Models Underlying the Success Development of Family Farms in Romania

Abstract

A family farm is an important part of the countryside, both economically and especially socially. In recent years, legislative measures have encouraged the development of large farms, ensuring food security while neglecting family farms, which are characterised by a lack of organisation, the absence of proper classification and the absence of measures to encourage their development and protection. In order to identify the premises underlying the development of family farms, and to create a development model for those family farms in a poor economic situation, the BMC method and SWOT analysis of seven family farms considered successful models were used. The development of these types of farms could provide a solution to a major problem facing the Romanian countryside: the depopulation of rural areas. The results of the study show that the development of these types of farms is based on joining an associative form (cooperatives) and/or making investments in the processing/storage line of agricultural products.

1. Introduction

Today’s agriculture in Europe is characterised by technological progress, neoliberalism and the globalisation of agricultural markets, which are directly influencing the expansion of large-scale specialised industrial farms, resulting in a decrease of persons employed in agriculture [1,2]. Although the industrialisation of agriculture is increasing, small and medium-sized farms will persist because of their multi-functionality [3] and the impact they have both in terms of sustainable development and the harnessing of social potential [4,5].

Through the Common Agricultural Policy, the EU Member States are trying to implement measures that can contribute to an improvement of the situation of this type of farmer [6]. Thus, one of the measures applied for mitigate the variation in prices of agricultural products is to grant and direct payments. Nevertheless, contradictory discussions have arisen about the idea of dependence on subsidies and direct payments favouring large-scale production [7].

Even with these strategies, the situation of farms in Europe is critical. Many farms are owned by elderly people, demonstrating that young people are not attracted to a lifestyle that involves low income in relation to the work provided, lack of free time, daily attendance on the farm and lack of social gratitude in general [8,9].

Small farms play an important role in the European agricultural system, providing healthy food to consumers every day, generating local jobs, supporting rural activities and ensuring the resilience of the food system [10,11]. The small farm category represents the majority of farms across Europe, with two thirds of farms in Europe less than 5 hectares of farmland and more than half with a standard output of €333 per month, before costs [5].

At the same time, with the industrialisation and intensification of agricultural production, small farms are disappearing, fighting a battle with large agri-multinationals, facing serious problems in keeping the land worked and securing public support because they are considered obsolete [12]. The economic struggle they face due to lack of mechanisation, which results in low production volumes, is a hindrance, especially when large volumes of homogeneous products are considered a benchmark of modern agriculture [13].

Other obstacles faced by small farms are long supply chains and hygiene rules [14]. Moreover, little political support is available for small farms, with subsidies being directed towards large agricultural companies [15,16]. However, it is believed that small farms can become viable with good planning [17]. Small farm owners could mitigate all these inconveniences by proper organisation through cooperation, for reducing costs and strenghtening their position in the market [18].

According to Meike Fienitz, a peasant is a person “who has a direct and special relationship with the land and nature through the production of food and/or other agricultural products” [1]. Thus, the peasant is a person who undertakes a particular type of agriculture and undertakes activities that illustrate the respectful relationship between people, animals, plants. This is based on local knowledge using available techniques adapted to local conditions, with an emphasis on sovereignty, responsibility, community and environment [19,20].

Small farms have proven to be resilient to environmental changes or disasters, which is very important in the context of climate change [21,22]. Thus, agro-ecosystems rely on small farms because of their reduced vulnerability to disasters as they grow a wide diversity of crops and varieties in different spatial and temporal arrangements, making the food system more resilient [23,24,25].

As the number of small farms decreases, so do the number of farm workers, because extensive farming is highly specialised, farms need less labour, the consequence of which is unemployment and inevitably rural migration [26,27]. Small farms support rural communities, with actors involved in community life, seeking partners, supporting the local economy [28].

The short chain brings many benefits, and all the aspects listed show that small farms are part of a resilient and sustainable system that is fit for the modern economy, but often these benefits are forgotten or overlooked because there are no effective quantification and measurement methods [29,30].

This type of agriculture is considered to be the most sustainable form of production, all the more so as the United Nations has declared 2014 as the “International Year of Family Farming” and has also made a resolution for 2019–2028 as the “International Decade of Family Farming”. These events highlight the social, economic and environmental importance of family farming [31].

