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State will pay 30-100 euroha to people who lease land

The state will grant between 30 and 100 euro per hectare annually to people aged over 55 who lease farming lands for a period between 5 and 15 years. In case of sale the price will be 200 euroha according to a draft law.The bonus will be 30 eurohayear for 5 years , 50 eurohayear for 10 years and 100 eurohayear for at least 15 year, the draft law elaborated by the Ministry of Agriculture.
Bonuses are granted only once in case of sale or for 15 years of leasing but not over the age of 70.
To benefit from bonuses, the persons who lease lands must be at least 55 years old 10 years younger than the retiring age. They should also give up any farming activity with commercial character on that land. Those persons must be included in the pension and social security system.

The bill intends to stimulate the unification of farming land by paying expenses for notary services and cadastre and by guaranteeing credits contracted for buying land.The law forbids getting out of the farming circuit the land leased for at leased 5 years for leasing and 10 years for sales.

Bonuses for leasing cease in case leasing contracts are denounced before the established terms.
Financial resources needed for the payment of bonuses and for guaranteeing credits contracted for buying land will come from the state budget, by means of the budget of the Ministry of Agriculture and Rural Development, while those needed for notary services and cadastre will come from the budget of the Ministry of Administration and Interior.

In Romania there are too many small farms which exist in parallel with very large farms. The labour force is old in agriculture, with a share of over 50% of persons over 45.About 60% of farmers eligible for payment are aged over 60 and own about 25% of the eligible area. According to Romania’s 2009 annual statistic book, 3.9 million individual farms and 17,700 companies use 65.2% and 34.8% of the farming land.

At the same time, farms with areas between one and 10 ha represent 93.5% of farms and exploit 32.3% of the area eligible for direct payments. Farms between 10 and100 ha represent 5.4% of the total and hold 15.5% of the eligible area, while exploitations over 100 ha represent 1.1% of total but exploit 52.2% of the eligible area.