Labour market and taxation in agriculture. case study – Romania

Agriculture is the most vulnerable sector of the Romanian economy, with almost 30% of the population working in this area. Subsistence farms diminish the performance of the agricultural sector in general. Both land and labor are used below their economic potential. The lack of competitiveness is caused by excessive agricultural labour. In addition, subsistence farms lack capital and adequate training for farmers, which results in very low income from their work. Consequently, farmers on subsistence farms have virtually neither the motivation nor the capacity to comply with European standards including those relating to environmental quality, animal welfare and food safety.