The development and situation of family farms differs from one country to another and is influenced by different aspects. For example, in Austria, this type of farm is highly specialised in intensive production, ranging from medium-sized farms specialising in milk and dairy production to large farms growing for industrial production [32,33]. They also account for more than 96% of all farms and 82% of the sector’s workforce is made up of farm family members. Family farms are differentiated by natural production conditions, market liberalisation and changing social values. The development of family farms is based on a fundamental tradition, namely the transfer of the family farm from generation to generation, maintaining a close link between the farm seen as a workplace, career and family tradition [34,35].

In Finland, family farming boosts the local economy and is considered versatile and innovative. Finnish agriculture is 86% dominated by family farms, of which 9% of farms are owned by farming syndicates, while farms owned by heirs and limited liability account for 4% [36,37]. Today, Finnish agriculture is based on small family farms, with the highest number of family farms was reached in 1960, and since that year the number has decreased rapidly, the main cause being urbanisation. Also, with the entry into the EU, family farms have decreased significantly [38]. The Finnish reorientation towards local food has had a significant impact on small food producing companies. Consumers are willing to pay a higher price for clean, locally produced food, with the emphasis on trust being placed on knowledge of producers and production conditions [39].

Finland’s potential in the bioeconomy is remarkable, with green energy providing real opportunities for farmers and creating jobs, who are encouraged to invest in bioenergy production and diversifying business [40,41].

The service sector is a growing business where the percentage of those who deal with a certain type of tourism that involves the family farm and the reception of guests who want to return to their origins and traditions has increased. Rural areas are close to cities or tourist areas, and family farms can take advantage of these opportunities. From this point of view, cooperation is a tradition in Finland, especially between food producers and tourism entrepreneurs, with benefits on both sides.

In Poland, the family farm is defined by the Act of 11 April 2003 on the shaping of the agricultural system as follows: “family farm is a farm run by an individual farmer, where the total agricultural area does not exceed 300 hectares” [42,43]. Also, the farmer is the natural person or the owner, user, tenant of agricultural property not exceeding 300 hectares, having agricultural qualifications, being a resident of a municipality and managing the personal farm for at least 5 years [44,45,46,47].

In Italy, the evolution of family farms since 1980 has involved innovation and progress in integrating products into the market. Economic development places the family farm in a network of relationships that is increasingly dominated by the market, representing the shift from production to integration. Professional family farming encompasses two modes of farming [48]. The first mode is integration with the agro-industrial area, the market, loss of autonomy and standardisation, and the second is the peasant strategy in which traditional farming predominates [49].

At the same time, family farms in France are facing social, economic and environmental problems, closely linked to the intensification of agriculture, the ageing of the population engaged in farming and the transmission of the family business from one generation to the next [50,51].

Major changes have taken place in Danish agriculture, even though these forms of ownership were protected by law, with companies owning more and more land and leases, while family businesses have been in continuous decline [52,53].

Sustainable development can also be supported through family farms, which address three dimensions: economic, social and environmental, addressed concurrently. The economic approach covers growth, efficiency and stability, while the social approach addresses empowerment, equity and inclusion, and the environmental dimension addresses natural resources, pollution and biodiversity [54].

The family farm contributes to the sustainable economy of the agricultural sector by ensuring food security at the micro level. At the same time, a family farm is a source of income for families from rural areas, contributing to poverty reduction in these areas, and can also occasionally generate seasonal employment for the community, depending on the needs and size of these farms [54].

In terms of the social dimension, successful family farms are an important way of preserving rural life and traditions in rural areas. At the same time, by developing these types of businesses, it limits the exodus of people from rural areas to urban areas and reduces poverty in these areas [55].

Family farms are more environmentally friendly, especially those specialising in organic farming, but also the more diversified they are, in the sense that they manage to use all the resources obtained [55]. The aim of the study is to identify the premises underlying the development of family farms, and to create a development model for those in a less favourable economic situation. The development of these types of farms will improve the main problem of the Romanian countryside, namely the depopulation of rural areas.

This BMC could be a model to be followed by subsistence and semi-subsistence family farms, which can be extended by implementing at farm level the key factors identified in the seven case studies of successful family farms, thereby further contributing to sustainable rural development.

2. Theoretical Background

Romania faces many problems in rural areas, the most important of which is the depopulation of rural areas. Young people choose to migrate to urban centres or to Western European countries in search for a better life. One solution to this phenomenon is to encourage family farms, where all family members are involved [56].

