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Bucharest
September 30, 2022
BUSINESS

Investment in farmland is experiencing noted growth

Investment in agriculture is witnessing noted growth due to improved profitability projections, despite the prevailing view that agriculture is risky, DTZ Echinox shows in its report “Agricultural Land Investment, Romania 2012”. Prices of farmland are situated between EUR 1,500 and EUR 2,700 per hectare depending on the consolidation degree, soil quality and other factors. By the end of 2012, price per square meters (sq m) of consolidated land plots in key locations, could register an increase of up to 20 per cent compared to the market average. Prices of forestry land are situated between EUR 2,000 and EUR 5,000 per hectare depending on standing volume and other factors. “The DTZ Echinox study estimates that farmland price in Romania is likely to stay on an upward trend in the medium term. By the end of 2012, price per sq m of consolidated land plots in key locations, could register an increase of up to 20 per cent compared to the market average. Given the sustained interest in such acquisitions, we estimate that transactions with farmland are likely to represent over 50 per cent of the total land deals of significant value which are expected to be closed this year.” stated Marius Grigorica, Senior Business Analyst, DTZ Echinox.If wheat and barley have been strongly impacted by the low temperatures since early this year, the maize and sunflower will take advantage of the huge amount of precipitations, adevarul.ro reports. However, some of the crops have been totally compromised, with rape being one such example, according to Agriculture Minister Stelian Fuia, who added that the wheat and barley sowed last autumn are in trouble too, and the fruit trees and vegetables situation is reason for concern. In its turn, the “salad is completely jeopardised,” Mircea Croitoru, president of “Matca” Fruit and Vegetable Producers Association. “If the melted snow doesn’t flood the cultures, they could gain from it,” Daniel Botanoiu, president of the National Federation of the Agricultural Producers of Romania, said, for his part.

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