Agricultural Credit for Romanian Farms

The potential of agriculture financial support is very important for farms. One of this financial supports is the bank credit, especially the agricultural credit. Agricultural credit means a certain degree of risk for the banks. Banks must analyze and identify risks in al five stages of the unfolding crediting process. Agricultural credit brings along specific risks for banks, in connection to: the pressure from the natural and economic environment, the season despondency of agriculture production, the time gap between harvest and product selling, etc. The access of agricultural farms to the bank credit offer is determined by a series of factors having a negative or positive influence, meaning the farms financial performances and the efficient management of risks by commercial banks. The analysis made by commercial banks in crediting begins with client selection and stretches to the dimensioning of the maximum credit volume that can be given to a petitioner. The evolution of agricultural credits in the period 2006 - 2009 and their percentage in the total bank crediting is unsatisfactory and extremely low for the development of a performing agriculture. This means it is necessary for banks to rethink and implement a flexible crediting system.