The term “family farm” differs significantly from country to country and is subject to a sociological approach. However, economists see the term as an ‘economic unit’ or ‘business’, while geographers see ‘family farms confined to the margins of a given area’. However, family farming is seen as positive and universally valid [57].

As with the term ‘family farm’, which differs significantly from country to country, the problems faced by farmers in different countries are quite different. For example, Austrian farmers point to psychological problems, in that their work is stressful (taking into account economic factors), but they are especially unhappy about social disregard and the fact that they spend too little time with their families [58].

Although small farms can be economically viable, farmers face serious problems when it comes to access to land. This problem is a common feature of farms, as the extra land they need to maintain or develop their business is hard to come by and small farms cannot compete with large farmers [59].

Family-based farming units are present in most farming systems, with different forms and functions, influenced by the structure of agriculture and political systems. The notion of ‘family’ has more of a sociological aspect, but the family farm can also be seen as an economic unit with the aim of making a profit. As a whole, the ‘family farm’ is seen as a positive aspect all over the world [59].

For young people to find this type of work attractive, the main factor that must be met is the salary, which must be on a par with those in urban areas, but with an additional income to compensate for the shortcomings of rural areas (infrastructure, medical services, etc.). According to the work ‘Family Farm-Solution for Sustainable Development of Rural Area’, the annual profit recorded at farm level should be determined on the basis of the number of family members, the average wage in the economy (in Romania) to which should be added consumption in the household, representing a family’s basic food. On the basis of this formula, it was possible to determine the optimal economic size of a family farm, so that a family farm consisting of two members should have an economic size of around 45,000 SO, and depending on the number of household members it could reach around 180,000 SO [60].

An effective tool that can improve the performance of a business, both by identifying critical issues that may arise and solving processes across a wide range of challenges faced by the business, can be a Canva Business Model (BMC) [61].

The BMC is an increasingly used tool, in different fields, from identifying critical factors for rural development, to developing rural tourism, social agriculture or strategies for cooperatives [62,63]. It is generally used to describe business models in different industries [14,64].

According to Osterwalder [65], a BMC aims to meet the needs of the market by bringing new products or services (including technologies) to the market, while there is the possibility of creating a completely new market. It also states that a BMC can be described through nine core components covering four main areas of the business: customers, supply, infrastructure and financial viability. The nine core components are made up of Customer Segments, Value Propositions, Channels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, Key Partnerships, Cost Structure. Other authors define BMC as a tool for visualising a business model, exploring the relationships between managers (owners) and their customers, while establishing the interconnections between them [66].

Another definition of this concept is the reconfiguration of several relevant elements, which answers the questions “who? what? And how?” with the aim of improving the value potential of the business. This tool helps entrepreneurs to analyse their activities and relationships and design their business strategy [67]. Designing a BMC consists of interviewing the manager (entrepreneur) or management, and conducting a business model analysis [67,68].

Another analysis used in this study is the SWOT analysis. Sahoo [69] defined SWOT analysis as a technique used by researchers to prioritize objectives and identify strategies carried out by the company. Through it strengths are analysed, weaknesses identified, opportunities and threats are established.

According to Hamidreza [70], SWOT analysis is a tool for assessing the internal environment (strengths, weaknesses) covering issues related to people, products, services and the external environment (opportunities and threats) covering the political, economic, technological environment. This identifies the organisation’s past and the direction in which it can move and sets the strategy for future business development.

Suwanmaneepong [71] says that SWOT analysis is a prioritization system that combines internal factors represented by strengths and weaknesses with external factors represented by opportunities and threats, thus performing an environmental scan.

According to Hosseini [72], SWOT analysis is a model that demonstrates the potential of a business, how it can be enhanced and helps to achieve goals and minimize obstacles. Also, this tool helps in proper resource allocation and facilitates risk management.

3. Methodology

The study was conducted at farmer level, highlighting both the theoretical and practical aspects of their work. It consisted of four stages:

• Adapting the BMC to the study purpose;
• Identify successful farms that can be a model for the development of other family farms following the same pattern (described in detail in the table below);
• Conduct interviews with stakeholders;
• Interpretation of the data obtained (BMC and SWOT analysis of the farms-of the case studies).

