard in the GSG for reporting on the implementation of the high level ISP priorities of the selected ministries.

The defined activities of this RAS derive from the functional reviews of the Public Administration, which made evident that the public sector is suffering from a disconnect between planning and budgeting, leading to poor linkages between resources used and results. The government has therefore requested the Bank to help institutionalize a process for monitoring policy implementation, with clear roles and responsibilities for the GSG, the MoPF and the line ministries, using the methodologies, tools and processes developed under this RAS. This will be an integral part of the budgeting reforms promoted by the government. With the objective to make the strategic planning process compulsory for every ministry in Romania, the GSG is seeking that the ISP becomes a regular product developed by every ministry.

As one of the selected line ministries, the Ministry of Agriculture and Rural Development (MADR) has committed to undertaking a far-reaching reform program, covering both policy and public administration.

Methodology

Figure 1. Organizing the strategic planning process at MADR level

FOREWORD1

1 At the time of writing this report (30.09.2019), this Foreword had not yet been approved by the Minister of Agriculture and Rural Development.

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PUBLIC POLICY UNIT SUPPORTED BY THE WORLD

BANK

STATE SECRETARIES

GENERAL SECRETARY

GENERAL DIRECTORS

4 MADR WORKING GROUPS

TECHNICAL COORDINATION GROUP

STEERING COMMITTEE

MINISTER

I am delighted to introduce you the Institutional Strategic Plan of the Ministry of Agriculture and Rural Development (MADR) for the period 2019-2022. This Plan describes the priorities of the Ministry for the next four years, as well as the key measures and resources allocated that will help us achieve the sector's vision of becoming an Export-driven, high-value and climate-resilient agriculture, with rural living conditions more closely aligned to urban.

The last few years have brought important changes to the Romanian agricultural sector. There have been positive changes in terms of agricultural productivity, trade balance with agri-food products and rural investments. These significant changes have been accelerated by the growing financial resources that have become available from the European budget, but also from private investment. Only in the period 2014-2020, the MADR administration managed a budget of about 21.5 billion euros, largely for investments in the development of the agri-food sector and in improving livelihoods in rural areas.

The role of the Ministry of Agriculture and Rural Development is more important than ever. Events at European and global level bring new challenges, as well as new opportunities for the Romanian agri-food sector. Romania is not only a member of the European Union, but also part of an increasingly globalized and interlinked food system. Increasing demand for food globally, increasing pressure on natural resources as well as climate change are important factors that will influence the Romanian rural and agri-food sector, but also opportunities that farmers and rural populations can and should seize.

The Institutional Strategic Plan 2019-2022 comes in response to these challenges and opportunities at global, European and national levels. The plan details the priorities set out in The Medium and Long-Term Strategy for the Development of the Agri-food 2020 - 2030 which is centered around 5 strategic objectives: (i) Increase the share of agri-food consumption covered by domestic production and reinstate Romania as a net agri-food exporter, (ii) Accelerate structural transition towards professional and economically viable farming and aquaculture, while aligning with demographic trends and ensuring an equitable phasing out of surplus farm labor, III) Limit the impact of the agricultural and fisheries sector on the environment and promote climate change resilience in agriculture and rural areas, IV) Improve living standards in rural areas and v) Improve the institutional framework.

This Strategic Plan is the result of a participatory process and reflects the collective and unanimous effort of the entire management and operational staff of MADR. The plan synthesizes MADR’s activity over the next four years and comprises a robust performance assessment framework to track progress in relation to these activities. The plan also includes budgetary resources earmarked for each priority, being an excellent and transparent communication tool with stakeholders, be it farmers, food producers or rural inhabitants.

It is important for this Plan to become an essential tool in the activity of the Ministry as well as a communication channel with all rural and agri-food stakeholders. It is also important that the organizational structure established at the planning stage continues its role in the implementation, monitoring and updating of this Plan in the future.

Minister for Agriculture and Rural Development

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EXECUTIVE SUMMARYBy establishing an Institutional Strategic Plan (ISP) for the budgeting cycle 2017-2020 for the Ministry of Public Finance and other 12 line ministries, the GSG aimed to strengthen the budgeting, planning and monitoring capacity of the Romanian government2.

The ISP review for the 2019-2022 period was carried out between January and June 2019. The process enjoyed a wide, steady and substantial engagement of all relevant MADR senior management and operational staff, as well as specialists of the GSG.

Based on the Ordinance of the Minister of Agriculture and Rural Development, no. 183 of March 2016 the 2019-2022 strategic planning process in MADR was overseen by a Strategic Planning Steering Committee, comprising the State Secretaries and the General Secretary of the MADR. MADR’s Public Policy Unit (PPU) provided technical coordination and served as secretary to the committee. Figure 1 above illustrates graphically this process.

The World Bank provided technical support throughout the whole process, with the Public Policy Unit of MADR functioning as the main intermediary and facilitator. ISP 2019-2022 was revised in working groups that met between 1st and 5th of April 2019. The working groups were made up of MADR representatives. Working group sessions have been moderated by World Bank experts with support from PPU staff.

The Institutional Strategic Plan is structured around the key areas under the responsibility of the Ministry of Agriculture and Rural Development (the lead government authority for agriculture) as follows:

Strategic Objective 1: Increase the share of agri-food consumption covered by domestic production and reinstate Romania as a net agri-food exporter.

Strategic Objective 2: Accelerate structural transition towards professional and economically viable farming and aquaculture, while aligning with demographic trends and ensuring an equitable phasing out of surplus farm labor.

Strategic Objective 3: Limit the impact of the agricultural and fisheries sector on the environment and promote climate change resilience in agriculture and rural areas

Strategic Objective 4: Improve living standards in rural areas.

Strategic Objective 5: Improve the institutional framework.

A description of strategic objectives and expected impacts, programs and expected outcomes, and measures with their planned outputs, correlated with financial resources and their distribution along the period of implementation 2018-2021, comprises the body of Institutional Strategic Plan presented below.

2 The project has been initiated and developed during 2016 by the Chancellery of the Prime Minister (CPM), reorganized during 2017 under the GSG.

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1. INTRODUCTIONRationale

The General Secretariat of the Government (GSG) has engaged the World Bank in a Reimbursable Advisory Services (RAS) to strengthen the planning, budgeting and policy monitoring capacity in the Center of the Government, Ministry of Public Finance (MoPF), and selected line ministries. 3 With the purpose of enhancing the efficiency of public spending, the RAS focuses on: i) further strengthening the existing Institutional Strategic Plan (ISP) development processes under the guidance of the General Secretariat of the Government (GSG); ii) building capacity in the government to monitor ISP updates and implementation with a common IT tool, developed with support from the Bank; and iii) developing a central dashboard in the GSG for reporting on the implementation of the high level ISP priorities of the selected ministries.

The defined activities of this RAS derive from the functional reviews of the Public Administration, which made evident that the public sector is suffering from a disconnect between planning and budgeting, leading to poor linkages between resources used and results. The government has therefore requested the Bank to help institutionalize a process for monitoring policy implementation, with clear roles and responsibilities for the GSG, the MoPF and the line ministries, using the methodologies, tools and processes developed under this RAS. This will be an integral part of the budgeting reforms promoted by the Government of Romania, the strategic planning process thus becoming compulsory for every ministry in Romania. The GSG is therefore seeking to make the ISP a regular product developed by every ministry and revised every year.

As one of the selected line ministries, the Ministry of Agriculture and Rural Development (MADR) has committed to undertaking a far-reaching reform program, covering both policy and public administration. The Institutional Strategic Plan represents a tool that supports this process.

Methodology

The ISP review follows a process similar to the process for drafting the strategic document, following the methodology that is commonly applied by line ministries within SIPOCA28 project. The process takes into account the ISP structure and its strategic objectives, its programs, measures, indicators and its targets which have been previously agreed in the planned time horizon (4 years) and aims to update these and align them to the 2019-2022 Medium-Term Budgetary Framework (MTBF). The review consists in:

Comparing the forecasted with the actual results for the previous year; this should be done based on the objectives set in the strategic and operational plan;

Carrying out an analysis of the external and internal environment of the ministry to identify any significant changes for the planned results of the current plan, that is: latest or current national sectoral and intersectoral strategies that have been adopted since the ISP was last revised; the government program; functional reviews and country-specific recommendations

Adding an extra year to the Plan4 Reviewing and updating Programs and their objectives, their outcomes and their targets Reviewing and updating Measures, their outputs and their targets

3 „Extending the strategic planning system in line ministries” Project - SIPOCA Code 284 See the Methodology for drafting, monitoring and reporting the Institutional Strategic Plans and the program-based budgets, annex to the Government Decision on the approval of the methodology for drafting, monitoring and reporting the Institutional Strategic Plan and the budgetary programs.

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Examining and reviewing resources allocated to Measures (costs of output) within the 20189-2022 MTBF

Updating the budget allocated for Programs (the sum of the budget allocated for Measures).

Implementation status for 2018-2021 ISP

Section 1

The ISP review for the 2019-2022 period takes into account the changes in programming documents, as well as the new governmental priorities in the field of agriculture, fisheries and rural development, but continues the strategic objectives set and contained in the 2017-2020 and 2018-2021 ISP. The 2019-2022 ISP brings together the priorities included in the Ninth Review of the National Rural Development Program (NRDP) as well as those included in the sixth version of the Operational Program for Fisheries and Maritime Affairs (OPFMA) and the new policies funded from the national budget.

The 2019-2022 ISP of MADR represents a review of the 2017-2020 ISP and continues the strategic objectives of the ARD sector; it also provides clear programs and measures (including budgets) that are needed to achieve these goals in the medium-term, and a sound performance assessment framework to measure progress against these targets.

The Institutional Strategic Plan is structured around the key areas under the responsibility of the Ministry of Agriculture and Rural Development (the lead government authority for agriculture) as follows:

Strategic Objective 1: Increase the share of agri-food consumption covered by domestic production and reinstate Romania as a net agri-food exporter aims to transform agriculture and rural areas in a way that allows an efficient use of available resources and to facilitate a better integration of agri-food and fishery producers on the market and in the value chain.

Strategic Objective 2: Accelerate the structural transition towards successful and economically viable farming and aquaculture, while aligning with demographic trends and ensuring an equitable phasing out of surplus farm labor which aims to accelerate the structural transformation towards a more market-oriented agriculture and aquaculture, ensuring at the same time an equitable phasing out of surplus farm labor.

Strategic Objective 3: Limit the impact of the agricultural and fisheries sector on the environment and promote climate change resilience in agriculture and rural areas which aims to improve soil and water management practices as part of a modern farm management while rehabilitating irrigation services, increasing farmers’ awareness regarding climate change and tackling environmental threats for natural resources.

Strategic Objective 4: Improve living standards in rural areas which aims to increase investments in the physical infrastructure in rural areas, increase the number of jobs and non-agricultural income sources while fostering the engagement of local communities in rural development.

Strategic Objective 5: Improve the institutional framework which aims to strengthen the ministry’s capacity to efficiently carry out its policy and regulatory function.

The ISP review did not bring structural changes at the level of strategic objectives compared to its previous versions, but it brought adjustments to the number and content of programs and measures.

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Section 2

The ISP implementation for 2018 was limited to measures of the programs that were part of Romania's commitments within the Common Agricultural Policy and targeted all the components of the programs which had financial resources allocated (see annex 3). In parallel with the 2018-2021 ISP, MADR implemented the measures in the Government Program, a component of MADR’s ISP.

From the perspective of the implementation reporting process, MADR intended to make use of the instrument for monitoring and evaluating the PSI, provided by GSG as part of the SIPOCA 28 project, but data collection and allocation of staff for reporting and data recording have not been finalized.

The implementation of the ISP has been affected by the fact that program-based budgeting has not been yet formalized while the execution of the budget is not based on the programs included in the ISP.

Section 3

The 2018-2021 Institutional Strategic Plan comprised 5 Strategic Objectives, 15 programs, 107 measures as follows

Strategic Objective 1: Increase the share of agri-food consumption covered by domestic production and reinstate Romania as a net agri-food exporter

Program 1.1 Better market and value-chain integration of agri-food producers - it is being implemented through 20 measures.

Program 1.2 Professional training of farmers and fishers: knowledge transfer, training and creation of abilities/skills; it is being implemented through 5 measures.

Program 1.3 Research & development, innovation and technology transfer (RDITT) in agriculture and fisheries; it is being implemented through 7 measures.

Program 1.4 Optimizing and modernizing value chains in the fisheries sector implemented through 3 measures.

Strategic Objective 2: Accelerate the structural transition towards successful and economically viable farming and aquaculture, while aligning with demographic trends and ensuring an equitable phasing out of surplus farm labor

Program 2.1 Consolidation, restructuring and modernization of agricultural and fishery holdings implemented through 4 measures.

Program 2.2 Encouraging the inter-generational transfer in agriculture implemented through 5 measures

Strategic Objective 3: Limit the impact of agriculture and fisheries on the environment and promote climate change resilience in agriculture and rural areas.

Program 3.1 Management of the main natural resources in agriculture; implemented through 9 measures

Program 3.2 Reducing the impact of agriculture and fisheries on the environment and promoting an efficient use of energy resources; implemented through 5 measures

Program 3.3 Risk management in agriculture in aquaculture; implemented through 7 measures

Program 3.4 Management of natural resources in fisheries and aquaculture; implemented through 7 measures

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Strategic Objective 4: Improve living standards in rural areas

Program 4.1 Direct support to increase farmers’ income; implemented through 2 measures

Program 4.2 Diversification of economic activities in rural areas; implemented through 4 measures

Program 4.3 Access to infrastructure and basic services; implemented through 2 measures

Program 4.4 Encouraging local community involvement in rural development; implemented through 7 measures

Strategic Objective 5: Improve the institutional framework

Program 5.1 Improving administrative capacity of sectoral policy management and implementation; implemented through 20 measures

Performance indicators at the level of objectives and programs – in 2018 these were not monitored, and targets were not changed.

Section 4

Main conclusions regarding the implementation of the Institutional Strategic Plan at the end of 2018:

The Institutional Strategic Plan 2018-2021 of the MADR did not go through an internal approval and institutionalization process. Consequently, the strategic document was not mandatory for the institution, but was used as an information and guidance tool for some of the ministry departments. The Institutional Strategic Plan is known by some of the civil servants in the ministry, but it has not been promoted as the outcome of a collective effort of the ministry, nor as a tool for communication with the final beneficiaries. The ISP has not received any special attention by the management level and is more known by internal departments in relation to the policies included in the Government Program for 2017-2020 and only used occasionally to substantiate public policies. Also, at this stage of ISP development and implementation, the budget information is useful, but it is not an obligation in the reporting and collaboration process with the MoPF, since the budget contained in the ISP is not executed based on programs, but only in some cases the budgets of the measures have correspondence in the ministry budget and are executed as such.

The ISP planning process is based on a dedicated organizational structure and uses the recommended methodology for elaboration and revision, but there are no interdisciplinary or institutionalized teams for the implementation and monitoring stage.

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2. CONTEXTThe global demand for food is expected to increase by 70% by 20505, driven by rising population and income levels. With their food needs expected to double, developing countries will contribute the most to this trend. The global population is projected to increase from 7.5 billion today to 9 billion through mid-century, and 95% of this growth will occur in the least developed countries (50 of the least developed countries worldwide). Rising global incomes will be mostly associated with increased urbanization (70% of the world population is expected to be urban by 2050, compared to 49% now), and with fast economic growth in some of the most populous countries (e.g. Brazil, China, India and Russia).

In this global context, the northern hemisphere (Europe included) will be well positioned to continue supplying global markets with many of the key agri-food products. Prospects are positive, for instance, for temperate cereal production, and areas suitable for crop production may even expand northward as temperatures increase. In turn, countries in the southern hemisphere as well as in the dry (sub-)tropics are expected to be strongly affected by climate change, through declining yields and increased frequency of extreme weather events (droughts and floods).

In contrast to the global trend, the European population is projected to age and stagnate. Population ageing is thought to be one of Europe’s most fundamental socio-economic challenges over the next fifty years6. With an average age of 46.87, and over 27.8% of its population aged 65 or older, this challenge reaches unprecedented levels. At the same time, the number of people aged over 60 will increase twice as fast as it did before 2007, by 2 million a year. By 20508, the total EU-28 population is estimated to increase only by a marginal 5% compared to its 2008 levels and reach a little over 515 million people. Romania will be one of the countries most impacted by this trend, as its total population is expected to drop to a little over 18 million, which is a 10% decline compared to 2011. This is one of the steepest drops in EU-28, only surpassed by Bulgaria (-22.5%), Latvia (-20.5%), and Lithuania (-18.7%). While falling into the general trend describing the new member states (-10.5%), this contrasts with projections for old member states (+8.3%). Ageing will also affect Romania more than Europe on average, and, by 2050, the country is expected to reach a median age of 51.4, with a population aged 65 and older accounting for 30.8% of total.

Climate change is expected to increasingly affect Romania, and its agriculture, in the medium and long term. The country should expect a steady rise in annual average temperature, similar to the projections for Europe that can vary between 0.5ºC and 1.5ºC by 2029 and between 2.0ºC and 5.0ºC by 2099, depending on the global scenario.9 The precipitation patterns are also expected to change significantly and produce differentiated territorial impacts in Romania. The northern part of the country is likely to experience some gains in crop productivity in the medium term but be subject to

5 FAO – “How to Feed the World in 2050”, available at:http://www.fao.org/fileadmin/templates/wsfs/docs/expert_paper/How_to_Feed_the_World_in_2050.pdf 6 Eurostat – The greying of the baby boomers; A century-long view of ageing in European populations, Statistics in focus, 23/2011, available at:http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-11-023/EN/KS-SF-11-023-EN.PDF7 The average includes EU-27 as well as Switzerland, Norway, Iceland and Liechtenstein8 Eurostat – Work sessions on demographic projections, Lisbon 28-30 April 2010, available at:http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-RA-10-009/EN/KS-RA-10-009-EN.PDF9 European Commission, Joint Research Center – Assessing agriculture vulnerabilities for the design of effective measures for adaptation to climate change (AVEMAC Project), 2012, available at:https://ec.europa.eu/agriculture/sites/agriculture/files/external-studies/2012/avemac/full-text_en.pdf

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https://ec.europa.eu/agriculture/sites/agriculture/files/external-studies/2012/avemac/full-text_en.pdf

http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-RA-10-009/EN/KS-RA-10-009-EN.PDF

http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-11-023/EN/KS-SF-11-023-EN.PDF

http://www.fao.org/fileadmin/templates/wsfs/docs/expert_paper/How_to_Feed_the_World_in_2050.pdf

increased floods in the winter and water stress in the summer. Southern and south-eastern Romania would be more severely impacted, with heat waves and droughts that are ultimately conducive to an overall decline in crop production and productivity.

In this context, the Ministry of Agriculture and Rural Development has adopted the following vision for the development of the agri-food and rural sector in a 2020/30 horizon: Export-driven, high-value and climate-resilient agriculture, with rural living conditions more closely aligned to urban.

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3. MISSION AND VISIONMADR’s Mission

To support, through appropriate public policies, the development of a well-performing agriculture and fisheries sector, capable of efficiently and equally serving Romanian citizens and economy, while protecting the environment and ensuring the development of rural areas up to a level as close as possible to modern living standards.

A well-performing agriculture means that Romania’s rich natural resources (agricultural land, water, flora and fauna resources) will be used so as to, at a very minimum, ensure a sufficient amount of agri-food products to cover the domestic consumption and supply external markets, through the rational use of such resources, in a safe, well-balanced, environmentally-conscious and climate-smart manner.

The above goal cannot be reached without creating and implementing appropriate, coherent and stable public policies that meet the consensus of the largest possible number of producers and stakeholders in agriculture, the food industry, and the aquaculture sector.

MADR has to develop and implement public policies in the agricultural, fisheries and rural development (ARD) sector within the framework of European Union’s Common Agriculture Policy, as well as within EU’s Common Fisheries Policy and Integrated Maritime Policy. This is not a simple, passive act of adopting a European policy; rather, it is an active one that promotes Romania’s own solutions, consistently with the country’s needs, and is agreed with MADR’s partners.

The support for Romania’s agriculture and rural areas brings benefits to the country and to the region. Such benefits, when quantified, exceed in value the short- and long-term costs, which confirm the responsibility of creating consistent and sustainable sectorial public policies and strategies.

MADR’s Vision

MADR - a trustworthy, transparent and responsible public institution, working to serve the diverse interests of agri-food producers, while ensuring that consumers’ needs for agri-food products are satisfied, and actively pursuing Romania’s comprehensive rural development.

The Ministry of Agriculture and Rural Development is the main public institution responsible for the agricultural and rural development, as well as, for the fisheries policies in Romania.

The Ministry assumes this responsibility observing the highest standards of transparency, accountability and integrity, in collaboration with other public institutions, the private sector and civil society organizations.

The Ministry strives to improve its management capacity and organizational performance in order to deal with the significant responsibilities entrusted to it by the Romanian citizens.

The Ministry is responsive to the citizens’ needs, it is interested in the problems, opinions and the dialogue with the citizens and continuously measures the results of its actions in order to adjust its activity to the demand.

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4. STRATEGIC OBJECTIVES, PROGRAMS, MEASURES AND INDICATORS

Strategic Objective 1: Increase the share of agri-food consumption covered by domestic production and reinstate Romania as a net agri-food exporter

Romania is among the best endowed European countries in terms of land, water and people. Agriculture plays an important role in terms of size of the rural population (45.7 percent of total) and employment (26.6 percent of total)10. Agricultural land occupies almost 62 percent of Romania’s surface area and almost two-thirds of it is arable11. In spite of considerable potential, average yields in Romanian farming are modest, pointing to a much less than optimal use of production factors. Properly exploited, this endowment would allow employing agricultural labor far more productively. This would help make real gains towards reducing rural poverty and closing income gaps with urban areas, and contribute effectively to growth, generation of public savings, and a more sustainable trade balance.But transforming agriculture and rural areas in a manner that will allow the available resources to be efficiently used requires strategically coordinated public action to address a series of critical impediments. In particular, Romania needs to recognize the dual structure of its farming sector and provide tailored policy packages to respond to the specific needs of each segment while ensuring a smooth transition to a market-driven and export-oriented agriculture. To meet the above-mentioned challenges, Romania must facilitate a better integration of the agri-food and fish producers in the market and in the value chain. For smaller producers, focus must be placed on stimulating association and improving access to investment loans, while the large stakeholders require investments in modernization and compliance with the EU requirements. Romania must also facilitate professionalization of farmers and fish producers through better access to knowledge, skills, research. This strategic objective rests on four programs:Program 1.1 aims to increase processing and marketing of domestic agricultural production. It is aimed at the whole agri-food supply chains, from production over processing to consumption. This program combines a mix of measures regarding: quality and nutrition, sale and management of stocks, access to markets and promotion of agri-food products, upgrading of processing and storage as well as access to loans and financing for investments.Program 1.2 supports building the skills and education of farmers and improving the quality of the respective services. The program is targeted to farmers and agricultural workers and consists of measures meant to increase their professional training and to connect Romanian rural development stakeholders, facilitating access to knowledge, education and skills, promoting efficient flow of information, ideas and good practices.Program 1.3 is focused on increasing the penetration of research and innovation in the agriculture and fishery systems. The program includes measures meant to finance basic agricultural research in areas which are a priority to the Romanian agricultural sector and measures dedicated to the improvement of the links between research and practice, in order to provide more applied research that is better focused on the sector’s needs and better uptake of the research results.

10 Medium- and Long-term Strategy for Agricultural Sector Development, draft 2014, Ministry of Agriculture and Rural Development (Strategia de Dezvoltare a Sectorului Agroalimentar pe termen mediu și lung, proiect 2014, Ministerul Agriculturii și Dezvoltării Rurale), available at:http://www.madr.ro/strategii-pentru-valorificarea-potentialului-agroalimentar-al-romaniei/materiale-reprezentative-cod-smis-39078/download/1554_f69e6f75452c6e52d9f257c8f28e89d6.html 11 Idem 7

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Program 1.4 focuses on better market- and value-chain-integration of fish producers by promoting a higher degree of processing and marketing of fish production. To increase the competitiveness of the fisheries sector, this program aims at adding value and product quality, as well as supporting storage, marketing and processing activities.Strategic Objective 1 is structured around four (4) Programs and twenty (20) Measures corresponding to the expected outcomes.

Table 1. Strategic Objective 1: Structure on Programs and Measures

Strategic Objective 1Increase the share of agri-food consumption covered by domestic production and reinstate

Romania as a net agri-food exporter

Program 1.1. Better market and value-chain integration of agri-

food producers

Program 1.2. Professional training of

farmers and fishers: knowledge transfer,

training and creation of abilities/skills

Program 1.3. Research &

development, innovation and

technology transfer (RDITT) in agriculture

and fisheries

Program 1.4.Optimizing and

modernizing value chains in the fisheries

sector

Measures Program 1.1M1.1.1.1-11 Quality, nutrition, food safety

M1.1.1.12-13 Stock /price management

M1.1.1.14-19 Access to markets, promotion

M1.1.2.1 Investments in modernizing the

processing and storage infrastructure

M1.1.2.2-3 Access to credit / funding for

investment

Measures Program 1.2M1.2.1.1 Support for

vocational training and skills acquisition actionsM1.2.1.2 National rural

networkM1.2.1.3 Inland fishingM1.2.1.4 Management,

replacement and advisory services for aquaculture farmsM1.2.2.1 Advisory

services for farmers, young farmers, micro & small enterprises rural

areas M1.2.2.2 Public

consulting services for farmers’ information

and professional training

M1.2.1.3 Plant protection advisory

system

Measures Program 1.3M1.3.1.1 MADR’s

Sectoral Research PlanM1.3.1.2 Support for

cooperation and innovation

M1.3.1.3 Support for demonstration activities

and information activities

M1.3.1.4 Other expenditures for

research in agricultureM1.3.2.1 OPFMA

Innovation (Art 26, 44)M1.3.2.2 OPFMA

Innovation (Art 47)

Measures Program 1.4M1.4.1.1 Production and marketing plansM1.4.1.2 Marketing

measuresM1.4.1.3 Processing of fishery and aquaculture

products

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The Strategic Objective 1 envisages long term impacts in agriculture and is based on outcomes generated by programs as they are presented below:

Table 2. Strategic Objective 1: Impacts and Outcomes

Impacts

• Agri-food trade balance for (i) agricultural raw materials and (ii) processed (food) products (EUR million) - Target 2030: (i) 1,000; (ii) 500; Target 2022: (i) 8000; (ii) -600

• Share of processed/finished products in the agri-food exports - Target 2030: 50%; Target 2022: 32

Program Outcomes

• (1.1.1) Increased marketing of domestic agricultural production: VAT collection from the agri-food industry, relative to total agri-food production (NACE, Rev. 2) to 9,2 percent from 9 percent (actual reference value).

• (1.1.2) Increased processing of domestic agricultural production: Intermediary agri-food consumption (NACE Rev. 2) by the food, beverage and tobacco industry (NACE Rev.2) to 34,5 percent from 34 percent (actual reference value).

• (1.2.1) Improving the quality of the lifelong learning system and training: The share of farm managers with: (i) full training to 0.6% from 0.5 percent (baseline) and (ii) basic training (according to the definitions from the structural survey) to 3.5%, from 3.1%.

• (1.2.2) Improving the quality of the agricultural advisory system: The share of farmers receiving agricultural advisory services (through NRDP and the public consultancy service) from the total number of farmers registered at the Agency for Payments and Intervention in Agriculture increased to 72%, from 30 percent (reference level).

• (1.3.1) Increasing RDITT uptake among clients in agri-food production: Number of farms participating to local cooperation/promotion to 748, from 0 (reference level).

• (1.3.2) Increasing RDITT uptake among clients in fisheries and aquaculture: Change in energy yield of fish catches to -25 tons, from 0 (reference level).

• (1.4.1) Improving the organization of fishery and aquaculture products’ markets : Change in the value and volume of first sales within producer organizations (see Annex 2).

The estimated budgetary resources needed for implementation of measures and achieving the outcomes and impacts for 2019-2022 period is 17,766,651 (000 RON).

Table 3. Strategic Objective 1: Breakdown of financing by budgetary program

Budget allocation for the Strategic Objective

Total (000 RON)

Total Value/year (000 RON)

2019 2020 2021 2022

P 1.1Better market and value-chain

integration of agri-food producers

17,354,781 4,244,747 3,997,966 4,005,886 5,106,182

P 1.2

Professional training of farmers and fishers: knowledge transfer,

training and creation of abilities/skills

235,630 59,583 55,032 55,032 65,982

P 1.3

Research & development, innovation and technology

transfer (RDITT) in agriculture and fisheries

134,909 20,955 50,954 38,000 25,000

P 1.4Optimizing and modernizing value chains in the fisheries

sector41,331 18,213 13,584 9,534 0

Total SO 1 17,766,651 4,343,498 4,117,536 4,108,452 5,197,164

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Program 1.1: Better market and value-chain integration of agri-food producers Rationale: Romania has a considerable agricultural potential; however, the yields are still low compared to the EU-15 average, which indicates a sub-optimal use of production factors. The rather modest competitiveness of the agri-food sector is also reflected by the persistence of the agri-food trade deficit (more visible in the pre-accession period, but improving in the recent years) and by the unbalanced trade structure: more than half the imports are high value added, finished goods, while the exports comprise mostly raw materials (grains 33%, tobacco 12% and oilseeds 11%).

The suboptimal performance of the Romanian agriculture is a result of the structural deficiencies of the farm sector (a small number of farms that are relatively large, efficient and competitive operate at a higher productivity rates, whereas a large number of small farms are modestly competitive or inefficient and produce primarily for subsistence). This has led to an excessive fragmentation of a significant part of the agricultural supply basis, both upstream (access to inputs and financing) and downstream (a dispersed supply of raw materials for processing, trade and distribution of agricultural and food products). All these have weakened the development potential of many value-added activities in the agri-food sector.

The Romanian food industry is still below its potential, as a result of the strong decline during the transition years, the high costs of complying with European standards, the variable quality of the primary products, and the scarce promotion activities of agri-food products. Factors contributing to its current challenges are the poor rate of farmers’ association and their low levels of entrepreneurship. There is good potential, still not fully used, of recognition and promotion of local brands by including them in the EU quality schemes, namely Traditional Specialties Guaranteed (TSG), Protected Designations of Origin (PDO) and Protected Geographical Indication (PGI) or ecological certification.

Objectives: Program 1.1 is intended to achieve until 2022 the following outcomes:

Increased marketing of domestic agricultural production: VAT collection from the agri-food industry12, relative to total agri-food production (NACE, Rev. 2) to 9.2 percent from 9 %13 (actual reference value).

(1.1.2) Increased processing of domestic agricultural production: Intermediary agri-food consumption (NACE Rev. 2) by the food, beverage and tobacco industry (NACE Rev.2) to 34.5% from 3414 % (actual reference value).

Description: Program 1.1 is aimed at the whole agri-food supply chain, from production and processing to consumption. It includes a mix of measures regarding quality and nutrition, sale and management of stocks, access to markets and promotion of agri-food products, upgrading of processing and storage as well as access to loans/financing for investments. The Program is complex, as it uses both CAP policy instruments and state-funded policies.

Success factors: In order to be able to face the challenges related to the market and value-chain integration of farmers, measures aimed at improving the fiscal framework in agriculture and at reducing the informal economy need to be considered. Update of the current national legislation on producer groups in light of the new CAP requirements will also be essential in view of stimulating the set-up of producer groups.

Coordination with key ministries and agencies (Ministry of Public Finance, Ministry of Interior) will be key in curbing the illegal activities in the agri-food markets and in limiting tax evasion. At the

12 Targets can be adjusted according to the VAT rate variation. 13 2011, the National Institute of Statistics.14 2010, Eurostat. Computations are based on the input-output tables of national accounts (http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=naio_kp16_r2&lang=en).

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http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=naio_kp16_r2&lang=en

same time, a strong partnership with the Ministry of Public Finance (MoPF) could ensure that taxation policy responds to the dual focus in the farm sector. MADR and MoPF could jointly envision applying a revised taxation framework for agriculture, which could be based on simplified accounting and progressive taxation, while, possibly, allowing for special tax exemptions or reductions to support key policy priorities (e.g. investments, producer groups, marketing cooperatives, traditional/niche products etc.).

Measures: The primary measures that will contribute to the achievement of the program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.

