Official announcement regarding government plans for support for Romanian agriculture

Update

Florin Barbu announces the mechanism for excise-free diesel from 2027 and 60 million euros in support for fertilizers

The Minister of Agriculture, Florin Barbu, announced, within the framework of the National Conference AGRI4FUTURE: Romania – Objective 2035, organized by the Romanian Farmers Club, discussions between the Ministry of Agriculture and the Ministry of Finance regarding the creation of a mechanism through which farmers will be able to buy excise-free diesel directly from the pump, starting in 2027. ^[2]

Florin Barbu emphasized that, at the moment, costs are high, but at the budget revision in November, the Ministry of Agriculture will cover the excise difference for quarters II and III. The minister stated that the price of a liter of diesel is currently 11 lei, and the excise is between 2.7 and 3 lei per liter. ^[2]

Regarding the VAT refund, the minister explained that in the plant production sector in Romania, taxation on cereals is reverse, which means that the state refunds VAT to farmers for utilities, diesel consumption, machinery, and repairs. ^[2]

Additionally, the Ministry of Agriculture is preparing a Government Decision to provide support of approximately 60 million euros aimed at compensating the costs of fertilizers used in the plant production sector. ^[2]

The financing of this measure will be ensured from European funds and from the state budget. According to information provided by the minister, the sum of 29.8 million euros comes from the European Commission, while the remaining 30 million euros are secured from the state budget. ^[2]

Update

Official announcement regarding government plans for support for Romanian agriculture

The mechanism through which farmers will be able to buy excise-free diesel directly from the pump is currently being discussed by the Ministry of Agriculture with the Ministry of Finance, according to statements by Minister Florin Barbu. ^[3]

At present, costs are very high, but the Ministry of Agriculture must pay the excise for Romanian farmers at the November revision—and we are talking about the difference in the second and third quarters. There are already discussions at the level of the Ministry of Finance, and I had a discussion to create a mechanism so that, from 2027, farmers can purchase excise-free diesel directly from the pump,” Florin Barbu said. ^[3]

The current cost of a liter of diesel is approximately 11 lei, with the excise representing between 2.7 and 3 lei from this price. The new measure would eliminate the need for farmers to initially pay the excise and subsequently recover the amount. ^[3]

The minister also referred to the fiscal benefits already enjoyed by farmers in the plant production sector, where taxation is reversed for cereals. ^[3]

Let's not forget one thing: in the plant production sector in Romania, taxation is reversed for cereals. This means that, for everything related to utilities, diesel consumption, machinery, and repairs, the Romanian state refunds that VAT to Romanian farmers. So, in practice, farmers benefit from the payment of excise and the refund of VAT on diesel,” Florin Barbu explained. ^[3]

In addition to the measure related to diesel, the Ministry of Agriculture is preparing assistance of approximately 60 million euros intended to compensate for the costs of fertilizers used in the plant production sector. ^[3]

The draft Government Decision for this support has already been transmitted to the Ministry of Finance. ^[3]

It is the Government Decision transmitted to the Ministry of Finance, through which we come with support for the compensation of fertilizers used in the plant production sector in Romania. We took 29.8 million from the European Commission and, additionally, we came from the state budget with 30 million euros,” the minister clarified. ^[3]

Update

Florin Barbu: Farmers will receive 60 million euros in support for fertilizers and excise-free diesel from 2027

In the context of high costs, the Minister of Agriculture, Florin Barbu, announced that, at the budget revision in November, the Ministry of Agriculture will pay the excise related to quarters II and III. The official confirmed that there are already discussions with the Ministry of Finance for establishing a mechanism that will allow farmers to buy excise-free diesel directly from the pump, starting in 2027. ^[4]

The current price of a liter of diesel is approximately 11 lei, of which the excise represents between 2.7 and 3 lei. Eliminating the excise would reduce the final price to approximately 8–8.3 lei per liter. Additionally, Barbu reminded that, in the plant production sector, taxation is reversed for cereals, which ensures farmers the refund of VAT for utilities, diesel consumption, machinery, and repairs. ^[4]

