Romanian farmers hit by drought get bank loan repayment suspension and state aid

The farmers, whose crops were damaged in a proportion superior to 50% by the drought in the previous farming year, will have their dues to bank and non-bank financial institutions deferred until August 2025 and will get state aid in the form of loans, according to the amendments to some emergency ordinances agreed by the government, farmers, and financing bodies in a joint meeting on September 26.

The measures include fruit plantations and vineyards, as well as grain farmers. Milder loan repayment terms were agreed for all farmers, according to Ziarul Financiar.

Those with damages exceeding 50% of their crops can also apply for subsidized state loans in the total amount of RON 1.8 billion (EUR 360 mln).

The severe weather past year reduced drastically the crops of corn/maize and sunflower but did not spare the wheat and rape yields. Analysts estimate that corn/maize production in Romania will be around 7 mln tonnes, comparable only to that of 2007 (another year of severe drought).

Furthermore, the weather was adverse in four of the past five years, which severely diminished farmers’ capacity to address such shocks.

(Photo source: Ahmad Marzuky/Dreamstime.com)