Table 4. Strategic Objective 1: Measures included in Program 1.1

(1.1.1) To increase the marketing level of agricultural productsMeasures that cover quality, nutrition and food safety:

1 - Restructuring and conversion of vineyards (within the National Support Program 2014-2018)2 - Romania’s School-dedicated Program 2017-20233 - “Honey in Schools” Program15 4- De minimis aid for the application of the support program for garlic 5 - The National Apiculture Program (2017-19)6 - Establishing and maintenance of the herd book and determining the genetic quality of animal breeds

De minimis aid for the application of tomato product support program in protected areas for 201816

De minimis aid for the application of the sheep-breeders' support program for the sale of wool (2018-2020)17

De minimis aid for the application of the support program for pig breeders who breed Bazna and/or Mangaliţa pigs for the production of pig meat (2018-2020)18

Support program for reproduction, hatching or breeding activities in the poultry sector19

Support program for breeding of cattle from Bălţata Românească, Brown and Sura de Stepa breeds20

Program for supporting pig producers in reproduction activitiesSupport program for reproduction activities of buffaloes21 Investment program for setting up milk collection centers in mountain areas Investment program for setting up centers for collecting, washing and primary processing of wool and skins in mountain areas Investment program for setting up small size units for animal slaughtering and/or meat processing in mountain areas Investment program for setting up shepherd shelters Investment program for setting up collection and primary processing centers for forest fruit, mushrooms and/or medicinal and aromatic plants from the wild flora in mountain areas

7 - Quality schemes8 - Pest management9 - Food safety and introduction of plant protection products10 - Support to livestock farmers for animal rendering 11 - De minimis aid for purchase of heifers from specialized breeds (milk and meat breeds)

15 To be introduced.16 Idem 17 Idem 18 Idem 19 Idem 20 idem21 Idem

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Measures that cover stock and price management:12 - Public intervention measures and aid for private storage13 - State aid for the fuel used in agriculture

Measures that cover access to markets and agri-food products promotion: 14 - Information and promotion activities for agricultural products on domestic markets and third countries15 - Export refunds (EU Regulation) 16 - Financial support given to preliminarily recognized producer groups and producer organizations in the vegetable and fruit sector17 - Setting up producer groups and organizations (M9)18 - Support for horizontal and vertical cooperation among actors in the supply chain (SM 16)19 - Coupled support for the vegetal sector (soya, lucerne, peas, beans, hemp, sugar beet, hops, rice, fruit and vegetables for industrial purposes) and the animal sector (milk buffaloes, sheep, goats, meat taurines and their meticultures, dairy cows, silkworms)

(1.1.2) To increase the processing level of domestic agricultural productionMeasures that cover the investments in modernizing the processing and storage infrastructure:

1 - Support for investments in processing/marketing and/or development of agricultural products (SM 4.2)

Support for wool collection and marketing22

Program for setting up collection and processing centers for vegetables/fruits and some products of animal origin23

Program to encourage activities in the mountain area24

Measures that cover access to credit/funding for investment:2 - Financial lending instrument with risk sharing3 - Support for family farms

Program to stimulate the vegetal, zootechnical and aquaculture production by establishing a business development credit with state guarantees25

Program 1.2: Professional training of farmers and fishers through knowledge transfer, training, and development of necessary abilities/skillsRationale: In Romania, almost three quarters of the utilized agricultural area (UAA) is being operated by farmers with no professional training, unlike in the EU-15, where the rate is 40 percent. Also, the share of adult population which has taken part in continuous learning programs was well below other EU-15 or EU-28 member states. The weak educational level among those working the Romanian agricultural land is a critical factor that limits the competitiveness of Romanian agriculture.

The introduction of advisory and vocational training is a cross-cutting element, mandatory in order to shift to a knowledge-based agriculture and a professional training of farmers. Lifelong learning programs sustain training and qualification in order to increase the employment of the active rural population. Extension services may also have a major role in increasing the competitiveness of agricultural holdings and in the transfer of technology, information and innovation.

Objectives: Program 1.2 is meant to achieve until 2022 the following outcomes:

22 Idem 23 Idem24 Idem 25 To be introduced.

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(1.2.1) Improving the quality of the lifelong learning system and training: The share of farm executives with: (i) full training to 0.6% from 0.5 percent (baseline) and (ii) basic training (according to the definitions from the structural survey) to 3.5%, from 3.1%.

(1.2.2) Improving the quality of the agricultural advisory system: The share of farmers receiving agricultural advisory services (through NRDP and the public consultancy service) from the total number of farmers registered at the Agency for Payments and Intervention in Agriculture increased to 72%, from 30 percent (reference level).

Description: The program is targeted to farmers and agricultural workers, and is meant to increase their professional training, by facilitating access to knowledge, education and skills. The program includes measures dedicated to improving the farmers’ knowledge and skills and facilitating their access to advisory services (especially for drafting business plans). The program also includes measures meant to connect Romanian rural development stakeholders, by promoting an efficient flow of information, ideas and good practices.

Success factors: However, farmers’ professional training is closely related to the modernization of the agricultural vocational education system, in terms of both the physical infrastructure and the school curriculum. In this respect, coordinating these efforts with the Ministry of National Education in order to improve the educational level of the young population working in agriculture would have long-term effects in increasing the competitiveness of the agri-food sector. The outcomes of this collaboration are not only critical to the sector's modernization but also closely reflected in the future quality of the strategy and policy formulation and management. The partnership could also extend to cover aspects such as vocational education.



(1.2.1) To improve the quality of the lifelong agricultural education and professional training system

1 - Support for vocational training and skills acquisition actions (Sub-measure 1.1) 2 - National rural network3 - Fisheries in inland waters (Article 27 Advisory services [+ Article 44 (3)]4 - Management, replacement and advisory services for aquaculture farms (Article 49)

Implementing a short-term training program for agricultural workers in public-private partnership26

Revitalizing the activity of agricultural high schools27

(1.2.2) To improve the quality of the agricultural advisory and consulting system1 - Advisory services for farmers, young farmers, micro-enterprises and small enterprises in rural areas (Sub-measure 2.1.) 2 - Public consulting services for farmers’ information and professional training3 - Plant protection advisory system

Program 1.3: Research, development, innovation and technology transfer (RDITT) in agriculture and fisheries

26 Idem 27 Idem

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Rationale: Although the Romanian agricultural and fishery research system has a relatively extensive research network and covers a wide range of areas, it does not totally meet the needs of its beneficiaries. Farmers, fishers and aquaculture farmers benefit only marginally from research results, due to insufficient dissemination efforts and channels. The factors that contribute to this situation are: (i) chronic sub-financing; (ii) restructuring and inadequate transition process (absence of a framework law during the 1990-2002 period, followed by subsequent amendments to the research law), and (iii) low attractiveness of the research profession which contributes to a constant decrease in the number of researchers.

The role of research and innovation is crucial to increase farms’ and fishery and aquaculture units’ competitiveness and performance and ensure their adaptation to climate change. This will only be possible if research activities are better directed towards the real needs of the sector and links between researchers and practitioners are consolidated.

Objectives: Program 1.3 is intended to achieve until 2022 the following outcomes: (1.3.1) Increasing RDITT uptake among clients in agri-food production: Number of farms

participating to local cooperation/promotion to 748, from 0 (reference level).

(1.3.2) Increasing RDITT uptake among clients in fisheries and aquaculture: Change in energy yield of fish catches to - 25 tons, from 0 (reference level).

Description: The program of research, development, innovation and technology transfer (RDITT) in the agri-food sector aims to increase the economic and environmental performance of the agri-food and fisheries sector in Romania, through applied and innovative research and by encouraging technology and information transfer. The program includes measures meant to finance basic agricultural research in areas which are a priority to the Romanian agricultural sector and measures dedicated to the improvement of the links between research and practice, in order to provide more applied research that is better focused on the sector’s needs and better uptake of the research results.

Success factors: A better uptake of research, innovation and technology transfer activities cannot be achieved without availability of functional, reliable and professional advisory services that facilitate dissemination of information and exchanges of ideas and best practices.



(1.3.1) To increase RDITT uptake among clients in agri-food production1 - The sectoral research plan of MARD (2019-2022) 2 - Support for the establishment and operation of Operational Groups (OG) for the development of pilot projects and new products in the agricultural and fruit-growing sector (SM 16.1)3 - Support for demonstration activities and information actions (Sub-measure 1.2)4 - Other expenses for agricultural research (the functioning of Academy of Agricultural and Forestry Sciences)

National R&D program28

(1.3.2) To improve the RDITT knowledge transfer in the fisheries1 - Innovation (Article 26 and article 44 (3))2 - Innovation (Article 47)

28 To be introduced.

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Program 1.4: Optimization and modernization of the supply chain in the fisheries sectorRationale: Romania’s fisheries sector has a considerable potential, despite a very low competitiveness overall. This modest competitiveness is reflected in a low contribution of the fisheries sector to the GDP as well as a modest export orientation, with significant fish products being imported into the country.

Despite availability of water and human resources, there is a low level of investments in the fisheries sector as well as a low market and value chain integration of fish producers. In addition, the range of species farmed is limited, with more efforts needed to align the existing offer to market demands. Also, processing and marketing activities are inefficient with many producers engaging in direct selling of low value-added products. Overall, fishery production in Romania is characterized by a high reliance upon subsistence, low-productive activities.

The Romanian fish processing industry is also below its potential following a strong decline during the transition years, the high costs of complying with European standard as well as recent economic shocks. There is, however, a good potential to improve the competitiveness of this industry through targeted investments in the processing and marketing of fish products.

Objectives: Program 1.4 is intended to achieve till 2021 the following outcomes:

(1.4.1) Improving the organization of markets for fishery and aquaculture products: Change in the value and volume of first sales within producer organizations (see Annex 2).

Description: Program 1.4 is aimed at increasing the overall competitiveness of the fisheries sector through support for increasing the added value and product quality, support for storage and marketing, as well as support for processing. The Program relies entirely on funding granted through the European Maritime and Fisheries Fund (EMFF).

Success factors: To be able to face the challenges related to the market and value-chain integration of fishers, measures aimed at improving the fiscal framework in fisheries and at reducing the informal economy need to be considered.



(1.5.1) To increase the degree of processing and marketing of fish production1 - Production and marketing plans (Article 66)

2 - Marketing measures (Article 68)

3 - Processing of fishery and aquaculture products (Article 69)

4 – State aid for reducing the excise of fuel used in aquaculture

5 – Program for supporting fishery and aquaculture producers

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Strategic Objective 2: Accelerate structural transition towards professional and economically viable farming and aquaculture, while aligning with

demographic trends and ensuring the phasing out of surplus farm labor

Romania shares certain structural features with farming sectors in other new EU member states but is unique in the depth of the divide between large and small farmer groups, and the prevalence of (semi)subsistence agriculture. In 2010, 93% of the Romanian holdings were engaged in (semi)subsistence activities; of these, three quarters were operating on less than 2 hectares and more than a third were run by farmers older than 65. By economic size, 2.7 million, or 72 percent of all holdings were generating less than EUR 2,000 of standard output (SO) each. They operate 22 percent of the Utilized Agriculture Area (UAA). Comparatively, holdings generating less than EUR 2,000 of SO farms only 5% of the EU-28 UAA. As a result, a significant portion of Romania’s UAA is tied up in sub-optimal agricultural activities, which curb fulfilling the sector’s true potential.

To meet the above-mentioned challenges, Romania must speed-up the structural transformation towards a more market-oriented agriculture and fisheries production, while ensuring fair exit options for the excess labor force in the sector. Romania must also ensure that the average age of farmers is reduced by encouraging the inter-generational transfer of holdings.

Three main programs support this strategic objective:

Program 2.1 contributes to the structural improvement of the Romanian agriculture in terms of utilized areas, economic development and market orientation by making use of the available CAP tools. The program includes measures for farmers who own medium-sized farms (5 to 30 ha), for semi-subsistence farms and investment measures targeted to small and medium-sized farms. The program is also aimed at improving the competitiveness of the fishery sector by increasing and expanding existing aquaculture units and by ensuring sufficient facilities for fishery activities.

Program 2.2 intends to attract young generations in agriculture and consequently to reduce the average age of active farmers by using complex support measures offered under the CAP. The program includes support measures for young farmers through supplementary area-based payments and measures for supporting the setting up of young farm managers.

The structure of Strategic Objective 2 includes two (2) Programs and eight (8) Measures corresponding to expected outcomes.

Table 8. Strategic Objective 2: Structure on Programs and Measures

Strategic Objective 2: Accelerate the structural transition towards successful and economically viable farming and

aquaculture, while aligning with demographic trends and ensuring an equitable phasing out of surplus farm labor

Program 2.1 Consolidation, restructuring and modernization of

agricultural and fishery holdings

Program 2.2 Encouraging the inter-generational transfer in

agricultureMeasures Program 2.1.

M2.1.1.1 The redistributive paymentM2.1.1.2 Investments in agricultural holdings

(Sub-measure 4.1)M2.1.1.3 Support for the development of small

farms (Sub-measure 6.3)M2.1.2.1 Support for productive investments in

aquaculture

Measures Program 2.2.M2.2.1.1 Life annuity scheme

M2.2.1.2 Additional payment for young farmers M2.2.1.3 Business start-up aid for young farmers

(Sub-measure 6.1) M2.2.1.3 Support for small farmers (CAP pillar 1)

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The Strategic Objective 2 envisage long term impacts in agriculture and is based on outcomes generated by programs as they are presented below:


Impacts • The agricultural area used by holdings with an economic size of over EUR 2,000 of

standard output (SO) - Target 2030: 90%; Target 2022: 85%.• Labor productivity in agriculture & fisheries sector: Target 2030: 7,000 EUR/FTE;

Target 2022: 4,750 EUR/FTE.

Program Outcomes

• (2.1.1) Increased share of consolidated/restructured/modernized farms, both in terms of agricultural and economic size: Average agricultural area used per agricultural holding at 3.8 ha, from 3.6 ha (2013 reference level); and share of farms with economic size of 2,000 EUR in standard production of the total number of farms to 34%, from 31% (reference level). Change in volume of aquaculture production up to 7,800 Tons (in 2023).

• (2.2.1) Reducing the average age of active farmers: Share of farmers under 45 years of age up to 17 percent, from 14.8% (baseline).

The estimated budgetary resources needed for implementation of measures and achieving the outcomes and impacts for 2018-2021 period is 23,583,499 (000 RON)29.


Strategic Objective’s Programmes Budget

Total (000 RON)

Total value/year (000 RON)

2019 2020 2021 2022

P 2.1Consolidation, restructuring and

modernization of agricultural and fishery holdings

8,285,400 2,156,073 1,778,508 1,741,075 2,609,745

P 2.2Encouraging the inter-

generational transfer in agriculture

15,298,099 3,772,278 3,308,421 3,215,719 5,001,681

Total OS 2 23,583,499 5,928,350 5,086,928 4,956,795 7,611,426

Program 2.1: Consolidation, restructuring and modernization of agricultural and fishery holdings

Rationale: Among all the EU countries, Romania suffers from one of the most pronounced structural divisions of its agricultural production, with a high number of small farms and a small number of large and very large holdings. The economic size analysis further reflects this structural challenge: half of the agricultural standard output is produced in farms generating less than EUR 8,000 yearly.

This highly polarized structure of the agricultural sector is also reflected in the distribution of direct payments from CAP’s Pillar 1. Out of the 1.1 million farmers who are eligible for support, 99% have secured 46% of the total financial envelope, with an average payment per holding of 5,000 euros or less. This leaves the bulk of direct payments concentrated with a small number of large holdings and leads to a distribution more skewed than the EU-28 average.

The Romanian aquaculture is well behind the European average, in terms of technical equipment, environmental sustainability and animal and human safety. At the same time, the production structure reflects an over-reliance on a few species, although a slight diversification has been

29 Funding for measures included in Program 2.1 is done via AFIR (information regarding budgets was not available)

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registered in recent years. The above-mentioned deficiencies hinder the competitiveness of the sector, whose contribution to the economy is relatively modest if compared to its potential.

This situation reflects the magnitude and the complexity of the socio-economic fabric in the Romanian agricultural and fishery sector, as well as the potential that the sector holds should its structural deficiencies be addressed. Concerted efforts for restructuring and consolidating farms using country-adapted instruments are therefore necessary.

Objectives: Program 2.1 is intended to achieve the following outcomes, till 2022:

(2.1.1) Increased share of consolidated/restructured/modernized farms, both in terms of agricultural and economic size: Average agricultural area used per agricultural holding at 3.8 ha, from 3.6 ha (2013 baseline); and share of farms with economic size of 2,000 EUR in standard production of the total number of farms to 34%, from 31% (baseline).

(2.1.2) Support for productive investments in aquaculture: Change in volume of aquaculture production up to 7,800 Tons (in 2023).

Description: Program 2.1 contributes to the structural improvement of the Romanian agriculture in terms of utilized areas, economic development and market orientation by making use of the available CAP tools. The program includes support measures for farmers who own medium-sized farms (5 to 30 ha), support measures for semi-subsistence farms and investment measures targeted to small and medium farms.

Success factors: Considering the structural dynamic over the past 20 years (which revealed a slow restructuring process), the main challenge will be to provide tailored policy packages to respond to the specific needs of each segment (small- and large-scale farms) while ensuring a smooth transition to a market-driven and export-oriented agriculture.

A strategic long-term partnership with ANCPI in the joint effort to complete, update and finalize the land registration and the cadaster of the agricultural land will be essential. The period for completion estimated over two EU programing cycles requires, besides coherent and effective coordination, an important volume of financial support. This should be complemented or joined by the Ministry of Justice, with the view to address the remaining legal hindrances contributing to the fragmentation of farmland.


Table 11. Strategic Objective 2: Program 2.1 measures

(2.1.1) To increase the share of consolidated/restructured/modernized farms, from an agricultural size and a economic dimension point of view

1 - The redistributive payment

2 - Investments in agricultural holdings (Sub-measure 4.1)

3 - Support for the development of small farms (Sub-measure 6.3)

(2.1.2) To support productive investments in aquaculture

1 – Support for productive investments in aquaculture (art. 48 paragraph (1) letters (a-d) şi (f-h))

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Program 2.2: Encouraging the inter-generational transfer in agriculture

Rationale: In the medium and long term, the demographic shift will continue to be the most impactful factor on Romania’s farm structures. By 2030, some 1.5 million farms operating 3 million hectares of UAA will be subject to inter-generational transfer. At the same time, another 1.5 million farmers using 6.7 million hectares will reach or go past retirement age (65). Managing this demographic transition, without jeopardizing the agricultural productive potential and while ensuring social equity, will be a key concern for policymakers over the next two decades.

Despite the increase over the past years in the share of young farms managers in Romania, the dynamic is still low. In 2012, 19 percent of the farm managers were younger than 45, compared to only 17 percent in 2005. In the future, it will be important to continue encouraging the inter-generational transfer of assets in agriculture, through incentives for young farmers, coupled with efforts to increase their knowledge and skill levels.

Objectives: Program 2.2 is meant to achieve the following outcomes till 2022:

(2.2.1) Reducing the average age of active farmers30: Share of farmers under 45 years of age up to 17%, from 14.8% (baseline).

Description: Program 2.2 intends to attract young generations into agriculture and consequently to reduce the average age of active farmers by using complex support measures offered by the CAP. The program includes support measures for young farmers through supplementary area-based payments and measures for supporting the setting up of young farm managers.

Success factors: The inter-generational transfer in agriculture will produce effects only if elderly farmers receive real options for exiting the agricultural field. Concerted efforts with the Ministry of Labor and Social Protection will be important in order to provide a fair exit option from the sector and the integration with the retirement system. This could complement the cooperation with the Ministry of Finance aimed at introducing the taxation in agriculture which could provide a consistent and growing budgetary resource. Equally, just as for program 2.1, the completion of the land reform agenda will be critical for the most effective and rapid achievement of the below aims and targets.

Measure: The primary measures that will contribute to the achievement of the program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.


(2.2.1) To reduce the average age of active farmers

1 - Life annuity scheme

2 - Additional payment for young farmers

3 - Business start-up aid for young farmers (Sub-measure 6.1)

4 - Small farmers’ scheme (CAP pillar 1)

Support for youth employment in agriculture, aquaculture and food industry

30 Based on the national definition of an active farmer.

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Strategic Objective 3: Limit the impact of the agricultural and fisheries sector on the environment and promote climate change resilience in agriculture and

rural areas

Climate change is one of the reasons behind the decline in environmental conditions. With increasing air temperatures and changing precipitation patterns, natural disasters like droughts and floods have occurred more often, resulting in yield and income loss. Agriculture has become one of the most vulnerable sectors to climate change and estimations for the future predict that these trends will only accentuate further. The irrigation system nowadays continues to experience several challenges, mainly: (i) low hydraulic efficiency; (ii) high cost of electricity for systems still based on pumping (the Danube River being the main supplier); and (iii) high water tariffs. The current layout and technical state of the irrigation infrastructure leads to high cost of water, affordable mainly for large, commercial farmers but prohibitive for small farmers. In addition to climate change, Romania is challenged with several other environmental concerns, evidenced by the worsening of soil and water quality over the past few decades. Renewable energy production coming from agriculture and shares of organically farmed lands are increasing but are still amongst the lowest in the region. They constitute areas which need to be further developed in the future.To meet the environmental challenges, Romania must firstly concentrate on adapting to and mitigating climate change. One of the most pressing measures is to reduce the effect of extreme weather conditions, such as droughts and floods. First, it needs to improve the soil and water management practices as part of modern farm management, as well as to rehabilitate the irrigation system. Secondly, increasing the farmers’ awareness regarding climate change is a significant element of climate change mitigation. The research and innovation activities and the related services may help farmers adopt protection systems which best suit local characteristics. Risk management instruments will also be crucial for the limitation of the adverse effects of natural disasters on agricultural production. Thirdly, Romania must focus on limiting greenhouse gas (GHG) emissions and addressing environmental threats on natural resources, by promoting environmental-friendly production technologies, practices and products, and by investing in green technologies. Special attention should be given to promoting organic products, supporting renewable energy sources and afforestation of poor quality and underproductive agricultural lands.

Five programs support this strategic objective:

Program 3.1 contributes to the improvement of the natural environment and rural areas, through an efficient and sustainable management of soil and water resources. The program includes measures to support agricultural producers located in areas with specific constraints, with a view to maintaining agricultural activity in these areas. The program also includes support measures for promoting environmentally friendly agricultural practices that use low inputs and have an essential role in the sustainable development of rural areas. Furthermore, the program includes support measures for investments in irrigation infrastructure at farm level, in order to ensure efficient use of water resources, climate change adaptation and a better economic performance of farms.

Program 3.2 is meant to increase the efficiency of energy use in the agri-food sector and to increase carbon sequestration in agriculture. It includes measures dedicated to climate change adaptation, by limiting greenhouse gases and promoting investments in renewable energy. Furthermore, the program supports the afforestation of unproductive agricultural areas in order to protect against soil erosion and carbon conservation.

Program 3.3 is targeted at Romanian farmers and fishermen and aims to assist them in managing agriculture/fishery related risks. As the insurance costs for farmers and fishers are very high, the program includes support measures to cover the insurance premiums for crop and animal

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production and provides an income guarantee for aquaculture producers. Also, the program includes measures meant to support the establishment of mutual funds and payments made by such funds to farmers to compensate for the losses due to adverse weather conditions, plant and animal diseases, pest infestation or environmental incidents.

Program 3.4 addresses sustainable management of fisheries and aquaculture. The program aims at improving natural resources by supporting investments in equipment with lower impact on the environment. In addition, the program supports actions for a sustainable aquaculture production, including organic practices and thereby providing environmental services.

Program 3.5 aims to reduce food waste and reduce its impact on the environment. The program supports actions to reduce food waste in agricultural production and processing and actions to encourage food donations. In addition, the program encourages increased awareness throughout the food chain about the importance of reducing food waste.

The structure of Strategic Objective 3 includes five (5) Programs and twenty-one (21) Measures corresponding to expected outcome.

Table 13. Strategic Objective 3: Structure on Program and Measures

Strategic Objective 3. Limit the impact of the agricultural and fisheries sector on the environment and promote

climate change resilience in agriculture and rural areas

Program 3.1. Management of main natural resources in

agriculture

Program 3.2. Reducing the impact of

agriculture and the fishery sector on the

environment

Program 3.3. Risk management in

agriculture and aquaculture

Program 3.4.Management of main natural resources in

fisheries and aquaculture

Measures Program 3.1. M3.1.1.1 Greening

paymentM3.1.1.2 Organic farming

& agri-environmentM3.1.1.3 Investment in agricultural and forestry

infrastructure (Sub-measure 4.3)

M3.1.1.4 Soil Monitoring (OSPA, ICPA)

M3.1.1.5 National Irrigation Program

M3.1.2.1-3 Compensatory payments to mountainous areas (Sub-measure 13.1)

and areas with natural (13.2) and specific (13.3)

constraints

Measures Program 3.2.M3.2.1.1-2

Environmentally friendly investments in

maritime and inland waters fishing

M3.2.1.3 Productive investments in

aquaculture – energy efficiency/ renewable

energyM3.2.2.1 Afforestation

of agricultural land (Sub-measure 8.1)

M3.2.2.2 Payments for forest and

environmental commitments

(Sub-measure 15.1)

Measures Program 3.3. M3.3.1.1 Ensuring wine

grape harvestM3.3.1.2 Insurance premia for crops,

livestock and plants (Sub-measure 17.1)M3.3.1.3 Parasites

forecast and warningM3.3.1.4 Pest management

M3.3.1.5 Reducing the consequences of natural disasters,

adverse events and catastrophic events

M3.3.2.1 National Anti-Hail System

Measures Program 3.4. M3.4.1.1 Limiting the

impact of fishing on the marine environmentM3.4.1.2 Removal of

marine waste (lost fishing and marine gear)

M3.4.2.1 Productive investments in

aquaculture - energy efficient investments

M3.4.2.2 Increasing the potential of aquaculture

sites M3.4.2.3 Organic &

environmentally friendly aquaculture

M3.4.3.1 Aquaculture environmental servicesM3.4.3.2 Animal health

and welfare in aquaculture

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The Strategic Objective 3 envisages long term impacts in agriculture and is based on outcomes generated by programs as they are presented below.


Impacts • Reduced agriculture carbon footprint, annual Kt CO2 equivalent. Target 2022:

16,845 annual Kt CO2 equivalent

Program Outcomes

• (3.1.1) Improved water and soil use through modernizing reliable irrigation systems and using agricultural land according to environment-friendly practices: The percentage of agricultural land subject to management contracts for water management improvement to increase to 11.92% of UAA (în 2023), from 0 (baseline); and functional surfaces of viable and marginally viable area for irrigation to increase to 52%, from 50% (baseline).

• (3.1.2) Biodiversity conservation: Percentage of agricultural land covered by management contracts for biodiversity and/or landscapes support to increase to 10.12%, from 0 (baseline).

• (3.2.1) Increased efficiency of energy use in the fisheries sector: Variation in unwanted catches to -0.34 tons from 0 tons (baseline); and variation in the energy yield of fish catches to -5 liters per ton of landed catch.

• (3.2.2) Encouraging carbon conservation and sequestration in the agricultural sector: The percentage of agricultural and forestry land covered by management contracts that contribute to carbon sequestration and conservation to increase up to 1.24 from 0 (reference level).

• (3.3.1) Increased farmers’ participation in agriculture environmental risk management instruments: Share of holdings (agricultural area) participating in agriculture environmental risk management schemes (insurance and mutual funds) up to 0.39 percent, from 0 percent (reference level).

• (3.3.2) Increased protection against hail, in the areas protected through the implementation of the Anti-hail and Precipitation Increase National System: Protected area (see Annex 2).

• (3.4.1) Reducing the impact of fishing on the environment: Variation in unwanted catches up to 5 tons, from 0 tons (reference value).

• (3.4.2) Protecting and restoring aquatic biodiversity and improving aquaculture ecosystems, while promoting resource-efficient aquaculture: Variation in the volume of organic aquaculture production to 1728; and variation in the volume of production based on recirculation system to 127 tons.

• (3.4.3) Promoting aquaculture with a high level of environmental protection, promoting animal health and welfare, as well as public health and safety: Aquaculture farms offering environmental services up to 40 (in 2023), from 0 (baseline).




Total (000 RON)

Total value/year (000 RON)2019 2020 2021 2022

P 3.1 Management of main natural resources in agriculture 15,598,307 4,265,322 2,970,269 2,939,368 5,423,347

P 3.2

Reducing the impact of agriculture and fisheries on the environment and promoting an

efficient use of energy resources

813,285 227,956 194,355 188,933 202,041

P 3.3 Risk management in agriculture 657,019 164,397 162,223 162,223 168,177

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Total (000 RON)

Total value/year (000 RON)2019 2020 2021 2022

and aquaculture

P 3.4Management of natural

resources in fisheries and aquaculture

3,172,116 890,401 500,323 484,910 1,296,482

Total OS 3 20,240,728 5,548,076 3,827,170 3,775,435 7,090,047

Program 3.1: Management of main natural resources in agriculture

Rationale: Romania has a diverse natural environment, with most of the land being used in agriculture and forestry. Environmental conditions have continuously worsened over the past decades, and the soil and water quality pose the most serious problems. Romania has the biggest area eroded by water in Central and Eastern Europe (CEE).

The current irrigation system is still facing several difficulties, mainly: (i) low hydraulic efficiency; (ii) high cost of electricity for the systems which still rely on pumping (the Danube being the main source); and (iii) high water tariffs. The current location and technical condition of the irrigation infrastructure generate a high-water cost, which can be afforded mainly by big, commercial farmers, and which is prohibitive for small farmers. Besides climate change, Romania is facing some other environmental problems, as shown by the soil and water quality deterioration over the past decades.

Therefore, efforts are necessary to improve soil and water management practices, as part of the modern farm management, alongside the rehabilitation of irrigation services. The environmental threats against natural resources in agriculture will be handled by promoting environment-friendly production technologies, practices and products and supporting organic farming.

Objectives: Program 3.1 is meant to achieve the following outcomes until 2022:

- (3.1.1) Improved water and soil use through modernizing reliable irrigation systems and using agricultural land according to environment-friendly practices: The percentage of agricultural land subject to management contracts for water management improvement to increase to 11.92% of UAA (in 2023), from 0 (baseline); and Functional surfaces of viable and marginally viable area for irrigation to increase to 52%, from 50% (baseline).

- (3.1.2) Biodiversity conservation: Percentage of agricultural land covered by management contracts for biodiversity and/or landscapes support to increase to 10.12%, from 0 (baseline).

Description: Program 3.1 contributes to the improvement of the natural environment and rural areas, through an efficient and sustainable management of soil and water resources. The program includes measures to support agricultural producers located in areas with specific constraints, with a view to maintaining agricultural activity in these areas. The program also includes support measures for promoting environmentally friendly agricultural practices that use low inputs and have an essential role in the sustainable development of rural areas. Furthermore, the program includes support measures for investments in irrigation infrastructure to ensure efficient use of water resources, climate change adaptation and a better economic performance of farms.

Success factors: The rehabilitation of the main viable irrigation infrastructure and its sustainable and efficient use are an essential component of the water resource management efforts. In addition, concerted efforts with the Ministry of Environment and Climate Change (MMSC) should continue to focus on solutions for the agricultural producers situated in NATURA 2000 areas, and on the implementation of the Water Framework Directive (WFD), and its impacts on irrigation.

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Measures: The primary measures that will contribute to the achievement of the Program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.


(3.1.1) To improve water and soil use1 - Greening payment 2 - Organic farming (M11) Program to encourage organic farming and traditional products31

3 - Investments in developing, modernizing and adapting the agricultural and forestry infrastructure (Sub-measure 4.3) 4 - National Program for Monitoring the Soil for Agriculture and Forestry (OSPA, ICPA)5 - Agri-environment and climate (M10) 6 - Investments through the National Program for the Rehabilitation of the Main Irrigation Infrastructure (2016-20)

Free water up to the pressurized station32

(3.1.2) To ensure biodiversity conservation1 - Compensatory payments in mountainous areas (SM 13.1) 2 - Compensatory payments to areas facing significant natural constraints (SM 13.2)3 - Compensatory payments to areas facing specific constraints (SM 13.3)

Program 3.2: Reducing the impact of agriculture and fisheries on the environment and promoting an efficient use of energy resources

Rationale: Climate change is one of the most important reasons for the decline of environmental conditions in Romania. Rising temperatures change in precipitation patterns, frequency of natural disasters such as drought and flood have started to seriously impact on fishery and aquaculture production. Thus, agriculture and fishery have become one of the sectors most vulnerable to climate change, and forecasts show that these tendencies will deepen.

Efforts are necessary to limit GHG and handle environmental threats by promoting environment-friendly production technologies, practices and products and encouraging investments in green technologies. Afforestation of unproductive agricultural land is also a priority within the transition to a low carbon economy.


(3.2.1) Increased efficiency of energy use in the fisheries sector: Variation in unwanted catches to -0.34 tons, from 0 tons (baseline); and variation in the energy yield of fish catches to -5 liters per ton of landed catch.

