Image
Financial support for young farmers (generational shift)
Published on 30 June 2020
Romania
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
THE CONTEXT
Young people are usually moving to cities and this is bad for the demographic overview – rural regions are without young workforce, only old people are staying in rural areas. In consequence there are problems with abandoned farms and unworked lands.
Owners don’t have successors for the farms. Another problem is the poor education regarding the management of the farms.
With this support they are improving the age and educational structure of farm holders, accelerate structural and organisational changes of farms and ensure better social position of older farm holders.
OBJECTIVES:
- Increasing the number of young farmers who start an agricultural activity for the first time as heads/managers of farms, being encouraged to become competitive, to associate, to participate in integrated food chains;
- Improving management, increasing the competitiveness of the agricultural sector and supporting the process of modernization through the generational shift;
- Creating the possibility for young resident farmers, with a minimum of basic knowledge, to be installed as heads/managers of the agricultural holding;
- Encouraging young people and families in rural areas to settle in rural areas.
BENEFICIARIES:
- Young farmers installed as the sole head of the agricultural holding;
- Legal entities which is set up with other young farmers and which exercises effective long-term control over decisions on management, benefits and financial risks on that holding.
Young people are usually moving to cities and this is bad for the demographic overview – rural regions are without young workforce, only old people are staying in rural areas. In consequence there are problems with abandoned farms and unworked lands.
Owners don’t have successors for the farms. Another problem is the poor education regarding the management of the farms.
With this support they are improving the age and educational structure of farm holders, accelerate structural and organisational changes of farms and ensure better social position of older farm holders.
OBJECTIVES:
- Increasing the number of young farmers who start an agricultural activity for the first time as heads/managers of farms, being encouraged to become competitive, to associate, to participate in integrated food chains;
- Improving management, increasing the competitiveness of the agricultural sector and supporting the process of modernization through the generational shift;
- Creating the possibility for young resident farmers, with a minimum of basic knowledge, to be installed as heads/managers of the agricultural holding;
- Encouraging young people and families in rural areas to settle in rural areas.
BENEFICIARIES:
- Young farmers installed as the sole head of the agricultural holding;
- Legal entities which is set up with other young farmers and which exercises effective long-term control over decisions on management, benefits and financial risks on that holding.
Resources needed
NON-REFUNDABLE SUPPORT of maximum 50,000 Euro
Will be granted in the form of a premium in two installments, as follows:
- 75% of the amount of support upon receipt of the financing decision
- 25% of the amount of support within a maximum of three years from the receipt of the financing decision.
Will be granted in the form of a premium in two installments, as follows:
- 75% of the amount of support upon receipt of the financing decision
- 25% of the amount of support within a maximum of three years from the receipt of the financing decision.
Evidence of success
Rural Development National Programme (RDNP):
- Measure 112 "Financial support for young farmers" 12,770 young farmers were financed with 321,7 million Euros (2007-2013);
- sub-Measure 6.1 "Financial support for young farmers" more than 9,968 young farmers were financed with 409 million Euros (2014-2020).
RESULTS:
- Increasing educational level of farmers;
- Decreasing of abandonment of farming and stimulating farming as business opportunity;
- Maintain the rural population.
- Measure 112 "Financial support for young farmers" 12,770 young farmers were financed with 321,7 million Euros (2007-2013);
- sub-Measure 6.1 "Financial support for young farmers" more than 9,968 young farmers were financed with 409 million Euros (2014-2020).
RESULTS:
- Increasing educational level of farmers;
- Decreasing of abandonment of farming and stimulating farming as business opportunity;
- Maintain the rural population.
Potential for learning or transfer
During the two programme periods (2007-2013 and 2014-2020) over 22,700 young farmers became successors and were financed with more than 730 million Euros.
Generational shift triggered innovation, adopting new technologies and better management, benefiting from new market opportunities.
Generational shift triggered innovation, adopting new technologies and better management, benefiting from new market opportunities.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
Agency for Financing Rural Investments
Romania
Bucureşti-Ilfov
Contact
Executive Director