THE ANNALS OF “VALAHIA” UNIVERSITY OF TARGOVISTE 2016 DOI: 10.1515/agr-2016-0005 BIOECONOMIC SIGNIFICANCE TO DIVERSIFY THE PRODUCTION IN ROMANIAN AGRICULTURE Mariana Sandu 1 ,Virgil Moise 2 1 Romanian Academy, Center for Studies and Researchers of Agroforestry Biodiversity, Calea 13 Septembrie, no. 13, 5 th district, Bucharest, Romania 2 Valahia University of Targoviste, Bdv Carol I, No. 2, Romania E-mail: marianasandu47@gmail.com Abstract Agricultural diversification is an important mechanism for economic growth. With the globalization of markets, diversification of agriculture has as result the increasing crop productivity in terms of quality, quantity and monetary value. The purpose of this paper is to give an overview of Romanian agriculture in terms of diversifying production. Based on the National Statistics Institute, it analyzes the dynamics of vegetable and animal sector in terms of cultivated areas, livestock, the total and average production obtained. Romanian agriculture is at a disadvantage due to excessive fragmentation of ownership, low use of agricultural land through cultivation or weak endowment with agricultural machinery and lack of organization. We conclude that agriculture as a whole, had not a positive development. Fluctuations in the main indicators of production are the consequences of the long transition period and of the incoherent policies on agriculture in general and to each sector, in particular. Keywords: agriculture, diversification of production, indicators, productivity 1. INTRODUCTION Agricultural diversification is an important mechanism for economic growth. This can be facilitated by the introduction of new technologies, changes in consumer demand, government policies, infrastructure development and or may be hindered by the risks of practices in crop management, the prices on international markets and natural resource degradation. Diversification of agriculture refers to the shift from the regional dominance of a certain culture, the regional production of a number of crops in order to satisfy the growing demand for grains, legumes, vegetables, fruits, oilseeds, fiber, forage, fuel, and so on in order to improve soil health and creating a dynamic equilibrium in the agro- ecosystem. With the globalization of markets, diversification in agriculture has as result increased crop productivity in terms of quality, quantity and monetary value. [2] There are two approaches to diversification of agricultural systems. First it is horizontal diversification, which is the primary approach to diversification of production in crops. Here, diversification occurs by enhancing crop by adding new crops of high value to existing culture systems, as a way to improve the overall productivity of a farm or agricultural economy of the region. The second way is the vertical approach of diversification, when farmers add value through processing the products. [3] Generally, farmers tend to perform activities that increase their income, reduce their physical exertion, financial risk and need of work. There are various ways in which diverse agricultural systems can help farmers to maximize profit, including their roles in alleviating various types of risks. Farmers face several risks, including price risk (ie the risk that the price they receive for yields to be lower than the average in a given year), the risk of yield obtained (eg risk as pest infestation and drought cause lower yields than average), the risk of entry (ie the risk of a shortage of labor in a critical point in the production process) and other risks (eg risk a family member is sick or defective tractor). [4] Many of these types of risk (price risk, the risk of yield) directly contributes to the risk of profit, which ultimately, is the most important for the producer. Farmers and their families may respond to the risks in many ways, respectively, before the event, precautionary measures, or after the event through measures that consider minimizing losses. [5] Another economic incentive for farmers to adopt diversified agricultural systems is the market potential, the capacity of products to attract a growing number of consumers and the impact of these products on their health and the environment. [11] Finally, agricultural policies through regulations, taxes and subsidies, may impact on the development and profitability of farming systems by influencing farmers' decisions on the types of crops and land area cultivated or facilitating trade in certain agricultural products. [7] Just as there are economic reasons for a farmer to choose for diversifying the production, in response to the constraints of risk, biophysical or capital market conditions, there are many other reasons for a farmer to specialize in the production of a specific crop. Modernization of agriculture has led to more specialization and by the introduction of fertilizers and synthetic chemicals there is no need for additional animal waste as an input in agricultural production. On the other hand, harvesting and processing of agricultural products also contributed to this trend toward specialization and