Government aims to stop foreigners reaping cheap local farmland

The authorities in Bucharest are considering asking the European Commission to prolong the period during which Romania can restrict the purchase of local agricultural land by non-resident foreign citizens beyond 2014, said Valeriu Steriu, president of the presidential commission for agriculture development policies, this week at a Forum Invest event on farming.

“I am for the idea of pushing back the deadline by another three years. Romanian agricultural land is still very cheap. Hungary and Lithuania have been able to negotiate an extension,” added Steriu.

The foreign affairs minister, Teodor Baconschi, said that he had noticed from discussions with his foreign counterparts increasing demand for local land by foreign investors, mainly from China, North Africa and the Gulf countries. He added that there were countries that have the technology, but lack water and food resources, that were interested in investing in Romanian agricultural production.

In spite of the legislative restriction, foreign investors are able to buy agricultural land in Romania by setting up local companies and many are believed to have done so. Earlier this year, the EC recommended both Romania and Bulgaria ditch the restriction sooner than the end of 2014.

Simona Bazavan

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