(3.2.2) Encouraging carbon conservation and sequestration in the agricultural sector: The percentage of agricultural and forestry land covered by management contracts that contribute to carbon sequestration and conservation to increase up to 1.24, from 0 (baseline).

31 To be introduced.32 Idem.

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Description: Program 3.2 includes measures dedicated to climate change adaptation, by limiting greenhouse gases and promoting investments with limited impact on the environment. Furthermore, the program supports the afforestation of unproductive agricultural areas in order to protect against soil erosion and carbon conservation.

Success factors: Increasing farmers’ and fishers’ awareness about climate change is an important element of climate change mitigation. Research and innovation activities and extension services can help farmers and fishers adopt production systems that are best adapted to local characteristics.



(3.2.1) To increase the efficiency of energy use in the fisheries sector

1 - Energy efficiency and mitigation of climate change - replacement or modernization of engines (marine fisheries) (Article 41 paragraph (2))

2 - Energy efficiency and mitigation of climate change - replacement or modernization of engines (inland fisheries) (Article 44 paragraph (1) letter (d))

3 - Productive investments in aquaculture – increase of energy efficiency, renewable energy (Article 48 paragraph (1) letter (k))

(3.2.2) To encourage carbon conservation and sequestration in the agricultural sector

1 - Support for afforestation/creation of forestry areas (SM 8.1)

2 - Payments for forest -environmental and climate commitments (SM 15.1)

Program 3.3: Risk management in agriculture

Rationale: Currently, Romanian agri-food producers are exposed to increasing economic and environment risks, as a result of climate change and high price volatility. Drought, frost and floods have been increasingly affecting agricultural production, whereas other risks (plant and animal diseases) are also present. At the same time, insurance costs for farmers are very high.In a medium- and long-term, the impact of climate change is expected to become more significant, Romania being one of the EU countries that will be more likely to be affected. Thus, it is a necessity to facilitate the farmers’ access to funds that should compensate for the losses resulted from natural disasters or other unfavorable phenomena.Objectives: Program 3.3 is meant to achieve the following outcomes until 2022:

(3.3.1) Increased farmers’ participation in agriculture environmental risk management tools: Share of holdings (agricultural area) participating in agriculture environmental risk management schemes (insurance and mutual funds) up to 0.13 percent, from 0 percent (baseline).

(3.3.2) Increased protection against hail, in the areas protected by the Anti-hail and Precipitation Increase National System: Protected area (see Annex 2).

Description: Program 3.3 is addressed to the Romanian farmers and aims to assist them in managing production-related risks. The program includes support measures to cover the insurance premium for crop and animal production. Also, the program includes measures meant to support the establishment of mutual funds and payments made by such funds to farmers to compensate for the losses due to adverse weather conditions, plant and animal diseases, pest infestation or environmental incidents.

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Success factors: Efforts to help farmers and rural communities to adapt to climate change should also include activities for raising awareness about climate change and the need for adaptation. Access to relevant information and advisory services will therefore be crucial in the adaptation process of agricultural producers to economic and climate risks.Measures: The primary measures that will contribute to the achievement of the program results are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.


(3.3.1) To increase farmers’ participation in environmental risk management tools1 - Wine grapes harvest insurance (within the National Support Program)

2 – Insurance premia for crops, livestock and plants (SM 17.1)

3 - Consolidation of the disease and pest forecasting and warning system

4 - Implementation of the integrated pest management system

5 – Reducing the consequences of natural disasters, adverse events and catastrophic events

6 – State aid to compensate for damages caused by the African swine fever in households

(3.3.2) To increase hail protection level, in the areas protected through the implementation of the Anti-hail and Precipitation Increase National System

1 - The National Anti-Hail System

Program 3.4: Management of natural resources in the fisheries sector

Rationale: Romania has a good potential in aquaculture and fish production, but more is needed to ensure that these activities are being carried out in a sustainable and environmentally friendly manner. A long-term approach to aquaculture and fishery activities needs to consider the quality and sustainability of natural resources.

Ensuring the protection of ecosystems is an essential element. Numerous aquaculture production units are concentrated in Natura 2000 sites, which imposes certain restrictions to how these activities can be carried out. In addition, many fishing vessels operating in the Black Sea are old, unsafe and do not meet the requirements for a limited impact on the environment. Also, most of these vessels are not able to meet basic human safety needs. All these aspects pose a potentially tremendous burden on the sustainability of natural resources.

Efforts are therefore necessary to promote environmentally, socially and economically sustainable aquaculture and fishery activities.


(3.4.1) Reducing the impact of fishing on the environment: Variation in unwanted catches up to -0.34 tons, from 0 tons (baseline).

(3.4.2) Protecting and restoring aquatic biodiversity and improving aquaculture ecosystems, while promoting resource-efficient aquaculture: Variation in the volume of organic aquaculture production to 1728 tons; and Variation in the volume of production based on recirculation system to 127 tons.

(3.4.3) Promoting aquaculture with a high level of environmental protection, promoting animal health and welfare, as well as public health and safety: Aquaculture farms offering environmental services up to 40 (in 2023), from 0 (baseline).

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Description: Program 3.4 contributes to the improvement of natural resources by investments in equipment with a low impact on the environment. In addition, the program supports actions for a sustainable aquaculture production, including organic aquaculture practices and aquaculture providing environmental services.

Success factors: In parallel with ensuring that fishery and aquaculture activities are done in an environmentally-sound manner, providing skills and knowledge on how to adopt these practices and raising awareness on the importance of these methods will be equally important.



(3.4.1) To reduce the impact of fisheries on the environment

1 - Limiting the impact of fishing on the marine environment and adaptation of fishing to the protection of species [Article 38 + article 44 paragraph (1) letter (c) Inland fishing]

2 - Protection and restoration of marine biodiversity and ecosystems – removal of lost fishing gear and marine litter (Art.40 Paragraph (1) letter (a))

(3.4.2) To promote an efficient and sustainable aquaculture

1 - Productive investments in aquaculture – efficiency of resource use, reduction of water use and chemicals, closed recirculation systems (Article 48 paragraph (1) letter (j))

2 - Increasing the potential of aquaculture sites (Article 51)

3 - Conversion to eco-management and audit schemes and organic aquaculture (Article 53)

(3.4.3) To promote aquaculture with a high level of environmental protection, animal health and welfare, as well as public health and safety

4 - Aquaculture providing environmental services (Article 54)

5 - Animal health and welfare measures (Article 56)

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Strategic Objective 4: Improve living standards in rural areas

Romania’s population has been steadily dropping, especially in rural areas. Aging and negative population growth rates are the main drivers, and even the positive urban to rural migration is not able to reverse the decline. Rural areas play an important socio-economic role in Romania, as they cover over 60% of the territory, 45% of the population, are responsible for 32% of gross value added and secure 42% of the total employment. Although employment rates in the rural areas have recently become higher than in urban areas, these values mask much greater hidden rural unemployment. Self-employment and family work play important roles in rural Romania, and agriculture is responsible for securing a great part of this. Most rural people have low levels of education and, consequently, earn less than employees in other sectors. Low wages and limited job opportunities have created stable patterns of poverty in the rural areas, and 40% of the population is living at the risk of poverty or social exclusion.

Due to decreasing employment opportunities, a net external migration has started, led by young people. It is estimated that around 1.5 million people (7 percent of population) are working abroad. In line with this process, remittances play an increasingly important role in the income of rural household in Romania, securing 2% of the GDP.

The current state of rural physical infrastructure is hindering the development of rural areas in Romania. Road network, water supply and sewerage services are in a high need of repair and reconstruction. Only 15 percent of county and communal roads are modernized and only 40% of the households have regular access to drinking water in rural areas. However, besides physical infrastructure, rural education buildings are also in poor condition, contributing to the lower level of education in rural areas.

To meet the above-mentioned challenges, Romania must concentrate on increasing its investment in physical infrastructure and rural services. Romania should also focus on increasing jobs and sources of income in non-agricultural sectors in rural areas while also encouraging the involvement of local communities in rural development.

This strategic objective rests on the following four programs:

Program 4.1 aims to reduce disparities between Romanian farmers' incomes and EU-28 and between farmers and other economic activities. The main instruments of direct income support are financed by the CAP Pillar 1 and the national budget.Program 4.2 aims to diversify the rural economy by supporting the economic activities performed in other non-agricultural and non-fisheries sectors. This program covers measures aimed at creating and developing micro-businesses in order to create and maintain jobs, to diversify the supply of services and to improve living standards in rural areas. Also, the program includes measures aimed at supporting the development of tourism activities that can revive rural economy, encourage recreational activities and provide alternative income sources to rural households.

Program 4.3 features measures that support investments in the basic infrastructure and services in view of a sustainable economic and social development of rural areas. This program is important for enhancing the attractiveness of villages, attracting future investments, and providing adequate living conditions in rural communities.

Program 4.4 aims to harness the endogenous potential of the local territories to support a well-balanced development. The program includes measures to support the partnerships amongst various public and private actors and especially amongst LAGs by activities such as animation, training sessions, and courses. On the other hand, the program also includes measures to support the implementation of strategies devoted to local development.

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The structure of Strategic Objective 4 includes four (4) Programs and sixteen (16) Measures corresponding to expected outcomes.


Strategic Objective 4.Improving living standards in rural areas

Program 4.1. Direct support to increase farmers’

income

Program 4.2. Diversification of

economic activities in rural areas

Program 4.3. Access to infrastructure

and basic services

Program 4.4.Encouraging local

community involvement in rural development

Measures Program 4.1.

M4.1.1.1 Single Area Payment Scheme (SAPS)

M4.1.1.2 Transitional

National Aids (TNA)

Measures Program 4.2.M4.2.1.1 Business start-up for non-agricultural activities in rural areas

(SM 6.2)M4.2.1.2 Investments in

creation and development of non-

agricultural activities (SM 6.4)

M4.2.1.3 SME guarantee scheme

M4.2.2.1 Income diversification in fishery

areas

Measures Program 4.3. M4.3.1.1 Investments in

the creation and upgrade of small-scale basic

infrastructure (SM 7.2) M4.3.1.2 Investments

associated with the protection of cultural

heritage (SM 7.6)M4.3.1.3 Support for

investments in the setting-up, improvement or

expansion of local basic services for the rural population including

leisure and culture, and the related infrastructure

(SM 7.4)

Measures Program 4.4. M4.4.1.1 Preparatory

support (NRDP)M4.4.1.2 Implementation

of local development strategies

M4.4.1.3 Operation of local action groups

M4.4.1.4 Support for running costs and

animationM4.4.2.1 Preparatory

support (OPFMA)M4.4.2.1 Preparation & implementation of local strategies in the fishery

sectorM4.4.2.3 Cooperation

activities

The Strategic Objective 4 envisage long term impacts in agriculture and is based on outcomes generated by programs as they are presented below.


Impacts • Reduced income differences between rural (thinly populated areas) and urban areas - Target 2030: 45% ; Target 2022: 50%.

Program Outcomes

• (4.1.1) Reduced gap between agricultural and non-agricultural income: Average income from agriculture, forestry and fishing relative to the total average net income to increase to 82%, from 79% (baseline).

• (4.2.1) Increased employment in non-agricultural economic activities, in the rural areas: Share of farmers with income from other non-agricultural productive activities up to 3%, from 2.8% (baseline); Number of new jobs (in non-agricultural fields) * per year to increase to 42,824, from 0 (baseline).

• (4.2.2) Promoting growth, social inclusion, job creation and support for employment and labor mobility within coastal and inland communities dependent on fisheries and aquaculture, including diversification of fishing activities and other sectors of the maritime economy: Jobs created – 158 (in 2023) and maintained – 449 (in 2023).

• (4.3.1) Improved rural population’s access to running water and sewerage infrastructure, communal roads, educational infrastructure (kindergartens, secondary agricultural-profile education institutions and vocational schools), social infrastructure (nurseries and after-school), as well as the protection of cultural heritage: Rural population with access to improved services/ infrastructure up to 2.5 mil., from 2.0 mil. (baseline).

• (4.4.1) Increased number of participatory processes of rural development

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planning and number of projects financed under such processes: Population covered by functional local action groups up to 9.79 mil., from 9.79 mil. (reference level).

• (4.4.2) Increased local community involvement in the development of coastal and inland areas that depend on fishing and aquaculture: Number of projects on preparatory support up to 28 (in 2023); Number of selected local development strategies up to 22 (in 2023).



Strategic Objective Budget Total (000 RON)

Total value/an (000 RON)2019 2020 2021 2022

P 4.1 Direct support to increase farmers’ income 5,032,870 1,324,885 1,003,600 971,199 1,733,186

P 4.2 Diversification of economic activities in rural areas 6,792 3,396 3,396 0 0

P 4.3 Access to infrastructure and basic services 3,701,075 999,092 672,790 672,790 1,356,402

P 4.4Encouraging local community

involvement in rural development

2,107,670 525,406 509,527 501,251 571,485

Total SO 4 10,848,407 2,852,779 2,189,313 2,145,241 3,661,074

Program 4.1: Direct support to increase farmers’ income

Rationale: The level of revenues in Romania is significantly behind the EU-28 average, with rural areas being the most affected. Employees in agriculture earn the least in Romania. While the average gross monthly salary in agriculture was EUR 421 in 2015, industry and construction workers received EUR 500-600, while financial intermediaries earned around EUR 1,200.

On average, the GDP per capita generated by the predominantly rural regions in Romania is significantly lower than the EU-28 level. The pre-accession and the early post accession years coincided with the start of a noticeable convergence trend with the EU average for all three types of regions.

This positive development was overshadowed, to some degree, by the onset of the economic crisis in 2008/9. Despite an upward income movement, rural areas appear slower than the rest of the country in closing the gap. On the plus side, they also proved more resilient than the predominantly urban regions in the aftermath of the economic crisis and followed a much gentler adjustment downward. The urban-rural income gap was increasing after 2004 but started to decrease after 2008. The significant financial inflows brought into the rural areas via the CAP (both pillars) will continue to play an important role in reducing the income gaps between farmers and other professional categories.

Objectives: Program 4.1 is intended to achieve the following outcomes until 2022:

(4.1.1) Reduced gap between agricultural and non-agricultural income: Average income from agriculture, forestry and fishing relative to the total average net income to increase to 82%, from 79% (baseline).

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Description: Program 4.1 aims to reduce disparities between Romanian farmers' incomes and EU-28 and between farmers and other economic activities. The main instruments of support are financed by the CAP Pillar 1 and the national budget.

Success factors: The skewed distribution of CAP payments in Romania, which sees a small number of large holdings concentrating most of the direct payments, reflects the magnitude of the dual structure of the agricultural sector. The significant financial inflows coming from the EU budget can have a more equitable impact if the structural challenges of the Romanian agricultural system are solved (see program 2.1) and if concerted efforts for farm restructuring (small and medium) are taken.


Table 23. Strategic Objective 4. Program 4.1 measures

(4.1.1) To reduce the gap between agricultural and non-agricultural income

1 - The Single Area Payment Scheme (SAPS)

2 - Transitional National Aids (TNA)

Program 4.2: Diversification of economic activities in rural areas, including within coastal and inland communities dependent on fishing and aquaculture

Rationale: Agriculture, together with fisheries and forestry, plays a key yet disproportionate role in the socio-economic fabric of rural Romania. In 2012, agriculture generated 6 percent of the total gross value added. However, the structure of employment shows an even greater contrast. In rural areas, the primary sector offers employment to as many as 42 percent of the rural workforce, by far the largest share in rural Europe, where the average is 14 percent. In Romania, this structure is reflective of a high dependence on the farming sector, and points to the need and urgency to pursue policies aiming for rural income diversification.

Therefore, it is necessary to increase the number of jobs and revenue opportunities in non-farming sectors. If agriculture and the rural environment are interconnected, then agriculture cannot be the only one responsible for creating jobs for the entire rural population. Job creation in areas other than agriculture should be supported.


(4.2.1) Increased employment in non-agricultural economic activities, in the rural areas: Share of farmers with income from other non-agricultural productive activities up to 3 percent, from 2.8 percent (baseline); Number of new jobs (in non-agricultural fields) * per year to increase to 24 474 (in 2023), from 60 (baseline).

(4.2.2) Promoting growth, social inclusion, job creation and support for employment and labor mobility within coastal and inland communities dependent on fisheries and aquaculture, including diversification of fishing activities and other sectors of the maritime economy: Jobs created – 158 (in 2023) and maintained – 449 (in 2023).

Description: The program aims to diversify the rural economy by supporting the economic activities performed in other non-agricultural sectors. This program covers measures aimed at creating and developing micro-businesses to create and maintain jobs, to diversify the supply of services and to improve living standards in rural areas. Also, the program includes measures aimed at supporting the

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development of tourism activities that can revive rural economy, encourage recreational activities and provide alternative income sources to rural households.

Success factors: A modern rural infrastructure and good quality services are just as important as supporting a sustainable growth of the rural economy and the improvement of the quality of life. Nevertheless, these policies will not have the expected effect unless accompanied by active measures to reduce the surplus of the labor force available in the agricultural area by providing viable exit solutions to the aging populations and by attracting the young generations in rural areas. Further preventing “brain drain” from rural to urban areas or to other countries should also be a priority. As already mentioned, concerted efforts with the Ministry of Labor and Social Protection will be key in ensuring that the aging population benefits from adequate and viable exit options.



(4.2.1) To increase employment in non-agricultural economic activities in rural areas

1 - Business start-up for non-agricultural activities in rural areas (SM 6.2)

2 - Investments in creation and development of non-agricultural activities (SM 6.4)

3 - The SME guarantee scheme

(4.2.2) To increase employment in non-fishery economic activities

1 - Income diversification and new forms of income [Art. 30 and article 44 paragraph (4) inland fishing]

Program 4.3 Access to infrastructure and basic services

Rationale: The future wellbeing of Romania’s rural population depends on the active integration of citizens in a prosperous and ever more diversified rural economy that is supported by an adequate infrastructure and services. Although investments in infrastructure have increased systematically in recent years, the rural physical infrastructure is still behind the urban one.

Although investments in roads, streets and access ways increased ten times over 2000-09, two fifths of the rural population and over one quarter of the rural communes still have access problems (seasonal or permanent) to the main roads network. In addition, less than 50% of the rural households are connected to, and systematically use, a sewerage system and only two thirds of the rural households use a water supply network. The low number of healthcare units, the absence of qualified medical staff in the remaining facilities and the poorly equipped schools in rural area complete the picture of a demographically challenged area, with regional disparities. The current situation severely impacts the quality of life of the entire rural population and in particular of the vulnerable young and elderly people.


(4.3.1) Improved rural population’s access to running water and sewerage infrastructure, communal roads, educational infrastructure (kindergartens, secondary agricultural-profile education institutions and vocational schools), social infrastructure (nurseries and after-school), as well as the protection of cultural heritage: Rural population with access to improved services/infrastructure up to 2.5 mil., from 2.0 mil. (baseline).

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Description: This program features measures that support investments in the basic infrastructure and services needed for a sustainable economic and social development of rural areas. This program is important for enhancing the attractiveness of villages, attracting future investments and providing adequate living conditions in rural communities.

Success factors: Investing in basic infrastructure and services is essential for attracting young generations and for enhancing the living standards of rural areas. Nevertheless, many of the necessary measures are beyond the jurisdiction of the Ministry of Agriculture and Rural Development, therefore the actions should be coordinated with other relevant ministries such as the Ministry of Labor, the Ministry of Education, the Ministry of Regional Development, etc. Therefore, a good inter-sectorial cooperation with all the public entities that are directly co-interested in developing the rural space is necessary to enhance the efficiency of investments.



(4.3.1) To improve the rural population’s access to the running water and sewerage infrastructure, communal roads and broadband IT infrastructure

1 - Investments in the creation and upgrade of small-scale infrastructure (SM 7.2)

2 - Investments associated with the protection of cultural heritage (SM 7.6)

3 - Support for investments in the setting-up, improvement or expansion of local basic services for the rural population including leisure and culture, and the related infrastructure (SM 7.4)

Program 4.4: Encouraging local community involvement in rural development

Rationale: Romania’s rural space is confronted with several challenges, including access to local services, infrastructure and opportunities. These challenges have generated major gaps in-between the rural and urban areas, migration of the young and lack of attractiveness of villages in general.

Encouraging the involvement of the community in local development is a major step in bridging these gaps. Inhabitants of rural areas may significantly contribute to the welfare of the space they live in. Yet, the activation of this endogenous potential of the rural areas should be accompanied by specific measures which should support the definition of local interests and priorities.

By its own specifics, the LEADER approach enables the involvement of local communities in developing rural territories in a well-balanced manner. The activities of LAGs and FLAGs play a major role in supporting a dynamic development of rural areas, including fishery areas, based on a coherent local strategy, which reflects the needs of the local community.


(4.4.1) Increased number of participatory processes of rural development planning and number of projects financed under such processes: Population covered by functional local action groups up to 9.79 mil., from 9.79 mil. (baseline).

(4.4.2) Increased local community involvement in the development of coastal and inland areas that depend on fisheries and aquaculture: Number of projects on preparatory support up to 28 (in 2023); and Number of selected local development strategies up to 22 (in 2023).

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Description: The aim of Program 4.4 is to harness the endogenous potential of local territories in order to support a well-balance development. The program includes measures to support the partnerships amongst various public and private actors by activities such as animation (mobilization of stakeholders), training sessions, and courses. On the other hand, the program also includes measures to support the implementation of strategies devoted to local development.

Success factors: Encouraging the participatory processes that take place locally largely depends on raising the awareness of rural populations and on implementing active measures for capacity-building. Therefore, major efforts are needed to inform the local populations, to connect the various actors at local level and to run constant training, education and institutional capacity building activities.

Measures: The primary measures that will contribute to the achievement of the results objectives are included below. The allocated budgets are indicated in Annex 1, and the measure-related outputs and targets are indicated in Annex 3.


(4.4.1) To increase the number of participatory processes of rural development planning and the number of projects financed under such processes

1 - Preparatory support (SM 19.1)

2 - Support for implementation of operations under the community-led local development strategy (SM 19.2)

3 - Preparation and implementation of Local Action Group cooperation activities (SM 19.3)

4 - Support for running costs and animation (SM 19.4)

(4.4.2) To increase local community involvement in the development of coastal and inland communities that depend on fishing and aquaculture

1 - Preparatory support (Article 62.1.a.).

2 - Implementation of community–led local development strategies (including operation costs and animation) (Article 63)

3 - Cooperation activities (Article 64)

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Strategic Objective 5: Improve the institutional framework

Through its designated mandate, the Ministry of Agriculture and Rural Development (MADR) is one of the most important public institutions for the achievement of many of Romania’s economic growth and European integration targets. With the National Rural Development Program (NRDP 2014-20), the MADR also manages one of the most important national development programs, in terms of funding. Via the two pillars of the CAP, it managed the delivery of over EUR 14 billion allocated for investment programs and direct payments to farmers and rural dwellers in 2007-13. For the current programming cycle, the EU-funded support has been increased to around EUR 19 billion. Its direct and indirect beneficiaries represent more than 50 percent of Romania’s population (without even counting the entirety of food consumers). With this in view, the MADR needs to meet high standards of accountability and institutional capacity.

Institutional reform – following a clear and predictable path that is aligned with the sectoral vision and strategic goals – should be at least as important as the proper definition of sectoral goals and priorities, or the adequate targeting of policy measures. Romania needs a knowledge-driven, lean and information-based agriculture and rural development administration, focused on ensuring that Romania’s agriculture sector faces powerful market-driven incentives to be both productive and environmentally sustainable, and accomplishing this by providing strong leadership in pursuing the sectoral goals, to ensure effective steering of policies and programs, and to provide better services to farmers and rural dwellers. The availability of financial resources and their allocation for the achievement of results generating direct benefits to the agriculture sector overall is still a concern and shows the need for constant improvement. The Romanian Academy study on the budget execution analysis shows that the budget execution rate ranged between 90 and 100%, the average value for 2012-2015 being 92%33, which could mean a partial fulfillment of the assumed objectives. The study of the Romanian Academy draws attention as well on the number of budget programs that, although covering the structure of the sector (13 in 2015), allocate resources towards two programs, one of them being the "Integrated System for the Sustainable Development of Agriculture", which represents 73.18% of the budget. This way of allocating resources may show a reduced capacity to manage programs dedicated to the agriculture sector and may have a potential negative impact on the achievement of the objectives. The level of program budgeting at the ministry level is around 100%.

The priorities set by these institutional challenges refer to: (i) the optimization of public policy and strategy formulation and coordination, including for cross-sectoral issues; (ii) institutional consolidation and facilitation of resources, information and data flow within the entire ARD administration; (iii) streamlining the information and advice to farmers and organizations interested in the agricultural sector; and (iv) effective and efficient use of internal (national) and external (EU and international) financial resources for the ARD sector and administration.

This strategic objective is based on Program 5.1, which aims to build a knowledge-driven, lean and information-based ARD administration, in order to: (i) more effectively fulfill its strategic function (through better mechanisms for formulating the ARD policy framework), and (ii) more efficiently deliver sector policies and services to its target beneficiaries (through an improved institutional framework). It supports measures aimed at improving the administrative capacity of sectoral policies management and implementation, with a view to achieving a better functional performance of the ministry and its coordinated or subordinated structures. Among these are (i) refinement of functional roles, procedures and mechanisms for setting Romania’s ARD strategy and for delivering the ISP; (ii) closing human capacities gaps; (iii) tackling the deficient access to sector information and

33 Study on program budgeting and Institutional Strategic Plan processes implementation, 2017, Romanian Academy, Ministry of Agriculture and Rural Development data (“Studiul privind gradul de implementare a PSI și a bugetării pe programe”, Academia Română, 2017. Date pentru MADR).

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data; (iv) addressing the lack of performance assessment tools for both sector and staff; (v) increased coordination with other government agencies in areas with important impact on ARD sector performance (e.g. land, taxation, research and development, education, social protection); (vi) higher transparency and stakeholder involvement in the policy process.

The structure of Strategic Objective 5 includes one (1) Program and nine (18) Measures corresponding to expected outcomes.


Strategic Objective 5. Improving the institutional framework

Program 5.1. Improving administrative capacity of sectoral policy management and implementation

Program 5.1 measures M5.1.1.1 Revision of organizational responsibilities and the accompanying procedures, to allow for a better

strategy formulation and a smooth implementation of the ISPM5.1.1.2 Development of the ICT infrastructure

M5.1.1.3 Vocational training, learning and expertise of the ministry’s specialized staff M5.1.1.4 Human resources management and adaptation to the organization needsM5.1.1.5 Performance assessment system for the ARD sector and administration

M5.1.1.6 Development of annual and multi-annual budget Programs for the full use of internal and external funds allocated

M5.1.1.7 Transparency in the decision-making process and the formulation of public policies and legal framework

M5.1.1.8 Informing farmers and public policy beneficiaries about the Programs dedicated to the ARD sectorM5.1.2.1 Operationalization of ARD public policy impact analyses and policy making feedback loops

M5.1.2.2 Consultation with citizens and the stakeholders involved in the ARD sector, for the formulation and promotion of public policies

M5.1.2.3 Data collection and dissemination for revenue calculation and economic analysis of agriculture standardized lots under CAP development

M5.1.2.4 Technical assistance OPFMA M5.1.3.1 Data collection OPFMA (Article 77)

M5.1.3.2 Control and enforcement under OPFMA (Article 76 letter e)M5.1.3.3 Integrated Maritime Surveillance (IMS) (OPFMA - Article 80 paragraph (1) letter (a))

M5.1.4.1 Developing the analysis, audit, control, and risk management capacityM5.1.4.2 Securing and using external and extra-budgetary funds for the development of the administrative

and institutional capacityM5.1.4.3 Effective and efficient functioning of the services provided by the ministry through its own

structures and through the coordinated agencies

The Strategic Objective 5 envisage long term impacts in agriculture and is based on outcomes generated by programs as they are presented below.

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Impacts

• Absorption rate of funds dedicated to the agriculture and rural development sector through the CAP. Target 2030: 90% Target 2021: 50%.

• The degree of absorption of funds available for the fisheries sector through OPFMA. Target 2023: 30%.

• State budget compliance rate: • Difference between the budget planned on January 1 and the final budget on

December 31, the current year: Target 2030: 0.1%; Target 2021: 1.0%• Difference between the budget planned on January 1 and the budget execution as

on December 31: Target 2030: 0.50%; Target 2021: 1.00%

Program Outcomes

• 5.1.1) Improving the structural and functional stability of MADR and its subordinated institutions: Number of yearly changes in functional structure up to max 1 from max.2/year (actual baseline) and Percentage index of public sector employees, actually employed in institutions/structures with functional duties in the agricultural sector (benchmark = 2014) maintain 0.93 percent (baseline).

• (5.1.2) Increasing the effectiveness of the ARD policy formulation and implementation processes: Penalties paid on EAFRD and EAGF, relative to the total payments in the previous year, max 0,00001 percent from 5.82 percent/2.7 percent (actual baseline); Number of changes at chapter level, and negative rectifications of the State budget up to 20/year from 30/year (baseline).

• (5.1.3) Supporting the implementation of the Common Fisheries Policy and the Integrated Maritime Policy: Increase in the percentage of fulfillment of data calls 15%; Number of serious infringements detected -0; Landings that have been the subject to physical control - 15.

• (5.1.4) Increasing the efficiency of the use of MADR’s operational budget: Share of management expenses in the total annual budget of MADR up to 14.70 percent from 14.84 percent (baseline); Management expenses per employee of MADR up to RON/pers. 98,128 from RON/pers. 93,522 (baseline).

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Strategic Objective Budget Total (000 RON)

Total value/an (000 RON)

2019 2020 2021 2022

P 5.1

Improving the administrative capacity of sectoral policy

management and implementation

14,853,780 4,091,370 3,351,151 3,383,444 4,027,815

Total SO 5 14,853,780 4,091,370 3,351,151 3,383,444 4,027,815

Program 5.1: Improving the administrative capacity of sectoral policy management and implementation

Rationale: The MADR is the central public authority responsible for the design and implementation of the national sector strategies in agriculture, food production, fisheries and aquaculture and rural development. With the CAP, CFP resources providing significant inflows that benefit the sector, it is a priority for MADR to use its national resources to modernize the administration and increase the efficiency and effectiveness with which it delivers policies and services to farmers and other beneficiaries.

Today, 3.6 million farmers and their families, i.e. over 50% of the Romanian population, benefit, directly and indirectly, from the ministry’s policies and actions. Increasing their confidence in the ARD institutions and actions is an important measure of success. This applies particularly to the following specific functions: i) strategy/policy formulation in the ARD sector; ii) regulation and set-up of the legal framework governing the ARD sector; iii) management of the state property; iv) management of national and European funds for rural development, agriculture and fisheries; v) monitoring and control of the implementation of and compliance with the relevant sectoral regulations; vi) managing authority for the national programs in the ARD sector; and vii) payment of funds and delivery of ARD programs and services.

With these in mind, Romania needs a knowledge-driven, flexible and information-based ARD administration to: (i) more effectively fulfill its strategic function (through better mechanisms for formulating the ARD policy framework), and (ii) more efficiently deliver sector policies and services to its target beneficiaries (through an improved institutional framework).

Areas with priority for improvement over 2019-2022 include: (i) refinement of functional roles, procedures and mechanisms for setting Romania’s ARD strategy and for delivering the ISP; (ii) closing human capacities gaps (such as the shortage of agricultural economists involved in policy formulation, or of ICT experts in MADR to address data management needs); (iii) tackling the deficient access to sector information and data; (iv) addressing the lack of performance assessment tools for both sector and staff; and (v) increased coordination with other government agencies in areas with important impact on ARD sector performance (e.g. land, taxation, research and development, education, social protection).

MADR’s mission, of better serving Romanian farmers, professional organizations and associations in the agricultural sector and citizens at large, is ambitious but can be fulfilled through the measures described further below. This will require an improvement of the ministry’s own performance through important changes that will be made during the ISP period (and beyond), covering critical

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areas such as: i) organizational stability; ii) public policy formulation; iii) efficient management of human, financial and material resources; iv) strategic planning; and v) public partnerships and public relations.


(5.1.1) Improving the structural and functional stability of MADR and its subordinated institutions: Number of yearly changes in functional structure34 up to max 1 from max.2/year (actual baseline); and Percentage index of public sector employees, actually employed in institutions/structures with functional duties in the agricultural sector (baseline = 2014)35 maintain 0.93 percent (actual baseline).

(5.1.2) Increasing the effectiveness of the ARD policy formulation and implementation processes: Penalties paid on EAFRD and EAGF, relative to the total payments in the previous year, max 0.00001 percent from 5.82 percent/2.7 percent (actual baseline); Number of changes at chapter level, and negative rectifications of the State budget up to 20/year from 30/year (actual baseline).

