An essential measure to support Romanian farmers

The Romanian Government has approved the extension of the state aid scheme for the reduction of excise duty on diesel used in agriculture for another three years, until 31 December 2026. The measure comes in the difficult context of the last few agricultural years, characterised by a sharp rise in prices for agricultural inputs and adverse weather conditions such as drought. Farmers are facing a major water shortage and production costs have risen significantly.

The state aid scheme, initiated in 2015, operates by applying a reduced rate of taxation to diesel used in mechanised agricultural work in the plant, animal and land improvement sectors. This reduction in excise duty is granted in the form of a reimbursement to farmers, with the aim of helping them to keep production costs within sustainable limits and increase the profitability of their farming activities.

By extending the scheme until 2026, the aim is to ensure continuity and stability in the agricultural sector, given the multiple challenges facing farmers. The geopolitical situation and the upward trends in world oil prices directly influence the price of diesel, affecting farmers' production costs, reports Agerpres. 

This measure has a significant impact on the profitability of agricultural activities, helping to maintain the competitiveness of Romanian farmers in complex and fluctuating economic conditions.