THE IMPACT OF CAP REFORM ON ROMANIAN AGRICULTURE

The paper attempts to evaluate, on the basis of two scenarios (moderate and radical), the effects of CAP reforming compared to the situation of current CAP scenario and its effects upon welfare. Direct payments for the large farms, some of them operating on thousands of hectares, cannot contribute to the objective of supporting farmers’ incomes. The solution for the modernization of rural areas seems to be their “urbanization”, through investments in infrastructure, development of community services and a move away from farming to other economic sectors.