(5.1.3) Supporting the implementation of the Common Fisheries Policy and the Integrated Maritime Policy: Increase in the percentage of fulfillment of obligations related to data calls to 15%; Number of serious infringements detected -0; Landings that have been the subject to on-site control up to 20%; strengthen the Common Information Sharing Environment (CISE) to monitor the EU maritime domain up to 100%.

(5.1.4) Increasing the efficiency of the use of MADR’s operational budget: Share of management expenses in the total annual budget of MADR up to 14.70% from 14.84% (baseline); Management expenses per employee of MADR up to RON/pers. 98,128 from RON/pers. 93,52236 (actual baseline).

Description: The successful implementation of sectoral strategic objectives requires a stable, functional, planned, transparent, well-financed and publicly assessed ARD administration. Program 5.1 supports the measures aimed at improving the administrative capacity of sectoral policies management and implementation, with a view to achieving a better functional performance of the ministry and its coordinated or subordinated structures. The Program consists of two categories of measures: i) specific measures, which support a given field or sub-sector within the administration and have a dedicated budget during the implementation period; and ii) (soft) accompanying measures that support all fields and functions of the administration horizontally, require a permanent intra- and inter-institutional collaboration during the implementation period, do not have a directly allocated budget, but are indirectly supported from the State budget, through the nature of the organization’s activity.

Program 5.1 is dedicated to MADR and the structures under its coordination or subordination. Its successful implementation will be reflected in a greater stability of the ARD administration, in successfully implemented sectoral public policies, and in the greater and more effective use of national and European budget funds. Such results will be noted provided that the beneficiaries and the stakeholders demand them and are involved during the implementation process.

34 Change shall mean any amendment to Decision no. 725/2010 on the reorganization and functioning of MADR and certain subordinated structures, or to any regulation that annuls and replaces this Decision (including the act itself).35 Total number of occupied positions in public administration is 1,218,631, February 2018 (source Ministry of Public Finance); total number of positions paid from state budget and subsidies in agriculture sector is 10,960 –year level 2017 (5,881 positions financed from state budget,www.mfinante.ro/pagina.html?categoriebunuri=numar-salariati-bugetari&pagina=domenii&menu=Buget and 5,079 positions financed from subsidies and own revenues).

36 Values 2018 recalculated on the basis of new wages 2018 (25% average) and 2021.

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http://www.mfinante.ro/pagina.html?categoriebunuri=numar-salariati-bugetari&pagina=domenii&menu=Buget

Equally, the administration’s decision-makers and specialists need to carry out consistent actions, in order to: i) reduce the frequency of functional structure changes; ii) reduce the specialized staff turnover and de-professionalization; iii) ensure that public policies are drafted in a coherent manner, based on well-defined procedures and are adequately informed by statistical data, analyses, prognoses; iv) ensure the use of participative and consultative methods for public policies development; v) facilitate access to information, while involving and consulting the direct beneficiaries of the sectoral public policies; vi) be open to partnerships and local and international collaborations; vii) computerize the data, information and document flows; ; viii) use the ministry’s operational budget in an efficient manner; and ix) ensure processes of periodical monitoring and evaluation, annual revision of the strategic plan measures’ implementation and the publication of results.



(5.1.1) To improve the structural and functional stability of MADR and its subordinate institutionsMeasures dedicated to institutional modernization; increase in effectiveness; improvement of institutional processes and procedures:

1 - Revision of organizational responsibilities and the accompanying procedures, to allow for a better strategy formulation and a smooth implementation of the ISP2 - Development of the ICT infrastructureInstitutional reform of the Ministry of Agriculture and Rural Development and subordinated institutions37

Measures targeting the specialized staff of the ARD administration:3 - Human resources management and adaptation to the organization needs4 - Vocational training, learning and expertise of the ministry’s specialized staff

Measures targeting performance assessment and financial management:5 - Performance assessment system for the ARD sector and administration6 - Development of annual and multi-annual budget Programs for the full use of internal and external funds allocated

Measures targeting transparency and free access to public interest information, and communication/coordination with sector policy stakeholders:

7 - Transparency in the decision-making process and the formulation of public policies and legal framework8 - Informing farmers and public policy beneficiaries about the Programs dedicated to the ARD sector

(5.1.2) To streamline the policy formulation and implementation in the agri-food sectorMeasures targeting public policy formulation and communications with stakeholders:

1 - Operationalization of ARD public policy impact analyses and policy making feedback loops2 - Consultation with citizens and the stakeholders involved in the ARD sector, for the formulation and promotion of public policies


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3 - Data collection and dissemination for revenue calculation and economic analysis of agriculture standardized lots under CAP development4 - Inter-institutional collaboration and experience sharing with relevant national and international organizations5 - Technical assistance (except for the national rural development network)6 - Technical assistance OPFMA Program of legislative measures for the agricultural sector38

(5.1.3) To support the implementation of the Common Fishery Policy and the Integrated Maritime Policy

1 - Data collection (Article 77)2 - Control and enforcement (Article 76 letter e)3 - Integrated Maritime Surveillance (IMS) (Article 80 paragraph (1) letter (a)):

(5.1.4) To increase the efficiency of the use of MADR’s administrative budget

1 - Developing the analysis, audit, control, and risk management capacity2 - Securing and using external and extra-budgetary funds for the development of the administrative and institutional capacity

3 - Effective and efficient functioning of the services provided by the ministry through its own structures and through the coordinated agencies


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5. ARRANGEMENTS FOR IMPLEMENTATION, MONITORING AND EVALUATION OF THE ISP

To be relevant, an institutional strategic plan must link to the government’s core policy and financial planning processes. Accordingly, the MADR ISP 2019-2022 must guide the preparation of this year’s budget request, which will be prepared for 2019-2022. It is noted that, although the budget contains expenditure projections for three years, it only provides activity and expenditure details for one year. However, over time, it is anticipated that greater attention would be paid to the second and third years.

Accountability: With the parliamentary approval of the State Budget, the implementation of the strategic plan begins. MADR, through its Public Policy Unit and with the help of technical structures, will prepare annual operational plans for the implementation of the ISP. They will serve as a basis for monitoring. This activity is extremely important as it enables senior management to identify and resolve potential challenges in advance.

Monitoring and evaluation framework: A monitoring and evaluation framework is laid out in Annexes 2 and 3 and provides indicators and targets for the various planning levels (see Table below). Annex 1 provides an overview of the financial inputs. To the extent possible and in order not to overburden the MADR, the ISP monitoring framework was designed such as to seamlessly integrate with the Common Monitoring and Evaluation Framework (CMEF) that mandatorily applies to the NRDP 2017-20.

Data collection and management: An IT system for strategic planning and performance assessment has been developed with the format of proposed structure of ISP. The application will illustrate key functions of ISP. The IT application is connected with GSG and MPF and the progress of ISP implementation is seen at all levels of execution and management. The progress against indicators is seen by all interested stakeholders and citizens, through an interface available for the public at large. Updating the information (values of the indicators) in the IT application will be done by the MADR team through the departments for the measures that everyone has in implementation or for which they have to provide data. In the first year of use of the application no updates of the indicator values were made conditional the platform's utility did not generate the expected benefits in the monitoring and evaluation process.

Reporting: In deciding what to monitor and with what frequency, it is important not to overburden MADR’s operational directorates. Typically, different levels of performance indicators require different reporting time frames. Thus:

Input and process/product indicators will be measured monthly, or at least quarterly Output indicators will be measured quarterly, Outcome indicators will be measured semi-annually Impact indicators will be tracked annually.

A diagram of the monitoring cycle of for the MADR ISP is provided below.

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Figure 2. Monitoring Cycle for the Institutional Strategic Plan of MADR

Evaluation: Apart from the NRDP and OPFMA, which is subject to rigorous ex-ante, mid-term and ex-post evaluations, MADR has not yet developed a formal approach to ex-post evaluation of its other programs and policies. In the future, this activity will provide important information for implementing changes to the way in which programs and policies are delivered. These changes will not affect dramatically the strategic plan.

It will be desirable to strengthen the periodic evaluation of the entire program portfolio that MADR is managing and outlined in the ISP, and preferably synchronize it with the NRDP and OPFMA evaluation calendar. This activity could be outsourced to the same evaluators who will cover the NRDP39, and thus create synergies in the evaluation efforts, while also benefitting from a holistic view on the ARD policy results.

Updating the ISP: A full strategic planning exercise will be conducted every four years. During the intervening years, MADR will prepare an annual update to determine if any changes to the strategic plan are required. The update will require the completion of three activities:

comparing the previous year’s actual versus planned results; these would be based on targets set in the strategic and operational plans;

conducting an environmental scan to determine if any significant changes are required to the assumptions that underpin the current plan (see Chapter Context and Challenges); and

adding one additional year to the plan. Year Set New Targets

2019 for 2023

2020 for 2024

By ensuring that the plan continues to cover at least three years beyond the planning year, the updated strategic plan can continue to inform the annual budget request, which also requires a

39 Note: outsourcing of evaluation is mandatory for the RDP, according to the relevant EU regulatory provisions

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SEMI-ANNUAL RESULTS REVIEW: OUTPUT, PRODUCT

AND INPUT INDICATORS

QUARTERLY REVIEW: PROCESS / PRODUCT & INPUT INDICATORS

QUARTERLY REVIEW: PROCESS / PRODUCT AND INPUT INDICATORS

QUARTERLY REVIEW: PROCESS / PRODUCT &

INPUT INDICATORS

QUARTERLY REVIEW: PROCESS / PRODUCT

AND INPUT NDICATORS

ANNUAL RESULTS REVIEW: ALL INDICATORS

OCT.JULYAPRILJAN.

three-year forecast. Most often, the vision, strategic goals and program goals do not change unless a major event, such as an unforeseen economic crisis, occurs. The updating exercise should be completed by May 30 each year, which allows time for the collection and analysis of results achieved from the previous year.

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6. FINANCIAL RESOURCESThe viability of the 2019-2022 ISP is determined by the availability of financial resources required for the implementation of the measures underneath each specific objective. MADR finds itself in a privileged position: it manages one of the most harmonized, integrated and substantial EU policies, while providing services and support to 3.8 million farms.

Accession to the EU opened tremendous financial opportunities for the ARD sector in Romania. Over the programming cycle 2007-2013, Romania was entitled to receive some EUR 14 billion from the EU budget, through the CAP alone. Unlike in most old member states, where Pillar 1 payment represent on average 75-80 percent of the entire CAP allocation, in Romania, just as in other new member states, Pillar 2 allocations take up the largest share, 60 percent. For the period 2014-2020, Romania’s CAP envelope will increase to up to almost EUR 20 billion. This is mainly driven by the increase of the Pillar 1 allocation, which has been subject to a ten-year phasing-in schedule between 2007 and 2016. Compared to the previous programming period, the allocation for Pillar 2 (rural development) is expected to be reduced by about 12.5 percent (EUR 1 billion).

Table 31. CAP financial allocations in Romania for 2014-2020 (mil. EUR, 2011 constant prices)

Year 2014 2015 2016 2017 2018 2019 2020 Total

Pillar 1, EAGF 1,468 1,684 1,881 1,924 1,924 1,924 1,924 12,729

Pillar 2, EAFRD40 0 1,723 1,752 1,187 1,185 1,142 1,140 8,128

Total 1,468 3,407 3,633 3,111 3,109 3,036 3,064 20,857

Despite the generous CAP envelope, securing adequate funding has remained a challenge to date when pursuing institutional reforms. Certain relevant areas and services, either within the sector administration or under the portfolio of other government agencies – such as agricultural research, advisory services or cadaster (the latter under a distinct agency and outside the MADR portfolio) – remain under-funded. Equally important, there remain many policy areas with high relevance and high impact on agriculture and rural areas that are not funded through the MADR budget (such as land registration), or that require establishing effective complementarities between resources and policies managed by MADR and those managed by other government agencies (e.g. rural infrastructures, with a high impact on the quality of life in rural areas).

Both for policy areas within and beyond the scope of the CAP, as well as for pursuing institutional reform priorities, MADR would be well served by a transition to program budgeting. This should be useful for achieving a better articulation between the general sector goals, corresponding action plans and the resources that need to be allocated.

Lastly, Romania needs to clearly identify and prioritize, by policy areas, an adequate balance between public and private resources that need to contribute to the development of the sector. For instance, foreign direct investments should complement the EU and national public funding in regard to development and modernization of storage and processing units in order to increase economic competitiveness of Romanian agricultural products and compensate the current deficit on the internal market (dominated by high value-added exported goods). In the long term this should trigger an increase in added-value output and a significant raise of agricultural exports on EU and international markets.

40 According to chapter 10 NRDP, version 9, available at: http://www.madr.ro/pndr-2014-2020/implementare-pndr-2014-2020/documente-aprobate.html

54

http://www.madr.ro/pndr-2014-2020/implementare-pndr-2014-2020/documente-aprobate.html

A budget outline that summarizes the core strategic objectives and the main measures is presented in Annex 1.

The table below illustrates the financial envelopes per year needed for the operationalization of the ISP over the 2019-2022 period.

Table 32. Financial resources for operationalizing the 2019-2022 ISP (thousand RON)

SpecificationTotal budgetary credits funded by the state budget,

thousand LeiTotal 2018 2020 2021 2022

TOTAL 87,293,065 22,764,073 18,572,099 18,369,367 27,587,526

The financial resources have been classified into three main categories: (i) resources from the state budget for national policies and administrative expenses, (ii) resources from the state budget for co-financing EU policies and (iii) resources from the EU budget. The figure below shows the ISP budget per funding source, with more than three quarters being covered by EU CAP funding.

Figure 3. Structure of the ISP budget, by funding sources (%, 2019-2022)

State budget Co-funding from the state budgetEU funds budget

2019 2020 2021 20220

5000000

10000000

15000000

20000000

25000000

30000000

State budget Co-funding from state budgetEU funds budget

55

The state budget resources for national policies include the amounts allocated for the Transitional National Aids (formerly Complementary National Direct Payments), specific state aids, most of the expenses related to the functioning of the ARD administration and other non-eligible expenses. The state budget allocated for co-financing includes public financial resources dedicated to complementing EU support (pillar 1 and 2). The EU budget funds are the resources allocated for Romania from the EAGF and the EAFRD. Due to the fact that the 2019-2022 ISP covers two EU programming periods the budget includes annual appropriations for payment for both NRDP 2007-13 and 2014-20 and FOP.

The 2018 budget and the Fiscal-Budgetary Strategy 2018-2020 were taken into account when planning the state budget allocations for national policies and CAP co-financing. The established ceilings were taken into account both for the level of co-financing and for the other types of expenses - classified under the state budget category for national policies. The EUR - RON exchange rate used is the same one used to substantiate the 2018 budget.

The figure below illustrates the breakdown of financial resources by strategic objectives. Over 12% of total resources allocated to the sector are directed towards the achievement of the strategic objective related to the improvement of life in rural areas (SO4). The Strategic Objective 5, the improvement of the institutional framework, also has a large share in the total budgetary credits from the budget forecast period, i.e. over 17%. As the main means of implementing public policies, the budget reflects the importance given by the ministry to the Strategic Objective 1, namely, to increase the coverage of consumption of agri-food products from domestic production and to reinstate Romania as a net exporter of agri-food products, which has a share of 20%. The other two strategic objectives, namely SO3 - limiting the environmental impact of the agricultural and fisheries sector and promoting resilience to climate change in the agricultural and rural areas and SO2 - accelerating the structural transition towards a more efficient agriculture and aquaculture and economically viable agriculture in parallel with the alignment to demographic trends and the gradual reduction of the excess labor force in agriculture mobilizes about 27% of the budgetary appropriations for the period.

Figure 4. Breakdown of estimated total financial resources, by Strategic Objectives

20.4%

27.0%

23.2%

12.4%

17.0%

SO 1 SO 2 SO 3 SO 4 SO 5

56

Figure 5. Year-on-year evolution of financial resources estimated per Objectives (thousand RON, 2019-2022)

One important institutional challenge is the ability to implement the ISP, including through budget execution based on defined programs. From an organizational and managerial perspective, this represents the main challenge for the next period - the transition from 2 operational budgetary programs to 16, as well as tracking their actual execution. Budget execution by programs will also bring important changes in the management of MADR’s structures, namely the budget directorate.

57

2019 2020 2021 20220

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

SO 1 SO 2 SO 3 SO 4 SO 5

ANNEX 1A. STRUCTURE OF BUDGETARY CREDITS FUNDED FROM THE STATE BUDGET PER STRATEGIC OBJECTIVE AND PROGRAMS (THOU RON)

SpecificationTotal budgetary credits funded from the state budget, 000 RON

Total 2019 2020 2021 2022

Total 87.293.065 22.764.073 18.572.099 18.369.367 27.587.526

SO1 Increase the share of agri-food consumption covered by domestic production and reinstate Romania as a net agri-food exporter 17.354.781 4.244.747 3.997.966 4.005.886 5.106.182

P.1.1. Better market and value-chain integration of agri-food producers 17.354.781 4.244.747 3.997.966 4.005.886 5.106.182

P.1.2 Professional training of farmers and fishers: knowledge transfer, training and creation of abilities/skills 235.630 59.583 55.032 55.032 65.982

P.1.3. Research & development, innovation and technology transfer in agriculture and fisheries 134.909 20.955 50.954 38.000 25.000P.1.4. Optimizing and modernizing value chains in the fisheries sector 41.331 18.213 13.584 9.534 0

SO2Accelerate the structural transition towards successful and economically viable farming and aquaculture, while aligning with demographic trends and ensuring an equitable phasing out of surplus farm labor

23.583.499 5.928.350 5.086.928 4.956.795 7.611.426

P.2.1. Consolidation, restructuring and modernization of agricultural and fishery holdings 8.285.400 2.156.073 1.778.508 1.741.075 2.609.745P.2.2. Encouraging the inter-generational transfer in agriculture 15.298.099 3.772.278 3.308.421 3.215.719 5.001.681

SO3 Limit the impact of the agricultural and fisheries sector on the environment and promote climate change resilience in agriculture and rural areas 20.240.728 5.548.076 3.827.170 3.775.435 7.090.047

P.3.1. Management of the main natural resources in agriculture 15.598.307 4.265.322 2.970.269 2.939.368 5.423.347

P.3.2. Reducing the impact of agriculture and fisheries on the environment and promoting an efficient use of energy resources 813.285 227.956 194.355 188.933 202.041

P.3.3. Risk management in agriculture in aquaculture 657.019 164.397 162.223 162.223 168.177P.3.4. Management of natural resources in fisheries and aquaculture 3.172.116 890.401 500.323 484.910 1.296.482SO4 Improve living standards in rural areas 10.848.407 2.852.779 2.189.313 2.145.241 3.661.074P.4.1. Direct support to increase farmers’ income 5.032.870 1.324.885 1.003.600 971.199 1.733.186P.4.2. Diversification of economic activities in rural areas 6.792 3.396 3.396 0 0P.4.3. Access to infrastructure and basic services 3.701.075 999.092 672.790 672.790 1.356.402P.4.4. Encouraging local community involvement in rural development 2.107.670 525.406 509.527 501.251 571.485SO5 Improve the institutional framework 14.853.780 4.091.370 3.351.151 3.383.444 4.027.815P.5.1. Improving the administrative capacity of sectoral policy management and implementation 14.853.780 4.091.370 3.351.151 3.383.444 4.027.815

59

ANNEX 1B. STRUCTURE OF BUDGETARY CREDITS FUNDED FROM THE STATE BUDGET PER STRATEGIC OBJECTIVE AND PROGRAMS (THOU RON)

Code Objective/program/measureTotal (000

RON)Total budgetary credits (000 RON) State budget (000 RON)

2019 2020 2021 2022 TOTAL 2019 2020 2021 2022

Total Budget 87.293.065 22.764.073 18.572.099 18.369.367 27.587.52

6 23.208.344 6.089.831 5.541.721 5.608.017 6.217.262

SO1Increase the share of agri-food consumption covered by domestic production and reinstate Romania as a net agri-food exporter

17.766.651 4.343.498 4.117.536 4.108.452 5.197.164 9.281.551 2.194.191 2.371.720 2.359.720 2.355.920

P.1.1. Better market and value-chain integration of agri-food producers 17.354.781 4.244.747 3.997.966 4.005.886 5.106.182 9.148.551 2.174.19

1 2.321.720 2.321.720 2.330.920

1.1.1.1 Restructuring and conversion of vineyards (within the National Support Program) 804.080 198.720 198.720 198.720 207.920 804.080 198.720 198.720 198.720 207.920

1.1.1.2 Programs „Milk in schools” and „Fruit in schools”. 324.793 81.763 81.010 81.010 81.010 0 0 0 0 01.1.1.3 The National Apiculture Program (2017-19) 117.400 33.900 33.400 33.400 16.700 500 500 0 0 0

1.1.1.4 State aid for establishing and maintenance of the herd book and determining the genetic quality of animal breeds 0 0 0 0 0 0 0 0 0 0

1.1.1.5 Quality schemes 0 0 0 0 0 0 0 0 0 01.1.1.6 Quality schemes M3 (2014-2020 NRDP) 30.479 7.707 7.118 7.118 8.535 0 0 0 0 01.1.1.7 Pest management 0 0 0 0 0 0 0 0 0 01.1.1.8 Food safety and introduction of plant protection products 0 0 0 0 0 0 0 0 0 01.1.1.9 Support to livestock farmers for animal rendering 92.000 23.000 23.000 23.000 23.000 92.000 23.000 23.000 23.000 23.0001.1.1.1

0De minimis aid for purchase of heifers from specialized breeds (milk and meat breeds) 500 500 0 0 0 500 500 0 0 0

1.1.1.11 Aid for public storage 0 0 0 0 0 0 0 0 0 0

1.1.1.12 State aid for the fuel used in agriculture [1] 8.251.471 1.951.471 2.100.000 2.100.000 2.100.000 8.251.471 1.951.471 2.100.000 2.100.000 2.100.000

1.1.1.13

Information and promotion activities for agricultural products on domestic markets and third countries 134.835 25.879 29.346 37.466 42.144 0 0 0 0 0

1.1.1.14 Export refunds (EU Regulation) 0 0 0 0 0 0 0 0 0 0

1.1.1.15

Financial support given to preliminarily recognized producer groups and producer organizations in the vegetable and fruit sector

26.800 7.000 6.800 6.600 6.400 0 0 0 0 0

1.1.1.16 Setting up producer groups and organizations (M9) 59.984 15.168 14.009 14.009 16.797 0 0 0 0 0

1.1.1.17

Support for horizontal and vertical cooperation among actors in the supply chain (SM 16) 93.871 23.737 21.924 21.924 26.286 0 0 0 0 0

1.1.2.1 Support for investments in processing/marketing and/or 7.418.569 1.875.903 1.482.638 1.482.638 2.577.390 0 0 0 0 0

60



2019 2020 2021 2022 TOTAL 2019 2020 2021 2022development of agricultural products (SM 4.2)

1.1.2.2 Financial lending instrument with risk sharing 0 0 0 0 0 0 0 0 0 01.1.2.3 Support for family farms 0 0 0 0 0 0 0 0 0 0

P.1.2 Professional training of farmers and fishers: knowledge transfer, training and creation of abilities/skills 235.630 59.583 55.032 55.032 65.982 0 0 0 0 0

1.2.1.1 Support for vocational training and skills acquisition actions (Sub-measure 1.1)) 202.385 51.176 47.268 47.268 56.673 0 0 0 0 0

1.2.1.2 National rural network 0 0 0 0 0 0 0 0 0 0

1.2.2.1Advisory services for farmers, young farmers, micro-enterprises and small enterprises in rural areas (Sub-measure 2.1.)

33.244 8.406 7.764 7.764 9.309 0 0 0 0 0

1.2.2.2 Public consulting services for farmers’ information and professional training 0 0 0 0 0 0 0 0 0 0

1.2.2.3 Plant protection advisory system 0 0 0 0 0 0 0 0 0 0

P.1.3. Research & development, innovation and technology transfer (RDITT) in agriculture and fisheries 134.909 20.955 50.954 38.000 25.000 133.000 20.000 50.000 38.000 25.000

1.3.1.1 The sectoral research plan of MARD (2019-2022) 133.000 20.000 50.000 38.000 25.000 133.000 20.000 50.000 38.000 25.000

1.3.1.2 Other expenses for agricultural research (the functioning of Academy of Agricultural and Forestry Sciences) 0 0 0 0 0 0 0 0 0 0

1.3.1.3 Promoting and implementing research projects in the context of new pests appearing as a result of climate change [1] 0 0 0 0 0 0 0 0 0 0

1.3.1.4 Support for demonstration activities and information actions (Sub-measure 1.2) 0 0 0 0 0 0 0 0 0 0

1.3.1.5Support for the establishment and operation of Operational Groups (OG) for the development of pilot projects and new products in the agricultural and fruit-growing sector (SM 16.1)

0 0 0 0 0 0 0 0 0 0

1.3.2.1 Innovation (Article 26 and article 44 (3)) 606 303 303 0 0 0 0 0 0 01.3.2.2 Innovation (Article 47) 1.303 652 651 0 0 0 0 0 0 0

P.1.4. Optimizing and modernizing value chains in the fisheries sector 41.331 18.213 13.584 9.534 0 0 0 0 0 0

1.4.1.1 Production and marketing plans (Article 66) 311 311 0 0 0 0 0 0 0 01.4.1.3 Marketing measures (Article 68) 776 388 388 0 0 0 0 0 0 01.4.1.4 Processing of fishery and aquaculture products (Article 69) 40.244 17.514 13.196 9.534 0 0 0 0 0 0

SO2

Accelerate the structural transition towards successful and economically viable farming and aquaculture, while aligning with demographic trends and ensuring an equitable phasing out of surplus farm labor

23.583.499 5.928.350 5.086.928 4.956.795 7.611.426 21.371 57.265 57.836 57.836 56.922

P.2.1. Consolidation, restructuring and modernization of agricultural and fishery holdings 8.285.400 2.156.073 1.778.508 1.741.075 2.609.745 5.343 1.286 1.429 1.429 1.200

2.1.1.1 The redistributive payment 5.029.870 1.323.385 1.002.100 971.199 1.733.186 5.343 1.286 1.429 1.429 1.2002.1.1.2 Investments in agricultural holdings (Sub-measure 4.1) 0 0 0 0 0 0 0 0 0 0

61



2019 2020 2021 2022 TOTAL 2019 2020 2021 20222.1.1.3 Support for the development of small farms (Sub-measure 6.3) 2.962.734 749.174 691.959 691.959 829.642 0 0 0 0 02.1.2.1 Support for productive investments in aquaculture 292.796 83.513 84.449 77.917 46.917 0 0 0 0 0

P.2.2. Encouraging the inter-generational transfer in agriculture 15.298.099 3.772.278 3.308.421 3.215.719 5.001.681 16.029 55.979 56.408 56.408 55.722

2.2.1.1 Life annuity scheme 208.488 52.122 52.122 52.122 52.122 0 52.122 52.122 52.122 52.1222.2.1.2 Additional payment for young farmers 5.029.870 1.323.385 1.252.100 1.221.199 1.233.186 5.343 1.286 1.429 1.429 1.2002.2.1.3 Business start-up aid for young farmers (Sub-measure 6.1) 0 0 0 0 0 0 0 0 0 02.2.1.4 Small farmers’ scheme (CAP pillar 1) 5.029.870 1.073.385 1.002.100 971.199 1.983.186 5.343 1.286 1.429 1.429 1.200

2.2.1.5Payments for farmers eligible for the small farmers’ scheme who permanently transfer their holding to another farmer (Sub-measure 6.5)

5.029.870 1.323.385 1.002.100 971.199 1.733.186 5.343 1.286 1.429 1.429 1.200

SO.3Limit the impact of the agricultural and fisheries sector on the environment and promote climate change resilience in agriculture and rural areas

20.240.728 5.548.076 3.827.170 3.775.435 7.090.047 8.344 2.558 2.294 2.293 1.200

P.3.1. Management of the main natural resources in agriculture 15.598.307 4.265.322 2.970.269 2.939.368 5.423.347 5.343 1.286 1.429 1.429 1.200

3.1.1.1 Greening payment 5.029.870 1.323.385 1.002.100 971.199 1.733.186 5.343 1.286 1.429 1.429 1.2003.1.1.2 Organic farming (M11) 949.965 264.442 221.856 221.856 241.810 0 0 0 0 03.1.1.3 Investment in agricultural and forestry infrastructure (SM 4.3) 0 0 0 0 0 0 0 0 0 03.1.1.4 Soil Monitoring Program (OSPA, ICPA) 0 0 0 0 0 0 0 0 0 03.1.1.5 Agri-environment and climate (M10) 4.308.208 1.199.276 756.146 756.146 1.596.640 0 0 0 0 0

3.1.1.6 Investments through the National Irrigation Program (2016-20) 0 0 0 0 0 0 0 0 0 0

3.1.2.1 Compensatory payments for mountainous areas (SM 13.1) 0 0 0 0 0 0 0 0 0 0

3.1.2.2 Compensatory payments for areas with natural constraints (SM 13.2) 5.310.264 1.478.219 990.167 990.167 1.851.710 0 0 0 0 0

3.1.2.3 Compensatory payments for areas with specific constraints (SM 13.2) 0 0 0 0 0 0 0 0 0 0

P.3.2.Reducing the impact of agriculture and fisheries on the environment and promoting an efficient use of energy resources

813.285 227.956 194.355 188.933 202.041 3.001 1.272 865 864 0

3.2.1.1Energy efficiency and mitigation of climate change - replacement or modernization of engines (marine fisheries) (Article 41 paragraph (2))

374 187 187 0 0 0 0 0 0 0

3.2.1.2Energy efficiency and mitigation of climate change - replacement or modernization of engines (inland fisheries) (Article 44 paragraph (1) letter (d))

468 234 234 0 0 0 0 0 0 0

3.2.1.3Productive investments in aquaculture – increase of energy efficiency, renewable energy (Article 48 paragraph (1) letter (k))

15.712 5.312 7.700 2.700 0 0 0 0 0 0

3.2.2.1 Support for afforestation/creation of forestry areas (SM 8.1) 511.026 142.254 119.346 119.346 130.080 0 0 0 0 03.2.2.2 Payments for forest -environmental and climate commitments 285.705 79.968 66.888 66.887 71.961 3.001 1.272 865 864 0

62



2019 2020 2021 2022 TOTAL 2019 2020 2021 2022(SM 15.1)

P.3.3. Risk management in agriculture 657.019 164.397 162.223 162.223 168.177 0 0 0 0 0

3.3.1.1 Wine grapes harvest insurance (within the National Support Program) 9.200 2.300 2.300 2.300 2.300 0 0 0 0 0

3.3.1.2 Insurance premia for crops, livestock and plants (SM 17.1) 0 0 0 0 0 0 0 0 0 0

3.3.1.4 Consolidation of the disease and pest forecasting and warning system 0 0 0 0 0 0 0 0 0 0

3.3.1.5 Implementation of the integrated pest management system 0 0 0 0 0 0 0 0 0 03.3.2.1 The National Anti-Hail System 519.700 129.700 130.000 130.000 130.000 0 0 0 0 0

P.3.4. Management of natural resources in fisheries and aquaculture 3.172.116 890.401 500.323 484.910 1.296.482 0 0 0 0 0

3.4.1.1Limiting the impact of fishing on the marine environment and adaptation of fishing to the protection of species [Article 38 + article 44 paragraph (1) letter (c) Inland fishing]

467 234 233 0 0 0 0 0 0 0

3.4.1.2Protection and restoration of marine biodiversity and ecosystems – removal of lost fishing gear and marine litter (Art.40 Paragraph (1) letter (a))

2.976 1.488 1.488 0 0 0 0 0 0 0

3.4.2.1Productive investments in aquaculture – efficiency of resource use, reduction of water use and chemicals, closed recirculation systems (Article 48 paragraph (1) letter (j))

12.463 4.155 4.154 4.154 0 0 0 0 0 0

3.4.2.2 Increasing the potential of aquaculture sites (Article 51) 6.975 3.488 3.487 0 0 0 0 0 0 0

3.4.2.3 Conversion to eco-management and audit schemes and organic aquaculture (Article 53) 20.205 10.000 10.205 0 0 0 0 0 0 0

3.4.3.1 Aquaculture providing environmental services (Article 54) 10 10 0 0 0 0 0 0 0 03.4.3.2 Animal health and welfare measures (Article 56) 3.129.020 871.026 480.756 480.756 1.296.482 0 0 0 0 0

SO4 Improve living standards in rural areas 10.848.407 2.852.779 2.189.313 2.145.241 3.661.074 16.343 5.786 5.929 2.429 2.200

P.4.1. Direct support to increase farmers’ income 5.032.870 1.324.885 1.003.600 971.199 1.733.186 8.343 2.786 2.929 1.429 1.200

