Grants for Israeli growers who stop pepper production
As part of the new program, farmers who convert their pepper growing areas to other crops will receive grants from the state at a sum of 70%, in an attempt to diversify the risk of farmers in peripheral areas and to maintain the existence and growth of agricultural communities.
Peppers have been the most significant export crop in Israeli agriculture in the last several years, with most of the growing areas located in the Arava, an area that relies on this crop as its main source of employment. Following the crisis in the field of agricultural export to Western Europe and Russia, which are the main target markets for the exportation of fresh agricultural produce, the Ministry of Agriculture and the Ministry of Finance have reached an agreement concerning a new program designed to help the pepper farmers from the peripheral areas overcome the crisis, and continue working in agriculture with a better diversification of risks for the future.
A team led by the Acting Director General of the Ministry of Agriculture and Rural Development, And the Deputy Budget Director, together with the Israeli Farmer’s Federation, drafted an “aid package” intended for the fresh pepper exporters, which also provides a comprehensive focused solution for the Arava area.
As part of the program, whose budget stands at a total of 100 million NIS, farmers will be able to apply to the Ministry of Agriculture for receiving state issued grants, at a total amount of 70% of the amount invested, and for the first time will also be able to receive a down payment of 20% of the invested amount upon submitting the certificates required from farmers whose main crop is pepper, in order to convert their growing areas from pepper to other crops.
At the same time, a model for providing farmers whose crops are intended for export with long term loans from banks based on a state guarantee is also being examined currently.
In addition, a new track for encouraging farmers to organize together for joint export will be published, together with strengthening the regional agricultural R&D in order to develop alternative crops to peppers.
Both the Ministry of Agriculture and the Ministry of Finance view the preservation and strengthening of agriculture as of the outmost importance. The new program demonstrates the preservation of agricultural communities in peripheral areas of the country, together with the consolidation of the agricultural industry as a competitive and financially viable one.
Author:
Ari Goren
Mail:olgoren@bezeqint.net