Agricultural Land Reform and Land Consolidation in Romania

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1 Consolidation and Territorial Organization Prague, March 6-10, 2005 Agricultural Reform and Consolidation Romania VIRGIL PAMFIL Deputy director Regional Trag Center Mistry of Admistration and Internal Affairs MARIOARA RUSU Senior researcher Institute of Agricultural Economics

2 Romania basic formation Population: Total :21.70 millions habitants Area: In rural area: millions Total: sq. km Agricultural area: 14.8 millions ha Forested area: 6.6 millions ha Waters and ponds: 0.9 millions ha Admistrative organization: 41 counties 306 towns and municipalities 2705 communas

3 Contents reform fragmentation Current situation of land consolidation Key problems Issues to be addressed

4 Reform Almost complete legal framework regardg land issues Key land-related stitutions are established Changes the structure of land property (from co-operative and state property to private property) Polarized farmg structure (small and large farms) Emergg of rural land market

5 Legal framework The Inheritance Law Law/Regulation The Romanian Constitution (1991 and 2003) The Law (Law 18/1991) The Leasg Law (Law 16/1994) Law on Cadastre and Registration (Law 7/1996) Law on Legal Circulation of (Law 54/1998) Law on Farm Operation (GEO 108/2001) Impact on land consolidation Neutral Negative Negative Neutral Neutral Neutral Positive

6 Evolution of agricultural land % 100 by property types Public doma Private doma Collectivized property

7 fragmentation dicators¹ % hectare 300 Total number of farms : 4.3 millions Total number of parcels: 14.5 millions Average farm size: 3.1 ha Average plot size: 0.95 ha Average number of parcels: 3-4 Farms with < 1 hectare: 50% Number UAA Average area Individual households 0.5 Agricultural legal units 0 ¹ General Agricultural Census, 2002

8 Fragmentation level for dividual households¹ Total number of farms : 4.27 millions Total number of parcels:14.3 millions Average farm size: 1.7 ha Average plot size: 0.53 ha Average number of parcels: 3-4 Moderately fragmented (2-3 parcels) 36% Excessively fragmented (more than 6 parcels) 16% Compact (1 parcel`) 30% Strongly fragmented (4-6 parcels) 18% ¹ General Agricultural Census, 2002

9 sale-purchase market¹ hectare 160, ,000 million ROL Sold area Average price/hectare , ,000 80,000 60,000 40,000 20, ¹

10 Developg specific legal provisions on land consolidation A. Proposals¹ to establish suitable stitutional framework (LC Agency, Fund Admistration and their local offices); to enforce specific procedures for implementg LC projects; to launch public awareness campaigns (on LC benefits and LC procedures). ¹:Issued ¹:Issued under under FAO/GTZ FAO/GTZ Fragmentation Fragmentation and and Consolidation Consolidation the the Agricultural Agricultural Sector Sector a a Case Case Study Study for for Romania, Romania, and and presented presented FAO/GTZ FAO/GTZ National National Workshop Workshop on on Consolidation Consolidation Romania, Romania,

11 Developg specific legal provisions on land consolidation B. Promises Draft Law¹ on LC MoA- the Agency charge; National Program of LC; Mass registration; All LC works funded by MoA from State Budgets. ¹: ¹: As As advertised advertised a National National Newspaper Newspaper --June June

12 Developg specific legal provisions on land consolidation C. Solution (?!) Technical norms for developg agricultural land arrangement projects enforced by Misterial Order¹ 1st Stage: Cadastral Plan and Agricultural Fiche; 2nd Stage: Technical Specifications (economic value, quality classes, geographic location, fertility classes); 3rd Stage: Agricultural Arrangement (current land use, legal status, re-allotment of agricultural land, road network, dicators, built-up area, land improvement, etc). ¹:MoA ¹:MoA Mister s Mister s Order Order published published the the Official Official Gazette Gazette No.705 No.705 of of September September

13 consolidation PPs¹ PP1- located Sighisoara Initiator an vestor terested hop production Initial area : 22 hectares - to be extended to 40 hectares Updated cadastre and land registration data were falised by the end of 2003 Orthophoto mosaics delivered by the project 2004 The work was partly done as practicum by students from the Technical University of Bucharest 2 meetgs with neighbor land owners identified 60 available hectares and raised their terest for accomplishg the project as proposed. ¹GTZ ¹GTZ - - Security Security and and Management Management - - Project Project no.: no.: ,, Phase Phase II: II: Consolidation Consolidation Romania Romania with with the the support support of of Regional Regional Trusts Trusts Project Project Manager: Manager: Benno Benno Arnolli Arnolli

14 consolidation PPs¹ PP2- located Odorheiul Secuiesc Project area : 200 hectares 274 parcels 153 land owners In March 2004 Students of the Agricultural College of Odorheiu Secuiesc on behalf of the GTZ security and land management Project, carried out a basele survey that identified: out of 90 land owners terviewed 78 expressed their support for LC out of 200 hectares only 66 hectares have accurate registration cadastre. The land consolidation proposal was based on land configuration, rural frastructure and landscape by formg agricultural blocks between 5 and 20 hectares with the objective of creatg new, commercially viable family farms. ¹GTZ ¹GTZ - - Security Security and and Management Management - - Project Project no.: no.: ,, Phase Phase II: II: Consolidation Consolidation Romania Romania with with the the support support of of Regional Regional Trusts Trusts Project Project Manager: Manager: Benno Benno Arnolli Arnolli

15 Key problems Lack of: comprehensive land policy to address LC specific legislation to address LC specific LC Agencies procedures for mass land registration appropriate registration of titles effective agricultural land market appropriate agricultural land taxation public awareness/formation on LC

16 Issues to be addressed Specific government policy to promote LC Enact of specific LC law and review the current legislation for avoidg further land fragmentation Modernize the land admistration systems Support the land market development Establish of land fund/land reserve Design and implement fair land valuation procedures Establish land taxation schemes Promote public awareness campaigns on LC benefits Provide extension/trag to LC actors/stakeholders Establish new services to provide technical assistance to LC projects Provide access to fundg opportunities for LC projects

17 Thanks for your attention!

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