4.1.1.1 Single Area Payment Scheme (SAPS) 5.032.870 1.324.885 1.003.600 971.199 1.733.186 8.343 2.786 2.929 1.429 1.200

4.1.1.2 Transitional National Aids (TNA) 0 0 0 0 0 0 0 0 0 0

P.4.2. Diversification of economic activities in rural areas 6.792 3.396 3.396 0 0 4.000 2.000 2.000 0 0

4.2.1.1 Business start-up for non-agricultural activities in rural areas (SM 6.2) 0 0 0 0 0 0 0 0 0 0

4.2.1.2 Investments in creation and development of non-agricultural activities (SM 6.4) 0 0 0 0 0 0 0 0 0 0

4.2.1.3 SME guarantee scheme 4.000 2.000 2.000 0 0 4.000 2.000 2.000 0 0

4.2.2.1 Income diversification in fishery areas 2.792 1.396 1.396 0 0 0 0 0 0 0

63



2019 2020 2021 2022 TOTAL 2019 2020 2021 2022

P.4.3. Access to basic infrastructure, educational and social infrastructure 3.701.075 999.092 672.790 672.790 1.356.402 0 0 0 0 0

4.3.1.1 Investments in the creation and upgrade of small-scale basic infrastructure (SM 7.2) 3.701.075 999.092 672.790 672.790 1.356.402 0 0 0 0 0

4.3.1.2 Investments associated with the protection of cultural heritage (SM 7.6) 0 0 0 0 0 0 0 0 0 0

P.4.4. Encouraging local community involvement in rural development 2.107.670 525.406 509.527 501.251 571.485 4.000 1.000 1.000 1.000 1.000

4.4.1.1 M4.4.1.1 Preparatory support (NRDP) 0 0 0 0 0 0 0 0 0 04.4.1.2 M4.4.1.2 Implementation of local development strategies 1.908.702 482.646 445.785 445.785 534.485 0 0 0 0 04.4.1.3 M4.4.1.3 Operation of local action groups 0 0 0 0 0 0 0 0 0 04.4.1.4 M4.4.1.4 Support for running costs and animation 0 0 0 0 0 0 0 0 0 04.4.2.1 M4.4.2.1 Preparatory support (OPFMA) 0 0 0 0 0 0 0 0 0 0

4.4.2.2 M4.4.2.1 Preparation & implementation of local strategies in the fishery sector 191.852 40.624 61.607 52.621 37.000 4.000 1.000 1.000 1.000 1.000

4.4.2.3 M4.4.2.3 Cooperation activities 7.116 2.136 2.135 2.845 0 0 0 0 0 0

SO5 Improve the institutional framework 14.853.780 4.091.370 3.351.151 3.383.444 4.027.815 13.880.734 3.830.032 3.103.943 3.185.739 3.801.020

P.5.1. Improving the administrative capacity of sectoral policy management and implementation 14.853.780 4.091.370 3.351.151 3.383.444 4.027.815 13.880.734 3.830.03

2 3.103.943 3.185.739 3.801.020

5.1.1.1Revision of organizational responsibilities and the accompanying procedures, to allow for a better strategy formulation and a smooth implementation of the ISP

40.000 10.000 10.000 10.000 10.000 40.000 10.000 10.000 10.000 10.000

5.1.1.2 Development of the ICT infrastructure 200.000 50.000 50.000 50.000 50.000 200.000 50.000 50.000 50.000 50.000

5.1.1.3 Human resources management and adaptation to the organization needs 40.000 10.000 10.000 10.000 10.000 40.000 10.000 10.000 10.000 10.000

5.1.1.4 Vocational training, learning and expertise of the ministry’s specialized staff 40.000 10.000 10.000 10.000 10.000 40.000 10.000 10.000 10.000 10.000

5.1.1.5 Performance assessment system for the ARD sector and administration 45.500 12.500 11.000 11.000 11.000 45.500 12.500 11.000 11.000 11.000

5.1.1.6 Development of annual and multi-annual budget Programs for the full use of internal and external funds allocated 35.500 10.000 8.500 8.500 8.500 35.500 10.000 8.500 8.500 8.500

5.1.1.7 Transparency in the decision-making process and the formulation of public policies and legal framework 32.500 12.500 10.000 10.000 0 32.500 12.500 10.000 10.000 0

5.1.1.8 Informing farmers and public policy beneficiaries about the Programs dedicated to the ARD sector 52.500 15.000 12.500 12.500 12.500 52.500 15.000 12.500 12.500 12.500

5.1.2.1 Operationalization of ARD public policy impact analyses and policy making feedback loops 40.000 10.000 10.000 10.000 10.000 40.000 10.000 10.000 10.000 10.000

5.1.2.2Consultation with citizens and the stakeholders involved in the ARD sector, for the formulation and promotion of public policies

40.000 10.000 10.000 10.000 10.000 0 10.000 10.000 10.000 10.000

64



2019 2020 2021 2022 TOTAL 2019 2020 2021 2022

5.1.2.3Accounting data collection and dissemination for revenue calculation and economic analysis of agriculture standardized lots under CAP development

10.838 2.882 2.652 2.652 2.652 1.705 433 424 424 424

5.1.2.4 Inter-institutional collaboration and experience sharing with relevant national and international organizations 19.390 625 6.255 6.255 6.255 19.390 625 6.255 6.255 6.255

5.1.2.5 Technical assistance (except for the national rural development network) 841.139 218.107 198.050 198.074 226.908 18.053 10.542 2.573 2.597 2.341

5.1.2.6 Technical assistance OPFMA 26.384 19.000 7.384 0 0 4.106 2.555 1.551 0 05.1.3.1 M5.1.3.1 Data collection OPFMA (Article 77) 193.059 56.000 47.059 45.000 45.000 185.000 50.000 45.000 45.000 45.000

5.1.3.2 M5.1.3.2 Control and enforcement under OPFMA (Article 76 letter e) 239.989 70.378 79.611 45.000 45.000 185.000 50.000 45.000 45.000 45.000

5.1.3.3 M5.1.3.3 Integrated Maritime Surveillance (IMS) (OPFMA - Article 80 paragraph (1) letter (a)) 215.500 58.500 57.000 50.000 50.000 200.000 50.000 50.000 50.000 50.000

5.1.4.1 M5.1.4.1 Developing the analysis, audit, control, and risk management capacity 80.000 20.000 20.000 20.000 20.000 80.000 20.000 20.000 20.000 20.000

5.1.4.2M5.1.4.2 Securing and using external and extra-budgetary funds for the development of the administrative and institutional capacity

75.000 25.000 25.000 25.000 0 75.000 25.000 25.000 25.000 0

5.1.4.3M5.1.4.3 Effective and efficient functioning of the services provided by the ministry through its own structures and through the coordinated agencies

12.586.480 3.470.877 2.766.140 2.849.463 3.500.000 12.586.480 3.470.877 2.766.140 2.849.463 3.500.000

ANNEX 2. INSTITUTIONAL STRATEGIC PLAN (SUMMARY TABLE)41

41 The targets for OPFMA 2014-2020 and NRDP 2014-2020 indicators are set for 2023 (the year of implementation of the two programs) and are the cumulation of what will be achieved by that year. As such there are no intermediate targets for these indicators.

65

Impact and Outcome Indicators Unit Baseline Target 2021 Target 2022

Strategic Objective 1: Increase the share of agri-food consumption covered through domestic production, and regain Romania’s position as a net exporter of agri-food products Impact indicator No. 1.1: Agri-food balance of trade, for42:

- Agricultural raw materials - Processed (food) products

EUR mill.EUR mill.

7707-839

8750-700

8000-600

Impact indicator No. 1.2: Share of processed/finished products in agri-food exports43 - 28%193,4

30%193,9

32%194

Program 1.1: Better market and value chain integration of agri-food producers Outcome 1.1.1.: Increased sale of agricultural production

Outcome indicator: VAT collection from the agri-food industry44, relative to total agri-food production (NACE, Rev. 2) % 9%45 9% 9.2%

Outcome 1.1.2: Increased degree of processing of the domestic agricultural production Outcome indicator: Intermediary agri-food consumption (NACE Rev. 2) by the food, beverage and tobacco industry (NACE Rev.2) % 34%46 34% 34.5%

Program 1.2: Professional training of farmers and fishers, through knowledge transfer, training and creation of the necessary abilities/skillsOutcome 1.2.1: Improved quality of the lifelong agricultural training and professional development system

Outcome indicator: Share of holding managers with: (i) complete training and (ii) basic training (acc. to the definitions of the structural survey)Outcome indicator: Degree of participants’ satisfaction with training courses

%%%

0.5%3.1%0

0.5%3.3%100%

0.6%3.5%100%

Outcome 1.2.2: Improved quality of the agricultural advisory and consulting system

Outcome indicator: Share of farmers receiving agricultural consulting services (through NRDP) from the total number of farmers registered with the Agency for Payments and Interventions in AgricultureOutcome indicator: Share of farmers receiving agricultural consulting services through the public consulting service from the total number of farmers registered with the Agency for Payments and Interventions in AgricultureOutcome indicator: Degree of farmer satisfaction with the services received

%

%

%

0%

30%

0

0%

40%

100%

22%

50%

100%Program 1.3: Research, development, innovation and technology transfer (RDITT) in agriculture and fisheries sectorOutcome 1.3.1: Increased RDITT uptake among clients in agri-food production

Outcome indicator: Number of agricultural holdings participating in local cooperation / promotion, together with supply chain participants (16.4) No. 0 10 748 (in 2023)

Outcome 1.3.2: Improved RDITT knowledge transfer in the fisheries sector

42 Average of 3 consecutive years; the benchmark is 2010-1243 National Statistics Institute, reference value for 2016.44 Targets can be adjusted according to the VAT rate variation 45 2011, the National Institute of Statistics46 2010, Eurostat. Computations are based on the input-output tables of national accounts (http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=naio_kp16_r2&lang=en)

66




Outcome indicator: Variation in the energy yield of fish catchesliters of fuel / tons of landed catch

0 0 -25 (in 2023)

Program 1.4: Optimization and modernization of the supply chain in the fisheries sectorOutcome 1.4.1: Increasing the degree of processing and marketing of fish production47

Outcome indicator: Change in value of first sales in producer organizationsOutcome indicator: Change in volume of first sales in producer organizationsOutcome indicator: Change in value of first sales in entities which are not producer organizationsOutcome indicator: Change in volume of first sales in entities which are not producer organizations

Thou EuroTonsThou EuroTons

0000

900000

89.17544.5875160.8250080.412505775

Strategic Objective 2: Accelerate the structural transition to successful and economically viable agriculture and aquaculture, while aligning with demographic trends and ensuring a phasing out of surplus farm labor

Impact indicator 2.1: Agricultural holdings with an economic size of over EUR 2,000 of standard output48

Impact indicator 2.2: Labor productivity in agriculture, forestry & fisheries sector (according to Eurostat)% UAAEUR/AWU

82.1%4,35749

84%4,450

85%4.750

Program 2.1: Consolidation, restructuring and modernization of agricultural and fishery holdingsOutcome 2.1.1: Increased share of consolidated/restructured/modernized holdings, both in terms of agricultural area used, and in terms of economic size.

Outcome indicator: Average utilized agricultural area of an agricultural holding Outcome indicator: Share of holdings with an economic size of at least EUR 2,000 of standard output in the total number of holdings50

Ha%

3.651

31%3.733%

3.8

34%Outcome 2.1.2: Support for productive investments in aquaculture

Outcome indicator: Change in volume of aquaculture production Tons 0 0 7.800 (2023)Program 2.2: Encouraging the inter-generational transfer in agricultureOutcome 2.2.1: Lower average age of active farmers

Outcome indicator: Share of farmers under 45 years of age52 % 14.8% 15% 17%

Strategic Objective 3: Limit the impact of agriculture and fisheries sector on the environment and promote climate change resilience in agriculture and rural areas

Impact indicator 3.1: The carbon footprint of agriculture53 Annual GKt CO2 equiv. 16.845 16.845 16.845

47 Target-values for 2013.48 Source: Eurostat. Reference value from 2013.49 Reference value from 2016.50 Source: Eurostat. Reference value from 2016.51 Source: Eurostat. Reference value from 2013. 52 Reference value from 2016.53 According to the Romanian Greenhouse Gas Inventory 1989-2014. March 2016. http://www.mmediu.ro/articol/variante-ale-ineges-transmise-oficial-de-catre-romania-in-baza-obligatiilor-asumate-la-nivel-international-si-european/378. Reference value for 2014.

67

http://www.mmediu.ro/articol/variante-ale-ineges-transmise-oficial-de-catre-romania-in-baza-obligatiilor-asumate-la-nivel-international-si-european/378

http://www.mmediu.ro/articol/variante-ale-ineges-transmise-oficial-de-catre-romania-in-baza-obligatiilor-asumate-la-nivel-international-si-european/378

Impact and Outcome Indicators Unit Baseline Target 2021 Target 2022Program 3.1: Management of the main natural resources in agricultureOutcome 3.1.1: Improved water and soil use through modernizing viable irrigation systems and using agricultural land according to environment- friendly practices.

Outcome indicator: Functional surfaces in viable and marginally viable area for irrigationOutcome indicator: Percentage of agricultural land subject to management contracts for improving water management54

%% in UAA

50%0

50%1

52%14.811.92% (2023)

Outcome 3.1.2: Biodiversity conservationOutcome indicator: Percentage of agricultural land covered by management contracts to support biodiversity and / or landscapes55 % in UAA 0 1 10.12% (2023)

Outcome 3.1.3: Sustainable use of local agri-food resources through conservation of old, local varieties Outcome indicator: Farmers that possess old plant varieties that are recognized at national level Outcome indicator: Agri-food producers that process old plant varieties recognized at national level

To be decided To be decided To be decided

Program 3.2: Reducing the impact of agriculture and the fisheries sector on the environment Outcome 3.2.1: Increased efficiency of energy use in fisheries56

Outcome indicator: Change in unwanted captures

Outcome indicator: Change in fuel efficiency of fish capture

Tons Liters of fuel per ton of landed catch

0

0

0

0

-0.34

-5

Outcome 3.2.2: Encouraging carbon conservation and sequestration in the agricultural sectorOutcome indicator: Agricultural area subject to first afforestation57 % in UAA 70% 70% 71.24%

Program 3.3: Risk management in agriculture and aquacultureOutcome 3.3.1: Increased farmers’ participation in agriculture environmental risk management instruments

Outcome indicator: Share of holdings participating in risk management schemes58 % total farms 0% 0% 0.13% (2023)Outcome 3.3.2: Increased hail protection, in the areas protected through the implementation of the National System for Anti-hail and Precipitation Increase

Outcome indicator: Protected area59 Mil. Ha % To be decided To be decided 119

Program 3.4: Management of natural resources in the fisheries sector60

Outcome 3.4.1: Reducing the impact of fisheries on the environment

54 Indicator from NRDP 2014-2020.55 Indicator from NRDP 2014-2020.56 Targets for 2023.57 Indicator from NRDP 2014-2020.58 Indicator from NRDP 2014-2020.59 According to the Governance Program, under the chapter Agricultural Policies and Rural Development.60 Target for 2023.

68


Outcome indicator: Change in unwanted catchesOutcome indicator: Change in unwanted catchesOutcome indicator: Change in the energy yield of fish catches

Tons %Liters of fuel / ton of landed catch

000

000

-0.34-53.62-5

Outcome 3.4.2: Protecting and restoring aquatic biodiversity and improving aquaculture ecosystems and promoting resource-efficient aquaculture

Outcome indicator: Variation in the volume of organic aquaculture productionOutcome indicator: Variation in the volume of production based on recirculation system

TonsTons

00

00

1728127

Outcome 3.4.3: Promoting an efficient and sustainable aquaculture with a high level of environmental protection, promoting animal health and welfare, and public health and safety

Outcome indicator: Aquaculture holdings providing environmental services No. 0 0 50Program 3.5: Managing food waste61

Outcome 3.5.1: Reducing the impact of food waste on the environment Outcome indicator: The volume of donated foods in the agricultural sector: animal products, crops,

products donated by public catering units Outcome indicator: The volume of waste in the agri-food processing sector Outcome indicator: The value of donated foods

To be decided To be decided To be decided

Outcome 3.5.2: Increasing the level of awareness of agri-food supply chain stakeholders for engagement in food waste activities Outcome indicator: Protocols, partnerships, collaborations, information and awareness activities

Outcome indicator: Number of donor economic operators / number of recipient operatorsTo be decided To be decided To be decided

Strategic Objective 4: Improved living standards in rural areasImpact indicator 4.1: Poverty risk in rural areas (thinly populated areas)62 % 52% 52% 50%Program 4.1: Direct support to increase farmers’ income Outcome 4.1.1: Reduced gap between agricultural and non-agricultural income

Outcome indicator: Net monthly average earning in agriculture, forestry and fisheries relative to net average total earnings63 % 79% 79% 82%

Program 4.2: Diversification of economic activities in rural areas, including in coastal and inland communities that depend on fishing and aquacultureOutcome 4.2.1: Increased employment in non-agricultural economic activities in rural areas

Outcome indicator: Share of farmers with income from non-agricultural productive activities64 Outcome indicator: Number of jobs created through supported projects (NPRD indicator)

%No.

2.8%60

2.8%60

3%24,474 (2023)

61 The food waste program has been set in law in early 2019 and will be implemented starting with the second half of 2019 hence why there are no measures and targets for this program. 62 According to the EU definition of rural areas. Source: Eurostat. Reference value for 2016.63 Source: National Statistics Institute. Reference value for 2016.64 Source: Eurostat. Reference value for 2013.

69

Impact and Outcome Indicators Unit Baseline Target 2021 Target 2022Outcome 4.2.2: Promoting growth, social inclusion, job creation and supporting employment and labor mobility within coastal and inland communities dependent on fisheries and aquaculture, including diversification of activities in the fisheries and other sectors of the economy sea

Outcome indicator: Employment created Outcome indicator: Employment maintained

FTEFTE

00

0100

158 (2023)449 (2023)

Program 4.3: Access to infrastructure and basic servicesOutcome 4.3.1: Improved rural population’s access to running water and sewerage infrastructure, communal roads, educational infrastructure (kindergartens, secondary agricultural-profile education institutions and vocational schools), social infrastructure (nurseries and after-school) as well as the protection of cultural heritage

Outcome indicator: Rural population with access to improved services/infrastructure (NPRD 2014-2020 indicator) No. 2,000,000 2,000,000 2,500,000

Program 4.4: Encouraging local community participation in rural developmentOutcome 4.4.1.: Increased number of participatory processes of rural development planning and of projects financed under such processes

Outcome indicator: Number of functional local action groupsOutcome indicator: Level of absorption of funds for implementing actions within local development strategiesOutcome indicator: Population covered by functional local action groupsOutcome indicator: Number of jobs created within supported projects (LEADER)

No.No.mil. inhabitantsNo

23909.79110

23960%9.791000

23970%9.792052(2023)

Outcome 4.4.2: Increased local community involvement in the development of coastal and inland areas that depend on fishing and aquaculture

Outcome indicator: No. of projects on preparatory supportOutcome indicator: No. of projects on preparatory support

No.No.

00

00

28 (2023)22 (2023)

Strategic objective 5: Strengthened institutional frameworkImpact indicator 5.1: Degree of absorption of funds available for the agriculture and rural development sector through the Common Agricultural Policy Impact indicator 5.2: Degree of absorption of funds available for the fisheries sector through OPFMAImpact indicator 5.3: Degree of state budget compliance:

- difference between the budget planned on Jan. 1 and the budget planned and rectified on Dec. 31, current year

- difference between the budget planned on January 1 and the budget execution as on Dec. 31

%%%%

31%00.27%2.57%

40%00.20%2%

50%30% (2023)0.01%1%

Program 5.1: Improved administrative capacity for sectoral policy management and implementation Outcome 5.1.1: Improving the structural and functional stability of MADR and its subordinated institutions

Outcome indicator: Number of yearly changes in functional structure65

Outcome indicator: Percentage index of public sector employees, actually employed in institutions/structures with functional duties in the agricultural sector (benchmark = 2014)66

No/year%

max.20.93%

max.10.93%

max.10.93%

65Change shall mean any amendment to Decision no. 725/2010 on the reorganization and functioning of MADR and certain subordinated structures, or to any regulation that annuls and replaces this Decision (including the act itself).

70


Outcome 5.1.2: Increased effectiveness of ARD policy formulation and implementationOutcome indicator: Penalties paid on:- EAFRD, relative to the total payments made in the previous year- EAGF, relative to the total payments made in the previous year

Outcome indicator: Number of changes at chapter level, and negative rectifications of the State budget

%%

No./year

5.82%2.7%

30/year

0.0001%0.0001%

25/year

0.00010.0001

20/yearOutcome 5.1.3: Stimulating the implementation of the Common Fishery Policy and the Integrated Maritime Policy67

Outcome indicator: Increase in the percentage of fulfillment of obligations related to data callsOutcome indicator: Number of serious infringements detectedOutcome indicator: Landings that have been the subject to on-site control Outcome indicator: Strengthen the Common Information Sharing Environment (CISE) to monitor the EU maritime domain

%No.%%

0000

0000

15 0 20 (2023) 100%

Outcome 5.1.4: Increased efficiency in using MADR’S administrative budgetOutcome indicator: Share of management expenses in the total annual budget of MADR Outcome indicator: Management expenses per employee of MADR

%RON/pers.

14.84%74,818

14.80%75,500

14.70%77,055

66 Total number of occupied positions in public administration is 1.218.631, February 2018 (source Ministry of Public Finance), ; total number of positions paid from state budget and subsidies in agriculture sector is 10,960 –year level 2017 (5881 positions financed from state budget http://www.mfinante.ro/pagina.html?categoriebunuri=numar-salariati-bugetari&pagina=domenii&menu=Buget and 5079 positions financed from subsidies and own revenues)67 Targets for 2023.

71

ANNEX 3. PROGRAMS AND RELATED MEASURES (SUMMARY TABLE)68

Measures Indicator / Unit / Baseline Target 2019

Target 2020

Target 2021

Target 2022

Program 1.1. Better market and value-chain integration of agri-food producers Outcome 1.1.1: Increased sale of agricultural products... Quality, Nutrition, Food SafetyRestructuring and conversion of vineyards (within the National Support Program of Romania in the wine sector). Granting this support for the restructuring and conversion of vineyards concerns certain wine-growing areas whose production is not adapted to demand but can be adapted by restructuring plantations such as the conversion of vine varieties, the replanting of vines or the improvement of its management techniques. The beneficiaries of this aid are wine growers wishing to modernize their plantations on the basis of a restructuring and conversion plan and whose holdings are situated in a Member State or regions of a Member State for which the production potential inventory has been drawn up and Romania fulfills this condition. Financial aid is granted per hectare, up to 75% of the eligible costs, between 2019-2023.

Surface area subject to conversion [ha] 1800 1600 1500 1300

Romania’s School-dedicated Program 2017-2023: The measures are meant to promote balanced and healthy nutrition for children, through distribution of fruits, vegetable and milk and accompanying educational measures. The program beneficiaries are school- and pre-school age children. Financial aid is granted through the County Councils that organize tenders for product procurement and distribution. Funding is granted through EAGF.

Absorption degree[%]-

100% 100% 100% 100%

Honey in Schools Program69

De minimis aid for implementing the support program for garlic. The measure aims to support local garlic production by granting a support of 1,000 euros per hectare to garlic growers. The measure is implemented between 2019-2021 and is financed from the state budget.

Beneficiaries [No.] 2000 2500 2800 3000

Surface [Ha] 2000 2500 2800 3000The National Beekeeping Program (2017-19). The program aims to improve the production and marketing of bee products by granting beekeepers financial support for the purchase of medicines for the treatment of varicose veins and nosemoses, pollen collectors, propolis collectors, pollen dryer or honey heater, boxes for reforming used boxes and mats, / or bee families as well as providing financial support to the cooperatives for the purchase of a sweeper, centrifuge, wax smelter. The beneficiaries of the beekeeping program are beekeepers, natural and legal persons, authorized natural persons, individual and family enterprises as well as recognized agricultural cooperatives, according to the legislation in

Beneficiaries[No.] 5500 7000 7500 8000Absorption degree[%]-

100 100 100 100

68 The targets are the progress made in meeting the indicator by that year. The situations in which the targets represent the actual progress recorded in that year are mentioned in the footnote.69 To be introduced.

72


Target 2020

Target 2021

Target 2022

force. The support is granted annually by submitting a payment request to APIA, and the applicants benefit from this support if they comply with the eligibility conditions in the Program. 50% of the program is financed from European funds (EAGF) and 50% from national Herd book development and maintenance and the determination of the genetic quality of animal breeds: The measure is meant to increase the herd competitiveness by subsidizing the services for establishing the genetic quality of animal breeds (cattle, buffalo, sheep, goats, swine and horses), subject to verifiable production performances. The measure beneficiaries are breeder associations or organizations that provide such services and are legal entities according to the applicable legislation and certified by the National Agency for Improvement and Reproduction in Livestock (ANARZ). The support is granted per animal head per year up to 100 percent of the eligible costs of services for drafting and maintenance of herd books and up to 70 percent of eligible costs for conducting genetic quality control and determining animal breeds. The measure is state-funded.

Number of animals registered in the herd book[no]109,177

2300000 2500000 2500000 2500000

De minimis aid for the application of tomato product support program in protected areas for 2019

Beneficiaries[No.] 15900 - - -

De minimis aid for the application of the sheep-breeders' support program for the sale of wool (2018-2020)

Beneficiaries[No.] 8500 9000 9500

-

De minimis aid for the application of the support program for pig breeders who breed Bazna and/or Mangaliţa pigs for the production of pig meat (2018-2020)

Beneficiaries[No.] 1000 1800 -

-

Supporting the reproduction, hatching or breeding activities in the poultry sector Beneficiaries[No.] 1800000 2500000 3400000

-

Support for the reproduction activity in pig breeding Places for reproduction [no]20000 30000 35000

-

Supporting the activity in the breeding sector of cattle from Bălţata Românească and Brown breeds 71

Places for reproduction [no]50 75

100 100

Support for reproduction activity in buffalo breeding72Places for reproduction [no]

75100 100 100

70 April 2019.71 To be introduced.72 Idem.

73


Target 2020

Target 2021

Target 2022

Investment program for setting up milk collection centers in mountain areas. The measure facilitates investment in milk collection centers. The beneficiaries are mainly young farmers and newly installed farmers who work in mountain areas. The amount of the support is maximum 40% of the value of eligible expenses. The measure is financed from the state budget and is applied in the period 2019-2021.73

Collection centers[Nr] /0 TBD TBD TBD TBD

Investment program for setting up centers for collecting, washing and primary processing of wool and leather in mountain areas. The measure supports investments in centers for collection, washing and primary processing of wool and leather in mountain areas. The main beneficiaries of the measure are economic agents and producer groups that operate in mountain areas. The measure is financed from the state budget and is applied in the period 2019-2021.74

Centers for collecting, washing and primary processing [No] /0

4 6 8

Investment program for setting up low capacity units for slaughtering animals and / or meat processing in mountain areas. The measure supports investments in setting up low capacity units for slaughtering animals and / or meat processing in mountain areas. The amount of the support is maximum 40% of the value of the eligible expenses. The beneficiaries are mainly young farmers and newly installed farmers who work in mountain areas. The measure is financed from the state budget and is applied in the period 2019-2021.75

Units[Nr.] /0 TBD TBD TBD TBD

Investment program for setting up mountain sheep shelters. The measure supports investments in the establishment of mountain sheep shelters. The beneficiaries are mainly young farmers and newly installed farmers from mountain areas. The measure is financed from the state budget and is applied in the period 2019-2021.76

Mountain sheep sheds[Nr.] /0 TBD TBD TBD TBD

Investment program for setting up centers for primary collection and processing of berries, mushrooms and / or medicinal and aromatic plants, of spontaneous flora in mountain areas. The measure supports the implementation of investments for the establishment of centers for primary collection and processing of berries, mushrooms and / or medicinal and aromatic plants from spontaneous flora in mountain areas. The beneficiaries are mainly young farmers and newly installed farmers who work in mountain areas. The measure is financed from the state budget and is applied in the period 2019-2021.77

Collection and processing centers[No.]/0

300 500 658 -

M14 Animal Welfare: The measure covers remaining payments to be made after the end of 2015 for five-year animal welfare commitments. The support is exclusively addressed to transitional expenditures and is granted until 2019. Beneficiaries are pig and bird breeders who have welfare commitments on Measure 125 of NRDP 2007-2013. The measure is

Beneficiaries[No.] 520

N/A N/A N/A

73 At the time this document was drafter (May 2019) the measure was still under public debate. 74 Idem75 Idem76 Idem77 Idem

74


Target 2020

Target 2021

Target 2022

financed from the 2014-2020 NRDP.

Quality schemes: the measure enables agri-food producers to add value to their products by establishing criteria for certification of traditional products. The beneficiaries are producers of traditional products. The measure is not yet active but is intended to be applied throughout the ISP implementation.78

Recognized/ registered traditional products[no] / 724

738 788 838 888

Products obtained according to certified/ registered Romanian recipes/148

156 164 172 180

Pest management: the measure aims to ensure an adequate level of protection against pests, pest control, monitoring of pest protection products, as well as to ensure public and food safety. The measure is implemented via the National Phytosanitary Authority.

Phytosanitary inspections[no] / 15,416 16,500 16,500 16,500 16,500

Detected pests [no] / 13 9 9 6 6

Analyzed samples[no] /13799 14500 15,000 16,000 16,000

Food safety and introduction of plant protection products: This measure aims to ensure a high level of food and human safety and to ensure that plant protection products are stored and handled in accordance with a set of conditions. The target group is composed of farmers who are eligible for direct payments, national transitional aids and agri-environment measures (including forestry measures). The final beneficiaries are the consumers. Enforcement of the measure is ensured by the National Phyto-Sanitary Authority.

Inspections performed [no]/ 9000 9500 10000 12000 12,000

Analyzed samples [no] / 2800 2900 3000 3500 3,500

State aid granted to livestock farmers for animal rendering79: The measure helps producers meet food protection and safety conditions in animal production, by subsidizing the costs of animal rendering services. The program beneficiaries are the providers of animal rendering services, legal entities authorized by the authority competent for this type of services (the National Sanitary, Veterinary and Food Safety Authority), which may apply for support at the beginning of each year. The final beneficiaries are farmers in animal production, or any household engaged in animal rearing. Funding is granted through the state budget.

Collected quantity [Tons] / 0 1000* 1000* 1000* 1000*

De minimis aid for purchase of heifers from specialized breeds (milk and meat breeds): the measure intends to improve the genetic base of animals through support for purchase of heifers, cattle and breeding bulls. The beneficiaries are breeders of cattle and buffaloes or any associative group who owns between 3 and 10 animals / beneficiary. The amount of financial support is between 5.000 and 8.000 lei/animal head; the total aid granted to a beneficiary

Number of beneficiaries [no] / -

1000* 1000* 1000* 1000*

78 At present, national quality schemes for “traditional product” and “consecrated product” have been removed from the 2014-2020 NRDP at the request of the European Commission.79Given the particularities of the Romanian agri-food sector, where many family households are involved in increasing small-scale and non-sustainable livestock production, MADR grants a 100% subsidy for animal rendering activities to ensure an adequate level of environment protection and human safety.

75


Target 2020

Target 2021

Target 2022

cannot exceed 15.000 euros. Funding is granted through the state budget.... Management of stocks, sale and purchase prices Public intervention measures and aid for private storage80: The measure aims to support pork producers if the product market price falls below 103 percent of the reference price, in order to store the goods for a limited period. The beneficiaries are pork producers who have storage capacities and who withdraw from the market, within a limited time period, a previously established quantity of fresh or refrigerated meat, which they then freeze and maintain in stock (for 90, 120 or 150 days) without changing the warehouse. The support is entirely covered from EAGF.

Number of beneficiaries [no] / - - - - -

State aid for the fuel used in agriculture81: The measure focuses on agriculture upstream, particularly the purchase of diesel for mechanized agriculture works (in crop and animal production and in land improvement), at a low excise duty established at EUR 21.00 /1,000 liters. The financial support consists in the reimbursement of the difference between the standard excise duty and the discounted excise duty of EUR 21.00/1000 liters. All agricultural activities, including land improvement activities, are eligible. The applications for reimbursement are submitted on a quarterly basis and must include several documents that prove the purchase of fuel. The beneficiaries are agricultural producers, authorized self-employed persons, individual enterprises and family enterprises, and recognized producer groups, including preliminarily recognized groups, or recognized producer organizations, as well as research bodies/organizations, i.e. universities, institutes and research and development units. The support will be granted from the state budget and the intention is to grant the support for the entire ISP period.

