Impact and Challenges of SAPS¹ on Romanian Agricultural Competitiveness

This study investigates the influence of the Single Area Payment Scheme on the competitiveness of the agriculture sector in Romania. It also evaluates the impact of SAPS on farm productivity by examining data collected from a thorough survey of Romanian farmers. The survey employed quantitative methodologies to examine a wide array of agricultural enterprises, aiming to offer a comprehensive perspective on the impacts of SAPS. The findings provide vital insights into how SAPS influences agricultural practices and economic outcomes in Romania.

The study used statistical analysis to evaluate the impact of SAPS on important factors such as productivity, market positioning, and economic viability. It used the sample size formula n = (Z^2 * p * (1-p)) / E^2 to determine the sample size for the survey, where we estimated the proportion of the population with a certain characteristic (p) based on data collected from the Payments and Intervention Agency for Agriculture and the Z-score corresponding to the desired level of confidence. In this case, for a confidence level of 95% (Z = 1.96), a standard deviation of 0.5 and a margin of error of +/- 5% (E = 0.05), I estimated p at 0.5 (the characteristics of the researched population being quite heterogeneous, even if the size of the holding translates into the amount of the collected amount, nominal differences do not exist).

Evidence suggests that Romania possesses one of the most extensive agricultural regions inside the European Union. However, the agricultural sector is marked by a fragmented organization, consisting predominantly of small-scale farms returning poor levels of productivity.