The hypotheses underlying the study were:

Hypothesis 1.

The development of family farms is determined by membership of an associative form.

Hypothesis 2.

The development of family farms is determined by other complementary activities that add value to the products marketed.

The questions to the family farm representatives were open-ended, starting from a few basic questions, and depending on the answers received, further questions were asked. Before the questions were asked, the profile of the farms was determined in terms of the farm profile, the area farmed, the main crops grown, the number of members on the family farm and the profit recorded at farm level (Figure 1).

The field team that conducted the meeting invited seven farm representatives (farmers) on different dates in a pleasant and relaxed environment. An eliminating aspect in the selection of farmers running family farms considered as successful, was first of all the profitability at the farm level, which was related to the number of members carrying out agricultural activities on the farm, and the result obtained had to be greater than or equal to the average monthly income on the economy, recorded in Romania (3176 lei, approximately 636 euro) multiplied by 12 months (Figure 2).

Another important criterion in the selection of farms was their physical size, taking into account that out of the total of 3.34 million farms in Romania in 2016 (the most recent data), about 3 million (92%) have an area of less than 5 hectares. Therefore, large and very large, economically performing farms were excluded from this study, focusing the analysis around farms with a physical size of up to 300 ha [58]. Moreover, farms involved in organic farming were selected for the sustainable farming practices that they are implementing at farm level.

A final criterion that was taken into account in the selection of participants was that the farm was indeed a family farm, with activities on the farm being carried out by at least two members.

The data obtained was qualitatively evaluated and translated into a BMC to identify key partners, key activities, value proposition, customer relationships, market segments, key resources, distribution channel in order to establish the premises on which family farms can be developed as a model for other farms (

Table 1. Farmer Profile.

Case Study 1
Type of business	Medium-sized farm specialising in growing cereal and oilseed crops
Main crops	Rapeseed, sunflower, wheat, maize
No. of family members working on the farm	2
Farm profitability	Farm profitability ≥ 15,264 euro/year
Type of farming	Ecological
Case Study 2
Type of business	Small-scale farm specialising in growing vegetables
Main crops	Tomatoes, cucumbers, peppers
No. of family members working on the farm	4
Farm profitability	Farm profitability ≥ 30,528 euro/ year
Type of farming	Ecological
Case Study 3
Type of business	Small-scale farm specialising in growing vegetables
Main crops	Tomatoes, eggplants, peppers
No. of family members working on the farm	2
Farm profitability	Farm profitability ≥ 15,264 euro/year
Type of farming	Ecological
Case Study 4
Type of business	Medium-sized farm specialising in growing cereal and oilseed crops
Main crops	Rapeseed, sunflower, wheat, maize
No. of family members working on the farm	2
Farm profitability	Farm profitability ≥ 15,264 euro/year
Type of farming	Ecological
Case Study 5
Type of business	Small-scale farm specialising in growing leguminous crops
Main crops	Soybeans, peas
No. of family members working on the farm	3
Farm profitability	Farm profitability ≥ 22,896 euro/ year
Type of farming	Ecological
Case Study 6
Type of business	Small-scale farm specialising in growing vegetables
Main crops	Cucumbers, tomatoes, peppers
No. of family members working on the farm	2
Farm profitability	Farm profitability ≥ 15,264 euro/year
Type of farming	Ecological
Case Study 7
Type of business	Small-scale farm specialising in growing vegetables
Main crops	Cucumbers, tomatoes, peppers
No. of family members working on the farm	3
Farm profitability	Farm profitability ≥ 22,896 euro/year
Type of farming	Ecological

Source: Centralized data after collection.

).

4. Results

In recent years, this topic has been intensively addressed by various authors, aware of the implications that the development of family farms has on the socio-economic development of rural localities.

The figure shows terms related to family farms and other terms studied over time. In 2012 and 2013, researchers were concerned with rural development, agricultural policy, variability, attitude, degraded areas, nutrition, health. In 2016–2017 topics included family, quality, genes, health, population, temperatures, aquaculture. In 2018 researchers focused on management, diversity, agriculture, areas used, climate change, resilience, information, plants, water, vegetation, alignments. In 2019, researchers focused on family, environment, sustainability, food security, generations, mechanism, biomass discovery (Figure 3).