Number of beneficiaries [no] / - 18000 18000 - -

Maintenance of the same excise level [EUR/1000 l]

21 21 21 21

... Access to markets, PromotionPrograms of information and promotion of agricultural products and wines on the domestic market and in other countries. The support given to information and promotion programs aims to strengthen and promote the image of agri-food products and wines in the internal market and to improve competitiveness and export to foreign markets. The direct beneficiaries of the measure are representative professional and interprofessional organizations, producer groups and organizations, agri-food sector bodies targeting promotional activities, public bodies of the wine sector as well as wine-producing companies. Indirect beneficiaries are consumers. The measure financed by the EAGF.

Approved and ongoing programs [no] / 19 5 8 10 12

Export refunds (EU Regulation)82: The measure is meant to support agri-food products exporters that fall under the scope of CAP, to facilitate their access to third markets at globally

Export value over the past 3 years (Σ)

852.829 852,829 852.829 852.829

80Not activated in the EU yet.81 For a discussion on the effectiveness and effectiveness of this State aid measure, please refer to the World Bank's assessment of complementary national direct payments and State aids managed by the Ministry of Agriculture and Rural Development (developed under the same RAS program).82 If the measure is activated; the measure is funded through the CAP without any ceiling on country funding.

76


Target 2020

Target 2021

Target 2022

competitive prices. The value of the "export refunds" is the difference between the price on the EU market and the global prices of goods and can be granted as fixed amount, when the export of a certain pre-established product does not depend on the country of destination, or the amount may be different when the value of the refund depends on the country of destination of the export. The beneficiaries are the economic operators that are entitled to a refund according to the laws in force, the payment being made on request, based on the evidence in the payment file. The measure is financed from EAGF and is applicable until 2017.

[000 EUR] / 852,829,1183

Financial support given to preliminarily recognized producer groups and producer organizations in the vegetable and fruit sector. The measure is meant to support the setup and operation of producer groups and organizations in the vegetable and fruit sector. The initially recognized farmer groups are provided financing for a recognition plan for a period of no more than 5 years. This includes support meant for setting up the group and for the administrative operation and a directly given support, which covers 75% of the value of the investments included in the recognition plan. The value of the financial support for setting up and administrative operation is established for each group of farmers initially recognized according to the value of sold production (VSP) and cannot exceed 100,000 EUR/year of the recognition plan. The measure is financed from EAGF.

Value of the production sold (VPS) by producer groups and producer organizations [000 RON] /157,326.684

160,000 160,000 160,000 160,000

M9 Setting up producer groups and organizations: The measure is meant to encourage the setup of producer groups in the fruit-growing sector. The beneficiaries are producer groups and producer organizations recognized after 1 January 2014. The support is paid as regressive flat rate, in annual instalments, for a period not exceeding five years from the date of the producer group recognition. The measure is financed from the National Rural Development Program through EAFRD and applies from 2014 to 2020.

Producer groups receiving support [no] / 33

38 4353

62 (in 2023)

SM16 Support for horizontal and vertical cooperation among actors in the supply chain in the agricultural/fruit-growing sector (SM 16.4/16.4a): The measure supports cooperation activities of supply chain actors for the creation and development of short supply chains and local markets and for promotion activities related to short supply chains and local markets. The beneficiaries are partnerships composed of at least one farmer/producer group/cooperative and microenterprises, small enterprises, NGOs, local councils or school, sanitary, leisure and public alimentation units. The financial aid is granted based on the approval of a business plan and covers 100 percent of the eligible expenditure. The measure is financed from the National Rural Development Program (NRDP) through EAFRD during the period 2014-20.

Holdings participating in cooperation projects [no] / 0

200 350 500 748 (in 2023)

Coupled support for the vegetal sector (soya, lucerne, peas, beans, hemp, sugar beet, hops, rice, fruit and vegetables for industrial purposes) and the animal sector (milk buffaloes, sheep, goats, meat taurines and their meats, dairy cows, silkworms): the measure grants a direct

Surface area subject to payment (plant) [000ha] /511..9

500 545 590 620

83Value exported between 16 October 2012 and 25 February 201484It would be definite by MADR; 2% for protean produce, 13% for other produce

77


Target 2020

Target 2021

Target 2022

payment to specific sectors which are considered in difficulty but are important for Romania. The beneficiaries are active farmers eligible for direct payments; the eligibility conditions vary depending on the specific sector. The level of financial support varies according to the sector and is projected to increase annually until 2020. Funding is granted through EAGF for the period 2014-20.

Animals subject to payment (animal) [no] 3835000 3835000 4000000 TBD

Amount from the national ceiling [%]/6.25 12.2 12.6 13.2 13.9

Outcome 1.1.2: Increasing the degree of processing of domestic agricultural production... Investments for modernizing the production and storage infrastructure SM 4.2 Support for investments in processing/marketing and/or development of agricultural products: The measure is meant to increase the value added of farming and forestry products, as well as the economic efficiency of micro-enterprises by providing support for upgrading equipment, processes and processing technologies. The support is given in order to support tangible and intangible investments within enterprises for processing and marketing of farm products. The eligible beneficiaries are enterprises, cooperatives and producer groups. The financial aid is granted based on approval of an investment project. The measure is financed from the National Rural Development Program (NRDP) through the European Agricultural Fund for Rural Development (EAFRD) and is applicable for the time span 2014-20.

Enterprises receiving support [no] 84

120 400 600 692 (in 2023)

Support wool collection and trade85

Program to set up collection and processing centers for vegetables / fruits and some products of animal origin86

Program to encourage activities in the mountain area87

... Access to credit/ investment finance Financial lending instrument with risk sharing: The measure is meant to support beneficiaries of private investment projects which receive funding under Measures 4, 6 and 19 (NRDP 2014-20). The measure is financed from the NRDP through EAFRD, and it will apply until 2020.

Leverage effect [no] 1.4 1.4 1.4 1.4 1.4

Support for family farms: The measure aims to facilitate the access of small farmers and their associations to micro-loans and to guarantee the loans granted by financial institutions for purchase of land and modernization of farms. The micro-loans are granted for investments that fall below the NRDP threshold or are not eligible for financing under the NRDP. The beneficiaries are family farms (holdings with an economic size between 2 and 50 ESU). The measure is funded through the state budget. Family farms are also supported under the NRDP 2014-20.

Beneficiaries 1000* 1000* 1000* 1000*Volume of granted guarantees /credits [000 RON] /0

1000* 1000* 1000* 1000*

Volume of non-performing loans [000 RON] /- 1000* 1000* 1000* 1000*

Program to stimulate the vegetal, zootechnical and aquaculture production by establishing a business development credit with state guarantees88

85 To be introduced. 86 Idem 87 idem

78


Target 2020

Target 2021

Target 2022

Program 1.2. Professional training of farmers and fishers through knowledge transfer, training and creating the necessary abilities/skillsOutcome 1.2.1: Improved quality of the lifelong agricultural education and professional training systemSub-measure 1.1 Support for vocational training and skills acquisition actions: the measure supports short-term professional training programs in order to improve the knowledge on the managerial and technical skills in the agricultural, forestry and agri-food fields, and information activities regarding the CAP support schemes. The direct beneficiaries are the providers of training and information activities working in the vocational training field. The final beneficiaries are farmers. Financial aid is granted to the information and training providers that meet the eligibility criteria established under the public procurement procedure. The measure is financed from the NRDP, through EAFRD, and will be been applied throughout 2014-20.

Participants in training activities [no] / 0

0 10 0 184.430 (in 2023)

National rural network: the measure supports the interconnection of the organizations and governments involved in rural development, in order to increase the stakeholders’ involvement in rural development implementation, improve the quality of the implementation of rural development programs and the awareness of potential beneficiaries with respect to rural development policy and its funding opportunities. The beneficiaries are all stakeholders involved in rural development. Financial aid is granted to the Network Support Unit within the Managing Authority for Rural Development, for network animation and functioning. The measure is financed from the National Rural Development Program (NRDP) through the European Agricultural Fund for Rural Development (EAFRD) and will apply for the period 2014-20.

Activities carried out by the network [no] /-

- - - -

Members/beneficiaries[no] - - - - -

Outcome 1.2.2: Improved quality of the agricultural advisory and consulting systemSub-measure 2.1. Advisory services for farmers, young farmers, micro-enterprises and small enterprises in rural areas: The measure is meant to facilitate access to advisory and consulting services for farmers and non-agricultural business in rural areas. The support consists in advice for setting up and implementation of business plans for developing agricultural and non-agricultural businesses, advice for developing associative forms as well as support for beneficiaries of agri-environment measures. The direct beneficiaries are the providers of advisory and consulting services, i.e. public or private entities which meet the qualification and selection criteria and innovation brokers. The final beneficiaries of this aid are small and young farmers, producer groups and micro-enterprises and small enterprises that want to engage in non-agricultural activities in rural areas. The financial aid will be granted through public procurement procedures and will cover 100 percent of total eligible expenditure. The measure is funded under the NRDP through the EAFRD 2014-2020.

Beneficiaries of advisory services [no] / 0

0 30000 50.000 2826 (in 2023)

Inland fishing (Article 27 Advisory services [+ Article 44 (3)]: The measure provides for the improvement of fishers’ activity by providing scientific, technical and economic information in

Number of research projects and partnerships

0 0 0 54 (2023)


79


Target 2020

Target 2021

Target 2022

a more structured way. The beneficiaries are fishers, authorized natural persons or legal entities, fisheries organizations, including producer organizations engaged in fisheries. The measure is funded from the EMFF through the 2014-2020 Operational Program for Fisheries and Maritime Affairs (OPFMA).

[no.] /0

Management, replacement and advisory services for aquaculture farms (Article 49): the measure provides support for the strengthening of technological development, innovation and knowledge transfer, which will allow the development of production with species with good market potential, significant improvement of the products, processes and organizational systems at the farm level, studying the technical and economic feasibility of innovative products and processes. Beneficiaries are bodies governed by public law. The measure is funded by the EMFF through the 2014-2020 Operational Program for Fisheries and Maritime Affairs (OPFMA).

Number of completed innovation projects, consultancy services [no.]/0

0 0 0 12 (in 2023

Implementing a short-term training program for agricultural workers in public-private partnership89 Revitalizing the activity of agricultural high schools90

Public consulting services for farmers’ information and professional training: The measure is meant to enhance the quality of public advisory services for farmers. The beneficiaries are the Romanian farmers. The measure is funded from the state budget, plus the private funds obtained through services supplied to farmers and will be implemented over the period 2014-20.

Number of farmers professional trained /informed [no] 300,000

350,000 400,000 500,000 500,000

Plant protection advisory system: The measure is aimed at developing and consolidating the training and consultancy system in plant protection by implementing a continuous system of professional improvement mainly for professional users, distributors and advisers. The beneficiaries are professional users/farmers, distributors, advisers; trainers (train the trainers). Financial aid will be granted from the state budget, but it could also be funded through specific measures from the National Plan for Rural Development (to be decided).

Trained farmers[no] / 0 500 1,000 1,500 1,500

Program 1.3. Research, development, innovation and technology transfer (RDITT) in agriculture and the fisheries sectorOutcome 1.3.1: Increased RDITT uptake among clients in agri-food productionThe sectoral research plan for research-development for agriculture and rural development of MARD for 2019-2022: The measure aims to support the research activities in the agricultural field, with a view to finding innovative solutions for climate change adaptation, conservation and sustainable exploitation of resources and increasing the overall economic performance of Romanian agriculture. The direct beneficiaries are the Romanian research institutes, and the final beneficiaries are the farmers and the population working in the agricultural sector. The financial aid shall be granted on a competitive basis, through a restricted tender procedure.

Financed projects[no] / 89 91 80 80 80

Achievement degree [%] / 100%

100% 100% 100% 100%

89 Idem 90 Idem

80


Target 2020

Target 2021

Target 2022

The measure shall be financed from the national budget of MADR and shall apply for the M16 Co-operation, SM 16.1 Support for establishment and functioning of operational groups (OG), for development of pilot projects, of new products for the agricultural/fruit-growing sector (SM 16.1/16.1a): the measure is meant to better adapt the research activities to the needs of farmers and forest holders, and to facilitate their access to the results of the research and innovation activities. Direct beneficiaries are Operational Groups, consisting of stakeholders in the rural environment (farmers, researchers, consultants, enterprises or NGOs) and having the specific purpose of undertaking an applied research project approaching certain issues or capitalizing the opportunities in the agri-food sector. The financial aid is granted provided that a complete and detailed project plan is submitted and approved and covers 100% of total eligible expenditure. The measure includes a separate allocation for the fruit-growing sector. The measure is financed from the NRDP through the EAFRD and will be implemented during 2014-20.

Number of operational groups to be supported [ no] /0

10* 12* 24 (in 2023)

24 (in 2023)

Sub-measure 1.2 Support for demonstration activities and information actions: the measure supports demonstration and information activities to improve knowledge and skills of farmers and agri-food sector workers. Beneficiaries of support are public or private bodies engaged in information, demonstration & dissemination activities, while the final beneficiaries are farmers and workers in the agri-food sector. Financial aid is awarded as a reimbursement of eligible expenses and covers 100% of total eligible expenditure. The measure is financed from the NRDP, through EAFRD, and will be been applied throughout 2014-20.

Participants in demonstration & information actions[no] / 0

- - - 218,556 (2023)

Other agricultural research expenditure (functioning of the Agricultural and Forestry Science Academy): the measure aims to support the scientific research activity in agriculture, forestry, veterinary medicine, food industry, rural development and environmental protection, which is carried out under the coordination of the Agricultural and Forestry Science Academy (ASAS). The direct beneficiaries are the agricultural research institutes and the units of public law under the scientific coordination of ASAS. Financial aid shall be granted through annual funding of the current and capital expenses related to the activity of ASAS and of the units and institutions of public law under its subordination and coordination. The measure is financed from the national budget and will be applied during ISP period.

Financial allocation [000 RON] 315 500 500 TBD

National RDI Program91

Outcome 1.3.2. Improved RDITT knowledge transfer in the fisheries sectorArticle 26 and article 44 paragraph (3) Innovation: This measure aims at developing or introducing new or substantially improved products and equipment, new or improved processes and techniques, new or improved management and organization systems, including processing and marketing. Beneficiaries are fisheries bodies of public law, independently or in

Number of projects and partnerships with scientific researchers [no] /0

0 00

2 (2023)


81


Target 2020

Target 2021

Target 2022

partnership with fishermen, authorized natural or legal persons, fishery organizations, including producer organizations engaged in fisheries. The amount of non-reimbursable financial support granted under this measure is between 30% and 100 %, depending on the type of beneficiary. The measure is funded from the EMFF OPFMA 2014-2020.

Article 47 Innovation: The measure aims to support the strengthening of technological development, innovation and knowledge transfer in the field of aquaculture. Specifically, support will also focus on the introduction of new aquaculture species, with positive market prospects. Beneficiaries are public or private higher education / public bodies, individually or in partnership with SMEs, large enterprises, associations, producer organizations active in the field of aquaculture. The measure is funded by the EMFF through the Operational Program for Fisheries and Maritime Affairs 2014-2020 (OPFMA).

Number of projects on innovation,advisory services [no] /0

0 0 0 2 (in 2023)

Program 1.4. Support for knowledge transfer in fishery areasOutcome 1.4.1: Improved quality of the advisory and consulting system in fisheries and aquaculture

Article 27 Advisory services [ + article 44 paragraph (3) inland fishing: The measure supports access by fishers and fishery organizations to scientific, technical and economic advice. The direct beneficiaries are relevant entities with the required competence and experience, while the final beneficiaries are fishermen and their organizations. The measure is funded from the EMFF through OPFMA 2014-2020.

Number of projects and partnerships researchers[no] /0

8 16 24

Article 49 Management, relief and advisory services for aquaculture farms: the measure aims to support the set-up and functioning of advisory services in the aquaculture sector as well as to strengthen links and collaboration between practitioners and experts. The direct beneficiaries are relevant entities with the required competence and experience, while the final beneficiaries are aquaculture farmers. The measure is funded from the EMFF through OPFMA 2014-2020.

Number of projectson innovation,advisory services [no]/0

2 4 6

Program 1.4. Optimization and modernization of the supply chain in the fisheries sectorOutcome 1.4.1. Increasing the degree of processing and marketing of fishery productsProduction and marketing plans (Article 66): This measure supports the development and implementation of production and marketing plans to ensure sustainable exploitation of fisheries resources and optimal harvesting of productions. The support granted shall not exceed 3 percent of the average annual value of production introduced in the last three years by the producer organization / association of newly recognized producers. The final beneficiaries are the producer organizations. The measure is funded by the EMFF through the 2014-2020 OPFMA.

Number of producer organizations /producers associationswho receive support for production and marketing plans[no] / 0

0 0 0 1 (2023)

Marketing measures (Article 68): the measure supports producer organizations and the process of upgrading and optimizing the supply chain. Beneficiaries are enterprises (including

Number of projects on marketing measures and

0 0 0 2 (2023)

82


Target 2020

Target 2021

Target 2022

fishermen - natural or legal persons), producer organizations, associations of producer organizations, interprofessional organizations, bodies governed by public law in the field of production, processing or marketing of fishery and aquaculture products. The measure is funded from the EMFF through OPFMA 2014-2020

storage aid[no] / 0

Processing of fishery and aquaculture products (Article 69): the measure supports the establishment and / or upgrading of processing units, the introduction of new technologies for the development of new products and processes, the growth of jobs, energy savings (modern technologies and alternative forms of energy), reduction of environmental impact small scale fish waste). Direct beneficiaries are small and medium-sized enterprises active in the processing of fishery and / or aquaculture products. Financial support is between 50% and 75% of the total eligible project value (including eligible VAT) depending on the applicant's category, with a contribution of at least 25% of the total eligible project value (including eligible VAT) for this measure. The measure is funded from EMFF through 2014-2020 OPFMA.

Number of projects on product processing[no] / 0

0 0 0 15 (2023)

State aid for reducing the excise duty on diesel in aquaculture. The measure supports aquaculture businesses by reducing excise duty on diesel used in aquaculture activities. The support is granted as a reimbursement of the difference between the standard excise duty level stipulated in the Fiscal Code and the reduced excise duty level.

Beneficiaries/No/0 38 38 38 38

Support program for producers in the fisheries and aquaculture sector. The measure is a state aid scheme that aims to improve the level of performance and sustainability of aquaculture farms. The measure supports the modernization and of enterprises and their endowment with equipment. The beneficiaries are producers in the fisheries and aquaculture sector. The financial support is 40% of the total eligible expenses. The measure is financed from the national budget.

- - - - -

Program 2.1 Consolidation, restructuring and modernization of agricultural and fishery holdingsOutcome 2.1.1 Increased share of consolidated/restructured/modernized farms, both in terms of agricultural and economic size:Redistributive payment: the measure is meant to stimulate farm consolidation by awarding an additional direct payment for farmers for their first 30 ha. The beneficiaries are all farmers eligible for direct payments irrespective of their overall farm size. The financial aid shall be granted based on the submission of a payment application and will be awarded in two tranches: (i) for the first 5 ha and (ii) for the rest of 25 ha. The measure is funded from the European Agricultural and Guarantee Fund (EAGF) and applies from to 2015-2020.

Surface area subject to payment [thou. ha]/- 3500 3700 3900 4200

Beneficiary farmers [no., thou.] /- 820 850

900 920

Sub-measure 4.1 Investments in agricultural holdings (2014-20 NRDP) and SM 4.1a Investments in fruit growing holdings: the measure aims to support investment projects in crop and livestock farms. Eligible beneficiaries are farmers, cooperatives and producer groups with a minimum economic size of 8,000 standard output. The financial aid covers 50 percent of the total eligible expenditure with additional percentage points awarded under certain conditions. This measure has a separate allocation for the fruit-growing sector (M 4.1a Investments in fruit-growing holding). The measure is financed from the NRDP through the

Agricultural holdings receiving support for investment[no] / 2072

2,500 3,000 3,000 4,263 (in 2023)

83


Target 2020

Target 2021

Target 2022

EAFRD and will be implemented throughout 2014-20.Sub-measure 6.3 Support for the development of small farms (2014-20 NRDP): the measure aims to support structural transformation of small farms and to facilitate their market integration. The support is awarded based on approval of a business plan. The beneficiaries are small farms with an economic dimension between 4,000 and 11,999 standard output. The amount of support is 15,000 EUR for a maximum period of 3 years (5 years for the fruit-growing holdings) and will be granted in two tranches: (i) a first tranche, consisting of 75 percent of total support, after the financing decision is signed, and (ii) a second tranche, consisting of 25 percent of the total support, after the business plan has been implemented. The measure is financed from the NRDP through the EAFRD and will be implemented throughout 2014-20.

Number of beneficiary (holdings) receiving start-up support for small-scale farms[no] / 20,104

25,000 27,000 29,000

31,093 (in 2023)

Outcome 2.1.2: Support for productive investments in aquaculture Aid for productive investments in aquaculture (art. 48 paragraph (1) (ad) and (fh)): the measure aims to support productive investment projects in aquaculture, including the modernization of aquaculture farms, improving the working conditions and safety of the workers in the aquaculture sector, diversification of aquaculture production and species, diversification of sources of income and increase of farm profitability through the development of tourism and recreational / sport fishing. Eligible beneficiaries are micro-enterprises, small and medium-sized enterprises and NGOs involved in aquaculture, enterprises and NGOs with economic activity in the field of aquaculture. The maximum value of a project is 1 million euros, with financing covering 50% of the eligible expenses (only 30% for beneficiaries who do not carry out aquaculture activities). The measure is funded from FEPAM through POPAM 2014-2020.

No. of projects for aid for productive investments in aquaculture

0 0 0 100 (2023)

Program 2.2. Encouraging the inter-generational transfer in agricultureOutcome 2.2.1: Lower average age of active farmersLife annuity scheme (payment for those who entered the scheme before 2010): The measure was introduced in 2005 in order to support land consolidation and hence the modernization of Romanian agriculture. The beneficiaries were individuals over 62 years old who owned agricultural land up to 10 hectares (land not subject to a to sale and purchase after 1990). The beneficiaries were entitled to get until the end of life a state guaranteed sum if they sold or leased their farmland (for lease 50 euros/year and for sale 100 euros/year). The measure is financed from the national budget and was active until the end of 2009 but payments to farmers who have already entered the scheme continue.

Beneficiaries[no] - 71,349 64,000 64,215 - -

Additional payment for young farmers: The measure is meant to stimulate generational renewal of farmers by providing additional area-based payments for farmers under 40 years old. The beneficiaries are all farmers eligible for direct payments that have not reached the age of 40, are/have been installed as farm managers, and have attended short-term training courses. The financial aid shall be granted as a supplementary payment per area for a period

Surface area subject to payment[000ha]/ - 800 856 900 950

Young farmers receiving support

84


Target 2020

Target 2021

Target 2022

of 5 years and for a maximum surface of 60 ha. The measure is financed from the European Agricultural Guarantee Fund (EAGF) and will be implemented between 2015 and 2020.

[no. thou.] / tbd 61 63 65 67Degree of use [%] /0 50 50 -

Sub-measure 6.1 Business start-up aid for young farmers (2014-20 NRDP): The measure is meant to support the increase in the number of young active farmers. The beneficiaries are farmers less than 40 years old who have adequate training and who will be installed as farm managers. The financial aid is granted based on an approved investment project for a maximum period of 3 years (5 years for fruit-growers); support will be granted in two tranches and will be in the amount of 50,000 euros (for farms between 30,000 and 50,000 standard output) or 40,000 euros (for farms between 12,000 and 29,999 standard output). The measure is financed from the NRDP through the EAFRD and will be implemented throughout 2014-20.

Young farmers receiving support[no] / 11 235

9.367 9.367 9.367 9,367 (in 2023)

Small farmers’ scheme (CAP Pillar 1): this measure is a simplified direct payment for farmers who own small holdings which is meant to replace other direct payments, such as the area-based payment, the greening payment, national transitional aids, etc. The maximum financial amount awarded annually is 1,250 euros depending on the surface size and/or the number of animals owned. After one year, beneficiaries are eligible to apply for funding under NRDP sub-measure 6.5 (outlined below). The measure is financed from the European Agricultural Guarantee Fund (EAGF) and will be implemented between 2015 and 2020.

Farmers receiving support[no thou] / - 500 550 650 700

Support for encouraging youth employment in agriculture, aquaculture and food industry. The measure aims to stimulate the employment of young people in the agricultural, fisheries and food sectors. The beneficiaries of the support are employers who prove the full-time employment of two young beneficiaries for a minimum period of 12 months. The financial support is granted monthly for each employed person and consists of 500-1000 lei per employed person, depending on the level of education. The measure is financed from the state budget and will be implemented during 2019-2020.

Young people employed [No.] 0 0 3000

Program 3.1. Management of the main natural resources in agricultureOutcome 3.1.1: Improved water and soil use through modernizing viable irrigation systems and using agricultural land according to environment-friendly practicesGreening payment: the measure is meant to stimulate active farmers to practice a sustainable and environmentally-friendly agriculture. The beneficiaries are Romanian active farmers who comply with the CAP greening conditions. The financial aid is granted per hectare and accounts for 30 percent of the total financial allocation for Pillar 1. The measure is financed from the EAGF and will be implemented during the 2014-20 period.

Surface area subject to payment[thou ha] / 8,409.3 370 380 400 450

M11 Organic farming (2014-20 NRDP): the measure supports farmers in crop and animal production that practice organic farming or are shifting from conventional farming to organic farming (conversion period). The beneficiaries are active farmers officially registered in organic farming production. The support provided within this measure is granted as a

Surface area (ha) – conversion to organic farming [000 ha] / 5,83192

10 1137 2137226 (2023)

92 This refers to commitments from the previous programming period.

85


Target 2020

Target 2021

Target 2022

compensatory payment per holding. Funding comes from EAFRD through 2014-2020 NRDP.Program to encourage organic farming and traditional products93

Sub-measure 4.3 Investments in developing, modernizing and adapting the agricultural and forestry infrastructure (2014-2020 NRDP): the measure supports investments in the modernization of the secondary irrigation infrastructure at farm level. Eligible beneficiaries are organizations/federations of water users composed of landowners or users of agricultural land. Financial aid is granted on a competitive basis, based on irrigation and/or land improvement investment projects and cover 100 percent of total eligible expenditure. The investment projects need to comply with the Water Framework Directive. The measure receives funding from the European Agricultural Fund for Rural Development (EAFRD) through the 2014-2020 NRDP.

Operations supported for investment [no.] / 288 60 200 300 (in

2021)420 (in 2023)

National Program for Monitoring the Soil for Agriculture and Forestry (OSPA, ICPA) Surface [% of total UAA]/ 37%; 37.5%

37%37.5%

45%45%

50%55%

50%55%

M10 Agri-environment-climate (2014-2020 NRDP): the measure supports the sustainable development of rural areas, by granting payments to farmers in order to introduce or continue the implementation of agricultural production methods compatible with the protection and improvement of the environment, the landscape and its characteristics, natural resources, soil and genetic diversity. The beneficiaries are Romanian farmers who comply with the set conditions. The financial aid is compensatory and is paid on an annual basis, as a fixed amount, granted per hectare. The measure is being funded through the EAFRD 2014-20 via the NRDP.

Area receiving support [000 ha] / 210 210

1.325 1.325 1.325

Investments through the National Program for the Rehabilitation of the Main Irrigation Infrastructure (2016-2020): the measure supports investments in the main irrigation infrastructure under public property, including pumping and re-pumping stations, canals and distribution networks. The final beneficiaries are water users in the irrigation sector and water user federations in the field of irrigation that have received or will receive funding from EAFRD for private irrigation investments at farm level and need to be linked to a viable main irrigation infrastructure. The measure is funded through the state budget and will continue until 2020.

Efficiency of base and re-pumping stations [%] / 45%No. of viable irrigation facilities [no] / 0Water loss from channels [%]

40

60

60

70

86

60

-

-

-

-

-

-

Free water up to the pressurized station94

Outcome 3.1.2: Biodiversity conservationSM 13.1 Compensatory payments in mountainous areas: the measure is meant to financially support the use of the agricultural land located in mountainous areas where agricultural production is lower in terms of quantity and/or quality. The beneficiaries are active farmers located in areas which are designated as mountainous. The aid granted under this measure is

Surface area receiving support[Mil ha] / 3,1

1,37 1,37 1,37 1,37

93 To be introduced.94 To be introduced.

86


Target 2020

Target 2021

Target 2022

compensatory. The compensatory bonus is paid on an annual basis, as a fixed amount, granted per surface unit (hectare) and is a compensation for income losses and additional costs incurred by the farmers which conclude annual voluntary commitments to continue agricultural activities in the designated areas. The measure is funded through EAFRD via the 2014-20 NRDP.SM 13.2 Compensatory payments to areas facing significant natural constraints: the measure is meant to financially support the use of the agricultural land located in areas where agricultural production is lower in terms of quantity and/or quality, due to specific natural conditions. The beneficiaries are active farmers located in areas which are designated as facing significant natural constraints. The aid granted under this measure is compensatory. The compensatory bonus is paid on an annual basis, as a fixed amount, granted per surface unit (hectare) and is a compensation for income losses and additional costs incurred by the farmers which conclude annual voluntary commitments to continue agricultural activities in the designated areas. The measure is funded through EAFRD via the 2014-20 NRDP.

Surface area receiving support[Mil ha] / 3.4

3,15 3,15 3,15 3,15

SM 13.3 Compensatory payments to areas facing specific constraints: the measure is meant to financially support the use of the agricultural land located in the Danube Delta Biosphere Reservation. The beneficiaries are active farmers located in these areas. The aid granted under this measure is compensatory. The compensatory bonus is paid on an annual basis, as a fixed amount, granted per surface unit (hectare) and is a compensation for income losses and additional costs incurred by the farmers which conclude annual voluntary commitments to continue agricultural activities in the designated areas. The measure is funded through EAFRD via the 2014-20 NRDP.

Surface area receiving support[Mil. ha] / 3,1

3,1 3,1 3,1 3,1

Outcome 3.1.3: Sustainable use of local agri-food resources through conservation of local old varieties Program 3.2. Reducing the impact of agriculture and the fisheries sector on the environment

Outcome 3.2.1. Increased efficiency of energy use in the fisheries sectorArticle 41 paragraph (1) letter (d) Energy efficiency and climate change mitigation - replacement or modernization of engines. The measure supports the upgrading and / or replacement of engines operating in inland waterways, including the Danube Delta, where the impact of engines on the environment must be limited. Beneficiaries are owners of craft and fishing boats. The support is granted on the basis of an investment project of 1-6 months duration. The measure funded from EMFF through 2014-20 OPFMA.

Number of projects on the replacement or modernization of engines [no] /0

0 0 0 37 (2023)

Article 48 paragraph (1) letter (k) Productive investments in aquaculture- increase of energy efficiency, renewable energy: the measure aims at protecting and restoring aquatic biodiversity and improving aquaculture ecosystems and promoting resource-efficient aquaculture. Eligible beneficiaries are aquaculture enterprises. The measure is funded from EMFF through 2014-2-20 OPFMA.

Number of projects forproductiveinvestments inaquaculture[no] / 0

0 0 0 20

Outcome 3.2.2. Encouraging carbon conservation and sequestration in the agricultural sectorSM 8.1 Support for afforestation/creation of forestry areas: the measure supports the Afforested land area 1000 7,300 7,300 9,130

87


Target 2020

Target 2021

Target 2022

extension of the area occupied by forests at national level, through the afforestation of agricultural land. The beneficiaries are public and private holders of agricultural and non-agricultural land and their associations. The financial aid includes a bonus for setting up forestry plantations and an annual premium per hectare (meant to cover the costs related to forestry plantation maintenance and tending and to provide a compensation for agricultural income losses as a result of afforestation). The measure is financed from the NRDP 2014-20, through the EAFRD.

[ha] / 246 (in 2023)

SM 15.1 Payments for forest -environmental and climate commitments: the measure aims to reduce the number of forest interventions and to provide quiet areas for wildlife development. Beneficiaries are owners of forests included in the National Forest Fund who agree to voluntarily enter forest-environmental commitments for a period of 5 years. Support is in the form of a compensation payment paid annually, as a fixed amount, granted per area unit (ha) and is a compensation for the losses of income and additional costs incurred by forest land owners entering voluntary commitments. The measure is financed from the NRDP 2014-20, through the EAFRD.

Areas under environmental commitments[ha] / 0

10 10 10 479.000 (2023)

Program 3.3. Risk management in agriculture and aquacultureOutcome 3.3.1. Increased farmers’ participation in agriculture environmental risk management instrumentsWine grapes harvest insurance (under the National Support Program): the measure supports insurance of wine grape harvest against natural disasters, damage by animals, pests and diseases. The beneficiaries are wine producers of Romania. The financial aid is granted by reimbursing insurance premiums paid by producers. The measure is financed from the European Agricultural Guarantee Fund (EAGF) and will apply until 2023.