The Government is also preparing support of approximately 60 million euros to compensate for the costs of fertilizers used in the plant production sector. This financing will come from European funds (29.8 million euros) and from the state budget (30 million euros), with the draft decision already transmitted to the Ministry of Finance. ^[4]

Update

Nazare: Finance is waiting for concrete proposals from Agriculture for excise-free diesel; the solution must be sustainable

The Ministry of Finance is waiting for official proposals from the Ministry of Agriculture regarding support for diesel used by farmers, the Minister of Finance, Alexandru Nazare, announced on Tuesday, November 5, 2026, at the National Conference AGRI4FUTURE: Romania – Objective 2035. Alexandru Nazare, who participated alongside his counterpart Florin Barbu at the event organized by the Romanian Farmers Club, clarified that the proposed solution must be sustainable for the budget and compatible with European legislation. ^[6]

Nazare explained that the authorities have already implemented mechanisms for reducing excises on diesel, observing a decrease in revenues by 10% in one quarter and by 25% in two quarters, effects which did not disturb the budget. However, he emphasized the need for any new support measure to be designed rigorously, stating: “We must understand that any support mechanism must be created in such a way as not to create imbalances.” The minister reiterated his willingness to collaborate with the Ministry of Agriculture to operationalize a solution, requesting “procedures, serious legislative proposals, thorough and which are also compatible with European legislation”. ^[6]

Update

Nazare: The solution for excise-free diesel must be sustainable and compatible with EU rules

The Ministry of Finance will collaborate with the Ministry of Agriculture to allow farmers to buy excise-free diesel directly from the pump, but the solution must be budgetary sustainable and compatible with European legislation, Finance Minister Alexandru Nazare announced. Alexandru Nazare explained that the authorities have already implemented mechanisms for reducing excises on diesel, leading to decreases in revenues by 10% in one quarter and by 25% in two quarters. He emphasized that, although the magnitude of the crisis was understood, this effect did not disturb the budget. The Minister of Finance reiterated that any new support mechanism must be designed so as not to generate budgetary imbalances and awaited proposals from his counterpart in Agriculture, Florin Barbu, to refine and operationalize them. Nazare transmitted that it is necessary to move from general statements regarding farmer assistance to procedures and thorough legislative proposals compatible with European legislation. Reiterating his willingness to cooperate, Alexandru Nazare declared that he is convinced the solution will be found through joint work, emphasizing that there is full willingness on the part of the Ministry of Finance. The Finance Minister's statements come shortly after Florin Barbu announced during the same conference discussions with the Ministry of Finance for creating a mechanism for delivering excise-free diesel, which will enter into force from 2027. Nazare affirmed that he is convinced a solution will be found, emphasizing that there is full willingness on the part of the Ministry of Finance to collaborate with the Ministry of Agriculture. The Finance Minister reiterated that he is convinced the solution will be found through joint work, emphasizing that there is full willingness on the part of his institution. Alexandru Nazare's statements occurred in the context where the Minister of Agriculture, Florin Barbu, announced that he is holding discussions with the Ministry of Finance for introducing a mechanism through which farmers will buy excise-free diesel directly from the pump, a measure planned for 2027. ^[5]

Update

Nazare: The solution for excise-free diesel must be sustainable and compatible with EU rules

The Finance Minister, Alexandru Nazare, emphasized at the National Conference AGRI4FUTURE: Romania – Objective 2035 that previous reductions in excises on diesel led to decreases in budget revenues by 10% in one quarter and by 25% in two quarters, although this effect did not disturb public accounts. Asterix Nazare insisted that any new support mechanism for farmers must be designed rigorously so as not to generate budgetary imbalances and to be compatible with European legislation. Asterix The official expressed the Ministry of Finance's willingness to collaborate with the Ministry of Agriculture for operationalizing a solution, however requesting procedures and serious, thorough legislative proposals in accordance with EU rules. Asterix ^[8]

Nazare reminded that the 25% reduction in excise had an impact on revenues, but was justified by the magnitude of the crisis and did not affect budget balance. ^[8]

