Romania’s rural areas (INSSE, 2007) are home to 10 mil. people (45% of national population). Land reform and agricultural sector restructuring post 1989 resulted in the creation of 3.9 mil. family farms (average area 2.3 ha) mainly operating on a subsistence basis. 27.5% of national labor force works in agriculture and forestry, and agriculture remains the backbone of the rural economy. Rural population is affected by aging and out-migration, low human capital levels, unemployment, low incomes, poverty. Rural areas also lag behind in terms of basic infrastructure and social services (education, health care etc.) Since 1997, Romanian government’s EU-inspired rural development strategy promotes rural economic diversification; CAP pre-accession financial instruments (SAPARD) have been used for the creation of alternative employment and sources of income, for more sustainable rural livelihoods (CAP’s second Pillar). As a result, in 2007, about 21% of Romanian farms are diversified (main activities: agricultural products processing, livestock feed, agricultural services, wood processing; agri-tourism lags far behind). Rucar, a rural community in the Romanian Southern Carpathians, is the focus of the present research; in 2007, it had a population of over 6200 and about 2600 households (3.0 ha/average family farm). Since 17th c., traditional pluriactivity in Rucar combined livestock farming with on- and off-farm activities (civil service, crafts, trade, other services). During communism, the farming sector was complemented with employment in industry, forestry, constructions, administration, education and health care sector, either local or within commuting distance. After 1989, economic restructuring and loss of non-farm employment led to a revival of farm diversification strategies, but the most important change is the establishment of new SMEs in various sectors, providing alternative employment and sources of income. Our investigation on the changing patterns of farm diversification and pluriactivity is based on local statistics, interviews with local authorities and key informants; also, structured interviews and questionnaires with 50 sample households. A majority of the 46 pluriactive households (38) rely as their main source of income on salaries, pensions and other social benefits (unemployment etc) or a combination of the three (6 households with 2 salaries, 11 households with 2 pensions, 2 households on social benefit). Most households in the sample are involved in farming. Farming represents the main activity for 3 households but is a secondary activity on 43 households: 3 large scale commercial operations, 12 semi-commercial, 28 subsistence farms; only 4 non-farming households were recorded. The activities preferred for diversification were: wood processing (main activity for 2, second activity for 8 households), agricultural products processing (main for 3, second for 5 households), construction work (main for 2 households, second for 2), rural tourism (second activity for 13 households), retail/trade (main for 2, second for 1 household). Such activities are either farm-based (family associations) or independent businesses (SMEs). Access to financial assets, along with managers’ age, education, skills and social capital play a key role in the establishment of new SMEs. The complex and changing pattern of combinations of farming, on- and off-farm diversification and pluriactivity reflects Rucar’s dynamic rural economy. Since 2010, a new local development strategy is expected to provide the framework for the community’s long term economic and environmental sustainability.