Beneficiaries within the program[no] 300 350 350 -

SM 17.1 Premiums for crop, animal and plant insurances. The support provided under this sub-measure consists in the reimbursement of part of the eligible insurance premium paid by farmers under insurance contracts concluded under the conditions regulated in the sub-measure sheet.

Number of agricultural holdings that receive support

500 1.500 1.500 1.500

...Management of other risksConsolidation of the disease and pest forecasting and warning system: this measure supports information-related activities (i.e. trainings, newsletters, etc.) for users and suppliers of pest control products. Beneficiaries are farmers in crop production and suppliers of pest control products. Funding is provided from the state budget via the National Phyto-sanitary Authority.

Users of pest protection products and service/supplier trained [No]/ 8000

8,000 8,000 16,000 17,000

Agreoexpert system maintenance stations[no] / 630

630 630 700 750

Prognosis and warning bulletins to inform agricultural producers[no] / 4,200

4,200 4,200 4,500 5,000

88


Target 2020

Target 2021

Target 2022

Implementation of the integrated pest management system: this measure supports farmers in using pest control products in a more sustainable and efficient manner as well as raise awareness on the costs related to an intensive use of pesticides. Funding is provided from the state budget via the National Phyto-sanitary Authority.

Specific guidelines on integrated pest management[no] / 1

3 5 10 10

SM 5.1 Support for investments in preventive actions aimed at reducing the consequences of probable natural disasters, adverse climatic events and catastrophic events – public beneficiaries. Within this sub-measure actions will be supported to prevent and limit the spread of African swine fever. Eligible actions for support are investments in disinfection and disinfection facilities, investments in increasing the operational capacity for reducing the diagnostic time by equipping laboratories and acquiring means of transport of samples, purchasing cold rooms for temporary storage of wild animals killed until the results are received. Eligible beneficiaries are public entities with responsibility in the sanitary-veterinary field, public authorities that have border crossing points in administration, public authorities that have in administration the public roads and public administrators / managers of hunting funds. The rate of non-reimbursable public support will be 80% of the total eligible expenses and 100% of the total eligible expenses.SM 5.1 Support for investments in preventive actions aimed at reducing the consequences of probable natural disasters, adverse climatic events and catastrophic events – private beneficiaries. Eligible beneficiaries are farmers, with the exception of unauthorized physical persons and cooperatives (agricultural cooperatives and agricultural cooperative societies), producer groups, established on the basis of the national legislation that serve the interests of members, farmers and farmers groups. Eligible actions for support are investments in installations, equipment and sanitary infrastructure and protection fences, including repellents, within the farms, to ensure biosecurity. The rate of public support will be 80% for individual farmers, out of the total eligible costs and 100% for groups of farmers. The measure is funded from the NRDP 2014-2020, through the EAFRD.

Beneficiaries that receive support – public entities [no.]

Beneficiaries that receive support – agricultural holdings [no.]

50

100

1oo

200

125

400

125

400

State aid to compensate for the damage caused by the African swine fever to households. The measure is a state aid and aims to compensate for the damage caused by the African swine fever to households. The beneficiaries are pig breeders whose animals were killed as a result of measures to stop the evolution and eradicate the African Swine fever. The financial support is established as the difference between the value of a pig at the standard slaughter weight, 100 kg and the value in the evaluation sheet for the animals killed under the standard slaughter weight. The measure is financed from the national budget.

Beneficiaries/No./0 - - - -

SM 5.2 Support for investments in preventive actions aimed at reducing the consequences of probable natural disasters, adverse climatic events and catastrophic events – private beneficiaries. Within this sub-measure, actions will be supported for the repopulation and restoration of LIVESTOCK destroyed as a result of an epizootic in the event of national recognition of the disaster by the competent authorities. Actions eligible for support are

Total public expenditure [000 EUR]

13500 13500 13500 13500

89


Target 2020

Target 2021

Target 2022

investments for the purpose of restoring the production potential through the acquisition of breeding animals both for the repopulation of the affected farms and for their re-profiling by populating with other animal species; adaptation of animal breeding areas. The beneficiaries are farmers, with the exception of unauthorized physical persons and cooperatives (agricultural cooperatives and agricultural cooperative societies), producer groups, established on the basis of national legislation, which serve the interests of the members. The rate of public support will be 100%. The measure is funded from the NRDP 2014-2020, through the EAFRD.Outcome 3.3.2. Increased hail protection, in the areas protected through the implementation of the National System for Anti-hail and Precipitation IncreaseNational System for Anti-hail and Increase of Precipitations supports efforts to help reduce the risk of dangerous (hail, dense fog) or harmful weather events (prolonged drought) and to increase precipitations (rain, snow) in areas of interest in Romania. The beneficiaries are farmers in affected areas. Financial support is granted annually, based on the Program for Achieving the National Anti-hail and Precipitation Increase System. The measure is financed from the national budget for the period 2010-24.

Protected area [000ha] / 290 400 600 600 600

Program 3.4: Management of natural resources in the fisheries sector

Outcome 3.4.1: Reducing the impact of fisheries on the environment

Article 38 Limitation of the impact of fishing on the marine environment and adaptation of fishing to the protection of species [+ article 44 paragraph (1) letter (c) Inland fishing: the measure shall stimulate the phasing-out of discarding practices and facilitate the transition to sustainable exploitation of living marine biological resources. Beneficiaries are fishermen, fishermen organizations and fishing vessel owners. The measure is funded from EMFF through 2014-2020 OPFMA

Projects for conservation measures, limiting the impact of fishing on the marine environment and adapting fisheries to species protection [no] / 0

0 0 0 2 (2023)

Art.40 Paragraph (1) letter (a) Protection and restoration of marine biodiversity and ecosystems – removal of lost fishing gear and marine litter: the measure supports the collection of waste by fishermen from the sea, such as the removal of lost fishing gear and marine litter. The main beneficiaries are holders of the Marine Commercial Fisheries Permit, as appropriate. The measure is funded from EMFF through 2014-20 OPFMA.

Projects for protection and restoration of marine biodiversity and eco-systems [no] / 0

0 0 0 3 (2023)

Outcome 3.4.2 Protecting and restoring aquatic biodiversity and improving ecosystems related to aquaculture and promoting resource-efficient aquacultureArticle 48 paragraph (1) letter (j) Productive investments in aquaculture – efficiency of resource use, reduction of water use and chemicals, closed recirculation systems: The measure supports investment that promotes aquaculture systems where aquaculture products are reared in closed systems with water recirculation, minimizing the amount of water used. Eligible beneficiaries are any enterprises operating in aquaculture production. The amount of financial support varies from 30 to 70%, depending on the type of beneficiary. The

Number of projects regarding aid for productive investments in aquaculture[no] / 0

0 0 0 2 (2023)

90


Target 2020

Target 2021

Target 2022

measure is funded from EMFF through 2014-20 OPFMA.

Article 51 Increasing the potential of aquaculture sites: the measure support activities related to the identification and mapping of the most suitable areas for developing aquaculture. Eligible beneficiaries are public authorities with responsibilities and expertise in this field. The measure is funded from EMFF through 2014-20 OPFMA.

Number of projects on increasing the potential of aquaculture sites / public and animal health [no] / 0

0 0 0 2 (2023)

Article 53 Conversion to eco-management and audit schemes and organic aquaculture: the measure supports conversion from conventional aquaculture production to organic aquaculture. Financial aid is granted as a compensation for a period of maximum three years taking into account the losses incurred while transitioning to organic production methods. Eligible beneficiaries are beneficiaries who commit themselves to comply with the requirements for organic production for a minimum of five years. The measure is funded from EMFF through 2014-20 OPFMA.

Number of projects on reducing the impact of aquaculture on the environment [no] / 0

0 0 0 15 (2023)

Outcome 3.4.3: Promoting an aquaculture with a high level of environmental protection, promoting animal health and welfare as well as promoting public health and safety

Article 54 Aquaculture providing environmental services: the measure supports aquaculture methods that are compatible with specific environmental needs and subject to specific management requirements resulting from the designation of NATURA 2000 areas. The financial support is granted annually as a compensation for the income foregone/additional costs incurred as a result of the management requirements imposed by Natura 2000 sites. Beneficiaries are economic operators engaged in aquaculture production in Natura 2000 sites. The measure is funded from EMFF through 2014-20 OPFMA.

Number of projects on reducing the impact of aquaculture on the environment [no] / 0

25 25 25 45 (2023)

Article 56 Animal health and welfare measures: the measure supports the development of general and species-specific best practices on bio-security or on animal health and animal welfare needs in aquaculture. Eligible beneficiaries are both private and public bodies. The measure is funded from EMFF through 2014-20 OPFMA.

Number of projects on increasing the potential of aquaculture sites and measures on public and animal health [no] / 0

0 0 0 2 (2023)

Program 4.1. Direct support to increase farmers’ incomeOutcome 4.1.1. Reduced gap between agricultural and non-agricultural incomeThe Single Area Payment Scheme (SAPS): the measure aims to ensure greater stability of farmers' incomes and to provide support for agricultural activities in general. The beneficiaries are active farmers in Romania who own more than 1 ha in parcels of at least 0.3 ha. The support is granted per hectare, according to the eligible area. The measure will be financed from EAGF for the period 2014-20.

Surface area subject to payment[000 ha] / 8,531.3 9800 10000 10200 10400

Transitional National Aids (TNA): the measure aims to provide an additional income support for farmers and to complement the existing income support from SAPS. The total amount that can be granted to farmers in crop and livestock production will decrease gradually by 2020 (with 5 percent per year). The beneficiaries are farmers who are eligible for SAPS and farmers

Surface area subject to payment [000 ha] / 6,779.7

6.779,7 6.800 6.800 6.800

91


Target 2020

Target 2021

Target 2022

who have livestock. The financial support is awarded per hectare or per animal head based on submission of a payment application. The measure is financed from national funds within the budget available and applies until 2020.

- Crops - Animals

Animals subject to payment [no] / Bovines + sheep/goats 10000000

10000000TBD TBD

Program 4.2. Diversification of economic activities in rural areas, including in coastal and inland communities dependent on fishing and aquacultureOutcome 4.2.1. Increased employment in non-agricultural economic activities, in rural areasSM 6.2 Business start-up for non-agricultural activities in rural areas: this measure supports the creation of new non-agricultural activities in rural areas by small farmers or small entrepreneurs. Beneficiaries are farmers or members of an agricultural holding and micro-enterprises and small enterprises. The financial support will not exceed 200,000 euros/beneficiary over three fiscal years and will be awarded based on a business plan. Support will be given as a lump sum. This measure is funded from the NRDP 2014-20, through the EAFRD.

Beneficiaries receiving support [no] / 178

758 1337 1917 1963(2023)

SM 6.4 Investments in creation and development of non-agricultural activities: this measure supports the development of existing non-agricultural activities in rural areas. Beneficiaries are non-agricultural micro-enterprises and small enterprises in rural areas as well as farmers or members of agricultural holdings which diversify their activities into non-agricultural ones. Support will be awarded as a reimbursement of eligible costs incurred effectively and will not exceed 200,000 euros/beneficiary over three fiscal years. This measure is financed out of the NRDP 2014-20 budget through the EAFRD.

Beneficiaries receiving support [no] / 179

422 665 908 974 (2023)

SME guarantee scheme: this measure supports the SMEs that work in rural areas by providing guarantees for the credits taken in order to implement the projects selected as part of the measures described above. The beneficiaries are micro-enterprises that are financially supported for developing non-agricultural activities in rural areas. The financial aid is awarded as a guarantee for the credits given in order to implement the project that has been selected for financing. The maximum guarantee and the period covered by the guarantee are established for each credit separately depending on the characteristics of the credit and in compliance with the technical fiches of the measures. The scheme is financed from the NRDP 2014-20.

Guarantees granted [no] / 397 397 397 397 397

Value of guarantees granted[Mil EUR] / 43,40

43 43 43 43

Outcome 4.2.2. Promoting growth, social inclusion, job creation and support for employment and labor mobility within coastal and inland communities dependent on fisheries and aquaculture, including diversification of fishing activities and other sectors of the maritime economyArt. 30 Diversification and new forms of income [ article 44 paragraph (4) inland fishing]: The measure supports the investments that contribute to the modernization of the infrastructure specific to the commercial fishing activity, the establishment or modernization of the fishery shelters - in the inland waters and the Black Sea. Beneficiaries are bodies governed by public law, fishermen or fisheries organizations or fishermen associations; NGOs in partnership with fishermen's organizations or fishermen's associations, producer organizations, associations of

Projects for human capital promotion and social dialogue, diversification and new forms of income, new enterprises for fishers and health/safety

18 0 0 8 (2023)

92


Target 2020

Target 2021

Target 2022

producer organizations or interprofessional organizations, as well as other types of private beneficiaries engaged in fishing activities. The measure is funded from EMFF through 2014-20 OPFMA.

[no] / 0

Program 4.3. Access to basic infrastructure and services

Outcome 4.3.1. Improved rural population’s access to running water and sewerage infrastructure, communal roads, educational infrastructure (kindergartens, secondary agricultural-profile education institutions and vocational schools), social infrastructure (nurseries and after-school) as well as the protection of cultural and environmental heritage SM 7.2 Investments in the creation and upgrade of small-scale infrastructure: This sub-measure supports investments in the creation, extension and improvement of the network of roads of local interest, the water and waste water network; the establishment and modernization (including endowment) of kindergartens, the extension and modernization (including endowment) of higher secondary education institutions, the technological development of natural resources and environment protection and professional schools in the agricultural field and the establishment and modernization (including endowment) of nurseries and after-school infrastructure. The main beneficiaries are municipalities and their associations, as well as NGOs for investment in educational (kindergarten) and social infrastructure (nurseries and after-school infrastructure). The non-reimbursable public support granted under this sub-measure to municipalities or their associations will be 100% of the total eligible expenditure and up to 100% for water / sewage projects, subject to the application of Art. 61 of R (EU) No. 1303/2013 in the case of communes, and for NGOs, the non-reimbursable public support under this sub-measure will be 80% of the total eligible expenditure. The measure is funded from the 2014-20 NRDP via the EAFRD.

Funded actions [no] / 311 932 974 1141 1141

Investments in the establishment, improvement or expansion of local basic services for the rural population, including for leisure and for culture and associated infrastructure (sM 7.4). This sub-measure supports investments in the purchase of mobile incinerators and other killing facilities for the destruction of contaminated animals killed or suspected of contamination and the acquisition of means of towing / transport for incinerators. The beneficiaries are public entities with responsibilities in the field. The maximum rate of non-reimbursable public support will be 100% of the total eligible expenses. The sub-measure is funded from the NRDP 2014-2020 through the EAFRD. The expenses can be incurred before the application for financing is submitted, but not earlier than July 31, 2017 in accordance with art. 8, para. (1), lit. a (ivIV) of the GD 226/2015 with subsequent amendments and completions.

Funded actions(nr.)/0 0 41 41 41

SM 7.6 Investments associated with the protection of cultural heritage: This measure supports investments for the restoration, conservation and endowment of buildings / monuments from the cultural heritage of local class interest; restoration, preservation and / or endowment of Class B monastic establishments, including the construction, extension and / or upgrading of access roads to them; modernization, renovation and / or endowment of cultural homes. The

Funded actions [no] / 0

392 422 422 667

93


Target 2020

Target 2021

Target 2022

main beneficiaries are municipalities, NGOs, worship units and authorized natural persons / commercial companies that administer Class B public cultural heritage objectives. For communes, the non-reimbursable public support granted under this sub-measure will be 100% of the total eligible expenditure and for other types of beneficiaries, the non-reimbursable public support under this sub-measure will be 80% of the total eligible expenditure. The measure is funded from the 2014-20 NRDP via the EAFRD.

Program 4.4. Encouraging local community participation in rural developmentOutcome 4.4.1. Increased number of participatory processes of rural development planning and of projects funded under such processesSM 19.1 Preparatory support: this measure supports the implementation of integrated local development strategies through animation activities, institutional building, training, consultation activities, etc. Beneficiaries are public-private partnerships established as a result of a Partnership Agreement. The non-reimbursable support will be granted up to a maximum amount of EUR 20,000 for the local development strategy submitted by the partnership. The intensity of the support will be 100% of eligible expenditure. The measure is financed from the NRDP through the EAFRD fund and will be implemented over 2014-20.

Finalized projects[no.] / 161 161 161 161 120 (in

2023)

SM 19.2 Support for implementation of operations under the community-led local development strategy: this measure supports activities implemented under the local development strategy. Beneficiaries are private/public legal entities, according to the local development strategy measure fiche or with the relevant NRDP measure and/or with the LEADER fiche. Eligible expenditures shall be in line with the ones in the corresponding NRDP/LEADER measure fiche depending on the measure type. The maximum share of the support out of the total eligible expenditures is up to 100 percent - up to a maximum of EUR 200,000 per project. The measure is financed from the NRDP through the EAFRD fund and will be implemented over 2014-20.

Operations funded by Local Action Groups

[no.] /2027

2227 2327 2468 2468

SM 19.3 Preparation and implementation of Local Action Group cooperation activities: this measure supports the involvement of the LAGs in transnational and inter-territorial cooperation projects. Main beneficiaries are the Local Action Groups authorized by MA NRDP. The support under the sub-measure is granted as non-refundable support (grant). The measure is financed from the NRDP through the EAFRD fund and will be implemented over 2014-20.

No. of preparatory technical assistance actions submitted for cooperation/cooperation activities [no.] / 51

70 90 110 110

19.4 Support for running costs and animation: this measure supports running and animation costs related to the functioning of LAGs and the implementation of local development strategies. Main beneficiaries are LAGs. Support shall not exceed 20% (25% for the Danube Delta) of the total public costs incurred for the implementation of the local development strategy. The maximum intensity of support out of the total eligible expenditures is 100%. The measure is financed from the NRDP through the EAFRD fund and will be implemented over

No. of LAGs95

[nr.] / 239239 239 239 120 (în

2023)

95 Funding agreements between Local Actions Groups and payment agencies to fund operating expenditure for the entire programming period.

94


Target 2020

Target 2021

Target 2022

2014-20.Outcome 4.4.2. Increased local community involvement in the development of coastal and inland communities that depend on fishing and aquacultureArticle 62.1.a. Preparatory support: this measure supports the creation of public-private partnerships and elaboration of community-led local development strategies through capacity-building, training, networking and a start-up package for communities which want to become a FLAG. Main beneficiaries are existing FLAGs and public-private partnerships without legal personality. Support shall not exceed 20,000 euros for public-private partnerships that have received support through 2007-13 Fisheries Operational Program (FOP) and 25.000 euros for public-private partnerships that have not received support through FOP 2007-13. The measure is funded from EMFF through OPFMA 2014-20.

Number of projects regarding for training support[no] / 0

20 20 20 28 (2023)

Article 63 Implementation of community–led local development strategies (including operation costs and animation): the measure supports the implementation of local development strategies for activities related to adding value and creating jobs, diversification inside or outside commercial fisheries, enhancing and capitalizing on the environmental assets of fisheries, promoting social well-being in fisheries and aquaculture areas and strengthening the role of fisheries communities in local development. Main beneficiaries are FLAGs or beneficiaries situated on a FLAG territory. The maximum amount of support for FLAG is 2M euros (except Danube Delta). The measure is funded from EMFF through OPFMA 2014-20.

Number of local development strategies selected[no] / 0

18 18 18 22 (2023)

Article 64 Cooperation activities: this measure supports inter-territorial or transnational cooperation projects and preparatory technical support for inter-territorial and transnational cooperation projects on the condition that FLAGs can demonstrate that they are preparing the implementation of a project. Main beneficiaries of support are FLAGs but activities will be implemented in partnership with a local public–private partnership that is implementing a community-led local development strategy within or outside the Union. The measure is funded from EMFF through OPFMA 2014-20.

Number of cooperation projects[no] / 0

0 0 0 6 (2023)

Program 5.1. Improved administrative capacity for sectoral policy management and implementation from agriculture and fishing culture

Outcome 5.1.1. Improving the structural and functional stability of MADR and its subordinated institutions

... Institutional modernization; Increase in effectiveness; Improvement of institutional processes and proceduresRevision of organizational responsibilities and the accompanying procedures, to allow for a better strategy formulation and a smooth implementation of the ISP: the measure aims to ensure that clear leadership in ARD policy formulation is established (with contributions from technical departments) and that all the supporting planning, budgeting, monitoring and evaluation processes and procedures are in place. For this, the structure, functions and responsibilities within MADR will be consolidated, and adequately reflected in the Regulation for Organization and Functioning (ROF). The intention is that all the planning and budgetary procedures, as well as the monitoring and evaluation procedures, are implemented according

Organigram and ROF amendedYes/No

N - Y Y

95


Target 2020

Target 2021

Target 2022

to the approved methodology (100% implemented at a proper quality level), during the strategic plan implementation period. The measure is financed from the State budget, through the administrative budget of MADR, continuously, for the entire 2019-2022 period and has no specific resource allocation (it is a support measure).Developing ICT infrastructure: the measure is meant to ensure the automation (computerization) of institutional processes and procedures for the integrated management of MADR resources, for the integrated management of documents, workflows, information and relations with the public policy beneficiaries, with citizens and collaborating institutions, for the integrated management of statistical information and reports. The measure targets the ministry, its subordinated institutions and their staff, who will use informational technologies in their day-to-day activities. Further to the measure implementation, it is estimated that at least 10 percent of the ministry’s processes and procedures will be automated between 2019 and 2022, and 50 percent of the ministry’s employees will use IT systems during the same period. The necessary resources amounting to RON 8,000,000 allocated for the measure implementation will be ensured from the State budget and from the resources attracted from European funds, through Programs meant for the public administration.

Computerized processes and procedures at the ministry level [%] / 1%Employees using IT systems [%] / 5%Allocated funds (APIA/AFIR) paid via the integrated IT system [%] / 90%

1%

5%

90%

2%

10%

95%

10%

50%

99%

10%

50%

99%

Institutional reform of the Ministry of Agriculture and Rural Development and subordinated institutions96

... Strategic planning and financial management Performance assessment system in place and in use: such a platform will be aligned with the strategic goals for the sector and fully embedded in the MADR’s strategic planning and monitoring process. The performance assessment framework will be introduced to accommodate the need to effectively monitor the ISP implementation and to inform future policy making. It will be seamlessly integrated with the mandatory Common Monitoring and Evaluation Framework (CMEF) for rural development. Through ongoing technical assistance, technical specification, preparatory work and piloting were carried out through mid-2014. Full-fledged operationalization will be pursued throughout the rest of the ISP period (and beyond) and will be financed from national budget resources. Given integration with the CMEF, (some of) the evaluation activities can be funded from the EAFRD, the Technical assistance component.

No of user hits[no] / - 1000* 1000* 1000* 1000*

Development of annual and multi-annual budgetary programs for all internal and external funds allocated: the measure is meant to strengthen budgetary discipline, especially as regards the identification of the ARD administration needs, the programming of internal (national) and external (EU) budgetary resources and the budgetary execution by Program. The ministry will improve its Program budgeting process during the 2017-2020 period, in order to be able to monitor, in this manner, the internal and subordinated structures’ performance relative to the degree of complying with the annual budgetary programming. The measure is

Compliance with the annual budgetary programming[%] / 100%

100% 100% 100% 100%


96


Target 2020

Target 2021

Target 2022

financed from the State budget, through the administrative budget of MADR, continuously, for the entire period and has no specific resource allocation (it is a support measure).... Human resources managementImprovement of the human resources management and adaptation to the organization; specialized staff selected, employed and maintained in the organization, according to the real needs of the ministry: the measure targets a critical component of the public administration in general, i.e. the specialized staff, who have to be selected, employed and maintained within the organization according to the ministry’s actual needs. In this context, it will be critical to close existing staff specialization needs, such as agricultural economists and ICT specialists in MADR. This measure is meant to improve staff structure, as well as processes such as staff recruitment and employment, task assignment to specialized staff, staff motivation, in order to reduce staff turnover within the ARD administration to 15 percent in 2020 and to determine a 90% employment degree relative to the list of posts, within the same period of time. The measure is financed from the State budget, through the administrative budget of MADR, continuously, for the entire 2019-2022 period, and has no specific resource allocation (it is a support measure).

Turnover within the ministry[%] / 30%

Employment relative to the list of posts[%] / 70%

30%

70%

25%

80%

15%

90%

15%

90%

Development and improvement of the vocational training, learning and expertise of the ministry’s specialized staff: The measure beneficiaries are the ARD administration staff, who, by their participation and certification in training and specialization Programs, according to the identified needs and the recommendations established in the annual evaluation process and included in the Annual Training Plan at the organization level, will determine the training degree through specialized courses. The measure is financed from the State budget and budgetary funds amounting to RON (3,236,000) are provided for the entire 2017-2020 period.

Achieving the annual training plan at the organization level[%] / 100%Staff certified by training and specialization programs / total specialized [%] / 12%

100%

12%

100%

16%

100%

22%

100%

22%

... Transparency and free access to public informationImprovement of transparency in decision-making– drafting of policies/ legal framework; reporting compliant with the transparency law(s): the measure targets the implementation and reporting compliant with the legal procedures of the ARD administration’s activity, with regard to the free access to information of public interest – Law 544/2001, as updated and Law 52/2003 on the decisional transparency. Transparency is one of the declared values of MADR, that supports its activity within the public policies development and implementation and that will be applied and ensured unconditionally within the implementation of the ISP, so as to obtain the maximum degree of compliance (100 percent compliance for all the actions that require the implementation of Law 544/2001 and Law 52/2003) with legal procedures, as well as public information, through the complete publication of the reports required by law. The measure is financed from the State budget, through the operational budget of MADR, continuously, for the entire 2019-2022 period and has no specific resource allocation (it is a support measure).

Consistency with legal procedures (number of inconsistencies)[%] / 100%Reports published acc. Law 544/2001[no] / 1 Reports pub. on Law 52/2003[no] /1Average turnaround time to respond to Freedom of Information requests

100%

1

1

100%

1

1

100%

1

1

100%

1

1

97


Target 2020

Target 2021

Target 2022

[day]/ - Visits to MADR sector and policy evaluation reports (online)[no/year] / -

23

100

20

100

20

100

20

100Informing farmers and public policy beneficiaries about the programs dedicated to the agricultural and rural sector: the measure supports the ISP implementation process and the fulfillment of its indicators, as well as the success of ARD sectoral Programs which depend on the transfer of accurate information, without any limitations and regularly, to farmers and public policy beneficiaries. The ministry and its subordinate structures will prepare the information in accordance with the agricultural sector Programs and will provide it to the public through communication instruments and methods, on a scheduled basis. The measure is financed from the State budget, through the administrative budget of MADR, continuously, for the entire 2019-2022 period and has no specific resource allocation (it is a support measure).

Number of events and information campaigns conducted [no] / 10

10 12 12 12

Outcome 5.1.2. Increased effectiveness of ARD policy formulation and implementation... Public policies development and communication with interested partiesOperationalization of ARD public policy impact analyses and policy making feedback loops: the measure targets the qualitative content of the drafting of public policy documents and their impact analyses in the ARD sector. Impact analysis will expand to the non-EAFRD funded measures and include all programs and measures presented in the ISP. The measure regards the specialized staff of MADR and all the stakeholders involved in the formulation of public policy documents and impact analyses in ARD (other public institutions, professional associations, non-governmental organizations, farmers), so as to ensure that the formulation of public policy documents and impact analyses totally comply (100% in terms of quality) with the ministry’s approved procedure and international good evaluation practice, throughout the ISP implementation period 2017-20. The measure is financed from the State budget, through the administrative budget of MADR, continuously, and has no specific resource allocation (it is a support measure).

Public policies documents in line with the ministry’s approved procedure[%] / 100%

100% 100% 100% 100%

Accounting data collection and dissemination for revenue calculation and economic analysis of agriculture standardized lots under CAP development: the measure is supporting the development of Common Agriculture Policy by collecting and sending data regarding the revenues of agricultural exploitations as a component of MADR obligation in front of EU Commission. The measure will be performed during 2017-2020 period and is financed from the State budget, through the administrative budget of MADR, continuously, and has no specific resource allocation (it is a support-type measure), expecting to produce a number of

Number of questionnaires sent to the EC[no] / 6000Number of FADN annual reports [no] / 1No. of individual reports [No] / 6,000

6,000

1

6,000

6,000

5

6,000

6,000

20

6,000

6,000

20

6,000

98


Target 2020

Target 2021

Target 2022

FADN annual reports regarding the economic situation of agricultural holdings participating in the FADN survey (to be carried out after data validation by the EC) and individual reports for the holdings participating in the survey Questionnaires paid by the EC.

Questionnaires paid by the EC[No] / 6,000 6,000

9606,000990

6,0001,002

6,0001,002

Inter-institutional collaboration and experience sharing with relevant national and international organizations: the measure targets the development of MADR’s institutional capacity, especially in terms of national and international collaboration; it equally aims at strengthening inter-agency partnership, at the national level, which is critical for the success and effectiveness of the ARD policies. The direct beneficiary of the measure is the ARD administration, who intends to establish, between 2017 and 2020, (19) partnerships and collaborations with international institutions (e.g.: European Commission, FAO) as well as an active presence at the EU level (drafting Romania’s positions for all the actions of the European Council, the Special Agriculture Committee and the working meetings within the Working Groups). Additional partnerships will be sought with the National Agency for Cadaster and Land Registration, ANCPI, the Ministry of Labor, Family and Social Protection, MMFPS, the Ministry of National Education, MEN, and the Ministry of Public Finance, MFP. The measure is financed from the State budget, through the administrative budget of MADR, continuously, for the entire 2019-2022 period and has no specific resource allocation (it is a support measure).

No of partnerships[no] / - 10 14 15 15

Technical assistance (except for the rural development network): a support measure whereby projects and major actions are carried out to increase the managing capacity of the managing authorities – general directorates within MADR, within the implementation of the Programs financed from European funds, the Rural Development National Plan, results of the public policies in the agricultural sector. The technical assistance is supported throughout the ISP period and will be carried on until 2020. The measure is financed from European funds, i.e. EUR (34.16) million, and envisages (107) financed projects whose direct beneficiaries are MADR and the general directorate which is the managing authority for the NRDP.

Financed contracts [no] /107

Public expenditure [Mil EUR] / 34.16

107

34

107

34

107

34

107

34

Technical assistance OPFMA: a support measure aimed at enhancing the capacity of the Managing Authority for Fisheries and the relevant authorities involved in the OPFMA implementation as well as aimed at information and training activities for OPFMA beneficiaries. The technical assistance is supported throughout the ISP period and will be carried on until 2020. The measure is funded from EMFF through OPFMA 2014-20.

Public expenditure[Mil EUR] 0 0 0 3

Outcome 5.1.3 Supporting the implementation of the Common Fishery Policy and the Integrated Maritime PolicyArticle 77 Data collection: this measure supports the improvement of coordination between the scientific partners and the authorities responsible for implementing the data collection framework and the improvement of the computerized databases by creating an interoperable central database. The main beneficiaries are the public authorities involved in data collection activities in the fisheries sector. The financial aid covers 100 percent of the total eligible

Number of projects regarding collecting, managing and data using[no] / 0

1 1 1 2 (2023)

99


Target 2020

Target 2021

Target 2022

expenditure. The measure is funded from EMFF through OPFMA 2014-20.Article 76 Control and enforcement: the measure ensures support for monitoring, control and enforcement, strengthening institutional capacity and efficient public administration without creating additional administrative burdens. Eligible operations include the acquisition and development of hardware and software technology for data transmission and traceability of fisheries and aquaculture products, implementation of data exchange programs, cost-benefit analyzes, training and exchange programs, etc. The beneficiary is the public authority involved in national control and enforcement activities in the fisheries sector. The financial aid covers 100 percent of the total eligible expenditure. The measure is funded from EMFF through OPFMA 2014-20.

Number of projects regarding applying EU control system, inspection and execution[no] / 0

2 2 2 7 (2023)

Article 80 paragraph (1) letter (a) Integrated Maritime Surveillance (IMS): the measure will support the development and implementation of the common information sharing environment (CISE) as well as the integration of existing databases currently used across different institutions. Beneficiaries are authorities engaged in maritime surveillance. The measure is funded from EMFF through OPFMA 2014-20.

Number of projects regarding integrated marine surveillance[no] / 0

1 1 1 1 (2023)

Outcome 5.1.4. Increasing the efficiency of using MADR’s administrative budget Developing the analysis, audit, control and risk management capacity of MARD: the measure covers a very important component of MADR activity (audit, control and risk management) and supports the development of the operational capacity in the field. The beneficiaries are directorates, agencies, units, inspectorates which carry out activities that require a risk management strategy developed, according to international procedures and standards, and instruments and means to control of the implementing process. By applying the measure, the ARD administration aims to increase the compliance of controlled entities’ actions with risk avoidance standards, on the one hand, and to ensure that the monitoring plans specific to each control, audit and inspection unit are totally fulfilled. The measure is financed from the State budget, through the administrative budget of MADR, continuously, for the entire 2019-2022 period and has no specific resource allocation (it is a support measure).