The map shows the relationship between the co-author countries, the degree of relationship and the interest in the topic under analysis. The countries with a particular interest in family farms are England, Spain, Italy, France, Germany and the United States, illustrated by the size of the clusters, and the colours represent the research directions for each country. Moreover, the distance as well as the thickness of the links between countries shows the level of cooperation. Romania is closely linked to Serbia, Lithuania, Croatia, Estonia and Hungary (Figure 4).

In the first case study, the role and positive influence of joining an associative form (cooperative) was identified. In this sense inputs are purchased at cooperative level, having a significant impact on production costs, although the area farmed by this family farm is not very large (less than 300 ha). A large part of the logistical services are carried out through the cooperative, with a favourable impact on the farm’s expenses. Also, when crop problems arise (pest attacks), a consultant from the cooperative provides advice about the most effective treatment.

By belonging to an associative form, the family farm has easier access to new technologies, but also a security in terms of selling products, with financial security, which allows investment in modernization/expansion of the farm. Locally and regionally, the inhabitants of these areas prefer to purchase products obtained from cooperative members (including case study 1) rather than supermarket products, thus encouraging the local economy. Activities on the farm are mainly carried out by family members, rarely with the help of people outside the family. Profits at farm level, in relation to the number of family members, provide a reasonable living, allowing all family members to continue to carry on their work and life in the countryside.

In case study 2 the small family farm specialising in growing vegetables (ecological type of farming) relies on the support of the local authorities, which frequently organise fairs for the sale of vegetable products by farmers in the community. It is basically a continuation of a tradition, which the local authorities have preserved, thus creating facilities for farmers. Proximity to urban centres and the influence of social media has led to the development of the business by promoting and selling products directly to the consumer, eliminating intermediaries. At the same time, this proximity allows families with children in large urban centres to come and pick their own produce, and the little ones can better understand where the vegetables come from.

The profitability of the family farm is mostly influenced by the processing of produce, by turning tomatoes into tomato paste or cucumbers into pickles. The profit gained, prevents the family members from continuing the activities and from further development. The activities on the farm are carried out exclusively by the four members of the family, but in time they intend to acquire technically and economically efficient machinery.

In case study 3, a small family farm specialising in growing vegetables (ecological type of farming), the determining factor in its profitability is its membership of an association, where products are processed and marketed jointly and the main customer is the local supermarkets. Supermarket customers prefer these products from Romanian farmers, as they are in demand, so contracts are renewed annually, driven by the growing demand for these products.

Case study 4, a medium-sized family farm specialising in the cultivation of cereals and oilseed crops (ecological type of farming), has as a determining factor in achieving profitability by the investment made in storage facilities for cereals and oilseed crops, which allows them to sell their production when the market price is highest, compared to other farmers who usually sell their production immediately after harvesting. The size of the storage facilities, beyond the possibility of on-farm production, has made it possible to rent or buy cereal/oilseed products for resale when the best price is obtained. At the same time, crop residues are used to produce biomass.

In case study 5, a small family farm specialising in the cultivation of leguminous crops (ecological type of farming), the defining factor of its profitability is the processing of the products grown and their marketing through supermarkets. The investment made at farm level was made possible by European funds which covered a large part of the investment.

Case study 6, a small family farm specialising in growing vegetable crops (ecological type of farming), has as a determining aspect of its profitability by the fact that it belongs to an association which processes and markets its members’ produce. The machinery used in agricultural activities belongs to the cooperative, so the farm does not have to make large investments which pay for themselves over a long period of time.

Case study 7, a small family farm specialising in growing vegetables (ecological type of farming), relies on the support of the local authorities, which organise events, and on its proximity to urban centres, where demand for fresh vegetables is high.

Based on discussions with the representatives of the family farms, the key factors for the development of successful family farms were determined and mapped into a BMC (

Table 2. BMC-Key factors that ensure the development of a “successful” family farm.

