Romania aims to put limit on farmland bought by foreigners

Newsroom 01/07/2016 | 13:22

The minister of Agriculture, Achim Irimescu, says that authorities are working on new legislation that would limit the amount of farmland that can be purchased by foreigners.

The Ministry of Agriculture has finished the draft bill that would regulate such transactions involving foreign buyers, but it will become applicable only after the cadastral plan is finalized.

“I think that for the sale of land at a European level we have to focus on the French model that respects all the European regulations. I am remembering that at some point one German MP was trying to buy farmland in France and wasn’t able to do it. This is why it is important how we write the law and include clear objectives, so that we don’t end up like Bulgaria, which enforced a similar law in the past but had to cancel it because it breached the European rules,” said Irimescu.

Read how farmers in Romania can use technology to increase profitability

According to the draft bill, each applicant can buy up to 50 hectares. This limit does not exist in the current legislation. At present, the process for buying farmland is quite cumbersome and it includes preemption rights for the state.

Investors say that finding compacted strips of farmland of at least 1,000 hectares is very difficult in Romania

“Romania has 14 million hectares of agriculture land in total, out of which 3.8 million hectares are organized in farms, 9.3 million hectares of arable land, out of which only 3 million hectares have the cadastral status,” said Irimescu.

Read what is the role of bankers in the local agriculture sector

Prices per hectare of Romanian farmland are in the EUR 2,000 – EUR 7,000 band per hectare, according to local real estate agency Hitch&Mosher. Pundits say that farmers have problems getting finance but also insurance products.

Ovidiu Posirca

BR Magazine | Latest Issue

Download PDF: Business Review Magazine March (II) 2024 Issue

The March (II) 2024 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “BAT DBS Romania Hub: A Vibrant New Office For An Employee-Centric
Newsroom | 27/03/2024 | 17:32
Advertisement Advertisement
Close ×

We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

Accept & continue