Compliant specific monitoring plans[%] / 100%

100% 100% 100% 100%

Securing and using external and extra-budgetary funds for the development of the administrative and institutional capacity: the measure targets the use of financing opportunities from external and extra-budgetary resources (Operational Program – Administrative Capacity Development, Sectoral Operational Program – Economic Competitiveness Increase, Sectoral Operational Program – Human Resources Development) to develop the ARD administration and its capacity to draft and implement public policies and sector development Programs. MADR aims to develop the internal capacity of drafting applications for funding and implementing the projects financed from extra-budgetary and external (mostly European) funds. MADR aims to apply for the funding of projects that also result in the support of at least some of the measures of Program 5.1, and the reduction of the administrative budget burden. The measure is financed from the State budget, through

Used /annually allocated funds[%] / 95%

Funds used for institutional capacity development from external sources vs. administrative budget)[%] / 0.62

95%

0.70%

95%

0.70%

95%

0.75%

95%

0.75%

100


Target 2020

Target 2021

Target 2022

the administrative budget of MADR, continuously, for the entire period 2019-2022 and has no specific resource allocation (it is a support measure).Effective and efficient operation of the services provided by coordinated entities of the ministry: the measure is meant to ensure that each coordinated entity fulfils its annual objectives established under its own activity plan, so that the activity plan is 100 percent achieved in accordance with the responsibilities included in the ROF of each structure (planned vs. achieved). The target group of the measure consists of ministry’s subordinate agencies, and the funds for the measure amount to RON, provided from the State budget (the operational budget of MADR / agencies), which is distributed according to the number of employees/structure (see Annex 1). By fulfilling the activity plan (annual operational plan as part of the Internal Managerial Control System) of each agency, its directorates, units or departments and by relating the plan to the allocated budget, the degree of achieving the structure’s (organization’s) performance indicators, as well as the performance indicators of each specialist within the ARD administration will be determined. The measure is continuous and will apply throughout the ISP implementing period, i.e. 2019-22.

Annual operational plan implementation[%] / -

95% 100% 100% 100%

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ANNEX 4. INFORMATION REGARDING ISP COMPONENTS Annex 4.1. Institutional Profile

Within the Romanian government, MADR holds the key responsibility for developing, implementing, coordinating and monitoring agricultural, fisheries and rural development policies. In addition, MADR manages three of the most complex and costly EU-funded programs, which account for more than 50% of Romania’s financial envelope for the 2014-2020 period. Given the share of population currently living in rural areas as well as the number of people engaged in the agri-food sector overall, MADR has a challenging but essential mandate.

But MADR’s capacity to effectively steer sectoral policies and programs is currently hindered by strategic and operational deficiencies. Firstly, strategy and policy formulation remain fragmented as a result of unclear roles and procedures and a lack of integration of the different departmental efforts. Secondly, deficiencies linked to professional and human capacity and management of sector information weaken MADR’s capacity to professionally deliver its services to farmers and rural populations. Lastly, a centralized and excessive bureaucracy decision-making and a lack of performance assessment impede an effective administration of resources and dampen accountability.

With the implementation of this Institutional Strategic Plan, MADR is committed to improving its institutional framework to better serve the interests of its beneficiaries. MADR is committed to optimizing policy formulation and coordination, by strengthening its knowledge base and clarifying institutional responsibilities. MADR is also committed to enhancing access of farmers and rural population to information and advice while ensuring an effective and efficient use of national and international resources.

MADR subordinated agencies and decentralized services are as follows (according to GD 30/2017 concerning the organization of the Ministry of Agriculture and Rural Development):

Agency for Payments and Interventions in Agriculture (APIA) Agency for Rural Investment Financing (AFIR) National Agency for Livestock (ANZ) "Prof. Dr. G. K. Constantinescu" Agency for Mountain Areas (AZM) National Agency for Land Improvement (ANIF) National Office for Vine and Wine Products (ONVPV) State Institute for Variety Testing and Registration (ISTIS) State Domain Agency (ADS) National Authority for Fisheries and Aquaculture (ANPA) National Phytosanitary Authority County Directorates for Agriculture and Bucharest Municipality Directorate for Agriculture Offices of pedological and agro-chemical studies of the county Authority for the Administration of the National Anti-Garden and Precipitation Rainfall

System Territorial inspectorates for the quality of seed and planting material - deconcentrated

public services The Central Laboratory for Quality Control and Wine Hygiene The Central Laboratory for Seed and Planting Material

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Annex 4.2. SWOT Analysis

SECTOR STRENGTHS WEAKNESSESAgri-food production

Significantly large agricultural areas, with a high share of arable land and natural pasturesWide range of traditional products registered on national quality schemesHalf of the agricultural area is used by market-oriented farmsIncreasing number of graduates of agricultural universitiesGood uptake of innovative technologies by large farmsExposure to global markets via the Black Sea and the Danube Utilization of natural pastures by animal husbandryExistence of value resources available for processing as a result of investmentsExperience and tradition in processing domestic products (eg meat)

Low agricultural productivity far below the potential, especially in the livestock sectorWeak access to capitals and creditsSmall and medium size farms, using low levels of inputs (fertilizers, pesticides and certified seeds), overpassed tractorsUnorganized supply chain (distance from farm to market)Inadequate marketing and processing infrastructure Marketing channels are inappropriate for smaller farmsAgri-food trade deficit triggered by imports of high value-added products and exports of raw materials (cereals, oilseeds, etc.) Extremely fragmented agricultural land with negative impact on land market and serious malfunctions in the land marketDual focus of agriculture with a high share of holdings without legal personalitySlow land registration in the cadasterLarge number of small farmers not eligible for Pillar 1 and Pillar 2 supportLarge numbers of aged farmersLarge share of subsistence (and semi-subsistence) farms Slow transfer of land towards young farmersInactive public advisory services for lack of staffSmall number of producer organizationsLack of research-practice links in agricultureReduced range of products registered on European quality schemesLack of young people's interest in working in the agricultural field

Env. & climate

Large areas with good farming conditions for agricultural productionFertile soil and favorable climate conditionsRichness in diversity of natural resources and local productsRelatively high share of forests in UAAWide range of renewable energy sourcesDiverse natural environmentLimited use of mineral fertilizers and plant protection products (pesticides)Significant area of agricultural lands under agri-environmental commitmentsLow levels of GHG emissions from agriculture

Declining soil and water qualityWeak coverage and poor condition of the irrigation systemHigh vulnerability of agriculture to natural risks (soil erosion, landslides, drought, hail, frost, floods)Decreasing biodiversity in rural areasLow levels of organic farming

Rural areas

High share of rural areasLocally available labor force

High share of low productivity labor inputAgeing population with a low education level

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Rich rural heritage (traditions, nature, traditional architecture) Internal mobility of rural labor force Positive attitude towards small entrepreneurships

High unemployment rates among young generationsLow quality social infrastructure (hospitals, kindergartens, etc.)Weak initiatives for local development Low wages in rural areasPoor basic and general rural infrastructure (roads, water/waste treatment, broadband, energy and gas networks)

SECTOR OPPORTUNITIES PROBABILITY (High/Medium/Low)

IMPACT (High/Medium/Low)

Agri-food production

Projected increase in food demand HIGH HIGHIncreasing demand for organic production

MEDIUM HIGH

Growing demand for products registered on national and European quality schemes

MEDIUM HIGH

Access to significant EU financial resources (European Structural and Investment Funds)

HIGH HIGH

Rising interest of young generations to engage in agriculture

MEDIUM MEDIUM

Environment & climate

Access to financial resources for greening and environment activities (CAP pillar 1 and 2)

HIGH HIGH

Large-scale access to technologies for producing energy from renewable sources

MEDIUM MEDIUM

Public policies for sustainable management of natural resources

HIGH MEDIUM

Rural areas Large opportunities for developing agro-tourism activities

MEDIUM MEDIUM

Diversification of rural economy creates employment opportunities outside agriculture

MEDIUM MEDIUM

Rural job creation through development of non-agricultural businesses (manufacturers, services, etc.)

MEDIUM MEDIUM

Possibility to use remittances for investment purposes

LOW MEDIUM

Rising interest of young generations to engage in non-agricultural activities in rural areas

MEDIUM MEDIUM

SECTOR THREATS PROBABILITY (High/medium/low)

IMPACT (High/medium/low)

Agri-food production

Insufficient absorption of EU funds MEDIUM HIGHPolitical instability MEDIUM MEDIUMForeign competition (including for organic products)

MEDIUM MEDIUM

Outdated skills and knowledge of staff in the public system

MEDIUM MEDIUM

Mismanagement of agricultural production practices resulting in increased pollution

MEDIUM HIGH

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Decreasing agricultural employment possibilities

MEDIUM MEDIUM

Maintaining the research-practice gap MEDIUM MEDIUMIncreasing prices for energy and other inputs

MEDIUM HIGH

Environment & climate

Accelerated climate change and frequent occurrence of natural disasters and adverse weather conditions

LOW HIGH

Poor management of natural hazards LOW HIGHNatural hazards and increased soil erosion resulting from deforestation

LOW HIGH

Decreasing water supply due to climate change

MEDIUM MEDIUM

Increased temperature and changing precipitation patterns

MEDIUM MEDIUM

Decreased biodiversity due to mass expansion of genetically modified crops

MEDIUM MEDIUM

Abandonment of agricultural activities, with negative influences on biodiversity, soil quality, landscapes, especially in areas affected by natural constraints

MEDIUM MEDIUM

Loss of genetic resources associated with the local breeds in danger of abandonment

MEDIUM MEDIUM

Rural areas Depopulation of rural areas due to out-migration and ageing population

LOW HIGH

Migration of young and skilled rural population to urban areas

MEDIUM MEDIUM

Heavy investments and deployment time required by the upgrade of rural Infrastructure

MEDIUM MEDIUM

Widening urban-rural income gap MEDIUM MEDIUMIncrease of poverty and social exclusion in rural areas

MEDIUM HIGH

Loss of cultural heritage and rural traditions

MEDIUM MEDIUM

Failure of local development strategies MEDIUM MEDIUM

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Annex 4.3. PESTLE Analysis

The tables below examine the major internal and external factors that might impact the mission and activities of MADR in the following three years. These factors are Political, Economic, Social, Technological, Legal and Environmental. Factors with a potential negative impact and a high probability were highlighted in grey.

PESTLE analysis – POLITICAL FACTORS (P)

FACTOR IMPACT PROBABILITY IMPLICATIONS

Measures for risk reduction

Measures for harnessing

opportunitiesRomania is a democratic state where the rule of law is respected

Positive High An attractive and enabling environment for economic development

Promoting Romania’s opportunities for economic investments

Frequent political changes at government level

Negative High Uncertainty about strategic priorities, long decision-making processes, efforts which have not been capitalized

Multiparty political endorsement of national prioritiesMulti-annual program budgeting

Political interest to attract foreign investment

Positive High Favorable conditions to attract foreign investments in priority areas for Romania


Favorable geopolitical context for investment

Positive High Favorable conditions to attract foreign investments in priority areas for Romania


Tense situation from a geopolitical point of view

Negative High Need to consolidate position in the region, within EU and NATO

Increase investment expenditure on defense industry Increase capacity for representation at EU level

Migratory wave from conflict areas

Negative High High flow of immigrants, social pressure, labor market pressure and budgetary pressure

Promoting and defending Romania’s interests within the EU for adopting a common policy for migration and a coherent strategy for migration management

Implementation of EU programs and strategies

Positive High Stability and predictability in implementing public policies

Promoting Romania’s interests within the EU

Romania’s EU Presidency in 2019

Positive High Promoting Romania’s interests at EU level and consolidating the capacity of its institutions

Preparing for the future presidency position, ensuring and training the necessary staff

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PESTLE analysis – ECONOMIC FACTORS (E)



Measures for harnessing opportunities

Pressure to increase wages as a result of increases in public sector wages

Negative High Decreasing the competitiveness based on low labor costs, particularly in agriculture and food industry

Investment in research and innovation, energy efficiency and technical upgrades to compensate for high labor expenditure Adoption of fiscal policies to compensate for the rise in wages

Development of sectors with high potential (e.g. beef, horticulture, etc.)

Positive High Investment potentialIncreased revenues and import substitutionIncreasing value added

Implementation of public policies which favor investment and development of high-potential sectors

Opening of new markets

Positive Medium More opportunities for Romanian agri-food companies

Promoting Romania’s agri-food productsConsolidating Romania’s commercial relationship with other states

EU-funded projects which allow for employment of highly-specialized labor force in rural areas

Positive High Increasing administrative capacity

Employing the workforce after the EU funding has finished

Economic turmoil/ uncertainty as a result of unsustainable economic growth and low budgetary resources

Negative High Slowing down economic growth

Avoiding pro-cyclical measures Reducing measures which have a negative impact on businesses

Sales of imported agri-food products replace domestic ones

Negative High Domestic demand is met by imports instead of local production

Continue supporting small and medium-sized farms to develop and market their production Promote agri-food production both domestically and internationally

107

PESTLE analysis – SOCIAL FACTORS (S)




Unfavorable demographic trends

Negative High Lack of human resources Significant burden on the economy

Adoption of policies to increase birth rates, maintain young generations in the country and encourage the comeback of Romanian immigrants

Lack of adequately trained and skilled workforce

Negative High Mismatch between business needs and education goals Lack of foreign investment

Alignment between education and business Encourage workforce mobility and lifelong learningEncourage apprenticeships and internship schemes

High levels of poverty among rural populations

Negative High Depopulation of rural areasLack of private investments in rural areas

Promoting measures for poverty reductionEncouraging investments in rural areas in physical and social infrastructure

Rising trend of ageing rural and farm populations

Negative Medium Depopulation of rural areasLow productivities in agriculture and related industries

Promoting measures to attract younger generations to rural areasPolicies to improve physical and social infrastructure in rural areas

PESTLE analysis – TECHNOLOGICAL FACTORS (T)




Domestic and international research and innovation leading to significant technological discoveries in the agri-food sector

Positive High Potential productivity improvements for the Romanian agri-food sectorPotential savings of water, energy and agricultural inputs

Creating an enabling environment for domestic research & developmentImproving links between science and practiceImproving the quality of farm advisory services

Use of new technologies and online environments

Positive High Improve investment potentialImprove productivities

Support the introduction and use of new technologies in the agri-food sector and in rural areasImprove broadband infrastructure in rural areas

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PESTLE analysis – LEGAL FACTORS (S)




opportunitiesUncertainty and complexity of legal framework

Negative High Lengthy and rigid legal framework creating confusions and high administrative costs

Examining administrative burdens for agri-food businesses Ensuring integration and interconnectivity of IT systems in the public sector

Revisions to the Common Agricultural Policy following the performance assessment

Negative/Positive High Adjustments to national legislation in light of the CAP revisionsPotential improvements in service delivery

Promoting Romania’s interests in relation to CAP implementation

PESTLE analysis – ENVIRONMENTAL FACTORS (S)




opportunitiesGlobal trends favoring green economies and resource efficiency in agri-food

Positive High Shift towards a more resource-efficient agri-food sector

Adoption and implementation of public policies encouraging resource-efficient economies

Shift in consumption of sustainable, low GHG agri-food products

Positive High Higher demand for organic, low GHG productsIncreased revenues for small and medium-sized farmers

Encouraging organic/sustainable agri-food production and marketing

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Annex 4.4. Policies and Strategies

Policies

EU Common Agricultural Policy EU Common Fisheries Policy EU Integrated Maritime Policy EU Policy on climate change EU Biodiversity policy

Strategies

Europe 2020 Strategy EU Strategy for the Danube Region EU Biodiversity Strategy 2020 EU Strategy on Adaptation to Climate Change Romanian Partnership Agreement for the 2014-2020 Programming Period National Strategy for Sustainable Development, 2020/2030 Medium- and Long-Term Strategy for Agricultural and Rural Development 2020/2030 National Strategy for Biodiversity Conservation National Strategy for Competitiveness 2014-2020 Strategy for Investment in Irrigations Strategy for Combating the Effects of Droughts National Strategy and Action Plan for Biodiversity Preservation 2010 – 2020 National Strategy for Climate Change 2013-2020

Treaties/international agreements

Romania’s Accession Treaty to the European Union

Annex 4.5. Organizational Chart

The cross-sectoral nature of MADR’s mandate is reflected in its organizational chart. However, as seen below, MADR’s organizational chart describes a rigid compartmentalization of responsibilities and an ambiguous division of tasks between departments. For instance, strategy formulation and development is subject to vertical integration, while coordination and horizontal links are missing. 97

In addition, many of MADR’s responsibilities have been shifted several times to other line ministries. The agency in charge with fisheries and maritime affairs, for example, has been transferred several times from MADR to the Ministry of Environment and Climate Change.

Institutional fog and compartmentalization of tasks has severe implications on MADR’s performance. Besides staff demotivation and loss of institutional memory, MADR’s performance is weakened by a limited capacity to develop and monitor medium and long-term policies.

97 For more details, see 2010 ARD Functional Review, World Bank.

110

111Source: www.madr.ro

http://www.madr.ro/

Annex 4.6. Relevant National Legislation

Horticulture

Hotărârea Guvernului nr. 1078/2008 privind acordarea de sprijin financiar grupurilor de producători recunoscute preliminar şi organizaţiilor de producători în sectorul fructe şi legume

Ordinul nr.694/2008 privind condiţiile de recunoaştere a organizaţiilor de producători şi a grupurilor de producători recunoscute preliminar în sectorul fructe şi legume, precum şi modul de accesare a sprijinului financiar de către acestea cu modificările şi completările ulterioare.

Ordinul nr. 243 din 5 noiembrie 2012 privind furnizarea fructelor proaspete în şcoli.

Vine

LEGE nr. 164 din 24 iunie 2015 a viei şi vinului în sistemul organizării comune a pieţei vitivinicole;

LEGEA nr. 63/2016 privind susținerea financiară a grupurilor de producători sau cooperativelor agricole de producători vitivinicoli care dețin și exploatează plantații viticole cu soiuri nobile și pentru încurajarea valorificării producției de vin;

HOTĂRÂREA GUVERNULUI nr. 512/2016 pentru aprobarea Normelor metodologice de aplicare a Legii viei şi vinului în sistemul organizării comune a pieţei vitivinicole nr. 164/2015;

HOTĂRÂREA GUVERNULUI nr. 578/2014 privind stabilirea modului de acordare a sprijinului financiar din partea Uniunii Europene pentru producătorii din sectorul vitivinicol în perioada 2014 – 2018, cu completările ulterioare;

Crops

Hotărârea Guvernului nr. 1174/2014 privind instituirea unei scheme de ajutor de stat pentru reducerea accizei la motorina utilizată în agricultură, cu modificările și completările ulterioare;

Legea nr. 145/2014 pentru stabilirea unor măsuri de reglementare a pieței produselor din sectorul agricol, cu modificările și completările ulterioare;

Ordinul nr. 1846/2014 privind punerea în aplicare a prevederilor art. 5 alin (1) din Legea nr. 145/2014 pentru stabilirea unor măsuri de reglementare a pieței produselor din sectorul agricol.

Ordinul nr. 20/2015 privind punerea în aplicare a prevederilor art. 9 alin. (1) din Legea nr. 145/2014 pentru stabilirea unor măsuri de reglementare a pieţei produselor din sectorul agricol, cu modificările și completările ulterioare;

Ordonanţa de Urgenţă nr. 3/2015 pentru aprobarea schemelor de plăţi care se aplică în agricultură în perioada 2015-2020 şi pentru modificarea art. 2 din Legea nr. 36/1991 privind societăţile agricole şi alte forme de asociere în agricultură, cu modificările și completările ulterioare;

Hotărârea Guvernului nr. 219/ 2015 privind stabilirea sectoarelor, culturilor şi speciilor de animale pentru care se acordă sprijin cuplat în perioada 2015-2020;

Ordinul nr. 619/2015 pentru aprobarea criteriilor de eligibilitate, condiţiilor specifice şi a modului de implementare a schemelor de plăţi prevăzute la art. 1 alin. (2) şi (3) din Ordonanţa de urgenţă a Guvernului nr. 3/2015 pentru aprobarea schemelor de plăţi care se aplică în agricultură în perioada 2015-2020 şi pentru modificarea art. 2 din Legea nr. 36/1991 privind societăţile agricole şi alte forme de asociere în agricultură, precum şi a condiţiilor specifice de implementare pentru măsurile compensatorii de dezvoltare rurală aplicabile pe

112

terenurile agricole, prevăzute în Programul Naţional de Dezvoltare Rurală 2014-2020, cu modificările și completările ulterioare;

Hotărârea Guvernului nr 216/2016 privind stabilirea pentru anul 2015 a cuantumului plăţii unice pe suprafață, plăţii redistributive şi intervalele de suprafaţă pentru care se acordă aceasta, plății pentru practici agricole benefice pentru climă și mediu, plății pentru tinerii fermieri și a plafonului și cuantumului ajutoarelor naționale tranzitorii în sectorul vegetal pentru culturile amplasate pe teren arabil.

Bee-keeping

LEGE nr. 280 din 18 noiembrie 2015 pentru modificarea Legii apiculturii nr. 383/2013 LEGE nr. 383 din 24 decembrie 2013 a apiculturii HOTĂRÂRE nr. 1050 din 11 decembrie 2013 pentru aprobarea Programului naţional apicol

pentru perioada 2014-2016, a normelor de aplicare, precum şi a valorii sprijinului financiar

Land fund

LEGEA fondului funciar nr. 18 din 19 februarie 1991*)- Republicare LEGE nr. 243 din 5 decembrie 2011 pentru modificarea şi completarea Ordonanţei de

urgenţă a Guvernului nr. 38/2002 privind întocmirea şi finanţarea studiilor pedologice şi agrochimice şi finanţarea Sistemului naţional de monitorizare sol-teren pentru agricultură, precum şi sol-vegetaţie forestieră pentru silvicultură

ORDIN nr. 278 din 09.12.2011 privind aprobarea Programului național privind realizarea Sistemului național de monitorizare sol-teren pentru agricultură, a Normelor de conținut pentru studiile pedologice și agrochimice elaborate în vederea realizării și reactualizării periodice a Sistemului județean de monitorizare sol-teren pentru agricultură și a realizării Sistemului național de monitoring al calității solului în rețeaua de profile 8x8 km și bazele de date aferente, a Metodologiei privind realizarea și reactualizarea Sistemului județean de monitorizare sol-teren pentru agricultură și a Sistemului național de monitoring al calității solului în rețeaua de profile 8x8 km și a bazelor de date aferente, a Normelor de conținut privind realizarea Sistemului național de monitoring al calității solului în rețeaua de profile 8x8 km și a Bazei de date aferente rețelei de profile 8x8 km, precum și realizarea bazei de date la nivel național aferente Sistemului județean de monitorizare sol-teren pentru agricultură și a Modului de finanțare a Sistemului județean de monitorizare sol-teren pentru agricultură, a Sistemului național de monitoring al calității solului în rețeaua de profile 8x8 km, precum și a bazelor de date aferente (pdf, 120 KB)

Fisheries

HOTĂRÂRE nr. 347 din 11 mai 2016 privind stabilirea cadrului general de implementare a operaţiunilor cofinanţate din Fondul European pentru Pescuit şi Afaceri Maritime prin Programul operaţional pentru pescuit şi afaceri maritime 2014-2020

ORDONANŢĂ DE URGENŢĂ nr. 49 din 23 octombrie 2015 privind gestionarea financiară a fondurilor europene nerambursabile aferente politicii agricole comune, politicii comune de pescuit şi politicii maritime integrate la nivelul Uniunii Europene, precum şi a fondurilor alocate de la bugetul de stat pentru perioada de programare 2014-2020 şi pentru modificarea şi completarea unor acte normative din domeniul garantării

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Plant protection

ORDIN nr. 837 din 22 iunie 2016 privind aprobarea tarifelor pentru efectuarea inspecţiilor fitosanitare din domeniul protecţiei plantelor şi carantinei fitosanitare şi pentru controlul comercializării şi utilizării produselor de protecţie a plantelor

ORDIN nr. 1692 din 3 iulie 2015 pentru aprobarea listei punctelor de trecere a frontierei de stat în care este organizat control fitosanitar, precum şi a programului de lucru pentru inspectoratele de carantină fitosanitară vamală

ORDIN nr. 1891 din 19 august 2015 privind aprobarea tarifelor pentru efectuarea analizelor şi examenelor de laborator în vederea depistării şi identificării organismelor dăunătoare şi fenomenelor de fitotoxicitate la plante şi produse vegetale

ORDIN nr. 1881 din 17 august 2015 privind stabilirea condiţiilor în vederea introducerii sau punerii în circulaţie în România ori în anumite zone protejate din România, în scopuri experimentale sau ştiinţifice, şi în vederea realizării de lucrări pentru selecţii varietale a anumitor organisme de carantină dăunătoare, plante, produse vegetale şi a altor obiecte prevăzute în anexele nr. I-V la Hotărârea Guvernului nr. 563/2007 pentru aprobarea normelor metodologice de aplicare a Ordonanţei Guvernului nr. 136/2000 privind măsurile de protecţie împotriva introducerii şi răspândirii organismelor de carantină dăunătoare plantelor sau produselor vegetale în România

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Annex 4.7. Relevant European Legislation

Regulamentul de punere în aplicare nr. 543/2011 al Comisiei din 7 iunie 2011 de stabilire a normelor de aplicare a Regulamentului (CE) nr. 1234/2007 al Consiliului în ceea ce privește sectorul fructelor și legumelor și sectorul fructelor și legumelor prelucrate.

Regulamentul (UE) nr. 1308/2013 al Parlamentului European și al Consiliului din 17 decembrie 2013 de instituire a unei organizări comune a piețelor produselor agricole și de abrogare a Regulamentelor (CEE) nr. 922/72, (CEE) nr. 234/79, (CE) nr. 1037/2001 și (CE) nr. 1234/2007 ale Consiliului.

Regulamentul (CE) nr. 1307/2013 al Parlamentului European și al Consiliului din 17 decembrie 2013 de stabilire a unor norme privind plățile directe acordate fermierilor prin scheme de sprijin în cadrul politicii agricole comune și de abrogare a Regulamentului (CE) nr. 637/2008 al Consiliului și a Regulamentului (CE) nr. 73/2009 al Consiliului.

REGULAMENTUL DELEGAT (UE) nr. 612/2014 al Comisiei din 11 martie 2014 de completare a Regulamentului (UE) nr. 1308/2013 al Parlamentului European şi al Consiliului prin modificarea Regulamentului (CE) nr. 555/2008 al Comisiei în ceea ce priveşte noile măsuri din cadrul programelor naţionale de sprijinire a sectorului vitivinicol;

REGULAMENTUL (UE) nr. 1144/2014 AL PARLAMENTULUI EUROPEAN ŞI AL CONSILIULUI din 22 octombrie 2014 privind acţiunile de informare şi promovare referitoare la produsele agricole puse în aplicare pe piaţa internă şi în ţările terţe şi de abrogare a Regulamentului (CE) nr. 3/2008

REGULAMENTUL DELEGAT (UE) 2015/1829 AL COMISIEI din 23 aprilie 2015 de completare a Regulamentului (UE) nr. 1144/2014 al Parlamentului European şi al Consiliului privind acţiunile de informare şi promovare referitoare la produsele agricole puse în aplicare pe piaţa internă şi în ţările terţe

REGULAMENTUL DE PUNERE ÎN APLICARE (UE) 2015/1831 AL COMISIEI din 7 octombrie 2015 de stabilire a normelor de aplicare a Regulamentului (UE) nr. 1144/2014 al Parlamentului European şi al Consiliului privind acţiunile de informare şi promovare referitoare la produsele agricole puse în aplicare pe piaţa internă şi în ţările terţe

REGULAMENTUL (UE) nr. 1144/2014 AL PARLAMENTULUI EUROPEAN ŞI AL CONSILIULUI din 22 octombrie 2014 privind acţiunile de informare şi promovare referitoare la produsele agricole puse în aplicare pe piaţa internă şi în ţările terţe şi de abrogare a Regulamentului (CE) nr. 3/2008

Regulamentul Comisiei nr.1756/2004 din 11 octombrie 2004 care specifica condițiile detaliate pentru dovada solicitata si criteriul pentru tipul si nivelul de reducere al controlului fitosanitar pentru anumite plante, produse vegetale sau alte obiecte prevăzute in Anexa V Partea B din Directiva Consiliului 2000/29/EC (OJ L 313, 12.10.2004).

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ANNEX 5. DRAFT LEGISLATION FOR 2019Draft legislation proposed by MADR (according to Quarter II reporting)

Title of legislationHotărârea Guvernului privind modificarea și completarea Anexelor nr. I-V la Hotărârea Guvernului nr. 563/2007 pentru aprobarea normelor metodologice de aplicare a Ordonanţei Guvernului nr. 136/2000 privind măsurile de protecţie împotriva introducerii şi răspândirii organismelor de carantină dăunătoare plantelor sau produselor vegetale în RomâniaHotărâre a Guvernului pentru aprobarea plafoanelor alocate schemelor de sprijin cuplat, în sectorul zootehnic, precum și pentru stabilirea cuantumului acestora, pentru anul de plată 2019Hotărâre a Guvernului privind stabilirea pentru anul 2019 a cuantumului per hectar al plății unice pe suprafață, al plății redistributive și a intervalelor de suprafață pentru care se acordă aceasta, al plății pentru practici agricole benefice pentru climă și mediu și al plății pentru tinerii fermieriHotărâre a Guvernului pentru aprobarea plafoanelor alocate ajutoarele naționale tranzitorii în sectorul zootehnic, precum și pentru stabilirea cuantumului acestora, pentru anul de plată 2019Hotărâre a Guvernului privind stabilirea valorii anuale a schemei de finanțare, condițiil e de eligibilitate, cheltuielile eligibile, modul de acordare a finanțării, precum și modalități de verificare și control pentru schema de finanțare în cadrul Programului de investiții pentru înființarea centrelor de colectare și/sau prelucrare a laptelui în zona montanăHotărâre a Guvernului privind stabilirea valorii anuale a schemei de finanţare, condiţiile de eligibilitate, cheltuielile eligibile, modul de acordare a finanţării, precum şi modalităţi de verificare şi control pentru schema de finanţare în cadrul Programului de investiţii pentru înființarea centrelor de colectare, spălare și prelucrare primară de lână și piei în zona montanăHotărâre a Guvernului privind stabilirea valorii anuale a schemei de finanţare, condiţiile de eligibilitate, cheltuielile eligibile, modul de acordare a finanţării, precum şi modalităţi de verificare şi control pentru schema de finanţare în cadrul Programului de investiţii pentru înființarea stânelor montaneHotărâre a Guvernului privind stabilirea valorii anuale a schemei de finanţare, condiţiile de eligibilitate, cheltuielile eligibile, modul de acordare a finanţării, precum şi modalităţi de verificare şi control pentru schema de finanţare în cadrul Programului de investiţii pentru înființarea centrelor de colectare și prelucrare primară a fructelor de pădure, a ciupercilor și/sau a plantelor medicinale și aromatice, din flora spontană și/sau de cultură în zona montanăLegea laptelui și a produselor lactateHotărâre a Guvernului pentru modificarea și completarea Hotărârii Guvernului nr. 1174/2014 privind instituirea unei scheme de ajutor de stat pentru reducerea accizei la motorina utilizată în agricultură, precum și pentru aprobarea sumei totale necesare schemei de ajutor de stat pentru reducerea accizei la motorina utilizată în agriculturăHotărâre a Guvernului pentru aprobarea fondurilor necesare întocmirii proiectelor de amenajamente pastorale și a procedurii de acordare a acestora de la bugetul de stat, precum și pentru modificarea și completarea anexei la Hotărârea Guvernului nr. 1064/2013 privind aprobarea Normelor metodologice pentru aplicarea prevederilor Ordonanței de urgență a Guvernului nr. 34/2013 privind organizarea, administrarea și exploatarea pajiștilor permanente și pentru modificarea și completarea Legii fondului funciar nr. 18/1991Hotărâre a Guvernului privind stabilirea valorii anuale a schemei de finanţare, condiţiile de eligibilitate, cheltuielile eligibile, modul de acordare a finanţării, precum şi modalităţi de verificare şi control pentru schema de finanţare în cadrul Programului de investiţii pentru înființarea unităților de mică capacitate pentru sacrificarea animalelor și/ sau prelucrare a cărnii în zona montană

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Competence makes a difference!Project selected under the Administrative Capacity Operational

Programme, co-financed by the European Union from the European Social Fund

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