(PC) Key Partners and Partnerships Cooperative and its members; Local administrations; Supermarket; Logistics service providers; Research centres for technology transfer; Policy makers;	(AC) Key Activities Keeping production technologies up to date; Marketing activities; Encouraging the purchase of local products among Romanian consumers;	(PV) Value Proposal Use of plant residues for biomass production; Selling products via online platforms; Production processing (through cooperatives); Setting up storage facilities;		(RC) Customer Relations Direct sales through point of sale; Online sales; Distribution through specialised retail networks; Sales through supermarkets; Sales through cooperatives;	(SC) Market segments Industrial customers; Individual customers (households, office buildings); Local/regional public administration (schools, hospitals, state institutions);
	(KR) Key Resources Labour force (family members); Group strength (cooperative); Financial resources; Production line;			(CA) Channel Personal communication; Fairs; Social media;
(SC) Cost Structure Raw materials; Investment in production line (equipment and technology; maintenance of equipment) or storage facilities; Marketing and sales; Logistics expenses;			(FV) Revenue Flow Product sales; Leisure and agritourism services;

Source: in-house processing.

).

On the basis of the data collected, the following diagram was made to reflect the premises underlying the contribution of family farms to sustainable development (Figure 4).

The family farms studied, which are considered to be successful in terms of the profitability registered on the farm in relation to the number of family members, corresponding to an average monthly income registered in Romania, influence the three dimensions of sustainable development (Figure 5). Profits recorded by all seven family farms analysed are considered successful, as the income per family member is at the level of the Romanian average wage, thus ensuring financial stability for the members. By paying local taxes, local authorities have funds that can be used to develop these local areas. Also, family farms that are considered economically viable or that are part of an associative form can make investments in the purchase of machinery, processing or storage facilities (Figure 4).

In terms of the environmental impact of these farms, they have a more environmentally friendly profile, particularly as the farming system they use is ecological and considered less harmful. This factor also ensures higher incomes among farmers, as products are sold at a higher price (Figure 4). The farmers analysed make full use of all the resources obtained, including the resulting secondary production, a concept known as the circular economy [73]. The social dimension plays an extremely important role, through family farms considered successful, in reducing poverty, ensuring local food security, but also in combating the depopulation of rural areas, in the sense that family members prefer to continue working on the farm, rather than seeking employment in urban areas, as long as the income obtained is comparable to what they would have obtained in urban region (Figure 4).

By determining the BMC, following the identification and analysis of successful family farms, it can be used as a model by other family farms in the subsistence and semi-subsistence category, which will contribute to sustainable rural development.

Following discussions with representatives of family farms, strengths, weaknesses, threats and opportunities were identified (

Table 3. SWOT analysis of family farms studied.

Strengths	Weaknesses
Economic Joining an associative form that favoured the processing and marketing of agricultural products obtained on family farms (lower input prices, easier access to the market and better value for money). Strength of the group (cooperative)-greater bargaining power in terms of purchasing inputs and selling prices of products. Support from local authorities. Diversification of agricultural activities into non-agricultural activities (agro-tourism). Social The workforce-the family. Maintaining family ties. Local traditions and customs are preserved Preservation of national identity and local specificity Technical Access to high-performance machinery and equipment; Access to new technologies through links with research centres; Environment Use of secondary production in biomass production (income diversification). Protecting the environment and maintaining biodiversity (agricultural crops are food sources for insects, birds and animals).	Development Development through the expansion of family farms (purchase of land) is somewhat difficult, given that there are many farms, operating large areas, with a much greater economic power than family farms, which makes it impossible to take over/buy agricultural land. Legislative Lack of a legislative framework to define and support these categories of farms. Improving the current legislative framework on cooperatives to encourage family farms to join. Lack of EU-European funding measures exclusively for family farms. Social Shortage of labour, represented by day labourers, caused by an ageing population and the migration of young people. The impossibility of establishing a barrier between work-leisure time and regular family activities. Stress associated with a high workload without long breaks (leave). Economic Aspects of the tax regime. Poorly developed infrastructure leading to high transport costs.
Opportunities	Threats
Social The trend of increasing consumption of agri-food products, driven by rising living standards. Positive prospects for young people on the family farms surveyed to continue farming. Increased demand for agritourism services (non-agricultural activities) Economic Continuation of European funding programmes, which allow the development of farms. The existence of a “family farm product” certificate to distinguish family farm products from other production units (as in the case of “mountain products”). Environment Moving towards the bio-economy, using secondary production.	Economic Rising inflation, which will lead to higher inputs and thus higher prices. Higher than expected utility tariffs (electricity, gas, fuel), which will implicitly lead to an increase in the price of value added, and the lack of government measures to prevent these increases. High competition with imported products. Negative outlook for the unfolding of the current COVID-19 pandemic and other such events (crisis situations). Bleak outlook for the economy, which will slow down the country’s development process in the current context. Social The ageing of the population and the migration of young people to urban centers, which will worsen the situation of the local workforce (day labourers).

