Romania to Expand Irrigation to 2.8 Million Hectares by 2032

Romania is set to expand its irrigation systems to cover 2.8 million hectares by 2032, a significant step towards enhancing agricultural resilience. This initiative is part of a broader government program led by newly appointed Prime Minister Luca Niculescu, aimed at modernizing the agricultural landscape.

As part of these efforts, authorities plan to rehabilitate both primary and secondary irrigation infrastructure, with funding sourced from loans through the European Investment Bank and European Union funds. Additionally, a state aid scheme from the Ministry of Agriculture and Rural Development will support the acquisition of irrigation equipment, ensuring farmers have the tools necessary to adapt to changing climate conditions.

To further address the challenges of drought, a permanent risk management mechanism will be operational by spring 2027. This system, developed by the Ministry of Agriculture and the World Bank, will offer a minimum insurance policy for each hectare registered with the APIA, funded by retaining 3% of direct payments.

In response to the anticipated drought in 2025, the government plans to increase compensation from 63 euros to 200 euros per hectare. This mechanism aims to provide farmers with a safety net and will be finalized within 100 days.

The government is also focused on renewable energy investments, including a 270 million euro program for installing photovoltaic panels on irrigation channels. A total of 500 million euros will be allocated to agricultural and food units investing in renewable energy, further supporting sustainable practices in the sector.

The program includes the INVESTALIM initiative, which encompasses 49 projects with a total value of 4.5 billion lei and aims to create over 3,200 new jobs. Additionally, 48 projects worth 204.1 million euros are targeted for completion, alongside 21 factories financed with 150 million euros through the DR-23 intervention.

To sustain agricultural competitiveness, the government will maintain the state aid scheme for compensating the excise duty on diesel used in agriculture. This measure is intended to lower production costs and bolster the sector's viability. The Ministry of Agriculture will continue to subsidize interest rates for co-financing European projects, ensuring farmers have access to necessary financial support.

Together, these initiatives reflect a comprehensive approach to transforming Romania’s agricultural sector, enhancing productivity, and promoting sustainable practices for future generations.