POSSIBLE IMPLICATIONS OF THE FUTURE CAP REFORM ON THE AGRICULTURAL SUPPLY IN ROMANIA

Abstract

Abstract: The paper intends to evaluate the impact of the new budgetary perspectives and of the different options regarding the CAP Reform on the Romanian farms. The financial allocation proposed for the period 2014-2019 proposes certain novelties in the granting mechanisms of direct payments, among which the most important are the following: capping payments to large-sized farms, granting lump sums to small farms, increase of payments to young farmers, increase of payments to less-favoured areas, etc. At the same time, the new CAP Reform brings important novelties in relation to the preservation of environment, of the agricultural potential and of the rural area. The new proposed measures will have significant implications on the incomes and production costs on the farms, and last but not least, on the future farm production structure and level. That is why we consider it important for Romania to mostly accurately evaluate the direct and indirect impact of the new measures, so as to have a mostly coherent picture of the Romanian agriculture potential in ensuring food security for the population in the next period.