An estimation of the effects of selected farm consolidation measures on the economic growth in Romanian agriculture

Abstract

The estimation of agricultural sector contribution to economic growth, as a result of farm consolidation measures that could be implemented in the period 2013-2020, is made as a forecast oriented towards an objective, by calculating the increase in value added brought about by certain selected factors, which directly contribute to farm consolidation or which directly interact with the consolidation process. The identified mechanism for the quantification of the effects of consolidation measures upon Gross Value Added in agriculture targeted two main sources of value added increase: the results of proper consolidation measures and the results of yield increase in the main field crops. The cumulated effects of the agricultural land transfer to larger-sized areas and of land re-introducing into operation represent a 5.7 % Gross Value Added increase per total agriculture. The effect of the increase of average yields in cereals, oilseeds and protein crops leads to Gross Value Added increase per total agriculture by 9.8%. If these increases are applied to the average GVA in agriculture in the period 2008-2011, the Gross Value Added to agriculture will reach 8556 million Euro, in 2009 prices, by the year 2020.