).

5. Discussion

According to the data obtained and analysed from the interviews, the key partners that ensure the development of family farms are the membership of associations (cooperatives) that facilitate the sale of products in supermarket chains. Local administrations play a key role in the smooth running of family farms, providing a market for the products they sell, as well as local infrastructure (water, communal roads, gas, etc.). Collaboration with research institutes, facilitated through cooperatives, provides farmers with the latest and most useful technologies to ensure higher yields adapted to local conditions and lower production costs. Policy makers, through the measures they take, provide stability by ensuring an income at farm level. For example, support for tomato growers to reduce production costs related to the heating of protected areas (Table 2).

Keeping up to date with the technologies used in production is absolutely necessary, and supported through collaboration with research units. Marketing is an important component that facilitates sales, particularly indirectly, in that supermarkets promote the products sold in their chains as being ‘made in Romania’ or from ‘local producers’. This reorientation of Romanian consumers towards Romanian products, even if relatively moderate in intensity, has led to an increase in demand for such products, and implicitly to the reorientation of retail chains towards this type of products from Romanian farms (Table 2).

New trends in the circular economy, but also driven by the need to earn additional income by exploiting secondary production (biomass production), have encouraged this practice, where investments have been made. The COVID-19 pandemic has affected the sale of products, with the closure of markets and restrictions at supermarket level, leading to a repositioning of the sales method. Cooperatives, with their well-developed systems, facilitate the processing of the produce obtained by their members, adding value to primary production. In the case of holdings which are not part of an association and which do not process production, an alternative is to set up storage facilities, which help to maximise the selling price of the production obtained (Table 2).

In today’s world, maintaining a link with customers and promoting products via the internet is no longer an option, but rather a necessity, as long as the aim is to increase income at farm level (Table 2).

In addition to income from the sale of production or processed products, other related services such as leisure and agritourism can also contribute and be successfully combined (Table 2).

Clearly, belonging to an associative form (H1) favours the development of family farms through the many advantages it offers, all the more so as their individual competitive strength is extremely low.

Development and exploitation through complementary activities (H2) is also absolutely necessary for their development.

6. Conclusions, Implications and Limitations

Romania has a large agricultural area that makes it possible to farm both large and very large, economically viable and efficient farms, ensuring national food security. Both small and medium-sized farms, which could be represented by family farms, could contribute to the good socio-economic development of rural areas.

The family farm in Romania, and not only in Romania, can be considered “successful” as long as the profit obtained at farm level can be sufficient to ensure a relatively normal living conditions. In this sense, the profit can be related to the level of the average wage in the country, so that the farmer and family members are at least in the ‘middle class’ of society. This will also encourage young people to take into account farming or to keep and develop the family farm.

The prerequisites for the development of family farms are based on joining an associative form and/or processing/storage of the production obtained, and not least on the way in which value is added, while providing stability. Without taking this step, the farm cannot achieve sufficient income to provide an adequate standard of living for family members and is eventually assimilated by larger farms.

At the same time, even farms that are considered ‘successful’ face many problems in staying in the market and making a sufficient profit. These include: limited possibilities to expand the farm by buying land, lack of an adequate legislative framework, labour shortages caused by an ageing rural population and the exodus of young people to urban centres, and social issues related to workload that can affect health or family relationships.

A custom that kept the family together, especially at a time when agricultural work was done entirely by man with the help of animals. “The ‘head’ of the family and his sons carried out these activities, while his wife and daughters took care of the household activities. However, at lunchtime the wife would come and bring food to the husband and children, thus having lunch together and having time to disconnect from the work undertaken, creating a connection between the family members that lasted over time.

The “stress” factor presents a problem for this category of farmers, in that most of the time, activities on the farm, exceed the 8 h of work and are not evenly distributed throughout a day. In addition to the stress caused by the lack of leisure time, family relations are disrupted, so that family unity comes precisely from the traditions and customs of the area.

The fierce competition with large farms and imported products makes it difficult to develop these types of farms, but their association and the processing of production can bring prosperity to the region, both for the families involved in these activities and for local residents and administrations.