Albanian farmers receive 18 times less financial support from the state than other countries in the region, according to an analysis published by the United Nations Food and Agriculture Organisation.
Farming contributes to around 20% of Albania’s annual gross domestic product. But more than that, it provides essential sustenance for many who do not work outside of the agricultural sector and rely on farming for food.
The FAO report shows that Albanian farmers only receive EUR 3 of direct support per hectare from the state, while EUR 42 goes to institutions and entities that monitor the agricultural sector. This is the inverse of the situation in other countries where the majority of funds go directly to the farmer.
In Kosovo, EUR 69 per hectare goes to the farmer and EUR 54 to administration, while in Bosnia, EUR 66 goes to the farmer and 60 to the administration.
On average, Western Balkan countries gave some EUR 53 per hectare to their farmers, while in Albania, this figure was 18 times less at just EUR 3.
The FAO report notes that the government provides very little in the way of public funding for farmers, and the money designated for the sector does not go where it should.
With this level of funding, the report said that the state does not provide sufficient assistance to farmers to face market competition, prevent rural depopulation, or increase productivity. As such, the country should urgently increase direct funding and improve the functioning of institutions so that funds can be absorbed properly.
To meet EU criteria, Albania must allocate equivalent to one-third of what it expects in EU funding. Therefore, Albania must increase its allocation for agriculture by at least five-fold.
But the situation for farmers is even more dire when you look at their income.
In 2021, some 41% of Albanians worked in the agricultural sectors, but the majority did not receive any form of salary.
As of the middle of 2021, according to INSTAT, just 54,000 of the 540,000 agricultural workers paid social security, while the rest reported being self-employed without pay.
This is due to workers being ‘employed’ in the family business, producing sustenance to live, or being self-employed. There are also many who operate in the informal economy.
Earlier in May, it was announced that some EUR 112 million of EU funds was destined for the Albanian agriculture sector as a part of the IPARD III programme.
The programme covers the years 2021 to 2027 and seeks to support sustainable food systems by increasing the agri-food sector’s competitiveness and progressively aligning it with the EU acquis. In addition, it seeks to improve the efficiency and sustainability of on-farm production to meet the demand for safe, nutritious and sustainable food and animal welfare.
Other key tenets of the initiative include facilitating business development and employment in rural areas and elevating farmers’ position in the value chain. It also helps to attract more farmers to the sector and improve community development on a local level.
The Albanian government will add another EUR 34 million to the EU figure, bringing the total to EUR 146 million.