The Finance Minister confirmed his willingness to refine proposals coming from the Ministry of Agriculture to create an operational and real mechanism. ^[8]

The support must be transposed into legislative legal acts that respect European regulations. ^[8]

Nazare requested moving from general statements of help to concrete procedures and legislative proposals compatible with Community law. ^[8]

Regarding the perspectives of finding a solution, the minister reiterated the existence of full willingness on the part of the Ministry of Finance to cooperate. ^[8]

Nazare expressed confidence that the solution will be found through joint work, reaffirming his institution's commitment. ^[8]

The statements were made in the context of Florin Barbu's previous announcement, which mentioned discussions for the mechanism for excise-free diesel from 2027. ^[8]

Update

Nazare waits for concrete proposals from Agriculture for excise-free diesel

The Ministry of Finance is willing to collaborate with the Ministry of Agriculture to implement a mechanism through which farmers will be able to buy excise-free diesel directly from the pump, starting in 2027. The Finance Minister, Alexandru Nazare, however emphasized that this solution must be budgetary sustainable and compatible with European legislation. ^[7]

Alexandru Nazare explained that the authorities have already implemented mechanisms for reducing excises on diesel, which led to decreases in revenues by 10% in one quarter and by 25% in two quarters. Although he acknowledged that higher expectations existed in the budget at the beginning of the year, the minister specified that the magnitude of the crisis justified the measure and that, despite these effects on revenue, public accounts have not been disturbed. ^[7]

The official reminded that any new support mechanism must be designed rigorously so as not to create imbalances. He reiterated the necessity that proposals coming from the Ministry of Agriculture be refined and operationalized. ^[7]

Nazare expressed his willingness to work together with his counterpart in Agriculture, Florin Barbu, to find a real solution. “I know that the Minister of Agriculture is very concerned and we await proposals from him which, with our support, we will refine and manage to come together with an authentic, real operationalization in this area,” the minister said. ^[7]

The proposed solution must be transposed into legislative legal acts that respect European regulations. ^[7]

We must move from the simple statement 'we help farmers' to procedures, to serious, thorough legislative proposals which are also compatible with European legislation. We must find a good measure, I am convinced that through joint work we will find,” Alexandru Nazare emphasized. ^[7]

Asked if there are concrete prospects for identifying a solution, Nazare reiterated the full willingness on the part of the Ministry of Finance to cooperate. ^[7]

I said that I am convinced we will find it. That is, there is full willingness,” the official replied. ^[7]

Alexandru Nazare's statements complete the announcement made on Wednesday by the Minister of Agriculture, Florin Barbu, who confirmed that he is already holding discussions with the Ministry of Finance regarding the creation of the mechanism for delivering excise-free diesel. ^[7]

At present, costs are very high, but the Ministry of Agriculture must pay the excise for Romanian farmers at the November revision—and we are talking about the difference in the second and third quarters. There are already discussions at the level of the Ministry of Finance, and I had a discussion to create a mechanism so that, from 2027, farmers can purchase excise-free diesel directly from the pump,” Florin Barbu detailed, at the AGRI4FUTURE conference. ^[7]

Update

Government works on the mechanism for excise-free diesel from 2027

The Ministry of Agriculture is discussing with the Ministry of Finance a mechanism through which farmers could buy, from 2027, excise-free diesel directly from the pump. Farmers would no longer have to wait for the refund of the excise, which represents between 2.7 and 3 lei from the price of 11 lei per liter, according to the Minister of Agriculture, Florin Barbu. “There are already discussions at the level of the Ministry of Finance, and I had a discussion to create a mechanism so that, from 2027, farmers can purchase excise-free diesel directly from the pump,” Florin Barbu said. Until then, the Ministry of Agriculture still has to pay farmers the excise differences for the second and third quarters. According to the minister, these sums must be paid at the budget revision in November. Barbu further explained that, in the plant production sector, reverse taxation applies to cereals, and farmers can benefit from VAT refund for expenses such as diesel, utilities, and machinery repairs. ^[9]